Mandarin Oriental posts ‘stable’ underlying net profit for Q3
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Mandarin Oriental is in the midst of a buyout by Jardine Matheson.
PHOTO: REUTERS
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- Mandarin Oriental reported a "stable" net profit and "marginal" Ebitda growth in Q3 2025, driven by owned hotels and higher Hong Kong profitability.
- RevPAR increased YoY in most regions, especially the Middle East and America, boosting hotel management fee income; three new management agreements were signed.
- Jardine Matheson's buyout at US$3.35 per share, valuing the group at US$4.2 billion, is expected to close by February 2026, pending conditions.
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SINGAPORE - Hotel group Mandarin Oriental, which is undergoing a privatisation bid from its majority shareholder Jardine Matheson, posted a “stable” underlying net profit for the third quarter of 2025 ended Sept 30, compared with a year ago.
The group on Nov 21 also reported “marginal” growth in its earnings before interest, taxes, depreciation and amortisation (Ebitda), though it did not provide specific figures.
Mandarin Oriental attributed its improved Ebitda to “steady growth” from its owned hotels.
It added that “higher profitability” in Hong Kong offset the absence of earnings from Munich, Germany, following its disposal of a hotel property there.
The group said its revenue per available room (RevPAR) for the third quarter rose year on year in all regions except South-east Asia.
It noted there was “particularly robust growth” in the Middle East and America.
The group added that its management business “drove higher hotel management fee income from strong hotel RevPARs, and higher profitability”.
In the third quarter, Mandarin Oriental announced three hotel and residence management agreements, for properties in Dubai, Seoul and Xi’an.
The Mandarin Oriental Vienna is set to open in the fourth quarter, marking the brand’s debut in Austria and bringing its European portfolio to 18 hotels.
Impending buyout
Jardine Matheson is looking to buy the 12 per cent of Mandarin Oriental that it does not already own. The cash buyout, at US$3.35 per share, values the hotel group at about US$4.2 billion (S$5.5 billion) and is expected to close by Feb 28, 2026, if conditions are met.
In October, alongside the Jardine Matheson privatisation bid, Mandarin Oriental announced the sale of 13 floors of its newly completed commercial building, One Causeway Bay, to Alibaba Group.
That sale was a condition for Jardine Matheson’s buyout offer and is set to be completed by the end of December.
Mandarin Oriental’s liquidity position remained “robust” as at the end of September, with US$470 million headroom in available committed debt facilities and US$316 million of cash reserves.
The group added that it turned to a net cash position, from a gearing of 2 per cent of adjusted shareholders’ funds at the end of 2024.
Shares of Mandarin Oriental ended flat at US$3.29 on Nov 21, before the news. THE BUSINESS TIMES
