Mandarin Oriental Reports H1 2010 Results

Mandarin Oriental has reported that earnings before interest, tax, depreciation and amortization for the first six months of 2010 were US$58 million compared to US$35 million in the first half of 2009.

The group’s underlying profit for the period was US$13 million, up from US$1 million in the same period in 2009. Profit attributable to shareholders was also US$13 million, which compares with US$74 million in the first half of 2009 which included a gain on a property disposal.

 The group’s two wholly-owned Hong Kong hotels benefited from increased demand particularly from the corporate segment.At the Mandarin Oriental, Hong Kong, RevPAR increased by 46% over the same period last year, with improvements in both occupancy and rate. The Excelsior, Hong Kong also achieved stronger occupancy, at 84%, and produced an increase in RevPAR of 30%.

Mandarin Oriental, Tokyo, which operates under a long-term lease, attracted higher occupancy despite new competitive supply in the market. The Manila hotel saw an increase in its corporate travel segment, while the Mandarin Oriental, Jakarta achieved a significantly higher average rate following its re-opening at the end of 2009 following a comprehensive renovation.

In Europe, the performance of the group’s wholly-owned London hotel remained strong in a market which was less affected in 2009 by the weaker global economy. Both the Munich and Geneva hotels recorded higher RevPAR as a result of strengthening demand. In the USA, the first-half performance at the 80%-owned Washington D.C. hotel declined in comparison with the same period in 2009, which had benefited from activities surrounding the Presidential Inauguration.

The share of results of associates and joint ventures rose due to stronger market conditions in Singapore, Kuala Lumpur, New York and Miami. Bangkok started the year well, but was impacted by political protests from March onwards.

Mandarin Oriental currently operates 26 hotels and has a further 16 under development. Together these represent 17 hotels in Asia, 13 hotels in the Americas and 12 hotels in Europe, Middle East and North Africa. In addition the group operates, or has under development, 14 Residences at Mandarin Oriental connected to the group’s properties.

The company said that while some of the current 16 development projects continue to face delays, the group is reviewing an increasing number of opportunities in key city centre and resort destinations around the world.

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