Mandarin Oriental said that its third-quarter performance had been “severely impacted by the Covid-19 pandemic”.
Underlying losses for the quarter narrowed on the previous quarter, to $43m from $62m.
The company said: “Whilst almost all hotels in the portfolio have reopened, business levels remain low in most locations due in large part to national and regional government pandemic restrictions. There were some encouraging performances from our hotels on the Chinese mainland and certain resort properties, but demand for city locations continues to be modest.”
A material recovery in business levels was not expected until the second half of 2021 at the earliest with the group expecting “a substantial loss for the 2020 full year”.
Net debt at 30 September was $459m and the group held $178m of cash reserves and $184m in available, committed debt facilities. Gearing was 8% of adjusted shareholders’ funds.