Luxury hotel group Mandarin Oriental has seen its profits hit highs not achieved since the Asian economic crisis of the 1990’s devastated the region’s economies.
The company’s financial results for the year ending 31 December 2005 showed turnover of $815.4 (£457m), up 22% from $667.3 (£374m) the previous year.
Earnings before interest, tax, depreciation and amortisation (EBITDA) were $124m (£69.5m), after $11m (£6.2m) of pre-opening costs related to its Tokyo property. EBITDA in 2004 was $99m (£55.5m) for 2004.
The group opened two new hotels and announced four new management contracts during 2005, helping to counter the loss of revenue from the temporary closure of the flagship Hong Kong property for refurbishment.
Simon Keswick, chairman of Mandarin Oriental said: “While the temporary closure of Mandarin Oriental, Hong Kong will inevitably affect the group’s results, the effect will be partially offset by increasing contributions from new properties.”
Keswick said he expected business to remain strong throughout 2006 with room rates benefiting from growing demand and limited new supply.
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By Emily Manson
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