Five-star hotel group Mandarin Oriental is considering an expansion into the four-star market, managing director Robert Riley said yesterday.
'We're looking at different market segments,' he said, after announcing a 10 per cent jump in attributable profit to a record US$53.7 million for 1995.
'There's still plenty of opportunities for luxury hotels, but we're already represented in most of the major Asian cities.' Mr Riley denied this would be a move down market, saying he wanted to repeat the successful formula of Hong Kong's Excelsior Hotel, the only four-star hotel in the 13-hotel group.
Mandarin, controlled by the Jardine Group, was helped by rising hotel occupancy in the second half after a dismal first few months. Earnings per share rose 9 per cent to 7.78 US cents.
Final dividend is 4.35 cents, making 5.90 cents for the year, a 7 per cent increase.
Mr Riley said the second half improvement in occupancy, room rates and yield per room had continued into 1996. While occupancy at the flagship Mandarin Oriental in Hong Kong was a mere 59.5 per cent during January and February 1995, it rebounded to 72.1 per cent during the first two months of this year.
