The owner of Hong Kong’s iconic Peninsula hotel plans to invest HK$2.1 billion (US$268 million) to renovate its flagship hotel in the city and its Tokyo property, betting on the long-term strength of the luxury travel market despite geopolitical uncertainty and volatile consumer demand. The board also approved the capital expenditure programme for The Peninsula Hong Kong and The Peninsula Tokyo, which accounted for most of the group’s total HK$2.5 billion in outstanding capital commitments. “Preserving the heritage and character of the building is a key consideration,” said Lynne Mulholland, HSH general manager, group corporate affairs. The investment comes as Hong Kong’s tourism sector continues to recover, with international visitor arrivals supporting a rebound in luxury hospitality. Excluding property revaluation gains and other non-recurring items, its underlying loss narrowed from HK$216 million to HK$17 million.