Mandarin Oriental foresees reduced profits from closure of Excelsior as iconic hotel goes for redevelopment
- The iconic Hong Kong hotel contributed 40pc to underlying earnings in 2018
- Redevelopment is expected to be completed in six years and cost US$650m
Mandarin Oriental International, owner of the iconic waterfront Excelsior hotel, reported a 19 per cent rise in underlying profits last year bolstered by strong performance at its Hong Kong properties.
But the luxury hotel chain operator admitted that the closure of the Excelsior would largely dent its profits this year, which contributed nearly 40 per cent to its overall underlying earnings in 2018.
Mandarin Oriental posted underlying earnings of US$65.1 million for 2018, compared to US$54.9 million a year earlier.
Total revenue derived from hotels under its management edged up 1 per cent to US$1.4 billion.
“The outlook for 2019 remains positive,” Ben Keswick, chairman of Mandarin Oriental, said in a statement. “The planned closure of The Excelsior for redevelopment in March 2019, however, will substantially reduce the group’s underlying profit.”
