Mandarin Oriental: 1Q19 underlying profit rises on London hotel re-opening

Mandarin Oriental’s Excelsior hotel in Hong KongMandarin Oriental’s Excelsior hotel in Hong Kong

Mandarin Oriental International said Wednesday its underlying profit for the first quarter rose on-year on better results at the Mandarin Oriental Hyde Park, London.

The improvement included insurance coverage for the hotel’s loss of profit while guestrooms were closed for repair, the hospitality company said in a filing to SGX.

In the year-ago period, the hotel was partially closed for renovation, and it fully re-opened on 15 April, the filing said.

Offsetting the improvement at the Hyde Park hotel, the Paris and Washington, DC hotels turned in weaker performances on softer market conditions, Mandarin Oriental said.

In addition, the Bangkok hotel’s partial closure for renovation in March impacted results, the company said, adding the project was expected to be largely completed by October.

Demolition work on the Excelsior, Hong Kong has begun after the hotel’s closure at end-March, it said.

“The closure will substantially reduce the group’s underlying profit in 2019,” Mandarin Oriental said.

Read Mandarin Oriental’s interim management statement.

 

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