Mandarin Oriental has been “significantly impacted” by the coronavirus outbreak.
The warning came as the luxury hotel group reported a slump in 2019 underlying profits to $41 million from $65 million the previous year.
The downturn was mainly attributed to the closure of The Excelsior in Hong Kong in a six-year, $650 million redevelopment, plus social unrest in the city and renovation of a hotel in Bangkok.
However, last year’s earnings were helped by the re-opening of the group’s London Hyde Park hotel (pictured) last April following a fire in 2018 and related insurance proceeds.
Looking forward, chairman Ben Keswick said: “The group’s performance is being significantly impacted by the ongoing coronavirus, particularly in Hong Kong.
“Results for the remainder of the year will depend on the duration, geographic extent and impact of the coronavirus and the measures taken to control it.
“The group’s results should, however, benefit from the newly renovated London and Bangkok hotels and the group looks forward to the re-opening of the iconic Mandarin Oriental Ritz, Madrid in late summer.”
The company opened four new hotels last year in Dubai, Doha, Beijing and Lake Como, a new ‘Residences’ in Bangkok, and announced seven new development projects, including the takeover of the Emirates Palace in Abu Dhabi.
New Mandarin Oriental hotels were announced in Istanbul, Nanjing, Lake Lucerne, Dallas and Tel Aviv as part of a pipeline of 20 properties due to open in the next five years.