In its interim management statement for the 1QFY2021, Mandarin Oriental International has reported unaudited underlying losses of US$41 million ($54.7 million).
Mandarin Oriental is a member of the Jardine Matheson group.
It adds that it expects to report “a further loss” in the 2QFY2021.
The “challenging” trading conditions in the 1QFY2021 were attributable to the adverse impact from Covid-19, as well as the ongoing actions implemented by governments to control the pandemic.
It adds that a successful roll-out of vaccine programmes worldwide, along with the relaxation of travel restrictions will be “crucial for the restoration of viable operating conditions”.
SEE:The Excelsior in Hong Kong to close at end March for US$650 mil redevelopment
Border restrictions in Asia “greatly restricted demand” with the exception of the Chinese mainland were occupancy was supposed by “strong local consumption”.
Conditions in Europe worsened as the quarter progressed, and the operating environment America has “improved slowly”, noted the hospitality group.
All of the group’s hotels were operational by the middle of April.
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The group, on April 15, reopened the restored Mandarin Oriental Ritz in Madrid, Spain, which will be a flagship property in its portfolio.
The group’s financial position remains “robust” with US$150 million in cash reserves.
Shares in Mandarin Oriental closed 3 US cents higher or 1.5% up at US$1.98 on May 5.
