Mandarin Oriental swings to 1H19 net loss on Excelsior closure, Bangkok renovation

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

Mandarin Oriental reported Thursday a first half net loss of US$12.1 million, swinging from a year-ago net profit US$22.2 million, impacted by the closure of The Excelsior in Hong Kong and a renovation in Bangkok.

Combined total revenue of hotels under management, which includes subsidiaries, associates, joint ventures and managed hotels, fell 8 percent on-year to US$641.0 million in the six months ended 30 June, Mandarin Oriental said in a filing to SGX.

“The closure of The Excelsior and the renovation in Bangkok have led to reduced earnings in the first half of the year, while overall results for the rest of the group were broadly flat,” Ben Keswick, chairman of Mandarin Oriental, said in the filing. The Bangkok hotel largely closed in march for a major renovation, the filing said.

“Elsewhere, Mandarin Oriental will benefit from its reopened hotel in London as well as the growing pipeline of new developments,” he added.

The London hotel, the Mandarin Oriental Hyde Park, had been hit by a fire in June 2018, and earnings for the property have continued to include insurance coverage for loss of profit, the filing said. The property full reopened on 15 April 2019, the filing said.

The hotel operator declared an interim dividend of 1.50 U.S. cents a share, unchanged on year.

The Mandarin Oriental Hotel Group operates 32 hotels and six residences in 23 countries and territories, the filing said.

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