Rafael buy boosts Mandarin Oriental

International hotel operator Mandarin Oriental has announced a 72.7% increase in profit before tax for the six months ending 30 July and a 25.6% increase in turnover despite "challenging" economic conditions.> Pre-tax profit for the first half of this year was £6.7m, compared with £3.8m for the same period last year. Turnover showed a smaller increase, rising to £82.5m from £65.7m last year. Simon Keswick, chairman of Mandarin Oriental International, said the group's performance had benefited from the re-opening of the 200-bedroom Mandarin Oriental Hyde Park in London and the addition of the Rafael Hotels group acquired last May. The acquisition of the group added 21 hotels across Asia, North America and Europe to Mandarin Oriental's portfolio. Despite the increases in pre-tax profit and turnover, the company's two Hong Kong hotels saw falling occupancy levels. The 541-bedroom Mandarin Oriental Hong Kong's occupancy fell from 76% in the first six months of 2000 to 66% this year, while the 887-bedroom Excelsior showed a decline in occupancy from 86% to 78%. The group singed an agreement to manage a new 171-bedroom hotel in Tokyo due to open late 2006 and will open the 250-bedroom Mandarin Oriental New York in late 2003. Keswick was cautious about the future: "The remaining months in 2001 will be challenging due to the decrease in corporate spending on travel together with an anticipated reduction in leisure expenditure" he said.