In its interim management statement for the 3QFY2024, Mandarin Oriental International M04 has reported a slightly lower underlying profit as compared to the same period last year. This came on the back of lower branding fees.
For the same quarter, the group’s revenue per available room (RevPAR) saw a y-o-y increase across all regions. The group says rates and occupancy in Asia were driven by strong intra-regional demand, while almost all hotels across Europe, the Middle East and Africa, saw “solid improvements” in RevPAR.
Following higher RevPARS in 3QFY2024, the group’s management business recorded higher management fee income and profitability, excluding residence branding fees.
In September, the group’s saw growth in its portfolio with four new hotel and residences management contracts across Bali, Rome, Mexico and Abu Dhabi.
As at Sept 30, the group’s net debt saw a decline to US$26 million ($35 million), as compared to US$225 million as at Dec 31. This was due to the receipt of sale proceeds from the group’s Paris hotel and retail properties, which was partially offset by its investment in One Causeway Bay in Hong Kong.
Mandarin Oriental’s liquidity position “remains robust”, with over US$700 million in available committed debt facilities and cash reserves.
See also: Envictus reports profit turnaround with earnings of RM50.6 mil
Gearing stood at 1% of adjusted shareholders’ funds, down from 5% as at the end of last year.
Laurent Kleitman, group chief executive, says: “We are building new capabilities, new governance and a new culture to drive Exceptional growth and are focused now on executing and delivering results. We will measure ourselves in the long term in terms of accelerated growth from our development pipeline, differentiated innovation and service, and improved financial performance. The strength of our brand will remain the bedrock of future success of our business.”
Shares in Mandarin Oriental closed at US$1.70 on Nov 14.
