REG - Mandarin Oriental Jardine Matheson Hdg - INTERIM MANAGEMENT STATEMENT

Mandarin Oriental InternationalAnnouncement

14/11/2024 09:45

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RNS Number : 2756M  Mandarin Oriental International Ltd  14 November 2024

Announcement

 

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

Interim Management Statement

 

 

14 November 2024 - Mandarin Oriental International Limited today issues its
Interim Management Statement for the third quarter of 2024.

Laurent Kleitman, Group Chief Executive, said:

"One year after my joining Mandarin Oriental, I am pleased to see increasing
positive momentum across our business. Our vision to elevate the brand and
strategy to accelerate growth are in place and have been communicated to all
our 15,000 colleagues globally. We are building new capabilities, new
governance and a new culture to drive Exceptional growth and are focused now
on executing and delivering results. We will measure ourselves in the long
term in terms of accelerated growth from our development pipeline,
differentiated innovation and service, and improved financial performance. The
strength of our Brand will remain the bedrock of future success of our
business."

In the third quarter, Revenue per Available Room ('RevPAR') increased year on
year across all regions. In Asia, both rates and occupancy were fuelled by
strong intra-regional demand, with Tokyo and South East Asia performing well.
In Europe, the Middle East and Africa, almost all hotels were able to deliver
solid improvements in RevPAR supported by both rate and occupancy. In America,
with rates flat, our hotels delivered RevPAR growth through increases in
occupancy.

With higher RevPARs in the period, the Management Business generated stronger
hotel management fee income and improved profitability, excluding Residences
branding fees. Owned Hotels, particularly Singapore, Munich, and Madrid,
recorded solid improvements in earnings from last year, partially offset by
the absence of earnings from Paris as a result of the disposal of that hotel.
Overall, the Group's underlying profit in the quarter was slightly below the
prior year due to lower branding fees.

On the development front, in September, the Group opened its second property
in Beijing - Mandarin Oriental Qianmen, Beijing, a one-of-a-kind hutong
experience already delivering some of the highest rates in China. This year,
the Group has made excellent progress in accelerating the growth of its
portfolio with four new hotel and residences management contracts: a luxurious
hideaway with private branded residences on Bali's southern coast, a unique
hotel meticulously restoring the 19th-century charm in the heart of Rome, a
resort with branded residences on Mexico's Riviera Maya on the Yucatan
Peninsula marking the Group's debut in the market, and a standalone residences
project in Abu Dhabi.

Consolidated net debt significantly decreased from US$225 million as at 31
December 2023 to US$26 million as at 30 September 2024, mainly due to the
receipt of sale proceeds from Paris hotel and retail properties, partially
offset by investment in One Causeway Bay - the Group's mixed-use commercial
redevelopment in Hong Kong. The Group's liquidity position remains robust,
with over US$700 million in available committed debt facilities and cash
reserves. Gearing was 1% of adjusted shareholders' funds, reduced from 5% at
the end of last year.

Mandarin Oriental Hotel Group is the award-winning owner and operator of some
of the world's most luxurious hotels, resorts and residences. Having grown
from its Asian roots into a global brand, the Group now operates 41 hotels, 12
residences and 26 exclusive homes in 26 countries and territories, with each
property reflecting the Group's oriental heritage, local culture and unique
design. Mandarin Oriental has a strong pipeline of hotels and residences under
development.

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

 

William Brocklehurst (Brunswick Group
Limited)
(852) 5685 9881

 

This and other Group announcements can be accessed online at
'www.mandarinoriental.com'.

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