Mandarin Oriental has confirmed that The Excelsior, Hong Kong will close on 31 March
2019 so that the site can be redeveloped.
The hotel, which opened in 1973, is situated on a prime commercial
waterfront site in the Causeway Bay district of Hong Kong where
the group has approval for the development of a mixed-use
commercial building with a Gross Floor Area of some 63,500 sqm.
is expected to take up to six years to complete and cost some
US$650 million. The redevelopment will be funded through a mix of external debt and cash reserves. A decision on
financing is expected to be made in due course, with the majority of costs
not expected to be incurred until 2023. The Excelsior site is
mortgage free. Approximately US$15 million of costs related to the
redevelopment are estimated to be incurred in 2019, which the
group will fund from cash reserves.
Once completed, the new building is expected to
generate significantly higher, and more stable, cash flows with
less ongoing capital expenditure compared to a renovated hotel.
James Riley, Group
Chief Executive of Mandarin Oriental Hotel Group, said “The
Excelsior has always been an important and much-loved hotel in the
group’s portfolio. We will ensure there are plenty of
opportunities over the next few months for local and international
guests to visit the property and celebrate 45 years of memories.
The hotel has enjoyed a long and successful history, not least
because of the extraordinary service provided by our colleagues on
property through the years. The group is committed to ensuring
that all Excelsior colleagues are treated fairly, with many to be
offered positions in other Mandarin Oriental properties.”
Mandarin Oriental currently operates 31 hotels and seven
residences in 21 countries and territories. Mandarin Oriental
International Limited is incorporated in Bermuda and has a
standard listing on the London Stock Exchange, with secondary
listings in Bermuda and Singapore. It is a member of the Jardine