Miramar Hotel and Investment Company, Limited (HKEX: 71) Announces 2025 Annual Results

Key Financial and Strategic Highlights

• Revenue: Decreased by 9.7% to HK\$2,581.4 million from HK\$2,858.4 million in 2024.
• Profit Attributable to Shareholders: Down 9.3% to HK\$677.5 million (2024: HK\$746.6 million).
• Underlying Profit: Dropped 16.2% to HK\$695.6 million (2024: HK\$830.5 million). Underlying profit excludes post-tax effects of investment property revaluation movements.
• Earnings Per Share (EPS): HK\$0.98 (2024: HK\$1.08); Underlying EPS: HK\$1.01 (2024: HK\$1.20).
• Dividends: Final dividend of HK30 cents per share proposed, total annual payout unchanged at HK53 cents per share. Dividend payout ratio remains consistent, reflecting a stable capital return policy.
• Financial Position: Strong cash position of HK\$6.4 billion and zero gearing (no borrowings). Available credit facilities of HK\$0.9 billion unutilized, indicating high financial flexibility and low risk.
• Net Asset Value (NAV): HK\$21.43 billion as of 31 December 2025, up from HK\$21.10 billion in 2024.

Strategic and Operational Review

2025 was marked as a period of strategic investment for Miramar Group. The company focused on upgrading and transforming its core businesses, aiming to enhance asset quality, customer experience, and operational efficiency. This resulted in transitional impacts on short-term results but is expected to yield sustainable growth in the medium to long term.

• Hotels and Serviced Apartments:
  • Revenue fell 5.9% to HK\$561.9 million. EBITDA down 16.9% to HK\$116.3 million.
  • Average occupancy rates remained high: The Mira Hong Kong at 88.5% (down 3.6pp), Mira Moon at 93.0% (down 2.4pp).
  • Business travel segment suffered from US-China trade tensions, especially during April-October, impacting suite occupancy and business traveler demand.
  • Proactive pivot to capture leisure and event demand (Kai Tak Sports Park, “mega event economy”). Notably, renovations at The Mira Hong Kong reduced available rooms by 10% but occupancy remained robust.
  • Strong focus on Muslim-friendly services: The Mira Hong Kong recognized as “Muslim-Friendly Hotel of the Year,” both hotels achieved CrescentRating Level 5. Cuisine Cuisine became Michelin-recommended halal-friendly restaurant—potentially opening new high-value markets in the Middle East and ASEAN.
  • Both hotels entered the top ten of Condé Nast Traveller UK Readers’ Choice Awards 2025 for the first time.
  • Accelerated smart hotel upgrades (IoT room control, LED, energy-saving tech) expected to reduce energy use per room by 30% upon completion (2H 2026).
• Property Rental:
  • Revenue at HK\$772.8 million (down 2.3%), EBITDA HK\$649.6 million (down 2.2%).
  • Proactive leasing strategy secured longer-term tenancies amid new supply pressures (3.76 million sq.ft. in Tsim Sha Tsui by 2027).
  • Tenant mix optimization increased semi-retail proportion to nearly 60%, driving higher rents. Office portfolio performed well with stable occupancy and rental growth.
  • Shopping mall tenant mix upgraded, key tenants expanded, and experiential retail concepts introduced. Some short-term rental income impact due to tenant handovers and renovations, but overall occupancy and rent stable (excluding one-off effects).
  • Street-front shop renovations completed, enhancing mall image and value. Potential for increased rental income and growth as works finish.
• Food and Beverage:
  • Revenue decreased 9.1% to HK\$264.1 million. EBITDA was HK\$3.2 million, but excluding one-off closure/write-off expenses, EBITDA was HK\$9.3 million (2024: HK\$11.3 million).
  • Challenging environment due to Hong Kong residents’ northbound consumption and intensified competition. Proactive closure of underperforming outlets to boost efficiency.
  • Investment in key restaurant renovations and service upgrades aims to reinforce high-end and business banquet positioning.
  • “Southbound Travel for Guangdong Vehicles” policy may stimulate premium dining sector by attracting affluent tourists.
• Travel Business:
  • Revenue dropped 16.7% to HK\$982.6 million. EBITDA plunged 64.9% to HK\$35.8 million (2024: HK\$102 million).
  • Post-pandemic travel surge faded; business affected by Israel-Iran conflict, Southeast Asia fraud, natural disasters suppressing demand to Japan and Southeast Asia.
  • Swift adjustment of product mix and destinations, investment in digital sales/marketing to mitigate adverse impacts and prepare for recovery.

Other Notable Developments

• Investment Properties: Net revaluation loss narrowed to HK\$12.7 million (2024: -HK\$76.7 million). Book value at year-end: HK\$15.1 billion. These are held for long-term recurring income, with revaluation loss non-cash and no effect on cash flow.
• Cost Controls: Operating costs rose just 0.4% (excluding FX impact), reflecting disciplined management despite inflation. Increased spending in digital transformation is expected to yield long-run cost savings through automation.
• Staff: 1,339 full-time employees as of year-end, with strong focus on training and talent development. Recognized as a “Manpower Developer” and “Super MD” for ten consecutive years.
• Corporate Governance: All Corporate Governance Code provisions met except for the combined roles of Chairman and CEO (Dr. Lee Ka Shing), which the Board believes ensures leadership continuity and strategic execution.
• Dividends: Final dividend of HK30 cents to be paid 10 July 2026 (subject to AGM approval), total payout for 2025 remains HK53 cents per share. Register closes 12-15 June 2026 for final dividend entitlement.

2026 Outlook and Forward Guidance

• Macro Risks: The Group expects continued pressure from geopolitical uncertainties, trade tensions, and interest rate policies. However, Hong Kong’s integration with the Greater Bay Area, new airport infrastructure (full three-runway system, Terminal 2 opening), and new flight routes should boost inbound tourism.
• Growth Drivers:
  • Increased passenger capacity and new routes should attract more visitors from the Middle East, ASEAN, and Belt and Road countries, supporting hotels and tourism.
  • The Mira Hong Kong’s Muslim-friendly positioning is expected to drive new market growth.
  • Completion of hotel renovations will enhance positioning, asset quality, and pricing power.
  • Ongoing investment in digital transformation and sustainability to support long-term value creation.
• Management Outlook: The Group remains cautiously optimistic about business recovery and is committed to generating sustainable, long-term returns for shareholders.

Potential Price-Sensitive and Shareholder-Relevant Issues

• Revenue and profit decline may weigh on immediate investor sentiment, but strategic investments and strong balance sheet suggest medium-term recovery potential.
• Stable dividend payout signals Board confidence and commitment to returning value to shareholders despite short-term earnings pressure.
• Zero gearing and large cash reserves provide a buffer against market shocks and position the Group for opportunistic investments or share buybacks if needed.
• Recognition in international awards and Muslim-friendly initiatives could be catalysts for future growth, especially if new market penetration succeeds.
• Ongoing renovations and digital upgrades may temporarily affect short-term results but expected to significantly enhance asset value and operational efficiency.

Important Dates for Shareholders

• Annual General Meeting: 8 June 2026
• Book Close for AGM: 3-8 June 2026
• Book Close for Final Dividend: 12-15 June 2026
• Dividend Payment Date: Expected 10 July 2026

Disclaimer

The above article is a summary and analysis of the Miramar Hotel and Investment Company, Limited 2025 annual results based on the official disclosure. It is intended for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult professional advisors before making investment decisions. Actual future performance may differ from forward-looking statements due to risks and uncertainties.

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