Mandarin Oriental announced combined total revenue up to US$2.1bn for 2024

Mandarin Oriental International Limited announced 2024 preliminary results. 2024 was a year of significant progress for Mandarin Oriental, marked by strong growth, robust performance, and the launch of our brand-led, guest-centric strategy, paving the way for accelerated further growth over the next decade.

Global luxury hospitality has transitioned from a period of strong resurgence in travel demand following the lifting of pandemic restrictions to a more normal pace of growth in 2024. Against this backdrop, Mandarin Oriental has reported good performance underpinned by its enduring brand desirability, an expanding market-leading portfolio, and exceptional guest experiences.

In the Management Business, improvements in RevPAR performance were supported by strong guest demand for our ultra-luxury hotels, and drove solid combined total revenue performance across all regions, and considerable growth in hotel management fee income, notably in Asia and Europe, the Middle East and Africa (‘EMEA’).

2024 financial performance

The Management Business reported an underlying profit after tax of US$34 million in 2024, compared to US$41 million in 2023. Strong growth in recurring hotel management fee income was more than offset by reductions in one-off residences branding fees, but recurring profitability continued to improve as the Management Business scales.

The Owned Hotels reported a stable contribution of US$45 million profit after tax in 2024. The majority of the Group’s Owned Hotels delivered solid revenue and profit growth, with Singapore in particular delivering higher profits after the hotel’s renovation in 2023. Tokyo and Madrid benefitted from robust demand and achieved notable improvements in earnings. Earnings from Paris reduced following the disposal of that hotel property together with its retail units in mid-2024.

Overall, underlying profit after tax was US$75 million in 2024 compared to US$81 million in 2023. Underlying earnings per share was US¢5.91, compared with US¢6.41 in 2023. Non-trading losses of US$153 million primarily comprised a non-cash revaluation of One Causeway Bay – the Group’s redevelopment site in Hong Kong, resulting in a loss attributable shareholders of US$78 million. Consolidated net debt significantly decreased from US$225 million as at 31 December 2023 to US$94 million as at 31 December 2024, mainly due to the receipt of sale proceeds from Paris hotel and retail properties, partially offset by investment in One Causeway Bay. Gearing was 2% of adjusted shareholders’ funds, reduced from 5% at the end of 2023.

The Directors recommend a final dividend of US¢3.50 per share. Together with the interim dividend of US¢1.50 per share declared, total dividends are US¢5.00 per share.

Highlights

• 13% growth in combined total revenue, up to US$2.1 billion, and 15% growth in hotel management fees driven by strong RevPAR increases in all regions
• Underlying profit after tax of US$75 million in 2024, 8% lower than 2023 due to lower one-off residences branding fees
• Accelerated growth with five new hotels and residences planned to open in 2025
• Strong pipeline replenishment with the announcement of eight new management contracts including the latest additions: Hôtel Lutetia in Paris, the Conservatorium Hotel in Amsterdam, Puerto Rico in the Caribbean, and Suzhou in China
• 41 hotels under management, a milestone in global footprint, with a target to more than double by 2033
• Investing in capability now to achieve long-term targets and sustain accelerated growth
• Paris property disposed for US$382 million advancing asset-light strategy
• Final dividend of US¢3.50 per share, resulting in stable total dividends of US¢5.00 per share

“With a new vision and a brand-led, guest-centric strategy, supported by renewed dynamic leadership and effective governance, Mandarin Oriental is well-positioned to enhance further its desirability and deliver accelerated growth as an ultra-luxury hospitality brand, as well as to create value for its shareholders, partners, and communities over the next 10 years.” said Ben Keswick, Chairman.

The article Mandarin Oriental announced combined total revenue up to US$2.1bn for 2024 first appeared in TravelDailyNews International.