Mandarin Oriental International Limited - Mandarin Oriental Hotel ...

More documents

Recommendations

Info

12 GROUP CHIEF EXECUTIVE’S REVIEW CONTINUED While all of the above management contracts will provide an additional source of revenue for the Group, Mandarin Oriental intends to remain a significant owner of hotel assets, particularly in strategic city centre destinations. Such properties are often unique in their markets and provide the Group with an important source of capital appreciation over the long term. Ownership also gives us increased credibility with third party hotel developers, and ensures our long-term ability to shape our brand, creating legendary hotels that have the right mix of tradition, quality and innovation, under the umbrella of our oriental heritage. 4) Investing in our brand The investment behind our brand over the past few years has led to the Group becoming highly respected as a management company amongst our guests and the owners of luxury hotel developments around the world. Mandarin Oriental remains focused on delivering the brand attributes which define our own style of luxury.This includes our expertise in holistic spa operations, innovative dining experiences, guestorientated technology and creative hotel design and architecture. Most importantly, our increasingly visible brand and strong company culture motivates our employees to excel in delighting our guests. Investing in our 10,000 colleagues around the world remains essential to our success. Looking forward, our corporate resources provide us with a solid foundation on which to add further management opportunities. 5) Ensuring a strong cash flow and balance sheet A strong cash flow and balance sheet remains fundamental to our success. In 2005, the Group returned to performance levels last achieved in the mid 1990’s, with a profit from operations of US$52 million, excluding the one-off US$11 million pre-opening expenses in Tokyo. As a result of the improved operating performance and the proceeds on sale of the Hawaii investment, cash flow grew to US$116 million before financing activities, which included US$24 million of funding, primarily in respect of the Tokyo and Boston projects.This compares with a cash flow of US$19 million before financing activities in 2004, which included US$30 million of investment in the Washington D.C. hotel. In early 2005, the Group’s US$75 million, 6.75% convertible bonds were converted to equity resulting in the issue of 113 million ordinary shares which further strengthened our balance sheet. The Group’s financial position is strong with gearing at 22% at 31st December 2005, down from 44% at the end of 2004 (based on adjusted shareholders’ funds). Net debt has now been reduced by a further US$100 million, following completion of the sale of The Mark with an accounting gain of approximately US$35 million to be recognized in 2006. MANDARIN ORIENTAL INTERNATIONAL LIMITED
THE FUTURE In 2005, the Group performed well and the demand which drove these results should continue in all key segments of the luxury market, barring unforeseen events. The closure of Mandarin Oriental, Hong Kong for eight months will impact earnings in the short term, but the renovation will significantly enhance its contribution to the Group’s results. Looking forward, the Group is in a strong position to continue building its brand equity and translating this into profitable growth opportunities.We are firmly on target to reach our ultimate goal of being recognized as the best global luxury hotel group. Edouard Ettedgui Group Chief Executive 23rd February 2006 ANNUAL REPORT 2005 13
Page 1: MANDARIN ORIENTAL INTERNATIONAL LIM
Page 4 and 5: 2 CONTENTS 01 Corporate Overview 03
Page 6 and 7: 4 HIGHLIGHTS MANDARIN ORIENTAL INTE
Page 8 and 9: 6 CHAIRMAN’S STATEMENT OVERVIEW M
Page 10 and 11: 8 GROUP CHIEF EXECUTIVE’S REVIEW
Page 12 and 13: 10 GROUP CHIEF EXECUTIVE’S REVIEW
Page 16 and 17: 14 OPERATING SUMMARY The operating
Page 18 and 19: 16 OPERATING SUMMARY CONTINUED EURO
Page 20 and 21: 18 INTERNATIONAL RECOGNITION Mandar
Page 22 and 23: 20 FINANCIAL REVIEW A CCOUNTING POL
Page 24 and 25: 22 FINANCIAL REVIEW CONTINUED Cash
Page 26 and 27: 24 FINANCIAL REVIEW CONTINUED TREAS
Page 28 and 29: 26 DIRECTORS’ PROFILES Simon Kesw
Page 30 and 31: 28 CONSOLIDATED PROFIT AND LOSS ACC
Page 32 and 33: 30 CONSOLIDATED STATEMENT OF RECOGN
Page 34 and 35: 32 PRINCIPAL ACCOUNTING POLICIES A
Page 36 and 37: 34 PRINCIPAL ACCOUNTING POLICIES CO
Page 42 and 43: 40 NOTES TO THE FINANCIAL STATEMENT
Page 64 and 65:
62 NOTES TO THE FINANCIAL STATEMENT
Page 66 and 67:
Page 68 and 69:
Page 70 and 71:
Page 72 and 73:
70 PRINCIPAL SUBSIDIARIES, ASSOCIAT
Page 74 and 75:
72 INDEPENDENT AUDITORS’ REPORT T
Page 76 and 77:
74 CORPORATE GOVERNANCE The Group
Page 78 and 79:
76 CORPORATE GOVERNANCE CONTINUED D
Page 80 and 81:
78 CORPORATE GOVERNANCE CONTINUED D
Page 82 and 83:
80 SHAREHOLDER INFORMATION Financia
Page 84 and 85:
82 MANDARIN ORIENTAL HOTEL GROUP CO
Page 86 and 87:
84 SALES AND RESERVATIONS OFFICES C
show all

Mandarin Oriental International Limited - Mandarin Oriental Hotel ...

Create successful ePaper yourself

Delete template?

Save as template?