Enhanced Renovation for Mandarin Oriental, Hong Kong to be Completed in a Single-Phase
HONG KONG, October 25, 2005. Mandarin Oriental International Limited have announced that the comprehensive renovation planned for Mandarin Oriental, Hong Kong is to be completed within a single-phase eight-month period commencing at the end of 2005. The renovation programme, which has been enhanced to ensure a significant re-positioning of the Group's flagship property, will cost US$140 million.
The extensive renovation will upgrade the facilities and services of this legendary hotel, while maintaining its classic, Chinese-influenced elegance. A major component of the work will be the enclosure of the hotel's balconies, which will increase the size of the guestrooms and provide scope for the creation of spacious bathrooms. The overall number of hotel rooms will be reduced from 541 to 503, while the number of suites will increase to 69. The exterior of the building will also be upgraded in keeping with the contemporary facades of the hotel's commercial neighbours at the heart of Hong Kong's business district.
The hotel's public areas, restaurants and bars will be refurbished, and a reconfiguration of the ground floor will increase the rental space for luxury retail. A luxurious spa, in line with the Group's award-winning international spa concepts, has also been devised for the property.
The hotel will close on 28th December 2005 and will re-open in late August 2006, with the renovation of the public areas and approximately 200 guestrooms complete. The remaining rooms will become available progressively over the remainder of the year.
During the closure period, employees will be offered opportunities for training and personal development. Some will transfer to other hotels within the Group while others will be seconded to work at sister companies within the Jardine Matheson Group in Hong Kong.
The hotel closure will inevitably dampen the Group's results in 2006, although the loss of profit is expected to be offset in part by the increasing contribution from the Group's new properties. In the first half of 2005, Mandarin Oriental, Hong Kong's earnings before interest, tax and depreciation (EBITDA) were US$17 million. The renovation programme will be financed by existing Group facilities.
"Throughout its 40-year history, Mandarin Oriental, Hong Kong has been an icon of this vibrant city and one of the Group's best performing hotels. This refurbishment is designed to ensure its position as one of the world's legendary hotels." said Edouard Ettedgui, Group Chief Executive of Mandarin Oriental Hotel Group.
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