Mandarin Oriental sees decline in revenue due to slowdown in corporate
In an interview with Hotelier Middle East, Christoph Mares, Director of Operations MENA at Mandarin Oriental Hotel Group said: “We had a decline [in RevPAR] by about 3-5%, depending on location. It’s not something we had hoped for, but it’s not something you could shy from, given the slowdown in corporate demand,” he explains. However, globally, the company is around 8% ahead of budget — a great backdrop to what is hoped to be three years of impressive expansion.
It has been two years since Mandarin Oriental, the luxury Asian brand, announced its initial foray into the Middle East — a revolutionary new development on Abu Dhabi’s Saadiyat Island planned for 2013. However, after delays from the developer’s side, the company has yet to break ground.
Mandarin Oriental is planning to establish its name elsewhere too. It is “actively looking and negotiating in Dubai,” Mares reveals. “Within 12 months we should be able to come forward with a specific announcement. We are looking at a few options but we are getting ever closer.” The only reason Mares hasn’t pushed forward already, he says, is that he hasn’t found anywhere “iconic enough or durable enough to put our brand into”.