Mandarin Oriental Announces a 73% Decline in Net Profit

July — HVS International — Mandarin Oriental, the Hong Kong-based company and hotel arm of the Jardine Matheson Group, announced its interim results last week. The company Chairman, Simon Cheswick, remained optimistic despite reporting a 73% decline in net profit to US $3 million.

Cheswick perceives the first half of 2000 as a dynamic period, one that underpins the groups commitment to growth and development following the re-opening of the London Mandarin Oriental after a £50 million renovation, and the US $143 million acquisition of the Rafael Group.

The first six months have also shown signs of recovery in Asia, with the Mandarin Oriental Hong Kong's occupancy up 14% to 76%, although such gains were more than offset by operating costs associated with the closure of the London site.

Nevertheless, Cheswick expects to reap the benefits from these three key areas in the second half of the year. Furthermore, the group remains committed to extending its presence in North America and Europe.

The purchase of the Rafael Group increased the group's bedroom stock by 20% to 7,000 bedrooms. Further openings, including the Mandarin Oriental in Miami, expected later this year, and a New York opening scheduled for 2003, will help the group achieve its 10,000 bedroom goal.

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