Mandarin Oriental has reported its first underlying profit since 2019 as the easing of international travel restrictions boosted its financials.
The luxury hotel group reported net debt of $568m (£425m) at the close of the period, but insisted the company remains in a “strong financial position” with $162m available in cash reserves and $296 allocated as committed debt facilities. The company’s overall trading environment improved during the third quarter of the year, however, performance was mixed globally depending on regional travel restrictions according to a company statement.
In Asia, where international borders remaining effectively closed, “occupancy levels and average daily rates remained low,” the statement confirmed, adding that the Chinese market was something of an exception due to interest from a large domestic market.
By contrast, the operating environment in both Europe and America “improved substantially,” with the group choosing to open a second hotel in Turkey based in Istanbul.
Both the hotel group and its management company recorded an underlying profit for the quarter, the first such positive performance since the final quarter of 2019, before the coronavirus pandemic caused global travel disruption. Today’s positive results come after the group warned of a “significant loss” in 2020.
Mandarin Oriental, which is a member of the Jardine Matheson Group, is incorporated in Bermuda, and has a standard listing on the London Stock Exchange, with secondary listings in Bermuda and Singapore.