The operator of Peninsula hotels brand said on Wednesday that its board has approved renovation projects for both The Peninsula Hong Kong and The Peninsula Tokyo, with a total budget of about HK$2.1 billion.

The announcement came as the Hongkong and Shanghai Hotels Limited (HSH) said it swung to a profit of HK$23 million in the first half of this year from a loss of HK$289 million a year earlier.

"We expect demand to remain positive in the second half of the year, supported by the continued international travel recovery, resilient luxury demand and a growing preference for highly personalised experiences," HSH chief executive Benjamin Vuchot said in a statement.

However, he cautioned that some markets may continue to face headwinds from geopolitical tensions, currency fluctuations, and shorter booking lead times.

The company board decided not to declare an interim dividend after considering the firm's financial position and future funding needs.


Edited by Aaron Tam