The Hongkong & Shanghai Hotels (45 HK)

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The Hongkong & Shanghai Hotels (45 HK — US$1.3 billion) is a family-controlled hospitality company with a rich history.

Today, the company owns and operates hotels under the “The Peninsula” brand name. They’re widely seen as some of the best in the world. For example, check out the following reviews from Booking.com:

“This is HK's most famous hotel and deserves its reputation. We have stayed in many hotels and this is in a class of its own.” – The Peninsula, Hong Kong

“The best hotel ever I stayed. Every thing was exceptionally very good from the staff to cleanliness to location, the service was excellent.” - The Peninsula Istanbul

“The best hotel in London, not cheap but worth every penny! Superb facilities and staff... outstanding.” – The Peninsula, London

The stock trades at 0.28x book value. Which begs the questions: is the book value real, and can value be unlocked?

The company has three main segments: