HONG KONG— Hongkong and Shanghai Hotels, Ltd. has posted strong operating performance for the group in its hotels and non-hotel businesses in the first half of the year. According to Managing Director/CEO Clement K.M. Kwok, the increases in HSH’s turnover and EBITDA reflect the continuing underlying strength of the operating performance and sustained demand across the group’s hotels and properties. The total turnover for the period was up 17% over 2006 and EBITDA (earnings before interest, tax, depreciation and amortization) also increased by 17%. Profit before non-operating items increased by 22%. Kwok noted, “The positive operating environment for our businesses has continued for the six months ended 30 June 2007. Demand for quality accommodation remains strong at this stage, with continued ability to drive rates in our key markets. Whilst this positive background continues, however, many of our hotels already enjoy high occupancy levels and potential for further occupancy growth may be limited in some cases.” The total turnover (in HK$) for the hotels division rose 13% over the same period in 2006. The group’s hotel assets have mostly achieved increases in RevPAR in line with, or ahead of, competitor hotels in the relevant markets, with an average RevPAR increase across all Peninsula Hotels of 14%, according to the company. In the United States, The Peninsula New York increased its RevPAR by 18%, with general market conditions remaining “very strong” in the city, according to the group. Effective rate strategies at The Peninsula Chicago have enabled its ADR to be increased. In Los Angeles, The Peninsula Beverly Hills leads the market in occupancy, room rate and RevPAR, said the company. At Quail Lodge Resort, the year-long process of adjustment after the group’s resumption of direct management in April 2006 has resulted in improved revenue levels and increased profitability for the hotel departments, as well as the golf operation, according to the group.