Mandarin Oriental International Limited
Mandarin Oriental International — Mandarin Oriental Hotel Group — H1 2024 Earnings Presentation
30 slides from Mandarin Oriental International's earnings presentation, Jul 24, 2024
Slide 1: 2024 Half Year Results
2024 Half Year Results Mandarin Oriental Hotel Group 24th July 2024 MANDARIN ORIENTAL Mandarin Oriental Mayfair, London
Slide 2: Agenda
Agenda • Highlights • Group Portfolio • Operating Performance • Financial Results • Development Pipeline • Outlook Mandarin Oriental Savoy, Zurich
Slide 3: Highlights
2024 Half Year Results Highlights
Slide 4: Strong RevPAR performance; New hotels supported scaling
Highlights Strong RevPAR performance; New hotels supported scaling • The Group’s Revenue per Available Room (“RevPAR”) grew by 5% year on year, with positive growth across all regions. • Management fees grew by 6% over H1 2023 led by strong improvements in Asia. • Underlying profit was US$23 million
Slide 5: The Group recorded an underlying profit of US$23 million in the first half
Highlights The Group recorded an underlying profit of US$23 million in the first half Combined Total Revenue Under Consolidated Revenue3 Management1 US$980m US$251m ▲11% (vs H1 2023) ▼4% (vs H1 2023) ▲5% (vs H1 2023 L/L2) ▲3% (vs H1 2023 L/L4) Underlying Profit Attributable to Underlying EBITDA Shar
Slide 6: Group Portfolio
2024 Half Year Results Group Portfolio
Slide 7: Portfolio Highlights
H1 2024 Portfolio Updates Portfolio Highlights Rebranding of Development Milestone of 40 Hotels Sale of the hotel and Mandarin Oriental Al Faisaliah, Riyadh Worldwide retail properties in Paris In January 2024, the Group completed the In June 2024, Mandarin Oriental Mayfair, The Group completed the
Slide 8: The Group operates 40 managed hotels
Global Portfolio The Group operates 40 managed hotels AMERICA EUROPE ASIA Barcelona Boston Bodrum Bangkok Canouan Costa Navarino Beijing Miami Geneva Guangzhou New York Istanbul Hong Kong Santiago Lake Como Jakarta Hyde Park, London Kuala Lumpur Lucerne Landmark, Hong Kong Madrid Macau Mayfair, Lond
Slide 9: Of which 12 are owned or partially owned hotels
Global Portfolio – Owned Hotels Of which 12 are owned or partially owned hotels AMERICA ASIA EUROPE Barcelona Boston Bangkok Bodrum Canouan Beijing Costa Navarino Miami Guangzhou Geneva New York Hong Kong Istanbul Santiago Jakarta Lake Como Kuala Lumpur Hyde Park, London Landmark, Hong Kong Lucerne
Slide 10: The Group manages 12 branded residences
Global Portfolio – Branded Residences The Group manages 12 branded residences London Boston New York Barcelona Bodrum Beverly Hills Muscat Taipei Macau Bangkok MANDARIN ORIENTAL Group Portfolio
Slide 11: Operating Performance
2024 Half Year Results Operating Performance
Slide 12: Higher revenue than H1 2023 across all regions; EMEA and Asia strong growth
H1 2024 Combined Total Revenue of Hotels Under Management Higher revenue than H1 2023 across all regions; EMEA and Asia reported strong growth % change in Combined Total Revenue of Hotels Under Management H1 2024 vs H1 2023 (US$ terms) 13% 12% 11% 5% 3% EMEA America Asia Total Total (L/L) MANDARIN O
Slide 13: RevPAR exceeded H1 2023 levels in all regions, with notable growth in Asia
H1 2024 Revenue Per Available Room (‘RevPAR’) Performance RevPAR exceeded H1 2023 levels in all regions, with notable growth in Asia % change in RevPAR H1 2024 vs H1 2023 (US$ terms) 12% 5% 3% 2% EMEA America Asia Total MANDARIN ORIENTAL Operating Performance
Slide 14: Small decrease in rates in EMEA and America; Higher rates in Asia
H1 2024 Average Daily Rate (‘ADR’) Performance Small decrease in rates in EMEA and America; Higher rates in Asia % change in ADR H1 2024 vs H1 2023 (US$ terms) 4% -1% -1% -1% EMEA America Asia Total MANDARIN ORIENTAL Operating Performance
Slide 15: Occupancy improved compared to H1 2023 in all regions
H1 2024 Occupancy Performance Occupancy improved compared to H1 2023 in all regions; Asia recorded strong growth in demand from corporate and group segments Change in Occupancy by Region H1 2024 vs H1 2023 4.3%pt 3.2%pt 2.4%pt 1.9%pt EMEA America Asia Total MANDARIN ORIENTAL Operating Performance
Slide 16: Hotel management fee income grew by 6% in H1 2024
Management Business Performance Hotel management fee income grew by 6% in H1 2024 • Total hotel management fees were 6% higher than H1 2023, with strong growth in Asia (+15% YoY). Mandarin Oriental, Kuala Lumpur Mandarin Oriental, Doha • In EMEA, management fee income grew in line with RevPAR. • Bra
Slide 17: Solid RevPAR improvement in Asia; Mixed performance in EMEA and America
Owned Hotels Performance Solid RevPAR improvement in Asia; Mixed performance in EMEA and America • RevPAR of Owned Hotels improved by 6% compared to H1 2023. • Hotels in Asia recorded considerable growth in RevPAR as Singapore was under renovation for six Mandarin Oriental, Tokyo months from March 2
Slide 18: Financial Results
2024 Half Year Results Financial Results
Slide 19: Consolidated Revenue +US$7m L/L mostly driven by Tokyo
Consolidated Revenue Consolidated Revenue +US$7m L/L mostly driven by Tokyo Consolidated Revenue Reported US$m H1 2024 H1 2023 L/L Change1 Change Management Business 42 40 +2 - Subsidiary Hotels 219 231 (12) +7 Less: Intra Segment Revenue (10) (10) - - Total 251 261 (10) +7 Notes: (1) Management Bus
Slide 20: Underlying EBITDA was lower in the Management Business
Underlying EBITDA Underlying EBITDA was lower in the Management Business as higher fee income was offset by timing differences in marketing spend Underlying EBITDA Reported US$m H1 2024 H1 2023 L/L Change1 Change Management Business 19 23 (4) (6) Owned Hotels 54 54 - (3) Property Development (2) - (
Slide 21: The Group recorded a lower underlying profit
Underlying Profit and Loss The Group recorded a lower underlying profit as results from H1 2023 benefitted from non-recurring items Underlying Profit/(Loss) Attributable To Shareholders Reported US$m H1 2024 H1 2023 L/L Change1 Change Management Business 14 16 (2) (4) Owned Hotels 11 9 2 1 Property
Slide 22: Decrease in loss attributable to shareholders due to lower non-trading losses
Loss Attributable to Shareholders Decrease in loss attributable to shareholders predominantly due to lower non-trading losses from the revaluation of One Causeway Bay Loss Attributable to Shareholders US$m H1 2024 H1 2023 Change Underlying Profit 23 28 (5) Net Non-Trading Losses (75) 1 (97) 22 Loss
Slide 23: Net increase in cash primarily due to higher cash inflow from investing
Cash Flow Statement Net increase in cash primarily due to higher cash inflow from investing activities Summary Cash Flow Statement US$m H1 2024 H1 2023 Commentary Working capital and tax impacts from the disposal of Paris; Operating Activities 24 60 Reduced operating performance; One-off tax credit
Slide 24: Increase in net cash inflow from investing activities
Cash Flow Statement – Investing Activities Increase in net cash inflow from investing activities primarily attributable to the disposal of the Paris hotel property Cash Flow From Investing Activities US$m H1 2024 H1 2023 Net capital expenditure on existing properties (9) (6) Redevelopment of One Cau
Slide 25: Liquidity position remains robust; Net debt reduced by US$115 million
Net Debt and Gearing Liquidity position remains robust; Net debt reduced by US$115 million Net Debt and Liquidity US$m June 2024 December 2023 Net debt 110 225 Adjusted shareholders’ funds 1 4,498 4,637 Adjusted gearing 2 2% 5% Adjusted net asset value per share (US$) 3.56 3.67 Cash 254 190 Undrawn
Slide 26: Development Pipeline
2024 Half Year Results Development Pipeline
Slide 27: The Group expects to open its second hotel in Beijing in H2 2024
Expected Openings in H2 2024 The Group expects to open its second hotel in Beijing in H2 2024 MANDARIN ORIENTAL MAYFAIR, LONDON MANDARIN ORIENTAL QIANMEN, BEIJING • Newly opened in June • Scheduled to open in H2 2024 2024 • Second hotel in London • Second hotel in Beijing • 42 rooms MANDARIN ORIENTA
Slide 28: Two new management contracts announced since the start of 2024
New Projects in the Pipeline Two new management contracts announced since the start of 2024 Bali, Indonesia • Located on the Bukit peninsula • Beachfront hideaway resort with private residences • 110 rooms and 68 residences Rome, Italy • Located in the heart of Rome, steps away from the city’s major
Slide 29: Outlook
2024 Half Year Results Outlook
Slide 30: Questions to Investors@mohg.com
Questions to Investors@mohg.com
Mandarin Oriental Hotel Group — H1 2024 Earnings Presentation on 6ix