PBT Exceeds HKD1,000 Million with Overall Steady Growth

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HONG KONG, CHINA -�Media OutReach�-�18 March 2019 - Miramar Hotel and
Investment Company, Limited (the "Company") and its subsidiaries (collectively, the "Group"), HKSE stock code: 71, announced today
the annual results for the year ended 31 December 2018.

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* Underlying profit attributable to shareholders and
underlying earnings per share (basic) excluded the post-tax effects of the
investment properties reevaluation movements and other non-operating and
non-recurring items such as net gain on disposal / liquidation of a subsidiary

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The
Group's revenue for the year amounted to HK$3,199 million, representing an
increase of 0.4% compared to last year (2017: HK$3,186 million). �Profit attributable to
shareholders for the year increased by 6.9% to HK$1,624 million (2017: HK$1,519
million). Mr. Lai Ho Man, Director of Group Finance, said, "This growth is mainly
attributable to the satisfactory performance of both the property rental
segment and hotels and serviced apartments segment, with additional
contribution from revaluation gain of investment properties."�

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Excluding the net increase of HK$783 million in
the fair value of our investment properties and net gain from non-core
businesses, the basic underlying profit attributable to shareholders* increased
by 8.4% to approximately HK$828 million (2017: HK$764 million). The underlying
earnings per share (basic) dropped by 5.5% to HK$1.20 (2017: HK$1.27).� Excluding
the effect of the increased number of shares issued in the beginning of the year
pursuant to the bonus warrant scheme, basic underlying earnings per share would
have shown a growth in line with the underlying profit attribute to
shareholders.

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The Board is pleased to recommend a final dividend of
HK37 cents per
share payable to shareholders whose names are on the Register of Members as at
18 June 2019. Including an interim dividend of HK24 cents per share paid on 16
October 2018, the total dividend payment for the whole year will be HK61 cents per
share.

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Hong Kong's economy was booming in the first half of 2018 but growth
momentum slowed down in the second half of the year.� In respect of hotels and serviced apartments
business, the Group adopted a dynamic revenue management strategy, based on
market supply and demand and state of competition, resulting in improved
operational efficiency. Our property rental business has achieved a respectable
performance as the Group continually optimized the tenant mix of the shopping
mall and office tower and enhanced the quality of services, affording tenants
and customer solicitous services and gleeful shopping experience. For food and
beverage business, we continued to adjust our business strategies in response
to changes in rental levels and market preferences for different brands. In
regard to travel business, the performance is encouraging due to proactive
control of operating costs and responsive strategies pursued to tackle changing
destination preferences of the customers.

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Hotels and Serviced Apartments Business

In
2018, overnight visitor arrivals increased by 4.9% compared to last year.� Occupancy rates of hotels in Tsim Sha Tsui
area and hotels in the Tariff A category both increased compared to last year.
Our hotels and serviced apartments business recorded satisfactory results in
both revenue and EBITDA (earnings before interest, taxes, depreciation and
amortisation).

During
the year, the management adopted dynamic marketing and pricing strategies which
served to increase the attractiveness and competitiveness of our hotels, and
succeeded in bringing about improved operational efficiency. Revenue has
increased by 7.3% to HK$710 million compared to last year while EBITDA amounted
to HK$265 million, representing an increase of approximately 6.9%.� Average occupancy rates of both The Mira Hong
Kong and Mira Moon stayed at high levels and RevPAR (revenue per available
room) registered satisfactory growth.

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Property Rental Business

The
Group's Property Rental business grew steadily during the year and recorded
revenue of HK$914 million and EBITDA of HK$807 million, rising by 6.5% and 7.1%
respectively compared to last year.�
During the year, the Group continued to optimize the tenant mix of its
office and retail space.� Occupancy rate
maintained at a high level and rental income grew steadily.� The synergetic effect in the continuous
upgrade of the shopping mall and offices has enabled stable appreciation of the
total value of our properties.� The Group
devoted relentless efforts towards enhancing the overall image and positioning
of its property assets, continually improving its surroundings, upgrading its
service quality and keeping the mall iconic for its unique personality and
dynamism.� During the year, Mira Place has
upgraded its mobile application software to strengthen customer services and
promote interactions, and successfully launched Hong Kong's first smart parking
solution "e-PARKING" as well as a number of popular promotional activities
which have driven up Mira Place's average yearly footfall by 18% and boosted
tenants' sales revenue by 4%.� The
Group's investment property portfolio recorded a net increase in fair value of
HK$783 million, amounting to HK$14.9 billion as at 31 December 2018.

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Food and Beverage Business

The food
and beverage business recorded revenue of HK$319 million and EBITDA of HK$13
million, which dropped by 19.2% and 44.1% respectively, due to a strategic
revamp through which the management closed certain shops that lacked
operational efficiency.� The Group's
Chinese restaurants business has achieved good performance. �The business of the Western restaurants was
stable, and the management continued to actively raise service levels and
improve product quality, which showed promising progress. Next step the
management will adopt effective methods to improve financial performance.� The Group's strategy is to improve
operational efficiency, improve product and service qualities, and to create
new dishes and new themes on a regular basis. In addition, the Group will
continue to seek for new opportunities to properly implement the strategy of
brand diversification.

Travel Business

Revenue
from travel segment at HK$1,256 million was level with that in the prior year
but EBITDA improved substantially to HK$60 million, registering an increase of
108% due to proactive control of operating costs and responsive strategies
pursued to tackle changing destination preferences of the customers.

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Operating and other
expenses and other revenue

The
Group has further enhanced its operating efficiency and managed to keep the
overall operating costs stable at HK$237 million (2017: HK$227 million). Due to
the depreciation of Reminbi, exchange loss of HK$13 million (2017:
exchange gain of HK$27 million) was recorded during the year. Other revenue
comprising mainly bank deposit interests increased to HK$49.2 million as a
result of a mild uptick in the interest rate levels.�

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Corporate Finance

The Group maintains its conservative and sound financial policy with
ample cash and available banking facilities, enabling the Group to comfortably
deal with the uncertain economic environment in the foreseeable future and to
fund opportune business development projects that promise good investment
returns.� Gearing, calculated by dividing
consolidated total borrowings by the consolidated total shareholders' equity,
was at only 0.1% as at 31 December 2018 (31 December 2017: 0.1%).� At 31 December 2018, total available credit
facilities amounted to approximately HK$1.3 billion (31 December 2017:
approximately HK$1.3 billion), 0.2% (31 December 2017: 0.2%) of which have been
utilised. At 31 December 2018, consolidated net cash were at approximately
HK$4.7 billion (31 December 2017: HK$3.4billion), of which HK$2.85 million were
secured borrowings (31 December 2017: HK$3 million).�

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Business
Outlook

In the second half of 2018, growth in the global economy has shown a
slowing trend, under uncertainties that a consensual and comprehensive trade
pact was not yet in sight in the Sino-US negotiations and likewise in the
Brexit arrangements.� Mr. Lee Ka Shing,
Chairman and CEO of the Company, has concluded, "Looking forward to 2019, the
global political and economic environment remains confronted by a wide variety
of uncertainties which are characterised by great complexity and vicissitude,
hindering economic growth. I will continue to lead the Group management in our
unreserved effort to manage our businesses prudently, with particular attention
paid to improving service quality and strengthening operational efficiency,
while at the same time on the lookout for appropriate investment opportunities,
with a view to increasing profitability and shareholder return."

About Miramar Hotel and Investment Company, Limited

Established in Hong Kong in 1957, Miramar Hotel and Investment Company, Limited (Miramar Group) is a group with a diversified service-oriented business portfolio comprising stylish hotels and serviced apartments, property rental, food and beverage, and travel services in Hong Kong and Mainland China. Miramar Group has been listed on the Hong Kong Stock Exchange since 1970 (HKEx Stock Code: 71) and is a member of Henderson Land Group.