MANAGEMENT DISCUSSION & ANALYSIS | REVIEW OF OPERATIONS The Opposite House BEIJING Hotels The Upper House Managed Hotels and Restaurants At The Upper House, a 117-room luxury hotel at Pacific Place in Hong Kong, revenue per available room and Overview occupancy continued to be affected by COVID-19 The Group owns and manages (through Swire Hotels) associated travel restrictions. In 2022, the hotel was ranked hotels in Hong Kong, the Chinese Mainland and the number three in the Condé Nast Traveler’s 2022 Readers’ U.S.A. The House Collective, comprising The Upper Choice Awards for the Best Hotels in Hong Kong category. House in Hong Kong, The Opposite House in Beijing, The It also received awards from Travel + Leisure and Temple House in Chengdu and The Middle House in TripAdvisor, and was named Hong Kong’s Best Wellness Shanghai, is a group of small and distinctive luxury Retreat 2022 in the World Spa Awards. hotels. In July and August 2022, the Group announced the plans to further expand The House Collective to EAST Hong Kong Tokyo and Shenzhen. There are EAST hotels in Hong At EAST Hong Kong, a 331-room hotel in Taikoo Shing, Kong, Beijing and Miami. In October 2021, EAST Miami revenue per available room and occupancy were severely ceased to be owned by the Group. It continues to be affected by COVID-19 related travel restrictions. The hotel managed by Swire Hotels. was ranked number eight in the Condé Nast Traveler’s 2022 The managed hotels in Hong Kong and the Chinese Readers’ Choice Awards for The Best Hotels in Hong Kong Mainland were affected by the COVID-19 related travel category. restrictions. The hotels in the U.S.A. performed well. The Opposite House The managed hotels (including restaurants and taking The Opposite House is a 99-room luxury hotel at Taikoo Li account of central costs) recorded an operating loss Sanlitun, Beijing. Its occupancy and revenue per available before depreciation of HK$118 million in 2022, room declined in 2022 due to COVID-19 associated compared with an operating profit before depreciation restrictions. In 2022, the hotel received awards from Condé of HK$22 million in 2021. Nast Traveler and Travel + Leisure, and was ranked number five and six in TripAdvisor’s Top 25 Hotels and Luxury Hotels in China respectively. Jing Yaa Tang restaurant was awarded with 1-star in the MICHELIN Guide Beijing 2022. 60