HOTELIER Mandarin Oriental International posted an underlying profit of US$74.7 million for FY2024, down US$81 million from a year ago. This translates to a full-year underlying loss of 8 per cent.
The group attributed the loss to lower one-off residences branding fees, which more than offset the strong growth in recurring hotel management fee income.
Non-trading losses of US$153 million primarily comprised a non-cash revaluation of One Causeway Bay – the group’s redevelopment site in Hong Kong. This resulted in a US$78 million loss to shareholders.
Overall, the group’s revenue for FY2024 decreased 6 per cent from a year ago to US$525.8 million.
Loss per share was US$0.0622, compared with US$0.2891 the year before.
A dividend of US$0.05 per share was declared, the same as the previous year.
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The group’s underlying earnings before interest, taxes, depreciation and amortisation – which includes that of its subsidiaries, associates and joint ventures – in 2024 was US$172 million, compared to US$177.6 million a year ago.
Mandarin Oriental manages 41 hotels, 12 residences and 26 homes across 26 markets.
The group said that global luxury hospitality had moved to a more “normal pace of growth” in 2024, following the strong resurgence in travel demand post-pandemic.
The majority of the hotels owned by the group delivered “solid revenue and profit growth”.
In particular, the Singapore hotel delivered higher profits after its renovation in 2023.
The hotels in Tokyo and Madrid also benefitted from robust demand, and achieved “notable improvements” in earnings.
However, earnings in Paris dropped following the disposal of the hotel property and its retail units in the middle of 2024.
Overall, the group’s revenue per available room rose 7 per cent, with occupancy strengthening across all regions.
The counter closed flat at US$1.82 on Wednesday (Mar 5).
