Hongkong and Shanghai Hotels sees improvement in Q1 occupancy

HONG KONG (AFX-ASIA) - Hongkong and Shanghai Hotels Ltd said its hotels saw improvements in average room rates and occupancies in the first quarter despite the traditional low season, but voiced a cautious outlook.	    Chief executive Pierre Boppe said: "The performance of the operations in the first three months is encouraging. However, we remain cautious on the outlook in the face of conflicting economic data and equally varied opinions."	    The room rates and occupanies were good in both January and February but were "somewhat disappointing" in March.	    "We are watching closely the shifts in market fundamentals in the USA especially," Boppe said.	    In a statement, the company said its Peninsula Hong Kong hotel recorded 58 pct occupancy in the first quarter, against 53 pct in the corresponding quarter last year while the room rate rose to 3,004 hkd from 2,917 hkd previously.	    The Kowloon Hotel occupancy reate rose to 90 pct in the first quarter, up from 89 pct previously, while room rates rose 12 pct to 532 hkd.	    The Peninsula Bangkok saw average room rates rising by 52 pct to 119 usd, with an occupancy of 81 pct from 79 pct previously.	    The Palace Hotel Beijing's occupancy in the first quarter rose to 58 pct, although the average room rate dropped to 75 usd from 81 in the same period last year.	    The Peninsula Manila saw its occupancy rate falling to 47 pct from 63 pct a year earlier due to economic and political problems in the Philippines. The average room rate rose by 10 pct to 109 usd, it added.	    The Peninsula New York's occupancy rate fell to 66 pct from 73 pct last year, while the average room rate rose to 486 usd from 462 usd.	    The Peninsula Beverly Hills saw an 8 pct increase in average room rate to 420 usd, with the occupancy rate falling to 88 pct from 89 pct in the previous quarter.	    Quail Lodge Resort saw its room rates rising by 5.0 pct to 234 usd while the occupancy rate rose to 55 pct from 52 pct previously.	    The company's commercial property holdings saw improvements across the board. Occupancy at the Peninsula Hong Kong's arcade stood at 100 pct, occupancy at the the Kowloon Hotel arcade rose to 91 pct, while the occupancy rates at the Repulse Bay and the Peak Tower rose to 82 and 92 pct respectively.	    The company's Repulse Bay unfurnished apartments saw occupancy increasing from 81 pct to 97 pct in the first quarter, with the average yield per net square foot rising 13 pct to 35 hkd.	    Occupancy rates in the serviced apartments dropped from 67 pct to 64 pct with the yield falling 8 pct to 22 hkd per square foot. At its Landmark property in Ho Chi Minh City, occupancy fell to 78 pct from 82 pct previously, reflecting the continued economic uncertaintiies and increased competition.    

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