Mandarin Oriental

Strategic developments

Mandarin Oriental sees significant potential for future growth in luxury hospitality. The group is well positioned to further enhance its desirability and scale as an ultra-luxury hospitality brand, and to create value for its shareholders, partners and communities. Key elements of Mandarin Oriental’s strategy are the development of its management business and realising capital from the sale of property assets to support the growth of the management business. The group has set an ambitious target of doubling its portfolio of hotels, resorts and residences worldwide by 2033.

Mandarin Oriental has already crossed the milestone of 40 hotels and, during the year, as part of its drive for greater capital efficiency, the group completed the disposal of its Paris hotel and retail properties for US$382 million, at the same time agreeing a new long-term hotel management contract.

Business performance

2024 was a year of significant progress for Mandarin Oriental, marked by strong growth, robust performance and the launch of the group’s brand-led, guest-centric strategy, paving the way for accelerated further growth over the next decade.

The group’s underlying net profit was US$75 million in 2024, compared to US$81 million in 2023. Non-trading losses of US$153 million primarily comprised a non-cash revaluation of One Causeway Bay – the group’s redevelopment site in Hong Kong – resulting in a loss attributable to shareholders of US$78 million.

Management business

The Management Business reported an underlying net profit of US$34 million, compared to US$41 million in 2023. Strong growth in recurring hotel management fee income was more than offset by reductions in one-off residences branding fees, but recurring profit improved as the Management Business continued to scale.

Owned hotels

The Owned Hotels reported a stable contribution of US$45 million underlying net profit in 2024. The majority of the group’s Owned Hotels delivered solid revenue and profit growth, with Singapore in particular delivering higher profits after the hotel’s renovation in 2023. Tokyo and Madrid benefitted from robust demand and achieved notable improvements in earnings.

In 2024, the group opened three new hotels and one branded residences and completed one rebranding, expanding its portfolio to 41 hotels, 12 residences and 26 homes across 26 markets. Since the start of 2024, the group has secured eight new hotel and residences projects. With these additions, the group’s development pipeline comprises a total of 32 hotels and 18 residences, with five new hotels and residences planned to open in 2025.

As part of Mandarin Oriental’s regular review of its deployment of capital to ensure alignment with its strategy, in mid-2024 the group completed the disposal of its Paris hotel and retail properties for US$382 million and recognised a gain on disposal of US$20 million. A new long-term hotel management contract has been agreed, together with a renovation plan to strengthen the positioning of the hotel.

The group’s Grade A mixed-use development in Hong Kong, One Causeway Bay, topped out in July 2024 and is due to be completed by the second half of 2025s