Oriental profit hit by war and Sars

Sars and the war in Iraq took a massive chunk out of profit at hotel group Mandarin Oriental last year, the group's accounts have revealed.

In the 12 months to 31 December 2003, profit before interest and tax at the luxury hotel group fell by 37% to $28.6m (£15.3m), compared with $45.7m (£24.5m) for the same period in 2002, when profits had increased by 36%. Turnover dropped by 1% to $541.2m (£290m).

The group's hotels in Asia were hardest hit. Chairman Simon Keswick said the Mandarin Oriental in Hong Kong was "significantly affected" by the outbreak of Sars in the first half of the year. He added that the hotel was able to replace some business in the second half, with occupancy reaching 53% for the full 12-month period, compared with 69% in 2002.

In London, the group bucked the trend, with its Hyde Park hotel recording a 13% increase in revenue per available room and a 15% increase in room rate to $537 (£288).

Results from the group's hotels in the Americas were mixed. In New York, the Mark hotel saw occupancy fall by 5% and average room rate drop by 6%. But in Florida, the Mandarin Oriental Miami hotel recorded a 21% increase in occupancy to 57% and a 9.6% increase in room rate to $284 (£152).