The reopening of the Mandarin Oriental Hyde Park following last year’s fire has failed to offset challenges across the international group’s portfolio.
In a half-year financial update for the six months to 30 June 2019, the group reported that revenue had fallen to $641m (£529m) from $700m (£578m) the previous year, with underlying profit reducing by 50% to $11m (£9.1m).
Earnings, including insurance coverage for loss of profits following the fire, were up at the group’s Hyde Park hotel; however the closure of the Excelsior in Hong Kong and reduced earnings from its Bangkok hotel, which has closed for refurbishment, hit takings.
Chairman Ben Keswick said: “The closure of rhe Excelsior and the renovation in Bangkok have led to reduced earnings in the first half of the year, while overall results for the rest of the group were broadly flat. Elsewhere, Mandarin Oriental will benefit from its reopened hotel in London, as well as the growing pipeline of new developments.”
In Asia the group reported that a slow-down in corporate business had reduced earnings at its flagship Mandarin Oriental Hong Kong, while demonstrations in Paris hit city-wide demand.
In the US, the group reported good performance in Boston but weaker results in Washington DC.
The group opened four new properties in the first six months of the year, and signed management contracts for two new properties.