Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
The Hongkong and Shanghai Hotels's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 20.83%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
FRA:HSG's 3-Year ROIIC % is ranked better than 71.93% of 791
companies
in the Travel & Leisure industry
Industry Median: 3.99
vs FRA:HSG: 20.83
The Hongkong and Shanghai Hotels (FRA:HSG) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
The Hongkong and Shanghai Hotels 3-Year ROIIC % Related Terms
The Hongkong and Shanghai Hotels 3-Year ROIIC % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
The Hongkong and Shanghai Hotels 3-Year ROIIC % Chart
For the Lodging subindustry, The Hongkong and Shanghai Hotels's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
The Hongkong and Shanghai Hotels 3-Year ROIIC % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, The Hongkong and Shanghai Hotels's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where The Hongkong and Shanghai Hotels's 3-Year ROIIC % falls into.
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 66.7142025 (Dec. 2025) - -6.426 (Dec. 2022) )
/
( 6341.78 (Dec. 2025) - 6621.361 (Dec. 2022) )
=
73.1402025
/
-279.581
=
-26.16%***
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
The Hongkong and Shanghai Hotels (FRA:HSG) has a 3-Year ROIIC % of 20.83 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on The Hongkong and Shanghai Hotels and its competitors. According to the industry distribution chart, The Hongkong and Shanghai Hotels ranks #222 out of 791 companies in the Travel & Leisure industry, placing it in the top 28.1%.
Is The Hongkong and Shanghai Hotels' 3-Year ROIIC % too high?
The Hongkong and Shanghai Hotels' current 3-Year ROIIC % is 20.83. The Travel & Leisure industry median 3-Year ROIIC % is 3.99. The Hongkong and Shanghai Hotels' value of 20.83 is 422.1% above this industry median. Based on the distribution chart, The Hongkong and Shanghai Hotels ranks #222 out of 791 companies in the Travel & Leisure industry, which is above the industry midpoint. Overall, The Hongkong and Shanghai Hotels has a GF Score™ of 51/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does The Hongkong and Shanghai Hotels' 3-Year ROIIC % compare to MAR and HLT?
According to the Travel & Leisure industry distribution chart, The Hongkong and Shanghai Hotels ranks #222 out of 791 companies for 3-Year ROIIC %. This puts The Hongkong and Shanghai Hotels in the upper half of its industry. The industry median 3-Year ROIIC % is 3.99. The Hongkong and Shanghai Hotels' value of 20.83 is 422.1% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for a Travel & Leisure company?
The median 3-Year ROIIC % among Travel & Leisure companies is 3.99, based on 791 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Hongkong and Shanghai Hotels's current 3-Year ROIIC % of 20.83 is 422.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on The Hongkong and Shanghai Hotels and its competitors. For the Travel & Leisure industry, the median 3-Year ROIIC % is 3.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Hongkong and Shanghai Hotels's current 3-Year ROIIC % is 20.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Hongkong and Shanghai Hotels stock overvalued right now?
Based on GuruFocus' analysis, The Hongkong and Shanghai Hotels (FRA:HSG) is currently considered Fairly Valued. The stock's GF Value™ is €0.65, compared to a current price of €0.60 — trading 7.7% below its estimated fair value. The current 3-Year ROIIC % is 20.83 and 422.1% above the Travel & Leisure industry median of 3.99. The Hongkong and Shanghai Hotels' overall GF Score™ is 51/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For The Hongkong and Shanghai Hotels (FRA:HSG), the current 3-Year ROIIC % is 20.83 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is The Hongkong and Shanghai Hotels (FRA:HSG) Overvalued in 2026?
Based on GuruFocus' analysis, The Hongkong and Shanghai Hotels stock appears to be undervalued.
The current stock price of €0.60 is trading 7.7% below its estimated GF Value™ of €0.65.
GuruFocus considers The Hongkong and Shanghai Hotels to be Fairly Valued.
Key valuation signals for FRA:HSG:
3-Year ROIIC %: 20.83
GF Value™: €0.65 vs. price of €0.60 (7.7% below fair value)
Industry Position: 422.1% above the Travel & Leisure median (#222 of 791)
No single metric tells the full story. See the FRA:HSG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Hongkong and Shanghai Hotels Business Description
The Hongkong and Shanghai Hotels Ltd is a luxury hospitality and real estate group. It owns and operates hotel properties under the Peninsula brand located in city centres across Asia, the U.S., and Europe. The company's assets comprise a small number of ultra-luxury hotels, real estate assets, and tourism assets, including The Peak Tram, one of Hong Kong's tourist attractions. The group's reportable segments are: Hotels, Commercial Properties, Peak Tram, Retail, and Others. Maximum revenue is generated from its Hotels segment, which includes revenue generated from operating hotels, leasing of commercial shopping arcades, and office premises located within the hotel buildings. Geographically, the group generates the majority of its revenue from Greater China.
51GF Score
Get the complete analysis for FRA:HSG
3-Year ROIIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:HSG has been successfully added to your 
