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."
By Gemma Sharkey
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