The Caterer

Mandarin Oriental hit by $35m slump in interim profits

06 August 2009 by
Mandarin Oriental hit by $35m slump in interim profits

Luxury hotel group Mandarin Oriental's profits have been hit exceptionally hard in the first six months of 2009, falling by almost $35m (£20.6m).

The company reported profits of just $1.1m (£0.64m) after tax for the first six months of the year, compared with $35.7m (£21.03m) for the year ended 31 December 2008.

The group's revenue also fell to $205.2m (£120m) in the six months leading up to June compared with $530m in 2008.

The small beacon of light came from the sale of the group's 50% interest in its Macau hotel which yielded a $78.5m (£46.2m) gain.

It also reported occupancy levels substantially below those achieved in the same period last year due to declining travel levels worldwide. Average room rates have also been negatively affected, particularly in Asia.

Simon Keswick, chairman for the group, said: "Mandarin Oriental's underlying results were significantly affected by the depressed demand resulting from the global economic downturn, while H1N1 influenza also had a negative impact on the travel market.

"The group has responded by taking action to manage its costs, while at the same time maintaining its high service standards. During the period, the group benefited from a gain on the sale of the Macau hotel."

Heston Blumenthal restaurant will open in London Mandarin Oriental >>

Mandarin Oriental sees profits tumble due to global recession >>

Mandarin Oriental sells stake in Macau hotel and other international hotel news >>

Mandarin Oriental hit by the downturn >>

By Gemma Sharkey

E-mail your comments to Gemma Sharkey here.

If you have something to say on this story or anything else join the debate at Table Talk - Caterer's new networking forum. Go to jobs
Looking for a new job? Find your next hotel job here with jobs

Blogs on]( Catch up with more news and gossip on all Caterer's blogs
[Newsletters For the latest hospitality news, sign up for our e-mail newsletters.
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!