Owned hotels reported an ebitda of US$19 million, with almost all hotels delivering increased financial performance. The management business saw significant growth and generated higher fees, with hotels, particularly in Hong Kong and Mainland China, contributing to an ebitda of US$7 million.
In its update, Mandarin Oriental announced that its revenue per available room (RevPAR) grew “substantially” in Asia on a y-o-y basis as the region’s Covid-19 measures were removed. Due to the removal of the pandemic measures, Mandarin Oriental’s owned hotels also benefited, with a “significantly improved” performance particularly in Hong Kong, Tokyo and Bangkok.
The rest of the group’s hotels were also able to achieve a higher RevPAR compared to FY2022 and in FY2019 driven by strong rates.
Consolidated net debt as at March 31 was reduced to US$311 million, down from US$376 million as at Dec 31, 2022. Gearing was 6% of its adjusted shareholders’ funds.
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During the quarter, the group clinched a new management contract for a luxury beach resort in Mallorca, Spain, which is scheduled to open by the end of 2024. The Emirates Palace hotel in Abu Dhabi was rebranded as Emirates Palace Mandarin Oriental, Abu Dhabi in February, after three years, while the Mandarin Oriental Singapore, which was closed in March, is expected to reopen in September.
The group’s redevelopment project in Causeway Bay, Hong Kong, formerly the site of The Excelsior hotel, is also ongoing and in line with the group’s budget. The redevelopment is expected to be completed in early 2025.
Shares in Mandarin Oriental closed 4 US cents lower or 2.22% down at US$1.76 on May 18.
