Hospitality player Mandarin Oriental reported Thursday its underlying losses for the first quarter were “much improved” compared with 2021 as trading conditions in most of the world showed recovery.
“The impact of continued travel restrictions in much of Asia was offset by a more robust performance in Europe, Middle East and Africa (EMEA) and America and tightly-controlled corporate costs,” Mandarin Oriental said in a filing to SGX.
Properties in China were particularly affected by Covid-related restrictions, with the issues continuing into the second quarter, the filing said.
The group posted an earnings before interest, taxes, depreciation and amortization (ebitda) loss of US$1 million for the first quarter, with owned hotels and the management business seeing an underlying ebitda loss of US$6 million and an underlying ebitda profit of US$5 million, respectively.
In EMEA and America, occupancy levels at most properties were below pre-pandemic levels, but room rates have held up and were generally higher than in 2019, pre-Covid, the filing said. Within Asia, both occupancy and room rates are “substantially below” pre-Covid levels, the filing said.