SINGAPORE (Aug 3): Mandarin Oriental, a member of the Jardine Group, posted a 34% decrease in 1H17 earnings to US$15 million ($20.4 million) compared to US$22.9 million a year ago, due to the renovation of its London property.
The group’s earnings per share (EPS) for the half year was 1.19 US cents, down 35% from 1.82 cents in the previous year.
While revenue for the half year came in marginally higher at US$644.8 million from US$643.8 million in the previous year, buoyed by higher contributions from the revenue from the Americas, this was more than offset by the impact of the ongoing phased renovation the London property.
Underlying profit for the period was US$15 million, 39% lower compared with US$25 million in 2016.
Following its announcement in June, the group says it is pursuing strategic options for The Excelsior, Hong Kong, which include the possible sale of the property for redevelopment.
Also known as Mandarin Oriental’s only four-star hotel, the wholly-owned property is situated on a prime commercial site that has approval for the development of a commercial building.
According to Mandarin Oriental, the potential sales process for the said property is continuing, and a further announcement will be made once a decision is reached on the preferred course of action.
See: Mandarin Oriental mulls sale of The Excelsior, HK
Meanwhile, the group says says that while earnings will continue to be impacted into 2018 by the renovation of its London property, the strong brand, healthy balance sheet and portfolio growth of Mandarin Oriental will support its future performance.
Shares in Mandarin Oriental closed 1 cent lower at US$2.08.
