Mandarin Oriental reports profit rise

Mandarin Oriental International this week announced a 36% rise in profits for 2002, to US$55.3m (£34.9m), with turnover rising 4% to US$547.5m (£345m).

Profits rose on the back of improved occupancy levels towards the end of the year and better cost controls, although room rates suffered from the weak global economy.

The group's London hotel, the Mandarin Oriental Hyde Park, in its second year of operation after a major refurbishment, had "improved its competitive position" the group said, with occupancy rising from 62% to 74%.

However, chairman Simon Keswick warned that the "luxury hotel industry continues to face considerable challenges, and no early recovery in room rates can be expected so long as global uncertainty persists".

Keswick added that the cost of the group's two new US hotels - in New York and Washington, DC - would dent profitability for this year, particularly in the second half.

The company is planning a new luxury hotel for Tokyo, due to open in 2006.

The long-term plan is to operate at least 10,000 rooms in major business and leisure centres worldwide - an additional 2,500 on the current number.