not vested
Interim Management Statement8th November 2018 – Mandarin Oriental International Limited has today issued an Interim
Management Statement for the third quarter of 2018.
The Group’s overall results for the quarter were higher than the same period in 2017, despite
the absence of earnings from Hotel Ritz, Madrid, which closed for restoration at the end of
February.
Repairs are ongoing at Mandarin Oriental Hyde Park, London following the fire on 6th June
2018. The hotel will re-open its public areas and facilities on 4th December, while the rooms
are expected to re-open in the Spring of 2019.
As previously noted, given the coverage under the Group’s insurance arrangements, the impact on profitability is expected to be modest.
On 9th October 2018, the Group announced that The Excelsior, Hong Kong will close on
31st March 2019 in order for the site to be redeveloped as a commercial building. The
decision to close the hotel, which opened in 1973, follows the completion of a detailed review
of the long-term strategic options for the site. The redevelopment is expected to take up to
six years to complete and cost some US$650 million.
Based on current assumptions and market information, the Group estimates that the reclassification of the property to reflect its market value as a site for commercial redevelopment would lead to an accounting gain of some US$2.9 billion (net of closure costs), which will be recognised in the 2019 results.
Three new management contracts have been signed since the half year. In July, the Group
took over management of a luxury resort on Lake Como, which will be rebranded as
Mandarin Oriental, Lago di Como in 2019, following refurbishment.
A new hotel and residences in Moscow is scheduled to open in 2021 and a new luxury resort in Phuket is scheduled to open in 2022. The Group will cease to manage Mandarin Oriental, Atlanta
from 7th December 2018, following the sale of the property.
At 30th September 2018, net debt was US$287 million, while gearing as a percentage of
adjusted shareholders’ funds was 5%, largely unchanged from 30th June 2018.
Mandarin Oriental currently operates 31 hotels and seven residences in 21 countries and
territories.
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It's all about "how much you made when you were right" & "how little you lost when you were wrong"