Mandarin Oriental Hotel Group experienced a sharp rise in profits in 2013 – the year it celebrated the 50th anniversary of its flagship hotel in Hong Kong.
The company generated profits of US$96.3 million last year, 36% higher than 2012, while revenues increased 6% to US$1.36 billion.
The group opened new luxury hotels in Guangzhou and Shanghai during the year, as well as completing the acquisition of the building housing the Mandarin Oriental Paris. It also signed new management contracts for hotels in Istanbul, Shenzhen, Chongqing and Bali, although it ceased operating its luxury resort in Chiang Mai.
“The group celebrated the 50th anniversary of the opening of its original flagship hotel in Hong Kong in 2013, which contributed to the growing recognition of the Mandarin Oriental brand internationally,” the company said in a statement.
“Increased demand in many of the group’s destinations enabled the majority of the hotels to raise rates in local currency terms. While the group experienced a softening of corporate demand in some markets, it benefited from improved demand in the leisure sector, and from its successful development of new markets,” it added.
In Asia, Mandarin Oriental said its hotels “performed well against their competition”, with revenue per available room (revPAR) up 1% year-on-year. The group’s European hotels experienced a 9% rise in revPAR, while hotels in the Americas posted 11% growth.
Mandarin Oriental said it is now on track to achieve its goal of operating 10,000 rooms across the world within the next few years – up from 8,000 today.
This growth will include the opening of five new Mandarin Oriental hotels in the next 18 months, in Taipei, Bodrum, Marrakech, Beijing and Milan.
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