Mandarin enjoys strong 2005

23 February 2006
Mandarin enjoys strong 2005

Hotel owner and operator Mandarin Oriental has predicted a strong 2006, after turnover and profit both climbed significantly last year.

The company opened two hotels and signed four management contracts during 2005.

It now has 21 hotels and with eight properties under development, representing some 8,500 rooms, and is on course to hit its target of at least 10,000 rooms in key cities across the globe.

Company chairman Simon Keswick said: "Markets are expected to remain favourable in 2006. While the temporary closure of Mandarin Oriental Hong Kong will inevitably affect the group's results, the effect will be partially offset by increasing contributions from new properties."

Turnover leapt 22% to $815.4m (£465.9m) from $667.3m (£381.2m) a year earlier.

Profit before tax was 25% higher at $124m (£70.8) compared with $99m (£56.6m) a year ago. This was despite $11m of pre-opening costs in relation to the launch of the Mandarin Tokyo hotel last December.

Mandarin Oriental sold its 40% stake in Kahala Mandarin Oriental Hawaii during the year for $36m and ended its management contract there.

It also sold the Mark hotel in New York for $35m, proceeds of which will be recognised in its 2006 results.

By Chris Druce

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