Mandarin Oriental

• Combined revenue exceeds 2019 levels
• Group returns to underlying profit
• Strong performance from management business, particularly resort hotels
• Good recovery by owned hotels, although results impacted by Hong Kong and Tokyo
• Two new hotels and two new residences opened and seven new projects announced

Mandarin Oriental continued its recovery in 2022 as travel restrictions lifted in most parts of the world and it ended the year strongly, with a return to underlying profitability. Owned hotels achieved improved occupancy at strong rates, and the management business continued to grow robustly, exceeding 2019 profitability. The group’s management business recorded a strong performance, with robust growth in management fees, particularly from, resort destinations such as Bodrum, Turkey, Lake Como, Italy and Dubai, UAE. The group’s management business reported an underlying profit of US$17 million in 2022, compared to US$5 million in 2021.

Most of the group’s owned or partially owned properties reported better earnings in 2022. The overall performance from owned hotels, however, continued to be adversely affected by lower contributions from the Hong Kong and Tokyo hotels, whose performance was heavily impacted by COVID-19 restrictions throughout the year. Results were notably better in London, Paris, Singapore, and Bangkok, driven by high rates and improved occupancy from the previous year.

The group achieved an underlying profit of US$8 million for the full year, its first profit since 2019. Although profitability remained below pre-pandemic levels, this is a significant improvement compared with 2021, when the group recorded an underlying loss of US$68 million.

The group opened two new hotels in the year, in Shenzhen, China and Lucerne, Switzerland, and two standalone residences in Barcelona, Spain and Beverly Hills, USA. Five projects are scheduled to open in 2023.

In 2022, the group announced seven new management contracts, in Greece, Italy, Egypt, Kuwait, the Maldives, China and Vietnam. The group’s robust development pipeline includes over 26 projects expected to be completed in the next five years.

The Causeway Bay site in Hong Kong, which is being redeveloped as a mixed-use commercial building, remains on track to complete in 2025.