Langham Hospitality Investments (the “Trust”) and Langham Hospitality Investments Limited (the “Company,” Stock Code: 1270) have released their 2025 annual results, highlighting largely stable operations against a backdrop of continued market recovery in Hong Kong. The hotel portfolio recorded total revenue of HK$1,575.3 million, a slight year-on-year decline of 0.8%. Aggregate gross operating profit before the global marketing fee reached HK$509.3 million, while overall occupancy stayed around 91.0%. The food and beverage segment faced a 3.6% dip, partly attributed to shifting consumer preferences and a smaller banquet market compared to the previous year.
Total rental income, net of service fees, remained consistent at HK$401.9 million. Net property income stood at HK$380.3 million, edging down by 0.2% from the prior year. Finance costs dropped by 19.9% to HK$258.1 million, buoyed by a decrease in interest expenses on bank borrowings. As a result, profit attributable to holders of Share Stapled Units reached HK$54.2 million. Excluding fair value items, profit rose to HK$97.0 million, up by 92.1% year on year. Distributable income advanced 21.9% to HK$137.8 million.
The Trust Group’s final distribution is set at HK3.2 cents per Share Stapled Unit, doubling from the previous year’s HK1.6 cents. This represents 80% of distributable income for 2025, a level intended to preserve additional cash reserves for upcoming operational requirements and capital spending. As at the end of 2025, the hotel portfolio’s valuation remained at HK$15,895 million, and net asset value per Share Stapled Unit stood at HK$2.73, reflecting a stable asset base.
Looking ahead to 2026, the Trust Group anticipates a gradual uplift, supported by resilient visitor arrivals and event-driven demand in Hong Kong. Although cost pressures—particularly rising labor expenses—remain a consideration, the Trust Group expects its disciplined capital management, favorable funding environment, and robust positioning of the three asset properties to underpin a further recovery in operating performance and maintain sustainable distributions.