Luxury hotel group Mandarin Oriental warns of ‘significant’ full-year loss
Luxury hotel group Mandarin Oriental today warned that it will report a “significant” loss for the full year after demand for city centre accommodation crashed during the coronavirus pandemic.
The firm, which counts a five-star Knightsbridge hotel among its portfolio, said business levels remain low in most locations due to Covid-19 restrictions.
Manderin Oriental this morning reported a loss of $43m in the third quarter, following a $63m loss in the second quarter.
It said a recovery in business levels is not expected until the second half of next year “at the earliest”, and therefore it will report a significant loss for 2020.
However the firm said its financial position “remains robust”, with net debt at 30 September a $459m and cash reserves of £178m.
The hotel chain, which has venues across Asia, Europe and the Americas, has $184m in available, committed debt facilities.
In a statement today the company’s management said: “We would like to express our deep gratitude to all Mandarin Oriental colleagues for their continuing dedication and resolve to putting customers first during these extraordinary times.”
The firm, 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.