Peninsula Banks on Luxury Experience as China Hotel Revenue Dips
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The Peninsula Hotels, a heritage luxury brand, is rethinking its strategy in Greater China as growth stalls — even as Chinese travelers remain its second-largest customer base globally.
Despite a tepid financial showing in the region, The Hongkong and Shanghai Hotels Ltd., parent company of The Peninsula Hotels, is banking on a shift in consumer preference — from acquiring luxury goods to seeking out refined experiences. Gareth Roberts, the company’s chief operating officer, shared this outlook during an interview with Caixin at the China International Import Expo in Shanghai.
This marks Peninsula’s debut appearance at the expo, which runs Nov. 5–10.
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- The Peninsula Hotels is shifting focus in Greater China as growth slows, with 24.4% of group revenue from the region’s hotels in H1 2025 but flat or declining performance in key cities.
- Third-quarter 2025 saw a 19% RevPAR increase due to higher occupancy, though ADR dropped 4%.
- The brand is prioritizing improved guest experiences, adopting AI, launching tech-driven initiatives, and delaying new Chinese openings to concentrate on existing and new properties in London and Istanbul.
- The Peninsula Hotels
- The Peninsula Hotels is a luxury brand strategically re-evaluating its approach in Greater China despite Chinese travelers being its second-largest customer base globally. The parent company, The Hongkong and Shanghai Hotels Ltd., is focusing on experiential offerings over luxury goods acquisition. While revenue in its three Greater China hotels (Hong Kong, Shanghai, Beijing) was sluggish, Q3 showed a rebound. The brand plans to leverage personalized service, AI, and new initiatives like flexible check-in and digital communication to appeal to evolving consumer preferences.
- The Hongkong and Shanghai Hotels Ltd.
- The Hongkong and Shanghai Hotels Ltd. is the parent company of The Peninsula Hotels, a luxury brand. While Greater China is its second-largest customer base, the company faces slowed growth in the region. It's shifting strategy to focus on experiential offerings over luxury goods and is prioritizing stabilizing new properties before further expansion in China.
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