Mandarin Oriental Hotel Group saw a significant decline in profits in the first half of the year, as the company battled against “challenging” market conditions in Asia.
The Hong Kong hotel group generated profits of US$45.6 million in the six months to 30 June 2014 – 20% less than the US$56.8m it generated in the same period last year. Announcing the downturn this week, Mandarin Oriental said that “challenging conditions in certain markets impacted the group’s overall results”.
The company said that while its two wholly-owned Hong Kong saw stable occupancy and rising rates, other Asian markets didn’t perform as well.
“The results of the hotel in Bangkok were negatively impacted by the ongoing political uncertainty, and there were weaker performances in Jakarta and Manila,” it said in a statement.
Mandarin Oriental also warned that its full-year performance “may be influenced by challenging conditions in certain markets”.
The company’s first half revenues actually improved, rising 1% to US$671.4m.
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