REG - Mandarin Oriental Jardine Matheson Hdg - Half-year Results
28/07/2025 12:45
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RNS Number : 8327S Mandarin Oriental International Ltd 28 July 2025
ANNOUNCEMENT
28 July 2025
The following announcement was issued today to a Regulatory Information
Service approved by the Financial Conduct Authority in the United Kingdom.
MANDARIN ORIENTAL INTERNATIONAL LIMITED
HALF-YEARLY RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2025
HIGHLIGHTS: Management Business revenue and profit record double-digit growth
in the first half of the year.
· 11% growth in combined total revenue, 14% growth in hotel
management fees driven by strong Revenue per Available Room ('RevPAR')
increases in all regions.
· Management Business comparable EBITDA up 11% while making
investments in capability to drive future growth.
· Expansion of portfolio to 44 hotels under management, following
rebranding of Mandarin Oriental Lutetia, Paris, and three management takeovers
in Amsterdam, Venice, and Desaru Coast in Malaysia.
· Two hotels and residences and one residences scheduled to open in
the second half of the year. One new hotel management contract and one new
hotel and residences management contract announced since the start of the
year.
· Completed disposal of Miami and signed agreement to dispose
Munich, retaining long-term management agreements for both, advancing
asset-light strategy.
· Interim dividend of US¢1.50 per share declared.
"In the first half of 2025, the Group achieved strong operating performance
and made good progress toward its long-term growth objectives. We advanced our
commitment to brand-led, guest-centric luxury through the launch of the
Mandarin Oriental mobile app, the commencement of strategic renovations of our
founding properties to innovate our offerings, and targeted expansion into
desirable destinations - including Mandarin Oriental Lutetia, Paris, and three
new management takeovers in Amsterdam, Venice, and Malaysia. Despite ongoing
global geopolitical and economic volatility, we are confident that the Group
is strategically positioned to accelerate its growth and capitalise on
sustained demand for luxury leisure travel."
Laurent Kleitman
Group Chief Executive
RESULTS
(Unaudited)
Six months ended 30 June
2025 2024 Change
US$ US$ %
Revenue per Available Room ('RevPAR')((1))
- Group 430 389 +11
- Asia 257 232 +11
- Europe, the Middle East and Africa ('EMEA') 677 608 +11
- America 447 422 +6
Combined Total Revenue((2)) 1,088m 980m +11
Consolidated Revenue 248m 251m -1
Hotel Management Fee Income 41m 36m +14
Comparable Earnings Before Interest, Tax, Depreciation, and Amortisation 61m 59m +4
('EBITDA')((3))
- Management Business 12m 11m +11
- Owned Hotels 50m 49m +2
Underlying profit attributable to shareholders((4)) 24m 23m +6
Revaluation loss on investment properties (103)m (37)m -177
Loss attributable to shareholders (64)m (52)m -23
Interim dividend per share((5)) US¢1.50 US¢1.50 -
Net asset value per share((6)) 2.18 2.25 -3
Adjusted net asset value per share((6)(7)) 3.42 3.50 -2
(1) Like-for-like basis excludes the impacts of new openings,
renovation and closure in 2024 and 2025.
(2) Combined total revenue includes turnover of the Group's
subsidiary hotels in addition to 100% of revenue from associate, joint venture
and managed hotels.
(3) Comparable EBITDA excludes the impact of hotel closures
and disposals in 2024 and 2025.
(4) The Group uses 'underlying profit' in its internal
financial reporting to distinguish between ongoing business performance and
non-trading items, as more fully described in note 7 to the financial
statements. Management considers this to be a key measure which provides
additional information to enhance understanding of the Group's underlying
business performance.
(5) The interim dividend of US¢1.50 per share will be payable
on 15 October 2025 to shareholders on the registers of members at the close of
business on 22 August 2025.
(6) At 30 June 2025 and 31 December 2024, respectively.
(7) The Group's investment properties are carried at fair
value on the basis of valuations carried out by independent valuers at 30 June
2025 and 31 December 2024. The other freehold and leasehold interests are
carried at amortised cost in the consolidated balance sheet. Both the adjusted
net asset value per share and net debt/adjusted shareholders' funds at 30 June
2025 and 31 December 2024 have included the market value of the Group's
freehold and leasehold interests, which were appraised as at 31 December 2024.
2025 HALF-YEAR PERFORMANCE
In the first half of 2025, the Group achieved strong RevPAR growth driven by
both occupancy and rates across all regions.
The increase in combined total revenue was driven by the increase in RevPAR
together with the ramp-up of recent hotel openings in Europe, the Middle East,
and China.
Consolidated revenue marginally reduced from the same period last year,
primarily due to the disposal of our hotel and retail properties in Paris in
2024. On a comparable basis, excluding hotel closures and disposals,
consolidated revenue growth was 7%.
In the Management Business, hotel management fee income increased by 14%
driven by the 11% RevPAR improvement, margin optimisation, and portfolio
expansion. Comparable EBITDA increased by 11% due to the 14% improvement in
hotel management fee income, offset by continued investment in capabilities to
support the Group's long-term strategy.
In the Owned Hotels, comparable EBITDA increased by 2% mainly driven by Hong
Kong and Geneva, partially offset by lower profits from London.
The valuation of One Causeway Bay decreased by 3% compared to 31 December 2024
due to changes in assumptions for office and retail rental. The project
recorded a non-trading loss of US$103 million.
Net debt at 30 June 2025 was US$152 million, higher than US$94 million at the
end of 2024, primarily due to continued funding of One Causeway Bay.
Following the closure of Mandarin Oriental, Miami and the disposal of the
Group's stake in that property, the Group recorded a US$22 million gain on
disposal in May. In June, the Group signed an agreement to sell its hotel
property in Munich, with a long-term hotel management contract retained. This
transaction is expected to be completed in the third quarter of the year.
An interim dividend of US¢1.50 per share has been declared.
BRAND-LED, GUEST-CENTRIC
We have made significant progress in implementing our strategy during the
first half of the year. In April, we unveiled a refined visual identity that
honours our dual-Asian heritage while embracing the brand's desirability and
modern outlook. As we continue to innovate our products and experiences, we
have announced significant investments in our two founding hotels in Hong Kong
and Bangkok. We continued to elevate our guest experience with the launch of
an enhanced guest recognition programme and a new, industry-leading mobile
app, enabling surprise moments of recognition and deeper engagement with
guests. In June, we released our 2024 Sustainability report, highlighting for
all our stakeholders our progress in advancing our social and environmental
engagement agenda. To increase brand desirability, we have released a unique
documentary film on leading streaming platforms, 'Inside The Dream - Mandarin
Oriental', showcasing the craft, inspiration, and dedication that support our
unique legendary service.
DEVELOPMENT
Accelerating the expansion of the Management Business is central to the
Group's growth strategy. Since the start of the year, the Group has added
three new operating hotels and one hotel and residences to its portfolio.
In April, we strengthened our European presence with the opening of our second
property in Paris - Mandarin Oriental Lutetia, Paris. The Group also took over
the management of The Conservatorium Hotel which will complete its rebranding
in 2026, marking our debut in Amsterdam.
In June, we further accelerated the Group's expansion with the management
takeovers of the San Clemente Palace Hotel in Venice, a unique resort minutes
away from the heart of Venice, and an idyllic beach resort, located on Desaru
Coast, Malaysia, offering coastal serenity and ecological richness. The resort
in Desaru Coast is the Group's first resort in Southeast Asia, with additional
openings planned in Bai Nom, Bali, Da Nang, the Maldives, and Setouchi over
the next five years.
Earlier this year, the Group also announced one new hotel management contract
in Suzhou, China, and one new hotel and residences management contract in
Puerto Rico.
In May, Mandarin Oriental, Miami closed its doors after 25 years of legendary
service. A brand new hotel with residences is set to debut after 2030.
LEADERSHIP
In March, the Group announced the appointment of ShaoWei Ong as Chief People
& Culture Officer. She succeeds Amanda Hyndman, who previously held the
dual roles of Chief People & Culture Officer and Chief Operating Officer.
Amanda will now focus solely on her responsibilities as Chief Operating
Officer.
OUTLOOK
In the second half of the year, the Group targets opening two new hotels and
residences: Mandarin Oriental Downtown, Dubai, our second property in Dubai,
and Mandarin Oriental, Vienna, the Group's first flag in Austria, and one
residences in Madrid. Despite ongoing global geopolitical and economic
volatility, we are confident that the Group is strategically positioned to
capitalise on sustained demand for luxury leisure travel.
Laurent Kleitman
Group Chief Executive
Mandarin Oriental International Limited
Consolidated Profit and Loss Account
for the six months ended 30 June 2025
(unaudited) Year ended 31 December
Six months ended 30 June
2025 2024 2024
Underlying Non-trading Total Underlying Non-trading Total Underlying Non-trading Total
business performance Items US$m business Items US$m business Items US$m
US$m US$m performance US$m performance US$m
US$m US$m
Revenue (note 2) 247.5 - 247.5 250.9 - 250.9 525.8 - 525.8
Cost of sales (141.3) - (141.3) (142.0) - (142.0) (282.2) - (282.2)
Gross profit 106.2 - 106.2 108.9 - 108.9 243.6 - 243.6
Selling and distribution costs (16.9) - (16.9) (17.7) - (17.7) (36.9) - (36.9)
Administration expenses (64.5) - (64.5) (60.8) - (60.8) (121.4) - (121.4)
Other operating expenses - (7.0) (7.0) - - - - (1.4) (1.4)
Change in fair value of investment properties - (102.7) (102.7) - (37.1) (37.1) - (171.0) (171.0)
Gain/(loss) on sale of an associate/ subsidiaries (note 7) - 24.4 24.4 - (31.5) (31.5) - 29.6 29.6
Operating (loss)/profit 24.8 (85.3) (60.5) 30.4 (68.6) (38.2) 85.3 (142.8) (57.5)
(note 3)
Financing charges (2.4) (0.4) (2.8) (6.5) - (6.5) (10.1) (0.4) (10.5)
Interest income 1.1 1.1 2.2 1.7 - 1.7 5.5 1.1 6.6
Net financing charges (1.3) 0.7 (0.6) (4.8) - (4.8) (4.6) 0.7 (3.9)
Share of results of associates and joint ventures (note 4) 6.6 (0.5) 6.1 4.7 (0.5) 4.2 14.2 (0.9) 13.3
(Loss)/profit before tax 30.1 (85.1) (55.0) 30.3 (69.1) (38.8) 94.9 (143.0) (48.1)
Tax (note 5) (6.1) (2.7) (8.8) (7.7) (5.4) (13.1) (20.0) (10.3) (30.3)
(Loss)/profit after tax 24.0 (87.8) (63.8) 22.6 (74.5) (51.9) 74.9 (153.3) (78.4)
Attributable to:
Shareholders of the Company (notes 6 and 7) 23.9 (87.8) (63.9) 22.5 (74.5) (52.0) 74.7 (153.3) (78.6)
Non-controlling interests 0.1 - 0.1 0.1 - 0.1 0.2 - 0.2
24.0 (87.8) (63.8) 22.6 (74.5) (51.9) 74.9 (153.3) (78.4)
US¢ US¢ US¢ US¢ US¢ US¢
(Loss)/earnings per share (basic and diluted) (note 6)
1.89 (5.06) 1.78 (4.11) 5.91 (6.22)
Mandarin Oriental International Limited
Consolidated Statement of Comprehensive Income
for the six months ended 30 June 2025
(unaudited) Year ended
Six months ended 31
30 June December
2025 2024 2024
US$m US$m US$m
Loss for the period (63.8) (51.9) (78.4)
Other comprehensive income/(expense)
Items that will not be reclassified to profit or loss:
Remeasurements of defined benefit plans - - (0.5)
Tax on items that will not be reclassified - - 0.1
- - (0.4)
Items that may be reclassified subsequently to profit or loss:
Net exchange translation differences
- net gain/(loss) arising during the period 24.7 (20.5) (13.1)
- transfer to profit and loss - 28.2 39.2
Cash flow hedges
- net loss arising during the period (2.1) (2.9) (3.2)
Tax relating to items that may be reclassified 0.4 0.6 0.6
Share of other comprehensive income/(expense) of associates and joint ventures 4.8 (2.4) (0.8)
27.8 3.0 22.7
Other comprehensive income for the period, net of tax 27.8 3.0 22.3
Total comprehensive expense for the period (36.0) (48.9) (56.1)
Attributable to:
Shareholders of the Company (36.7) (48.7) (56.0)
Non-controlling interests 0.7 (0.2) (0.1)
(36.0) (48.9) (56.1)
Mandarin Oriental International Limited
Consolidated Balance Sheet
at 30 June 2025
(unaudited) At 31
At 30 June December
2025 2024 2024
US$m US$m US$m
Net assets
Intangible assets 38.4 45.7 57.0
Tangible assets 569.8 597.3 589.1
Right-of-use assets 219.1 216.1 216.4
Investment properties (note 8) 2,008.8 2,079.9 2,085.6
Associates and joint ventures 166.5 154.6 143.2
Other investments 13.4 13.8 13.3
Deferred tax assets 13.9 12.2 13.0
Pension assets 0.4 1.3 0.5
Non-current debtors 70.9 11.0 61.4
Non-current assets 3,101.2 3,131.9 3,179.5
Stocks 5.1 5.0 5.2
Current debtors 87.2 80.1 115.5
Current tax assets 1.6 1.3 1.2
Cash and bank balances 154.7 253.9 215.0
248.6 340.3 336.9
Assets classified as held for sale (note 9) 83.5 80.6 -
Current assets 332.1 420.9 336.9
Current creditors (151.6) (147.4) (188.5)
Current borrowings (note 10) - - (103.7)
Current lease liabilities (6.0) (5.4) (6.1)
Current tax liabilities (25.0) (21.6) (23.2)
(182.6) (174.4) (321.5)
Liabilities directly associated with assets classified as held for sale (note (13.2) (0.9) -
9)
Current liabilities (195.8) (175.3) (321.5)
Net current assets 136.3 245.6 15.4
Long-term borrowings (note 10) (318.9) (364.2) (204.8)
Non-current lease liabilities (101.3) (97.1) (96.3)
Deferred tax liabilities (46.8) (42.2) (44.8)
Pension liabilities (0.1) - (0.1)
Non-current creditors (4.4) (1.6) (2.7)
Non-current liabilities (471.5) (505.1) (348.7)
2,766.0 2,872.4 2,846.2
Total equity
Share capital 63.2 63.2 63.2
Share premium 500.9 500.9 500.9
Revenue and other reserves 2,196.2 2,303.4 2,277.1
Shareholders' funds 2,760.3 2,867.5 2,841.2
Non-controlling interests 5.7 4.9 5.0
2,766.0 2,872.4 2,846.2
Mandarin Oriental International Limited
Consolidated Statement of Changes in Equity
for the six months ended 30 June 2025
Share Share Capital Revenue Asset revaluation reserves US$m Hedging Exchange Attributable to shareholders of the Company US$m Attributable to non- Total
capital premium reserves reserves reserves reserves controlling interests equity
US$m US$m US$m US$m US$m US$m US$m US$m
Six months ended 30 June 2025 (unaudited)
At 1 January 2025 63.2 500.9 258.9 (958.1) 3,023.2 (0.9) (46.0) 2,841.2 5.0 2,846.2
Total comprehensive income - - - (63.9) - (1.7) 28.9 (36.7) 0.7 (36.0)
Dividends paid by the Company - - - (44.2) - - - (44.2) - (44.2)
At 30 June 2025 63.2 500.9 258.9 (1,066.2) 3,023.2 (2.6) (17.1) 2,760.3 5.7 2,766.0
Six months ended 30 June 2024 (unaudited)
At 1 January 2024 63.2 500.9 258.9 (815.9) 3,023.2 1.7 (71.6) 2,960.4 5.1 2,965.5
Total comprehensive income - - - (51.9) - (2.3) 5.5 (48.7) (0.2) (48.9)
Dividends paid by the Company - - - (44.2) - - - (44.2) - (44.2)
At 30 June 2024 63.2 500.9 258.9 (912.0) 3,023.2 (0.6) (66.1) 2,867.5 4.9 2,872.4
Year ended 31 December 2024
At 1 January 2024 63.2 500.9 258.9 (815.9) 3,023.2 1.7 (71.6) 2,960.4 5.1 2,965.5
Total comprehensive income - - - (79.0) - (2.6) 25.6 (56.0) (0.1) (56.1)
Dividends paid by the Company - - - (63.2) - - - (63.2) - (63.2)
At 31 December 2024 63.2 500.9 258.9 (958.1) 3,023.2 (0.9) (46.0) 2,841.2 5.0 2,846.2
Revenue reserves as at 30 June 2025 included cumulative fair value losses on
the investment property under development of US$1,481.5 million (US$1,244.9
million as at 30 June 2024 and US$1,378.8 million as at 31 December 2024).
Mandarin Oriental International Limited
Consolidated Cash Flow Statement
for the six months ended 30 June 2025
(unaudited) Year ended
Six months ended 31
30 June December
2025 2024 2024
US$m US$m US$m
Operating activities
Operating loss (60.5) (38.2) (57.5)
Depreciation, amortisation and impairment 22.5 21.7 42.8
Other non-cash items 78.6 69.0 143.1
Movements in working capital 4.5 (11.3) (21.0)
Interest received 1.6 1.3 5.3
Interest and other financing charges paid (4.2) (8.6) (12.2)
Tax paid for underlying business performance (6.6) (5.9) (14.7)
Tax paid for sale of subsidiaries and asset disposals - (4.6) (8.9)
Total tax paid (6.6) (10.5) (23.6)
35.9 23.4 76.9
Dividends and interest from associates and joint ventures 3.2 0.3 1.0
Cash flows from operating activities 39.1 23.7 77.9
Investing activities
Purchase of tangible assets (6.4) (4.0) (13.5)
Additions to investment properties (78.8) (65.4) (162.7)
Purchase of intangible assets (5.5) (4.0) (11.7)
Purchase of Mandarin Oriental Exceptional Homes business - - (4.7)
Purchase of other investments (0.1) (0.1) (0.1)
Advance to associates and joint ventures (0.3) - -
Repayment of loans to associates and joint ventures - 0.1 0.1
Sale of subsidiaries (note 11) - 215.5 215.7
Net proceeds from asset disposals - - 105.4
Sale of an associate (note 14) 36.6 - -
Cash flows from investing activities (54.5) 142.1 128.5
Financing activities
Drawdown of borrowings 12.8 535.7 422.2
Repayment of borrowings (3.9) (586.8) (530.5)
Principal elements of lease payments (3.5) (3.0) (6.5)
Dividends paid by the Company (note 12) (44.2) (44.2) (63.2)
Cash flows from financing activities (38.8) (98.3) (178.0)
Net (decrease)/increase in cash and cash equivalents (54.2) 67.5 28.4
Cash and cash equivalents at beginning of period 215.0 190.3 190.3
Effect of exchange rate changes 5.7 (3.9) (3.7)
Cash and cash equivalents at end of period 166.5 253.9 215.0
At 30 June 2025, cash and cash equivalents of US$166.5 million included cash
and bank balances of US$11.8 million classified as assets held for sale (note
9).
Mandarin Oriental International Limited
Notes to Condensed Financial Statements
1. ACCOUNTING POLICIES AND BASIS OF PREPARATION
The condensed financial statements have been prepared in accordance with IAS
34 'Interim Financial Reporting' and on a going concern basis. The condensed
financial statements have not been audited or reviewed by the Group's
auditors.
There are no changes to the accounting policies as described in the 2024
annual financial statements. A number of amendments issued by the
International Accounting Standards Board were effective from 1 January 2025
and do not have significant impact on the Group's results, financial position
and accounting policies.
The Group has not early adopted any standards, interpretations or amendments
that have been issued but not yet effective.
2. REVENUE
Six months ended 30 June
2025 2024
US$m US$m
By business activity:
Owned Hotels 213.3 218.9
Management Business 45.2 42.5
Less: intra-segment revenue (11.0) (10.5)
247.5 250.9
By geographical area:
Asia 120.3 111.5
Europe, the Middle East and Africa ('EMEA') 104.0 117.0
America 23.2 22.4
247.5 250.9
Revenue from contracts with customers:
Recognised at a point in time 75.8 73.1
Recognised over time 166.9 168.8
242.7 241.9
Revenue from other sources:
Rental income 4.8 9.0
247.5 250.9
3. EBITDA FROM SUBSIDIARIES (EARNINGS BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION)
Six months ended 30 June
2025 2024
US$m US$m
By business activity:
Owned Hotels 32.6 35.2
Management Business 17.1 18.6
Property Development (2.4) (1.7)
Underlying EBITDA from subsidiaries 47.3 52.1
Non-trading items (note 7)
Change in fair value of investment properties (102.7) (37.1)
Loss on sale of subsidiaries - (31.5)
Gain on sale of an associate 24.4 -
Other operating expenses (7.0) -
(85.3) (68.6)
EBITDA from subsidiaries (38.0) (16.5)
Underlying depreciation and amortisation from
subsidiaries (22.5) (21.7)
Operating loss (60.5) (38.2)
By geographical area:
Asia 23.9 17.9
EMEA 25.8 36.0
America (2.4) (1.8)
Underlying EBITDA from subsidiaries 47.3 52.1
4. SHARE OF RESULTS OF ASSOCIATES AND JOINT VENTURES
EBITDA Depreciation Operating profit/ Net Tax Net
US$m and (loss) financing US$m profit/
amortisation US$m charges (loss)
US$m US$m US$m
Six months ended
30 June 2025
By business activity:
Owned Hotels 19.1 (8.1) 11.0 (3.8) (0.7) 6.5
Other 0.4 (0.3) 0.1 - - 0.1
Underlying 19.5 (8.4) 11.1 (3.8) (0.7) 6.6
Non-trading items
(note 7)
- closure costs (0.5) - (0.5) - - (0.5)
19.0 (8.4) 10.6 (3.8) (0.7) 6.1
By geographical area:
Asia 12.7 (5.9) 6.8 (1.3) (0.7) 4.8
EMEA 4.0 (1.7) 2.3 (1.8) - 0.5
America 2.8 (0.8) 2.0 (0.7) - 1.3
Underlying 19.5 (8.4) 11.1 (3.8) (0.7) 6.6
Non-trading items
(note 7)
- closure costs (0.5) - (0.5) - - (0.5)
19.0 (8.4) 10.6 (3.8) (0.7) 6.1
Six months ended
30 June 2024
By business activity:
Owned Hotels 18.2 (7.9) 10.3 (4.8) (1.0) 4.5
Other 0.4 (0.3) 0.1 - 0.1 0.2
Underlying 18.6 (8.2) 10.4 (4.8) (0.9) 4.7
Non-trading items
(note 7)
- closure costs (0.5) - (0.5) - - (0.5)
18.1 (8.2) 9.9 (4.8) (0.9) 4.2
By geographical area:
Asia 12.4 (5.8) 6.6 (1.8) (1.0) 3.8
EMEA 3.6 (1.7) 1.9 (1.9) 0.1 0.1
America 2.6 (0.7) 1.9 (1.1) - 0.8
Underlying 18.6 (8.2) 10.4 (4.8) (0.9) 4.7
Non-trading item
(note 7)
- closure costs (0.5) - (0.5) - - (0.5)
18.1 (8.2) 9.9 (4.8) (0.9) 4.2
5. TAX
Six months ended 30 June
2025 2024
US$m US$m
Tax charged to profit and loss is analysed as follows:
Current tax (8.5) (10.6)
Deferred tax (0.3) (2.5)
(8.8) (13.1)
By business activity:
Owned Hotels (4.7) (10.2)
Management Business (4.1) (2.9)
(8.8) (13.1)
By geographical area:
Asia (4.1) (3.7)
EMEA (1.5) (8.8)
America (3.2) (0.6)
(8.8) (13.1)
In 2025, current tax included a non-trading capital gain tax charge of US$2.7
million in relation to the sale of 25% ownership stake in the owning company
of Mandarin Oriental, Miami (note 14).
In 2024, current tax included a non-trading capital gain tax charge of US$5.4
million in relation to the sale of 100% ownership stake in the owning
companies of Mandarin Oriental, Paris (note 9).
Tax credit relating to cash flow hedges of US$0.4 million (2024: US$0.6
million) is included in other comprehensive income or expense.
Tax on profits has been calculated at rates of taxation prevailing in the
territories in which the Group operates.
The Group is within the scope of the OECD Pillar Two model rules, and has
applied the exception to recognising and disclosing information about deferred
tax assets and liabilities relating to Pillar Two income taxes. Pillar Two
legislation has been enacted or substantially enacted in certain jurisdictions
in which the Group operates. The Group has assessed that the income tax
expense related to Pillar Two income taxes in the relevant jurisdictions for
the interim period is immaterial.
Share of tax charge of associates and joint ventures of US$0.7 million (2024:
US$0.9 million) is included in share of results of associates and joint
ventures (note 4).
6. (LOSS)/EARNINGS PER SHARE
Loss per share is calculated using loss attributable to shareholders of
US$63.9 million (2024: US$52.0 million) and the weighted average number of
1,263.8 million (2024: 1,263.8 million) shares in issue during the period.
Additional earnings/loss per share are also calculated based on underlying
profit/loss attributable to shareholders. A reconciliation of loss/earnings is
set out below:
Six months ended 30 June
2025 2024
US$m (Loss)/ earnings US$m (Loss)/ earnings
per share
per share
US¢ US¢
Loss attributable to shareholders (63.9) (5.06) (52.0) (4.11)
Non-trading items (note 7) 87.8 74.5
Underlying profit attributable to shareholders 23.9 1.89 22.5 1.78
7. NON-TRADING ITEMS
Non-trading items are separately identified to provide greater understanding
of the Group's underlying business performance. Items classified as
non-trading items include fair value gains or losses on revaluation of
investment properties and investments which are measured at fair value through
profit and loss; gains and losses arising from the sale of businesses,
investments and properties; impairment of non-depreciable intangible assets
and other investments; provisions for the closure of businesses;
acquisition-related costs in business combinations; and other credits and
charges of a non-recurring nature that require inclusion in order to provide
additional insight into underlying business performance.
An analysis of non-trading items after interest, tax and non-controlling
interests is set out below:
Six months ended 30 June
2025 2024
US$m US$m
Change in fair value of investment properties (note 8) (102.7) (37.1)
Loss on sale of subsidiaries (note 11) - (36.9)
Gain on sale of an associate (note 14) 21.7 -
Repayment of government subsidies (7.0) -
Net financing income on deferred consideration receivable (note 9) 0.7 -
(87.3) (74.0)
Share of results of associates and joint ventures (0.5) (0.5)
- closure costs (note 4)
(87.8) (74.5)
In 2025, the Group identified a breach of specific conditions governing its
eligibility for Covid-19 government subsidies received during the period 2020
to 2022 for Mandarin Oriental, Munich. As a result, a liability of US$7.0
million (€6.2 million) has been recognised for the repayment of these
subsidies to the local authorities by the Group.
8. INVESTMENT PROPERTIES
Six months ended Year ended
30 June
31 December
2025 2024 2024
US$m US$m US$m
Fair value at beginning of period 2,085.6 2,060.3 2,060.3
Exchange differences (22.9) 1.7 14.2
Additions 48.8 55.0 182.1
Decrease in fair value (102.7) (37.1) (171.0)
Fair value at end of period 2,008.8 2,079.9 2,085.6
At 30 June 2025, investment properties comprised a commercial investment
property under development of US$1,920.8 million (US$1,991.4 million as at 30
June 2024 and US$1,996.6 million as at 31 December 2024) and a completed
residential investment property of US$88.0 million (US$88.5 million as at 30
June 2024 and US$89.0 million as at 31 December 2024).
9. ASSETS CLASSIFIED AS HELD FOR SALE
Six months ended Year ended
30 June
31 December
2025 2024 2024
US$m US$m US$m
Intangible assets 21.2 - -
Tangible assets 46.3 78.1 -
Right-of-use assets 0.1 - -
Currents assets(*) 15.9 2.5 -
Total assets 83.5 80.6 -
Current liabilities (13.2) (0.9) -
*Included cash and bank balances of US$11.8 million at 30 June 2025.
In June 2025, the Group has signed agreements to sell its interests in the
owning company of Mandarin Oriental, Munich and the hotel property to Eagle
Hills Real Estate Holdings Limited, the owner of Mandarin Oriental, Muscat.
The Group has agreed a new long-term management agreement to manage the hotel.
This transaction is expected to be completed in the third quarter of the year.
In June 2024, the Group signed a contract to sell two retail units to Lavender
Propco SNC, an entity controlled by Blackstone Europe LLP, at a total gross
consideration of US$160.5 million, consisting of US$106.5 million cash
consideration and US$54.0 million deferred consideration receivable within
three years according to the deed of sale. This transaction was completed in
July 2024, and the Group recognised a post-tax, non-trading gain of US$55.9
million which included cumulative exchange translation loss of US$11.0 million
and a tax charge of US$4.9 million. Net financing income on the deferred
consideration of US$0.7 million was recognised as non-trading gain in the
second half of 2024.
10. BORROWINGS
The Group had borrowing facilities of US$322.0 million due to mature within
2025. In February 2025, the Group has refinanced bank facilities of US$359.0
million for three to five years.
11. SALE OF SUBSIDIARIES
In April 2024, the Group completed the sale of 100% ownership stake in the
owning companies of Mandarin Oriental, Paris to SLH Hotels Srl, the owner of
Mandarin Oriental, Milan.
Net cash inflow for the sale of subsidiaries is summarised as follows:
Six months ended 30 June
2025 2024
US$m US$m
Non-current assets - 218.8
Currents assets - 5.7
Current liabilities - (5.7)
Net assets - 218.8
Cumulative exchange translation difference - 28.2
Loss on disposal before tax - (31.5)
Net cash inflow - 215.5
12. DIVIDENDS
Six months ended 30 June
2025 2024
US$m US$m
Final dividend in respect of 2024 of US¢3.50
(2023: US¢3.50) per share 44.2 44.2
An interim dividend in respect of 2025 of US¢1.50 (2024: US¢1.50) per share
amounting to a total of US$19.0 million (2024: US$19.0 million) has been
declared by the Board and will be accounted for as an appropriation of revenue
reserves in the second half of the year ending 31 December 2025.
13. CAPITAL COMMITMENTS
Total capital commitments at 30 June 2025 and 31 December 2024 amounted to
US$101.3 million and US$192.3 million, respectively.
14. RELATED PARTY TRANSACTIONS
The parent company of the Group is Jardine Strategic Limited ('JSL') and the
ultimate holding company of the Group is Jardine Matheson Holdings Limited
('JMH'). Both JMH and JSL are incorporated in Bermuda.
In the normal course of business, the Group undertakes a variety of
transactions with its associates and joint ventures and with JMH's
subsidiaries, associates and joint ventures. The more significant of these
transactions during the six months ended 30 June 2025 are described below:
The Group managed six (2024: six) associate and joint venture hotels and
received management fees of US$9.1 million (2024: US$8.4 million) based on
long-term management agreements on normal commercial terms.
The Group provided hotel management services to Hongkong Land group ('HKL'), a
subsidiary of JMH. Total management fees received from HKL amounted to US$1.1
million (2024: US$1.1 million), based on long-term management agreements on
normal commercial terms.
In respect of the One Causeway Bay site under development, the Group paid
consultancy fees of US$4.8 million (2024: US$1.0 million) to HKL in
consideration for project and asset management services. In addition, Gammon
Construction Limited and its group companies ('GCL'), a joint venture of JMH,
completed value of works of US$50.9 million (2024: US$48.6 million). The HKL
agreement and GCL contract were arranged on normal commercial terms.
In June 2025, the Group completed the sale of 25% ownership stake in the
owning company of Mandarin Oriental, Miami, to Swire General Hotel LLC, an
owner of the associate hotel, at a total consideration of US$37.0 million,
consisting of cash consideration of US$16.7 million and repayment of
shareholder loan of US$20.3 million. The Group has recognised a post-tax,
non-trading gain of US$21.7 million (net of tax charge of US$2.7 million)
(note 7).
There were no other related party transactions that might be considered to
have a material effect on the financial position or performance of the Group
that were entered into or changed during the first six months of the current
financial year.
The outstanding balances with associates and joint ventures are included in
debtors as appropriate.
15. FINANCIAL INSTRUMENTS
Financial instruments by category
The fair values of financial assets and financial liabilities, together with
carrying amounts at 30 June 2025 and 31 December 2024 are as follows:
Fair value of hedging instruments Fair value Financial assets at amortised cost Other Total
US$m through US$m financial liabilities carrying Fair
profit and loss US$m amount value
US$m US$m US$m
30 June 2025
Financial assets measured at fair value
Other investments - 13.4 - - 13.4 13.4
Financial assets not measured at fair value
Amounts due from associates and joint ventures - - 100.2 - 100.2 100.2
Debtors - - 74.4 - 74.4 74.4
Cash and bank balances - - 166.5 - 166.5 166.5
- - 341.1 - 341.1 341.1
Financial liabilities measured at fair value
Derivative financial instruments (2.9) - - - (2.9) (2.9)
Contingent consideration payable - (0.9) - - (0.9) (0.9)
(2.9) (0.9) - - (3.8) (3.8)
Financial liabilities not measured at fair value
Borrowings - - - (318.9) (318.9) (318.9)
Lease liabilities - - - (107.3) (107.3) (107.3)
Trade and other payable excluding non-financial liabilities - - - (157.1) (157.1) (157.1)
- - - (583.3) (583.3) (583.3)
Fair value of hedging instruments Financial assets at amortised cost Other
US$m Fair value US$m financial liabilities Total Fair
through US$m carrying amount value
profit and loss US$m US$m
US$m
31 December 2024
Financial assets measured at fair value
Other investments - 13.3 - - 13.3 13.3
Derivative financial instruments 0.1 - - - 0.1 0.1
0.1 13.3 - - 13.4 13.4
Financial assets not measured at fair value
Amounts due from associates and joint ventures - - 113.4 - 113.4 113.4
Debtors - - 131.0 - 131.0 131.0
Cash and bank balances - - 215.0 - 215.0 215.0
- - 459.4 - 459.4 459.4
Financial liabilities not measured at fair value
Derivative financial instruments (0.9) - - - (0.9) (0.9)
Contingent consideration payable - (0.9) - - (0.9) (0.9)
(0.9) (0.9) - - (1.8) (1.8)
Financial liabilities not
measured at fair value
Borrowings - - - (308.5) (308.5) (308.5)
Lease liabilities - - - (102.4) (102.4) (102.4)
Trade and other payable excluding non-financial liabilities - - - (168.2) (168.2) (168.2)
- - - (579.1) (579.1) (579.1)
Fair value estimation
(i) Financial instruments that are measured at fair value
For financial instruments that are measured at fair value in the balance
sheet, the corresponding fair value measurements are disclosed by level of the
following fair value measurement hierarchy:
(a) Inputs other than quoted prices in active markets that are
observable for the asset or liability, either directly or indirectly
('observable current market transactions')
The fair values of derivative financial instruments are determined using rates
quoted by the Group's bankers at the balance sheet date. The rates for
interest rate swaps and caps and forward foreign exchange contracts are
calculated by reference to market interest rates and foreign exchange rates.
The fair values of unlisted investments mainly include club and school
debentures, are determined using prices quoted by brokers at the balance sheet
date.
(b) Inputs for assets or liabilities that are not based on observable
market data ('unobservable inputs')
The fair values of other unlisted investments are determined using valuation
techniques by reference to observable current market transactions (including
price-to earnings and price-to book ratios of listed securities of entities
engaged in similar industries) or the market prices of the underlying
investments with certain degree of entity specific estimates or discounted
cash flow by projecting the cash flows from these investments.
There were no changes in valuation techniques during the six months ended 30
June 2025 and the year ended 31 December 2024.
The table below analyses financial instruments carried at fair value at 30
June 2025 and 31 December 2024, by the levels in the fair value measurement
hierarchy:
Observable Unobservable Total
market current transactions inputs US$m
US$m US$m
30 June 2025
Assets
Other investments 4.7 8.7 13.4
Liabilities
Contingent consideration payable - (0.9) (0.9)
Derivative financial instruments at fair value (2.9) - (2.9)
- through other comprehensive income
(2.9) (0.9) (3.8)
Observable Unobservable Total
market current transactions inputs US$m
US$m US$m
31 December 2024
Assets
Other investments 4.8 8.5 13.3
Derivative financial instruments at fair value
- through other comprehensive income 0.1 - 0.1
4.9 8.5 13.4
Liabilities
Contingent consideration payable - (0.9) (0.9)
Derivative financial instruments at fair value
- through other comprehensive income (0.9) - (0.9)
(0.9) (0.9) (1.8)
There were no transfers among the two categories during the six months ended
30 June 2025 and the year ended 31 December 2024.
Movement of financial instruments which are valued based on unobservable
inputs during the six months ended 30 June 2025 and the year ended 31 December
2024 are as follows:
Unlisted investments
US$m
At 1 January 2025 8.5
Additions 0.2
At 30 June 2025 8.7
At 1 January 2024 8.4
Additions 0.1
At 31 December 2024 8.5
(i) Financial instruments that are not measured at fair value
The fair values of current debtors, bank and cash balances, current creditors,
current borrowings and current lease liabilities are assumed to approximate
their carrying amounts due to the short-term maturities of these assets and
liabilities.
The fair values of long-term borrowings are based on market prices or are
estimated using the expected future payments discounted at market interest
rates. The fair values of non-current lease liabilities are estimated using
the expected future payments discounted at market interest rates.
Mandarin Oriental International Limited
Principal Risks and Uncertainties
The Board has overall responsibility for risk management and internal control.
The following have been identified previously as the areas of principal risk
and uncertainty facing the Company, and they remain relevant in the second
half of the year.
· Reputation risk and brand name
· Natural and man-made disaster and pandemic
· Partnerships and investments
· Political and economic risk
· IT and cybersecurity
· People and talent
· Customer's changing behaviours and market competition
· Concentration risk
· Third-party service provider and supply chain management
· Financial strength and funding
For greater detail, please refer to pages 138 to 144 of the Company's 2024
Annual Report, a copy of which is available on the Company's website
www.mandarinoriental.com.
Responsibility Statements
The Directors of the Company confirm that, to the best of their knowledge:
(a) the condensed financial statements prepared in accordance with IAS 34
'Interim Financial Reporting' give a true and fair view of the assets,
liabilities, financial position and profit or loss of the Group; and
(b) the interim management report includes a fair review of all information
required to be disclosed under Rules 4.2.7 and 4.2.8 of the Disclosure
Guidance and Transparency Rules issued by the Financial Conduct Authority in
the United Kingdom.
For and on behalf of the Board
Laurent Kleitman
Matthew Bishop
Directors
Mandarin Oriental International Limited
Dividend Information for Shareholders
The interim dividend of US¢1.50 per share will be payable on 15 October 2025
to shareholders on the registers of members at the close of business on 22
August 2025. The shares will be quoted ex-dividend on 21 August 2025, and the
share registers will be closed from 25 to 29 August 2025, inclusive.
Shareholders will receive cash dividends in United States Dollars, except
where elections are made for alternate currencies in the following
circumstances.
Shareholders on the Jersey branch register
Shareholders registered on the Jersey branch register can elect for their
dividends to be paid in Pounds Sterling. These shareholders may make new
currency elections for the 2025 interim dividend by notifying the United
Kingdom transfer agent in writing by 26 September 2025. The Pounds Sterling
equivalent of dividends declared in United States Dollars will be calculated
based on the exchange rate prevailing on 2 October 2025.
Shareholders holding their shares through the CREST system in the United
Kingdom will receive cash dividends in Pounds Sterling only, as calculated
above.
Shareholders on the Singapore branch register who hold their shares through
The Central Depository (Pte) Limited (CDP)
Shareholders enrolled in CDP's Direct Crediting Service (DCS)
Those shareholders enrolled in CDP's DCS will receive their cash dividends in
Singapore Dollars, unless they opt out of CDP Currency Conversion Service,
through CDP, to receive United States Dollars.
Shareholders not enrolled in CDP's DCS
Those shareholders not enrolled in CDP's DCS will receive their cash dividends
in United States Dollars, unless they elect, through CDP, to receive Singapore
Dollars.
Shareholders on the Singapore branch register who wish to deposit their shares
into the CDP system by the dividend record date, being 22 August 2025, must
submit the relevant documents to Boardroom Corporate & Advisory Services
Pte. Ltd., the Singapore branch registrar, by no later than 5.00 p.m. (local
time) on 21 August 2025.
Mandarin Oriental International Limited
About Mandarin Oriental Hotel Group
Mandarin Oriental Hotel Group is an international hotel investment and
management group, with a presence in sought-after destinations around the
world. Renowned for creating outstanding properties, each destination reflects
the Group's Asian heritage, local culture and unique design. Driven by a
passion for the exceptional, every day, everywhere, the Group's mission is to
craft time-enriching experiences that transform the ordinary into the
exceptional and guests to fans through its legendary service. The Group now
operates 44 hotels, 12 residences and 26 exceptional homes in 27 countries and
territories, with many more projects under development. Mandarin Oriental
regularly receives international recognition and awards for outstanding
service and quality management. The Group has equity interests in a number of
its properties and adjusted net assets worth approximately US$4.3 billion as
at 30 June 2025.
Mandarin Oriental continues to drive its reputation as an innovative leader in
luxury hospitality, seeking selective opportunities to expand the reach of the
brand, with the aim of maximising profitability and long-term shareholder
value.
The parent company, Mandarin Oriental International Limited, is incorporated
in Bermuda and has a primary listing in the equity shares (transition)
category of the London Stock Exchange, with secondary listings in Bermuda and
Singapore. The activities of the Group's hotels are managed from Hong Kong.
Mandarin Oriental is a member of the Jardine Matheson Group.
- end -
For further information, please contact:
Max Fleming (Director of Corporate Finance) (852) 2895 9171
Chris Orlikowski (Director of Global Communications) (44) 791 7280 210
Edward Tam (Brunswick Group Limited) (852) 9878 7201
As permitted by the Disclosure Guidance and Transparency Rules of the
Financial Conduct Authority in the United Kingdom, the Company will not be
posting a printed version of the Half-Year Results announcement for the six
months ended 30 June 2025 to shareholders. This Half-Year Results announcement
will be made available on the Company's website, www.mandarinoriental.com,
together with other Group announcements.
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