• Peninsula shrugs off avian flu threat

Fears about avian flu have failed to dent business at Hongkong and Shanghai Hotels, the owner of the Peninsula brand. The company said that forward bookings and revpar so far this year compares well with 2005.

But it also warned that \the hospitality industry remains susceptible to unforeseen events which could have a major impact on global travel\. It added that avian flu was the latest threat.

Profit before non-operating items across its businesses, which include seven Peninsula hotels, was up 39% to HK$688m. Net profit dropped slightly by 4.4%.

The revpar increases at its three North American hotels were all double digit, as was the revpar increase at the group's flagship in Hong Kong at 11%. The biggest revpar hike was in Bejing, at 40%, but this hotel's revpar remains at less than half that achieved in Hong Kong or North America despite its renovation.

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