Mandarin Oriental International Ltd Interim Management Statement (7620G)
November 08 2018 - 3:12AM
UK Regulatory
TIDMMDO TIDMJAR TIDMJDS
RNS Number : 7620G
Mandarin Oriental International Ltd
08 November 2018
To: Business Editor For immediate release
The following announcement was issued today to a Regulatory
Information Service approved by the Financial Conduct Authority in
the United Kingdom.
MANDARIN ORIENTAL INTERNATIONAL LIMITED
Interim Management Statement
8th 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. Mandarin Oriental
International Limited is incorporated in Bermuda and has a standard
listing on the London Stock Exchange, with secondary listings in
Bermuda and Singapore. It is a member of the Jardine Matheson
Group.
- end -
For further information, please contact:
Mandarin Oriental Hotel Group International Limited
Alexander Li (852) 2895 9288
Sally de Souza (852) 2895 9167
Brunswick Group Limited
Karin Wong (852) 3512 5077
This and other Group announcements can be accessed through the
Internet at 'www.mandarinoriental.com'.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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