Annual Report 2023
Mandarin Oriental Hotel Group is an international hotel investment and management group
with luxury hotels, resorts and residences in sought-after destinations around the world. Having
grown from its Asian roots 60 years ago into a global brand, the Group now operates 38 hotels,
nine residences and 23 exclusive homes in 25 countries and territories, with each property reflecting
the Group’s oriental heritage, local culture and unique design. Mandarin Oriental regularly receives
international recognition and awards for outstanding service and quality management, and has
a strong pipeline of hotels and residences under development. The Group has equity interests in
a number of its properties and adjusted net assets worth approximately US$4.6 billion as at
31st December 2023.
Mandarin Oriental continues to drive its reputation as an innovative leader in luxury hospitality,
seeking selective opportunities to expand the reach of the brand, with the aim to maximise
profitability and long-term shareholder value.
The parent company, Mandarin Oriental International Limited, is incorporated in Bermuda and
has a primary listing in the standard segment of the London Stock Exchange, with secondary listings
in Bermuda and Singapore. Mandarin Oriental Hotel Group International Limited, which operates
from Hong Kong, manages the activities of the Group’s hotels. Mandarin Oriental is a member
of the Jardine Matheson Group.
Contents
1 Corporate Overview
3 Corporate Information
4 Highlights
6 Chairman’s Statement
8 Group Chief Executive’s Review
12 Operating Summary
14 Development Portfolio
16 International Brand Recognition
18 Sustainability
31 Financial Review
36 Directors’ Profiles
38 Financial Statements
100 Independent Auditor’s Report
107 Report of the Valuers
108 Five Year Summary
109 Responsibility Statements
110 Corporate Governance
141 Shareholder Information
142 Mandarin Oriental Hotel Group Contact Addresses
2 Mandarin Oriental International Limited
Mandarin Oriental Hotel Group
International Limited
Directors
John Witt Chairman
James Riley Former Group Chief Executive
(stepped down on 31st July 2023)
Laurent Kleitman Group Chief Executive
(joined the board on 1st September 2023)
Matthew Bishop Chief Financial Officer
Graham Baker
Kieren Barry
Matthew Bland
Francesco Cefalu
(joined the board on 1st April 2023)
Paul Clark
(retired on 30th April 2023)
Joanna Flint
Amanda Hyndman
(joined the board on 1st May 2023)
Christoph Mares
Vincent Marot
Paul Massot
(retired on 31st March 2023)
Anne O’Riordan
Y.K. Pang
(stepped down on 31st March 2024)
Corporate Secretary
Jonathan Lloyd
Directors
Ben Keswick Chairman
John Witt Managing Director
James Riley Former Group Chief Executive
(stepped down on 31st July 2023)
Laurent Kleitman Group Chief Executive
(joined the Board on 1st September 2023)
Matthew Bishop Chief Financial Officer
Jinqing Cai
Adam Keswick
Archie Keswick
Y.K. Pang
(stepped down on 31st March 2024)
Richard Solomons
Company Secretary
Jonathan Lloyd
Corporate Information
3Annual Report 2023
Mandarin Oriental International Limited
Underlying profit increased to US$81 million, from US$8 million in 2022
Strong operating and financial performance driven by record rates
Management fees grew by 30%, with strong recovery by hotels in Asia
Increased development pipeline with two new hotel openings and eight new management
contracts announced
Final dividend at US¢3.50 per share, resulting in total dividends of US¢5.00 per share
Results
Year ended 31st December
2023
US$m
2022
US$m
Change
%
Combined total revenue of hotels under management
1
1,890.2 1,568.1 21
Revenue 558.1 454.1 23
Underlying EBITDA (Earnings before interest, tax,
depreciation and amortisation)
2
177.6 111.4 59
Underlying profit attributable to shareholders
3
81.0 7.6 966
Revaluation loss on investment properties (486.7) (104.1) (368)
Gain on sale of a subsidiary/asset disposals 41.3 47.0 (12)
Loss attributable to shareholders (365.4) (49.5) (638)
US¢ US¢ %
Underlying earnings per share
3
6.41 0.60 968
Loss per share (28.91) (3.92) (638 )
Dividends per share 5.00 – n/a
US$ US$ %
Net asset value per share 2.34 2.61 (10)
Adjusted net asset value per share
4
3.67 3.87 (5)
Net debt/shareholders’ funds 8% 11%
Net debt/adjusted shareholders’ funds
4
5% 8%
1
Combined revenue includes turnover of the Group’s subsidiary hotels in addition to 100% of revenue from associate,
joint venture and managed hotels.
2
EBITDA of subsidiaries plus the Group’s share of EBITDA of associates and joint ventures.
3
The Group uses ‘underlying profit’ in its internal financial reporting to distinguish between ongoing business performance
and non-trading items, as more fully described in note 34 to the financial statements. Management considers this to be a key
measure which provides additional information to enhance understanding of the Group’s underlying business performance.
4
The Group’s investment properties are carried at fair value on the basis of valuations carried out by independent valuers at
31st December 2023. The other freehold and leasehold interests are carried at amortised cost in the consolidated balance sheet.
Both the adjusted net asset value per share and net debt/adjusted shareholders’ funds at 31st December 2023 have included the
market value of the Group’s freehold and leasehold interests.
Highlights
4 Mandarin Oriental International Limited
Net debt/adjusted shareholders’ funds
Underlying EBITDA and net interest expense
US$m
US$m
US$m
US$m
Net debt
Adjusted shareholders’ funds
Net interest expense
Underlying earnings before interest, tax,
depreciation and amortisation (EBITDA)
Asia
America
Europe, the Middle East and Africa (EMEA)
Asia
America
Europe, the Middle East and Africa (EMEA)
2023
177.6
18.9
2022
111.4
20.1
Revenue
by geographical area
Combined total revenue
by geographical area
96.9
20.7
183.7
66.1
2020
272.2
104.8
566.5
189.5
2019
2023
225.2
4,636.6
4.9%
2022
375.8
4,896.7
7.7%
2023
219.9
49.6
558.1
288.6
2022
141.4
73.0
454.1
239.7
2021
40.7
17.2
154.5
18.9
2019
(74.2)
15.9
2020
2021
517.5
4,965.7
10.4%
300.4
5,936.1
5.1%
2019
506.2
5,170.9
9.8%
2020
2021
132.4
46.7
316.9
137.8
2023
1,890.2
638.0
255.6
996.6
2022
1,568.1
462.1
275.0
831.0
2020
593.0
278.6
76.2
238.2
2019
1,325.1
636.1
348.6
340.4
2021
1,053.5
354.0
170.4
529.1
5Annual Report 2023
Chairman’s Statement
Overview
2023 was a year of significant growth and progress for Mandarin Oriental. The Group grew its Management
Business, with two new openings and the announcement of eight new hotel and residences projects. Our colleagues
continued to provide the exceptional service for which the brand is legendary and secured record room rates, which
translated into strong operating and financial performance.
2023 Financial performance
Underlying profit increased to US$81 million, from US$8 million in 2022, with underlying earnings per share
at US¢6.41, compared with US¢0.60 in 2022. Non-trading losses of US$446 million primarily comprised a
non-cash revaluation of the Causeway Bay site under development, resulting in a loss attributable to shareholders
of US$365 million.
Net debt fell to US$225 million at the end of 2023, from US$376 million at the end of 2022, reflecting significantly
higher operating cashflow from the business, net of ongoing capital investment, as well as proceeds from disposals.
Gearing as a percentage of adjusted shareholders’ funds was 5%, compared to 8% at the end of 2022.
The Directors recommend a final dividend of US¢3.50 per share. This, together with the interim dividend of
US¢1.50 per share declared, will result in total dividends of US¢5.00 per share.
Year in review
In 2023, Mandarin Oriental, with its distinctive portfolio of hotels, was able to satisfy consumers’ continuing
robust appetite for luxury leisure travel. The Group’s legendary levels of service underpinned an increase in rates,
and it continued to build occupancy, which translated into substantial improvements in Revenue Per Available
Room (‘RevPAR’) across almost all hotels.
Hotels in Asia benefitted from the return of travel demand from Chinese mainland following the removal of
restrictions at the beginning of 2023, generating substantially higher management fees. Two of the Group’s
key owned hotels in the region – Hong Kong and Tokyo – delivered notably better performance than in 2022.
In Europe, the Middle East and Africa (‘EMEA’), hotels reported solid growth over 2022 and gained market
share, particularly in resort destinations. In America, RevPAR performance remained broadly stable, with easing
domestic leisure demand partially offset by higher demand from corporate and group travellers.
Sustainability
We believe the long-term success of our business hinges on doing the right things for our planet and our people.
The Group remains on track to achieve its 2030 environmental targets and has made particular progress in
reducing energy and waste intensity, and in expanding the scope of responsible procurement. Mandarin Oriental’s
sustainability commitments also undertake to create positive impacts for the communities in which its hotels
operate. This year, the ‘MOgiving’ initiative was launched in all the Group’s hotels, to empower colleagues to
contribute to their local communities.
6 Mandarin Oriental International Limited
Governance
The Group has continued to evolve its governance in 2023, to ensure that its board and committees have the right
expertise and independence to support the delivery of the Group’s strategic priorities. In 2023, Richard Solomons
was appointed as Independent Non-Executive Chair of the Audit Committee and Jinqing Cai, an Independent
Non-Executive Director, was appointed as a member of the Committee. The Audit Committee now has a majority
of independent members, whose expertise and understanding of the luxury and hospitality sectors will strengthen
the Committee.
People
In September 2023, Laurent Kleitman succeeded James Riley as Group Chief Executive. On behalf of the Board, I
would like to thank James for his contribution to the Group and welcome Laurent, who has joined us with many
years of experience in building iconic, luxury consumer brands.
Our colleagues play an instrumental role in defining the brand and creating the legendary guest experience for
which Mandarin Oriental is renowned. I would like to take this opportunity to express my gratitude to them for
the unwavering commitment they show to our guests, which underpins the long-term success of the Group.
Outlook
Mandarin Oriental delivered a strong set of results in 2023. Despite some geopolitical and macroeconomic
uncertainties entering 2024, the Group remains optimistic about its future growth as it continues to invest
in its core strengths of brand desirability, a strong management contract pipeline, continued delivery of innovation
and service excellence and an unwavering commitment to people and the environment.
Ben Keswick
Chairman
7th March 2024
7Annual Report 2023
Group Chief Executive’s Review
I am delighted to have joined Mandarin Oriental and am pleased to share my initial views of the Group and the
progress we have made across several fronts over the past year.
Having been with the Group for a few months and visited most of our properties around the world, met with many
of our owners and partners, and spent time listening to and learning from our thousands of colleagues, it is clear to
me that Mandarin Oriental is not only a strong business today but also has significant opportunities ahead.
Since my appointment in September 2023, my team and I have been reviewing our strategy to ensure that the
Group is able to build on the right foundations to accelerate growth. Strategic thinking and changes are currently
underway, with a greater focus on significantly scaling up the Management Business globally, further elevating the
brand’s desirability, to become the reference point in luxury hospitality, and enriching our proposition to guests and
owners. I am very convinced that the Mandarin Oriental brand, together with the exceptional operational expertise
of our teams centrally and around the world, has the potential to take a larger share of the global luxury hospitality
market in the coming years. Our understanding of excellence, our long-standing service tradition, our
interpretation of luxury and our creativity are some of the many assets that we are building upon.
Our dual Asian origin, blending the vibrancy and modernity of Hong Kong – The Mandarin – with the refinement
of Bangkok – The Oriental –, makes us the most distinctive and authentic luxury hospitality brand in the world.
And today, 50 years after these two iconic hotels were brought together, we have created a formidable Group: from
the strength of our growing Management Business to the enormous potential of our brand, from the quality of our
operators and 15,000 colleagues to the strength of our partners, Mandarin Oriental has solid foundations from
which we will scale up, while retaining our unique sense of high-end luxury.
I look forward to sharing our full new strategic plan in more detail later this year.
Looking back to 2023, we had occasion to celebrate many significant achievements, starting in February with
the rebranding of Emirates Palace Mandarin Oriental, Abu Dhabi. This is our third hotel in the Middle East and
complements Mandarin Oriental Jumeira, Dubai and Mandarin Oriental, Doha, reinforcing our brand presence in
the region. Reflecting our unwavering dedication to elevating the guest experience, Mandarin Oriental, Singapore
re-opened its doors to guests in September after a transformative renovation. In October, we celebrated the 60th
anniversary of one of our historic hotels, Mandarin Oriental, Hong Kong, with Oscar-winning brand ambassador
Michelle Yeoh and other distinguished guests showcasing the contemporary luxury and Oriental heritage that
differentiate the brand. And finally, as we concluded 2023, we opened the magnificent and iconic Mandarin
Oriental Savoy, Zurich after an extensive renovation.
2023 Performance
Summary of performance
The Group manages 38 hotels and nine residences globally, of which 25 properties are managed and 13 properties
are owned or partially owned. In 2023, the Management Business delivered strong operating performance and
improved profitability. Combined total revenue for hotels under management was US$1.9 billion in 2023, 21%
above 2022. This increase was driven primarily by a 29% increase in RevPAR. The improvement in RevPAR was
primarily due to a gradual recovery in occupancy across all geographies, a continuation of high rates in Europe,
the Middle East and Africa (‘EMEA’), and a solid rebound in rates in Asia. Food & Beverage (‘F&B’) revenue also
increased by 18% year-on-year, contributing to the strong top-line outperformance in 2023.
In EMEA, most hotels gained market share in 2023 compared to 2022. Average RevPAR was US$645, up 14%
from 2022. While average rates remained fairly stable in 2023 compared to the prior year, occupancy recovered to
pre-pandemic levels. RevPAR performance was notably better than 2022 in Bodrum, Abu Dhabi and Marrakech,
predominantly driven by robust leisure demand.
8 Mandarin Oriental International Limited
In Asia, RevPAR was US$213, up 75% from 2022. The progressive return of domestic and some outbound travel
demand from Chinese mainland at the start of the year contributed to a strong pick-up in both occupancy and rates
within the region. Within Chinese mainland, our hotels in Beijing, Hong Kong, Macau, Shanghai and Shenzhen
generated strong year-on-year improvements in RevPAR. In the rest of Asia, Tokyo, Bangkok and Kuala Lumpur
also delivered considerable RevPAR improvements. Despite substantial RevPAR growth in 2023 compared to 2022,
RevPAR for the region remained slightly below pre-pandemic levels as occupancy continued to recover.
In the Americas, RevPAR was US$408, up 3% from 2022. Domestic leisure demand eased marginally from
the strong levels seen in 2022 but was compensated by a steady continuing recovery in corporate transient and
group segments.
Management Business
With the openings of two new hotels, the Group continued to execute its strategy of scaling up the Management
Business. This growth in scale, combined with RevPAR improvement, resulted in a 30% increase in hotel
management fees and a 55% improvement in EBITDA for the Management Business compared to 2022.
Most hotels delivered higher fees, with hotels in Asia in particular seeing a robust rebound from 2022.
The sale of branded residences, such as The Residences at Mandarin Oriental Mayfair – luxury apartments situated
in the heart of one of London’s most stylish neighbourhoods – and Mandarin Oriental Residences, Fifth Avenue
in the heart of Manhattan, remains a strategic focus and contributed some 10% of the total fees earned from the
Management Business.
Owned hotel performance
Our 13 owned properties reported a combined EBITDA 63% higher than in 2022, and most properties maintained
or improved their earnings. Of note were the materially improved contributions produced by Hong Kong and
Tokyo, both of which were severely impacted by stringent travel restrictions for the majority of 2022, and the
early part of 2023. London and Geneva also delivered considerably improved results driven by better RevPAR and
F&B performance. The exceptions with lower earnings in 2023 were Singapore and Miami. After undergoing an
extensive renovation for six months, Mandarin Oriental, Singapore has re-opened with a transformed and elevated
guest experience with an enhanced appeal to leisure travellers. Against the backdrop of easing domestic leisure
demand in America, Miami reported a slight drop in average rates, partially offset by improved occupancy and
F&B performance.
Financial performance
As a result of strong top-line performance, EBITDA for 2023 was US$178 million, a 59% increase from the prior
year. Underlying profit substantially improved from US$8 million in 2022 to US$81 million in 2023.
A year in review
The Group’s long-term growth strategy is to grow Mandarin Oriental brand’s desirability and expand the
Management Business through the signing of management contracts in key destinations, whilst retaining some
ownership of brand-defining properties.
Management Business
The Group’s Management Business made good progress in 2023. In August, we introduced Mandarin Oriental’s
contemporary luxury to Greece with the opening of our beachfront getaway in Costa Navarino. In December, we
opened our third property in Switzerland – Mandarin Oriental Savoy, Zurich, following an extensive renovation
of this historic property, which dates back to 1838.
9Annual Report 2023
Group Chief Executive’s Review Continued
In addition to these openings, we underpinned the future growth of our portfolio with the signing of eight hotel
and residences projects, all of which will be managed by the Group:
Luxury residences in the heart of Madrid’s most exclusive neighbourhood, Salamanca;
A scenic beachfront resort in Mallorca;
A hotel and residences in Athens with contemporary design and unobstructed views of the Aegean Sea;
A hotel and residences in Bankside – the Group’s third property in London;
A transformative redevelopment of Mandarin Oriental, Miami, in a larger hotel and residences complex
in the unique Brickell Island location;
A secluded resort in Porto Cervo, Sardinia, overlooking the Gulf of Pevero;
A high-end boutique resort in Setouchi, Japan that consists of three distinctive properties around the
Seto Inland Sea; and
A full renovation and rebranding of the historic Gellért Hotel in Budapest.
Overall, at the end of 2023, the Group has a pipeline of 28 hotels (14 of which have a residences component) and
two standalone residences to open over the next five years. And I remain very optimistic about announcing new
strategic projects in 2024.
Owned assets
As part of our regular review of the Group’s assets, in 2023, we decided to sell our owned properties in Jakarta
and Paris. The disposal of our Jakarta property was completed in June 2023, with the hotel management
contract retained. The Group has also signed an option to sell the Paris hotel property, securing a long-term
hotel management contract with the new owner. We expect to complete this transaction in the first half of 2024.
We are making good progress with the redevelopment of our Causeway Bay site in Hong Kong and have begun
leasing activities in line with our expectation to complete construction of the building in the first half of 2025.
We have updated our valuation for the project to purely reflect residual, value-in-use estimates, in line with normal
market practice as the development project progresses toward completion.
Brand
In 2023, we continued to strengthen the desirability of the Mandarin Oriental brand. The Group focussed on
increasing the awareness of the brand amongst our target audience, and investing behind our award-winning
‘I’m A Fan’ advertising campaign, which has featured over 50 celebrities who are genuine fans of Mandarin
Oriental. We also celebrated a key milestone for Mandarin Oriental, with the 60th anniversary of our flagship
hotel in Hong Kong, which has been at the forefront of luxury hospitality since it opened its doors in 1963.
During the period we have built awareness and engagement of Mandarin Oriental through extensive media
coverage in both lifestyle publications and social channels, focussing on the Group’s core brand pillars of
craftsmanship and design; innovative dining; holistic wellness; and our legendary service which are at the heart
of our Oriental heritage. These focusses have been further strengthened by the attainment of many global awards
for excellence, solidifying the Group’s reputation for delivering the highest quality. Significant awards in 2023
included Best Luxury Hotel Brand in the annual Luxury Travel Intelligence ranking; 29 Michelin stars won by 18
of our global restaurants; the World’s Best Hotel Spa Brand by the World Spa Awards, and the placement of 20 of
our properties in Condé Nast Traveller’s Readers Choice Awards, more than in any previous year.
Further, we have forged partnerships with prestigious like-minded brands. These included the hosting of Louis
Vuitton’s summer pop-up store and co-branded beach bar at Mandarin Oriental, Bodrum, and the development of
a dedicated showcase suite for Vacheron Constantin in Dubai.
10 Mandarin Oriental International Limited
Transformation
Modernisation of the Management Business remains a strategic focus, with the key aims of supporting growth in
scale, enriching the customer experience, delivering improved operating efficiency, and elevating our colleagues
value proposition.
In the past year, we continued to advance several transformation initiatives across the organisation in support of
this strategic objective. In particular, the Group has embarked on the Guest Experience Programme which will
greatly improve our ability to recognise, understand and engage our guests across Mandarin Oriental. A redesign
of Fans of M.O. will enable us better to attract and retain both top guests and local fans. We are establishing a
bespoke relationship management service to build brand-level loyalty with ultra-high-net-worth guests. Internally,
we have made encouraging progress in driving operational efficiency through modernising our systems and
processes required to support evolving business needs.
People & culture
The Group’s focus on recruiting and developing the right talent, as well as providing an engaging colleague
experience, remains central to our People and Culture strategy. In the past year, the Group has recruited 176
Rising Fans into the new graduate programme. More broadly, we achieved notable improvements in retention,
with a reduction in voluntary turnover from 25% to 22%. Our efforts were acknowledged in the Group’s latest
Colleague Engagement Survey, which indicated improvement across all drivers of sustainable engagement and
exceeded both the ‘Travel & Leisure’ norm and the ‘High-Performance’ norm.
Our HR transformation journey, The People Project, is a strategic initiative that aims to put the colleague
experience at the centre, elevate the role of our people managers, and simplify, harmonise and automate our
HR processes. The initiative is a major step towards enabling an engaged workforce through a compelling work
experience, laying a solid foundation for the organisation to build on as it scales up.
Sustainability
I am delighted to share that the Group’s commitment to sustainability was recognised in 2023 by the Global
Sustainable Tourism Council. In line with our belief in contributing positively to local communities, we launched
‘MOgiving’ within all our hotel properties, to empower our colleagues to create positive social impact locally.
We continue to make progress against our other sustainability targets, about which further information will be
published in our forthcoming Sustainability Report 2023.
The year ahead
In 2023, Mandarin Oriental delivered improved operational performance and continued to lay the foundation for
strong future growth. In early 2024, we completed the rebranding of Mandarin Oriental Al Faisaliah, Riyadh, and in
the coming 12 months we are focussed on delivering several planned openings, including Muscat in Oman – a unique
beachfront urban resort, Mayfair in London – an exclusive boutique hotel in the heart of the capital’s fashion and
shopping district, Qianmen in Beijing – an elegant hotel that offers an authentic experience within a traditional Hutong
quarter, and a standalone residences project on Fifth Avenue in New York. I am confident that we will be in a position to
announce several further strategic projects in key locations in the course of 2024, which will enable the brand to expand
its footprint in highly sought-after destinations and continue to improve the financial performance of the Group.
As we continue to grow, we will remain attentive to cultivating and raising the desirability of the Mandarin Oriental
brand and maintaining and uplifting the quality of Mandarin Oriental guest experiences at every opportunity.
Laurent Kleitman
Group Chief Executive
7th March 2024
11Annual Report 2023
Group’s subsidiary hotels RevPAR
ASIA
Total portfolio RevPAR
Occupancy is calculated based on the number of occupied rooms out of the total number of available rooms in which
the hotel is in operation during the period. The like-for-like RevPAR presented in the table above includes all hotels
that were in the Group’s portfolio and operating for the entire year of both 2022 and 2023. Any new openings,
closures or disposals during the period are excluded.
Operating Summary
US dollar
2023
US$
2022
US$
% Change
Asia 213 119 79
Europe, the Middle East
and Africa 660 570 16
America 408 397 3
Total 396 314 26
Constant currency
2023
US$
2022
US$
% Change
Asia 218 119 83
Europe, the Middle East
and Africa 704 570 24
America 406 397 2
Total 414 314 32
Mandarin Oriental, Tokyo 100% leasehold
2023 2022 % Change
Available rooms 179 179 –
Average occupancy (%) 71.8 50.5 42
Average room rate (US$) 839 485 73
RevPAR (US$) 603 245 146
Mandarin Oriental, Hong Kong 100% ownership
2023 2022 % Change
Available rooms 447 494 (10)
Average occupancy (%) 59.9 29.8 101
Average room rate (US$) 495 339 46
RevPAR (US$) 297 101 194
12 Mandarin Oriental International Limited
Mandarin Oriental, Boston 100% ownership
2023 2022 % Change
Available rooms 148 148 –
Average occupancy (%) 63.4 56.6 12
Average room rate (US$) 670 702 (5)
RevPAR (US$) 425 397 7
EUROPE, THE MIDDLE EAST AND AFRICA AMERICA
Mandarin Oriental Hyde Park, London 100% ownership
2023 2022 % Change
Available rooms 181 181 –
Average occupancy (%) 67.1 60.3 11
Average room rate (US$) 1,573 1,445 9
RevPAR (US$) 1,056 871 21
Mandarin Oriental, Munich 100% ownership
2023 2022 % Change
Available rooms 73 73 –
Average occupancy (%) 67.9 65.8 3
Average room rate (US$) 1,130 1,041 9
RevPAR (US$) 767 685 12
Mandarin Oriental, Paris 100% ownership
2023 2022 % Change
Available rooms 135 135 –
Average occupancy (%) 57.2 60.2 (5)
Average room rate (US$) 1,499 1,284 17
RevPAR (US$) 857 773 11
Mandarin Oriental, Geneva 100% ownership
2023 2022 % Change
Available rooms 178 178 –
Average occupancy (%) 65.4 59.1 11
Average room rate (US$) 766 666 15
RevPAR (US$) 501 394 27
13Annual Report 2023
Development Portfolio
The following 28 hotels and 16 Residences at Mandarin Oriental are expected to open in the next five years.
Asia
Mandarin Oriental, Bai Nom
A new resort with branded residences in Phu Yen province, Vietnam offering 72 suites and villas, including 25 Residences. The property will spread out
across a 29-hectare site with guest accommodation located directly on the beach and dotted through the hills.
Mandarin Oriental Qianmen, Beijing
72 courtyard suites located in a traditional hutong quarter, providing a rare opportunity to experience living in an authentic Beijing residential district,
close to Tiananmen Square.
Mandarin Oriental Tianfu, Chengdu
A 267-room hotel located in Tianfu, a modern business district south of Chengdu, the capital city of Szechuan province in China.
Mandarin Oriental, Da Nang
A luxury waterfront resort comprising 60 villas and 22 Residences at Mandarin Oriental, ideally located on a spectacular beach in one of Vietnam’s most
popular leisure destinations.
Mandarin Oriental, Hangzhou
A 194-room hotel in the new Westlake 66 luxury commercial and retail complex, located close to the West Lake, a UNESCO World Heritage Site and
one of China’s primary leisure destinations, with easy access to the city’s principal business hubs.
Mandarin Oriental, Makati
A 275-room hotel located within the Ayala Triangle in Manila’s central business district of Makati.
Mandarin Oriental, Maldives
A picturesque private island resort comprising 120 stand-alone villas, including 10 Residences at Mandarin Oriental, with panoramic views of
the Indian Ocean.
Mandarin Oriental, Nanjing
A 95-room hotel located in a premier mixed-use development on the Qinhuai River, in close proximity to historic landmarks including the Gate of China,
which forms part of one of the longest ancient city walls in the world.
Mandarin Oriental, Phuket
A 105-room beachfront resort located on the island’s west coast in picturesque Laem Singh Bay on Millionaire’s Mile, with panoramic views of
the Andaman Sea.
Mandarin Oriental, Saigon
A 228-room hotel located in a mixed-use development in the heart of Ho Chi Minh City, close to key landmarks.
Mandarin Oriental, Setouchi
A collection of three unique boutique properties, branded as Mandarin Oriental, Setouchi. These resorts, totalling 164 rooms, are nestled strategically around
the captivating Seto Inland Sea. Each of the trio embodies its distinct character, environment, and purposefully curated experiences.
Europe, the Middle East and Africa
Mandarin Oriental, Athens
A new hotel and accompanying residences on the Athenian coastline. The beach front development will comprise of 123 rooms and suites in addition to
17 Residences at Mandarin Oriental. The development is within easy reach of the city’s famous attractions.
Mandarin Oriental Gellert, Budapest
A re-branding of the historic Gellért Hotel in Budapest, currently closed for renovation. This 143-room Art Nouveau architectural gem is located on the Buda
side of the city and just a short walk to the Liberty Bridge, connecting Buda with Pest.
Mandarin Oriental Shepheard, Cairo
A re-branding of the celebrated Shepheard Hotel in Downtown Cairo, currently closed for renovation. This 269-room property is a heritage landmark in
the city, with stunning views of the Nile and Gezira island.
Mandarin Oriental Cristallo, Cortina
A re-branding of the historic Hotel Cristallo in Cortina d’Ampezzo, Italy, which will re-open as Mandarin Oriental Cristallo, Cortina, after a comprehensive
renovation. This 84-room historic hotel enjoys impressive views of the Dolomites and will be the Group’s first alpine resort.
Mandarin Oriental Downtown, Dubai
A 259-room hotel and 266 Residences at Mandarin Oriental, located on Sheikh Zayed Road, with views over downtown Dubai and direct access to the area’s
business and leisure attractions.
Mandarin Oriental Etiler, Istanbul
A 144-room hotel and 236 luxurious Residences at Mandarin Oriental, located within three standalone towers in the prestigious Etiler district of Istanbul.
14 Mandarin Oriental International Limited
Europe, the Middle East and Africa continued
Mandarin Oriental, Kuwait
A new 169-room hotel in the heart of the financial district of Kuwait City. Located in an iconic 80-storey tower, the property is designed by the award-winning
architects, Foster + Partners.
Mandarin Oriental Bankside, London
A contemporary standalone property, expected to have 171 guestrooms and 70 Residences at Mandarin Oriental. Situated on London’s South Bank and
perfectly positioned to access both the City of London and the West End.
Mandarin Oriental Mayfair, London
A 50-room boutique hotel and 77 Residences at Mandarin Oriental, located on Hanover Square in the heart of London’s Mayfair district.
Mandarin Oriental Residences, Madrid
A new development in the heart of Madrid, located on the intersection of Hermosilla Street and Nuñez de Balboa Street. The new Mandarin Oriental
Residences, Madrid will feature 27 exceptional apartments.
Mandarin Oriental Punta Negra, Mallorca
A new beach resort in one of the most sought-after locations on the island of Mallorca, occupying an iconic peninsula. Surrounded by natural beauty,
the resort spreads over 3 hectares and offers 131 guestrooms, suites and bungalows just steps from the waterfront.
Mandarin Oriental, Muscat
A 150-room resort and 156 Residences at Mandarin Oriental, located on the beach in a prime city location, with views over the Arabian Sea.
Mandarin Oriental, Porto Cervo
A new 83-room hotel located in the north-east of Sardinia, in the heart of Costa Smeralda. The hotel will offer a perfect blend of accessibility and seclusion,
providing breathtaking views and access to a private beach.
Mandarin Oriental, Tel Aviv
A 226-room hotel and 230 Residences at Mandarin Oriental, in an unrivalled waterfront location overlooking one of the city’s pristine beaches.
Mandarin Oriental, Vienna
A 138-room hotel and 25 Residences at Mandarin Oriental, housed in a heritage building within the Ringstrasse in District One of Vienna, within easy
walking distance of the city’s major attractions.
America
Mandarin Oriental, Boca Raton
A 163-room hotel and 88 Residences at Mandarin Oriental, part of a mixed-use complex, surrounded by Boca Raton’s most affluent, residential
neighbourhoods and a short walk from miles of pristine beaches.
Mandarin Oriental, Grand Cayman
A 92-room beachfront resort and 89 Residences at Mandarin Oriental, situated on 67 acres at St James Point, on the southern shore of the island.
Mandarin Oriental, Honolulu
A luxury 125-room hotel and 99 Residences at Mandarin Oriental, located on the Hawaiian island of Oahu, in the heart of the Ala Moana District.
Mandarin Oriental Residences, Fifth Avenue (Coming Soon)
65 luxurious residences located on Fifth Avenue New York, housed in an elegant 1920’s building on the corner of Fifth Avenue and 54th Street.
Opening dates are determined by each project’s owner/developer. All of the above projects will be managed by Mandarin Oriental Hotel Group with no equity
investment from the Group.
Room numbers reflect the latest estimate from each project’s owner/developer, and may therefore differ from the original announcements and the final
number once the project is completed.
15Annual Report 2023
International Brand Recognition
Mandarin Oriental continues to be recognised as one of
the world’s most esteemed luxury hotel brands. In 2023,
the Group received numerous international awards and
accolades from leading publications, travel associations
and related platforms. Key achievements included the
Group’s recognition as one of the ‘Best Hotel Brands’
by Travel + Leisure and ‘World’s Best Luxury Hotel
Brands’ by Luxury Travel Intelligence.
In 2023, the innovation of 18 restaurants across the
Group were honoured in the Michelin guides, with
29 stars granted, eight of which received the highly
coveted two-star rating. The Group’s continued
commitment to excellence in wellness was also
highlighted, including Forbes awarding 15 hotels
with ‘Five Star Spa’ status and ‘World’s Best Hotel
Spa Brand’ in World Spa Awards 2023.
Mandarin Oriental Hotel Group
Mandarin Oriental portfolio is so synonymous with
contemporary luxury that it’s easy to forget the story
began way back in 1960 with the construction of
The Mandarin in Hong Kong. This glittering property
is still the jewel in the crown, and the levels of service
and attention to detail continue to influence the rest
of the group – and rival hotel brands worldwide.
Condé Nast Traveller, UK
Mandarin Oriental, Bangkok
One thing in Bangkok hasn’t changed, the Mandarin
Oriental hotel. It remains sublime, an oasis of calm
that has set the standard as one of the greatest hotels
in the world. Dinner on the balcony by the bustling
Chao Phraya River brings together all the skills of this
great culinary nation.
Country Life, UK
Mandarin Oriental, Hong Kong
Mandarin Oriental, Hong Kong – Offering full-turbo
excellence across any metric one cares to judge hotels
by (e.g. location, dining, facilities — you name it) the
‘secret sauce’ of the OG Mandarin, a property which
now lends its name to some of the most sumptuous
luxury accommodations around the globe, is in
its service.
Boss Hunting.com, Australia
Mandarin Oriental, Tokyo
It’s one of the most luxurious hotels in Tokyo, and
almost 20 years on, still one of the finest. Rising high
above the historic Nihonbashi financial district,
Mandarin Oriental, Tokyo is one of those rare hotels
with the ability to occupy a place in your soul long
after you’ve left. You can tell it’s special from the
moment you draw near the premises, when a veritable
army of staff emerges to greet you and take you up to
the 38th-floor lobby for your first experience of those
perfectly framed eastern and western views.
Harpers Bazaar, UK
Emirates Palace Mandarin Oriental,
Abu Dhabi
Best for an ultra-luxury stay in one of the grandest
hotels in the UAE. An absolutely majestic hotel, this
property spread across 222 acres truly deserves the
title of a ‘palace’ in its name. With staff from various
Mandarin Oriental properties globally having been
brought in, the transition to MO has been smooth
with similar levels of service and attention to detail
that the brand is reputed for worldwide.
Business Traveller, Middle East
16 Mandarin Oriental International Limited
Mandarin Oriental, Costa Navarino
Spliced into a hillside of the Peloponnese peninsula,
the first of the luxury brand’s openings in Greece has
its phasers set to stun. Make like a Greek and worship
the near-eternal sun from the poolside Ormos Beach
Club, a lounge overlooking the Ionian Sea. Open since
August, Mandarin Oriental, Costa Navarino combines
contemporary elegance, superb service, and warm Greek
hospitality in a postcard-perfect setting in Navarino
Bay, on the southwest coast of the Peloponnese.
Forbes, US
Mandarin Oriental, Lago di Como
Set on the lake’s share, the hotel is a beacon of serenity
and frictionless leisure time. The minute you’re
welcomed through the security gates, down the
winding, garden-edged pathways and into the quiet
reception area, you’re enveloped into an unmistakable
clam. With a foothold firmly in Eastern luxury,
Mandarin Oriental’s take an Italian opulence is subtle.
Vogue Living, Australia
Mandarin Oriental Hyde Park, London
Mandarin Oriental nicely bridges the line between the
hotel and the palace. Think turrets, dormer windows,
Ashlar stone and red brick, all part of the foundations
of one of London’s most famous facades. Add in the
luxury hotel group’s signature attention to detail means
it feels like a royal experience when you’re in residence.
Signature Travel and Luxury Magazine, Australia
Mandarin Oriental Ritz, Madrid
This Belle Époque Grande Dame, originally opened
by legendary hotelier César Ritz, is now enjoying a new
lease of life under the auspices of Mandarin Oriental
group, who have meticulously restored it to its former
glory. Among the hotel’s many highlights are the crystal
canopy ceiling in the Palm Court, elegant afternoon
tea and ultra-polished service. Attention to detail is
impressive throughout, as is the sense of place found
in the many nods to the country’s rich artistic heritage.
Service is exemplary, with many of the ultra-polished
old guard from previous incarnations of the hotel
remaining. Facilities are excellent, delivering all you
could require.
The Telegraph, UK
Mandarin Oriental, Milan
Mandarin Oriental, Milan mixes timeless Milanese
design with the brand’s signature Eastern charm and
legendary hospitality.
Forbes, US
Mandarin Oriental, Paris
Mandarin Oriental, Paris is the epitome of luxury
and elegance for wealthy and discerning guests. This
magnificent hotel offers a unique experience with its
stunning décor, impeccable service, and prime location
in the heart of Paris.
Ipremium, France
Mandarin Oriental, New York
At the foot of Central Park, Mandarin Oriental,
New York has the Big Apple’s best shopping, sightseeing
and dining on its doorstep. Yet its opulent spa,
destination restaurant and spectacular skyline views
make it a peaceful retreat from the city streets.
Country & Town House, UK
17Annual Report 2023
Sustainability
Sustainability update
Sustainability is about doing the right thing by ourselves, by our colleagues, by our families, and by the planet.
Mandarin Oriental is a relatively small player on the world stage, but from the strength of our brand, we use our
voice to advocate for change along the value chain. This enables us to influence other key players in the market
and the industry and bring our stakeholders and partners along with us on our sustainability journey. Staying
true to our guiding principles – delivering service excellence to our guests, supporting the development of our
colleagues – we continue to serve the communities in which we operate, acting with responsibility for our planet.
In 2023, the Group was recognised by the Global Sustainable Tourism Council (‘GSTC’) for achieving
GSTC-Committed status, reinforcing its commitment to sustainable tourism practices and adherence to
international accredited standards. The attainment of GSTC-Committed status encompasses corporate offices
and all managed branded properties worldwide and signifies Mandarin Oriental’s dedication to incorporating
the GSTC Criteria into its policy, plan, and operations. Additionally, 11 of the Group’s hotels achieved GSTC
Certification as awarded by GSTC-Accredited Certification Bodies. The Group will actively pursue GSTC
Certification in 2024, aligning each of its hotels with the highest social and environmental standards within
the industry.
Sharing the global concern for climate change, the Group has continued to explore decarbonisation opportunities
and ensure steady progress towards our 2030 environmental targets with property-led initiatives to reduce energy,
switch to renewables, conserve water, and reduce waste. As we work towards our targets and weigh up more
environmentally responsible practices across our operations, we aim to demonstrate how better efficiencies can
contribute to long-term profitability. Energy audits in our hotels at three-year intervals provide insights to hotel
operations, which inform recommended strategies and efficiency projects. Minimising food waste is a stand-out
challenge across hospitality, and the Group has partnered with Winnow’s award-winning AI-powered system
through a successful trial in our kitchens (spanning four properties representing each major operating region),
with a planned roll-out across all properties commencing in 2024.
The Group has made considerable progress in achieving its sustainability goals through the appointment of
internationally recognised LRQA as our third-party auditor to help verify each hotel’s compliance for key
commitments. We have continued our hard work of eliminating 99% of single-use plastics across all operations
excluding supplier packaging, although we continue to work closely with our suppliers to eliminate single-use
plastics. We estimate our efforts avoid more than 930 metric tons of plastic waste yearly. The Group has upheld
responsible sourcing commitments, verifying 100% responsibly procured coffee, tea, cocoa, vanilla, paper, sugar
and avoiding endangered seafoods.
The Group provided additional paid leave for volunteering in 2023, with every employee eligible for one paid
day a year for charitable causes, to support the communities in which we operate and empower colleagues to
contribute to causes close to their hearts. The result was more than 500 social impact initiatives contributing
over 52,000 volunteer hours to our communities by the dedicated and caring efforts of our colleagues worldwide.
Over the past year, we have made enhancements in our Environmental, Social, and Governance (‘ESG’) Policies
as published on our Mandarin Oriental website, and continue to disclose climate-related financial risks in our
second Task Force on Climate-Related Financial Disclosures. Mandarin Oriental’s annual sustainability progress,
initiatives, achievements, and best practices are covered in more detail in the Group’s annual Sustainability Report.
18 Mandarin Oriental International Limited
The following table shares some of the Group’s sustainability highlights as well as the corresponding United Nations
Sustainable Development Goals (‘UN SDGs’).
FOR THE PLANET
We place great importance on operating sustainably over
the long term as we grow our portfolio of hotels, residences,
and exclusive homes around the world. We have made
commitments towards ‘eliminating single-use plastics’
and established a programme for responsible procurement
that we intend to steadily grow. Our respect for nature and
for the people who work in the supply chain has been an
important factor in driving these initiatives. Environmental
targets for 2030 have been determined for each hotel
through a Group-wide inventory management plan with
consideration of unique locations, utility types used, and
on-site renewable sources.
a) Energy audits in our hotels at three-year intervals provide
insights to hotel operations, which inform recommended
strategies and efficiency projects. 18 energy audits were
performed between 2022 to 2023 in line with guidance
from the American Society of Heating, Refrigerating
and Air-conditioning Engineers (‘ASHRAE’) Procedures
for Commercial Energy Audits. Results from these
audits include:
• Average estimated savings of energy budget: 8%
• Average estimated savings of energy consumption: 11%
• Average estimated ROI: 2.27 years
b) Actively eliminated single-use plastics where possible
across our hotels with verification.
c) Achieved 100% LRQA-verified responsibly sourced coffee,
tea, cocoa, vanilla, sugar and paper. The Group is also
striving towards 100% sourcing cage-free eggs (liquid
and shelled), which we anticipate will be achieved by
Q2 2024 (currently at 94% verified rate).
d) Avoided serving 19 types of endangered seafood species
which are listed on Mandarin Oriental’s Endangered
Seafood Avoid List, aligned with the latest WWF
Endangered Seafood Guide.
e) Innovative digital processes continued to significantly
reduce paper usage across operations.
f) The Group has been actively expanding our sustainability
programme to encompass a good balance of environmental,
social and governance components and deepening our
commitments and goals. Environmental Policy, Human
Rights Policy, Diversity and Inclusion Policy, Modern
Slavery Statement and Supplier Code of Conduct were
published to actively communicate our ESG commitments
on our company website.
g) Winnow Vision’s award-winning AI-powered system was
trialled in some of our kitchens (spanning four properties
representing each major operating region), with a planned
roll-out across all properties starting in 2024. Winnow
reports an estimated annualised total reduction at the
four pilot hotels of US$207,000 net savings after Winnow
cost, 66 tonnes in food waste weight reduced and
289 tonnes in CO
2
e offset.
19Annual Report 2023
Sustainability Continued
FOR GUESTS AND COLLEAGUES
We foster a culture of inclusivity and empowerment,
where colleagues feel comfortable in being themselves
and in voicing their ideas. We are also well known for
our wellness philosophy and the holistic care of the
body, mind and spirit. We offer sustainably sourced
in-room and spa amenities across our portfolio,
complimentary fitness classes, in-room wellness
videos and signature spa treatments for strong
healthy bodies and to promote mindfulness.
a) Ongoing implementation of WeCare programme of
enhanced health and safety protocols across our portfolio.
b) Roll out of the annual sustainability training, which was
completed by all colleagues in two formats: eLearning
and classroom sessions. The topic was on waste
management.
c) 24 Mandarin Oriental colleagues completed an eLearning
course via GIFT.ed, on sustainability. The course provided
sustainability champions at the hotels with sustainability
related topics regarding sustainable economics, supply
chain and resource use.
d) Organised a series of ‘Inner Strength-Outer Strength’
activities on Global Wellness Day to boost colleagues’
physical health and mental resilience.
e) Continued to support a cultural shift that proactively
encourages Diversity and Inclusion (‘D&I’). Ongoing
actions are focussed on raising awareness and education
particularly with senior leadership and executives,
listening and engaging with colleagues on the topic
and weaving D&I into the workplace experience.
f) Continued to build a diverse and equitable team in
fostering a culture of inclusivity, empowerment, and
equal opportunity for all. There are currently four female
General Managers and nine female Hotel Managers who
are passionate ambassadors of Mandarin Oriental.
20 Mandarin Oriental International Limited
FOR COMMUNITIES
We contribute positively to the local communities
we belong to. That means supporting on-the-ground
initiatives that enhance and benefit our immediate
society. Each one of our colleagues are committed
to identifying impactful ways to support their local
communities and actively engage in initiatives.
a) US-based FANtastic Match donated over US$45,000 to
US colleague charities
b) 18 years of support for Asian Cultural Council’s Mandarin
Oriental Fellowship for Cultural Heritage Preservation
c) In recognising the groupwide ‘MOgivin g’ initiative, all
colleagues are offered one-paid day towards volunteering
in 2023.
d) Collectively Mandarin Oriental has clocked over 52,000
hours. In-kind donations of US$196,000 and cash
contributions of US$413,000 were raised, in support of
diverse social segments in various communities.
e) Over 500 community initiatives conducted by colleagues
in support of local causes chosen by our colleagues.
Initiatives include blood donation drives, mental health
awareness, environment clean-ups, food and other
in-kind donation, and training opportunities for people
with disabilities and special needs.
Some highlights:
i) Mandarin Oriental, Milan has participated for the
last 5 years in ‘Progetto Riparto da ME’ – a program
aimed at accompanying inmates from the Milan
Bollate prison in a path aimed at reintegration
into the world of work, offering orientation, training
opportunities and helping to create through
awareness, a climate and working conditions for
this to happen.
ii) Mandarin Oriental, Macau, supported three students
with mild intellectual disabilities by offering operational
internship opportunity to gain life skills and develop
interpersonal relationship.
iii) Mandarin Oriental, Hong Kong, hosted a cocktail
event with Mekong Club with a sharing session by
an industry keynote speaker promoting the insights
and knowledge on human trafficking. Hotel team
contributed 88 hours and US$2,200 to make the
event a success.
iv) Mandarin Oriental Bosphorus, Istanbul donated
TRY250 (approx. US$8.25) for every booked room
night to Disaster and Emergency Management
Authority (‘AFAD’) of Turkey in support of post-disaster
humanitarian assistance, a total of US$167,000 was
contributed in 2023.
21Annual Report 2023
Sustainability Continued
TCFD
Climate change has far-reaching implications that affect us all. To Mandarin Oriental, sustainability is doing the
right thing by ourselves, by our colleagues, by our families, and by the planet. We actively monitor and pursue
action to reduce greenhouse gas emissions, and manage climate-related risks and opportunities. This report presents
our climate-related disclosures in alignment with the Task Force on Climate-Related Financial Disclosures
(‘TCFD’) framework.
Our disclosure is consistent with TCFD’s All Sector Guidance with two areas pending further advancement –
scenario analysis and Scope 3 assessment.
We have undertaken a portfolio-wide sustainability risk assessment in line with the intermediate scenario of
RCP 4.5 (warming between 2°C and 3°C) and will consider further climate scenarios in the next iteration of
this assessment.
The complexities and uncertainties in Scope 3 measurement pose challenges to deriving meaningful and
comparable figures. We played an active role as an Advisory Group member to advance the Net Zero
Methodology for Hotels, which provides guidance on an industry-accepted approach to Scope 3 assessment.
We have started developing an action plan for assessing and addressing Scope 3 emissions, which includes a
Scope 3 mapping exercise in 2024 to understand the type of data, resources, and enhancements in current
systems and processes required.
TCFD recommendation Recommended disclosures Location
Governance
Disclose the organisation’s
governance around climate-related
risks and opportunities.
a. Describe the board’s oversight of climate-related risks
and opportunities.
TCFD, Annual Report,
page 23
b. Describe management’s role in assessing and managing
climate-related risks and opportunities.
TCFD, Annual Report,
page 23
Strategy
Disclose the actual and potential
impacts of climate-related risks and
opportunities on the organisation’s
businesses, strategy, and financial
planning where such information
is material.
a. Describe the climate-related risks and opportunities the
organisation has identified over the short, medium, and long term.
TCFD, Annual Report,
page 24
b. Describe the impact of climate-related risks and opportunities
on the organisation’s businesses, strategy, and financial planning.
TCFD, Annual Report,
page 27
c. Describe the resilience of the organisation’s strategy, taking
into consideration different climate-related scenarios, including
a 2°C or lower scenario.
TCFD, Annual Report,
page 28
Risk Management
Disclose how the organisation
identifies, assesses, and manages
climate-related risks.
a. Describe the organisation’s processes for identifying and
assessing climate-related risks.
TCFD, Annual Report,
page 29
b. Describe the organisation’s processes for managing
climate-related risks.
TCFD, Annual Report,
page 29
c. Describe how processes for identifying, assessing, and
managing climate-related risks are integrated into the
organisation’s overall risks management.
TCFD, Annual Report,
page 29
Metrics and Targets
Disclose the metrics and targets
used to assess and manage
relevant climate-related risks
and opportunities where such
information is material.
a. Disclose the metrics used by the organisation to assess
climate-related risks and opportunities in line with its strategy
and risk management process.
TCFD, Annual Report,
page 30
b. Disclose Scope 1, Scope 2, and if appropriate, Scope 3 GHG
emissions and the related risks.
TCFD, Annual Report,
page 30
c. Disclose the targets used by the organisation to manage
climate-related risks and opportunities and performance
against targets.
TCFD, Annual Report,
page 30
22 Mandarin Oriental International Limited
Governance
Board’s oversight of climate-related risks and opportunities
The Board of Directors oversees and provide guidance on the Company’s sustainability and climate-related
risks and opportunities.
Information on sustainability and climate-related risks and opportunities are reviewed by the Mandarin
Oriental Audit Committee before they are reported to the Board.
The Group Risk Management Committee meets quarterly and advises the Mandarin Oriental Audit Committee
on key climate-related risks and opportunities for their awareness and action.
The Group Risk Management Committee delegates the responsibility of reviewing the operation and
effectiveness of the Company’s internal risk control systems and procedures to the Functional Audit Committee.
The Functional Audit Committee meets biannually and monitors and manages climate-related risks and
opportunities across the Company.
The Sustainability Executive Advisory Panel (‘EAP’) meets quarterly to review the Company’s plans, initiatives
and performance against targets relating to sustainability and climate-related matters.
The EAP provides regular updates on sustainability strategy and performance to the Group Risk Management
Committee and the Committee advises the EAP on action to be taken for key climate-related risks and
opportunities.
Senior management representatives who sit on the Board, Mandarin Oriental Audit Committee, Group Risk
Management Committee and Audit Committee participate in EAP meetings and facilitate the integration
of key climate-related risks and opportunities into the Company’s sustainability strategy considerations.
Management’s role in assessing and managing climate-related risks and opportunities
The EAP considers climate-related issues, risks and opportunities and integrate them into the Company’s
sustainability strategy and approach. It also provides both resources and mechanisms for accountability.
Greenview, a leading provider of sustainability programmes and data management for the hospitality and
tourism sector, sits on the EAP as technical advisor.
The execution of the Company-wide sustainability strategy, including climate strategy, is coordinated by the
Sustainability Department, which is led by the Group Director of Sustainability and Director of Sustainability,
Global Development. The Department monitors hotels’ sustainability progress and verifies their compliance
toward commitments.
Sustainability matters cut across functional departments and the Company has put in place a governance
structure that facilitates extensive and effective collaboration.
The Sustainability Leadership Council translates thematic priorities into workstreams and targeted action items
for implementation by the Working Groups.
Working Groups address sustainability issues that are specific to each core function, while Task Forces address
challenges that could transverse multiple functional departments.
In addition, the Diversity and Inclusion (D&I) Council which reports directly to the EAP, is comprised of
both Group- and property-level colleagues, and focusses on enhancing employee engagement and driving
D&I-relevant performance.
Each property has a designated Sustainability Champion, supported by a Sustainability Committee. They
leverage on Company-wide resources and tools to implement location-specific sustainability initiatives,
including climate-related mitigation and adaptation measures as necessary
An annual budget is reviewed and allocated for executing the Company’s sustainability strategy.
The EAP regularly assesses hotels’ performance against Company-wide sustainability targets which are disclosed
in our annual sustainability reports. They include targets that relate to energy and carbon reductions, renewable
energy use and waste reduction.
Sustainability performance is considered in the performance bonuses of top management personnel, including
all hotel General Managers.
23Annual Report 2023
Sustainability Continued
Strategy
Climate-related risks and opportunities identified over the short, medium and long-term
A sustainability risk assessment was conducted by Greenview for our portfolio. It considered risks associated with
climate, water, socioeconomic factors, biodiversity and regulations for each of our properties. Both acute (floods,
droughts and cyclones) and chronic (change in long term precipitation, temperature and sea level rise) physical
climate risks, as well as transition climate risks were assessed. Assessing climate-related risks and opportunities in
all geographical locations where the Company operates in allows us to identify the material risks and opportunities
which may have significant financial impact on our portfolio.
Transition climate risks were assessed to have a larger impact in the short and medium term, while physical risks
were more significant in the long term. The following time horizons are used:
Short term: Less than 3 years
Medium term: 3-7 years
Long term: More than 7 years
Mandarin Oriental International Limited: Board of Directors
(includes Group Chief Executive, Chief Financial Officer)
Mandarin Oriental Audit Committee
(includes Group Chief Executive, Chief Financial Officer)
Group Risk Management Committee
(includes Chief Financial Officer, Chief Operating Officer, Chief Technical Services Officer)
Functional Audit
Committee
(includes Group Director
of Engineering Operations)
Sustainability Executive Advisory Panel
(includes Group Chief Executive,Chief Financial Officer, Chief Operating Officer,
Chief Technical Services Officer, Group Director of Sustainability,
Group Director of Engineering Operations)
Sustainability Department
Sustainability
Leadership Council
Working Groups
Task Forces
Sustainability Champions
and Committees
Diversity and Inclusion
(‘D&I’) Council
Delegate/
Oversee
Report Monitor/
Review
24 Mandarin Oriental International Limited
Transition Risks
Impact
Actions
• Increased pricing of
energy (originating from
fossil fuels)
• Increasing costs directly
or indirectly from carbon
pricing policies (e.g. tax)
• Increased requirements
associated with green
building policies
• Tightening regulations on
climate-related disclosures
and emissions reporting
(e.g. ISSB
1
-aligned
climate reporting)
Short and medium term
• Increased operational costs
due to energy prices, raw
material prices and higher
compliance costs
• Increased energy efficiency
and other green building-related
requirements
• Increased reporting and
disclosure requirements
• Environmental, social and governance regulations that
are relevant to locations where we operate are tracked via
Greenview’s Global Policy ESG Tracker.
• Energy and emissions targets are set for every property.
• Properties undergo regular energy audits (generally every
three years) to identify and inform owners of necessary
improvement projects for implementation.
• New hotel developments will prioritise low-carbon initiatives
(e.g. reducing gas usage) with consideration for inclusion
of energy and emission targets in owner’s agreements.
Physical Risks
Impact Actions
Acute
From increased severity of
extreme weather events such
as cyclones and floods
• Cyclone risk:
High for 15% of
the portfolio
• Drought risk:
High or extremely high
for a fifth of the portfolio
Short and medium term
• Increased capital costs from
damaged properties
• Reduced revenue from
property closures and
reduced travel demand
• Increased insurance premiums
• Reduced revenue and higher
costs from negative impacts on
workforce (e.g. health, safety,
absenteeism)
• Emergency Response Plans and Business Continuity
Plans are tested and audited periodically for the safety
of staff and guests.
• Insurance coverage has been revised to include
climate risks.
• Sustainability risk assessment results are used to inform
mitigation and adaptation action plans.
• Every year, all properties implement at least one
environmental efficiency project that demonstrates
measurable improvements in energy, water or waste.
• Properties located in water stressed regions prioritise
implementation of water reduction initiatives.
• We have a preference to work with suppliers that prioritise
sustainability per our Supplier Code of Conduct.
Chronic
Changes in precipitation
patterns, extreme variability
in weather pattern, and sea
level rise
• Precipitation and
temperature changes:
High/very high long-term
impact on a third of
the portfolio
• Sea level rise:
High vulnerability for
a tenth of the portfolio
Long term
• Increased insurance premiums
• Reduced availability of
insurance in locations with
high physical climate risks
• Increased operational costs due
to increased heating and cooling
needs, as well as increased
water prices in locations with
high water scarcity
• Increased capital costs due to
damage to facilities
• Reduced revenue from reduced
travel demand
• Increased cost of supplies and
disruptions to availability
1
The International Sustainability Standards Board (‘ISSB’) is tasked to develop standards for a global baseline of sustainability disclosures focussed
on the needs of investors and the financial markets.
25Annual Report 2023
Sustainability Continued
Opportunities
Impact
Actions
Energy Source/Resilience
Use of renewable energy and
adoption of efficiency measures
Short, medium and long term
• Reduced exposure to future
fossil fuel price increases
• Reduced exposure and
sensitivity to changes in
pricing of GHG emissions
• Reduced operational costs
from increased efficiency of
energy and water use
• Increased operational
resilience under changing
climate conditions
• We are steadily increasing renewable electricity use
towards our target.
• We are exploring the feasibility of a centralised renewable
energy purchase strategy to accelerate our renewable
energy usage under optimal terms and pricing.
• Our hotels promote green transportation modes, including
the use of Electric Vehicles (‘EV’) in transport fleets and the
provision of EV charging stations.
Products and Services
Shift in consumer preferences
toward sustainable options
Short, medium and long term
• Increased revenue through
leadership position in
sustainable luxury hospitality
• We uphold our sustainability programme to the internally-
recognised gold standard for sustainable tourism – GSTC
Criteria. The Company is GSTC-committed and has 11
certified hotels as of 2023. By 2025, we aim to be 100%
GSTC certified.
• Staff and guests are engaged for feedback to improve our
sustainability programme and sustainable offerings.
Resource Efficiency
Move towards highly efficient
and climate resilient buildings
Short, medium and long term
• Reduced operating costs
through efficiency gains
• Reduced costs from
implementation of mitigation
measures against extreme
weather events
• Increased market value of
properties that are highly
rated as energy efficient
and/or climate resilient
• We are piloting energy modelling in the building design
phase to better gauge energy use and identify energy
efficiency opportunities.
• Our Responsible Hotel Development Guideline provides
directions for addressing sustainability in design and
construction.
• Some of our properties have pursued alignment with
sustainable building certificates (e.g., Leadership in
Energy and Environmental Design (‘LEED’)).
26 Mandarin Oriental International Limited
Impact on businesses, strategy and financial planning
Impact on business and strategy
Mandarin Oriental sets property-level environmental targets (energy, water and waste) which are developed through
assessing property-specific data and what is practically achievable based on the property’s specific circumstances
(e.g. building and equipment) and planned efficiency improvement projects. Audits are carried out at regular intervals
to identify the efficiency improvement projects to be prioritised.
In 2023, we modelled our decarbonisation pathway to assess our emissions trajectory against our carbon target and
the Science-based Target (‘SBT’) aligned 1.5°C pathway. The model took into account each property’s historical
energy usage for electric and non-electric sources, and forecasted future emissions based on efficiency improvements
from planned projects (such as heating, ventilation, and air conditioning (‘HVAC’) upgrades, renovations and
equipment changes) as well as current and projected renewable energy use. This is in line with the recommendations
of the Hotel Net Zero Methodology to model the portfolio’s baseline and decarbonisation pathways and study
opportunities for energy efficiency and set scenarios for future use of renewable energy.
The results showed that we are well on track to meet our current target of halving emissions intensity by 2030. There is,
however, a gap to aligning with the more ambitious 1.5°C pathway. The gap would require higher renewable energy
targets than what is currently forecasted to be practicable. Presently, renewable energy sources are not widely available
across some regions of the world (e.g. APAC) as the grid has not reached this readiness level. The cost of renewable
energy procurement is also a challenge. To address this, Mandarin Oriental is exploring the formulation of a centralised
renewable energy purchase strategy to accelerate our renewable energy usage under optimal terms and pricing.
To align with the Science-based Targets Initiative (‘SBTi’) would also require us to address Scope 3 emissions.
We recognise that this is increasingly important under the backdrop of tightening regulations, such as ISSB’s
launch of sustainability and climate-related disclosure standards (IFRS S1 and S2). These standards are increasingly
adopted by jurisdictions worldwide and would require reporting of Scope 1, 2 and 3 emissions. We recognise that
this is increasingly important under the backdrop and after in-depth discussions across the EAP, we have identified
an initial roadmap to addressing Scope 3.
In 2024, we will assess data requirements and what resources would be necessary to bridge any gap in current
capabilities and processes. We would also identify material categories across the 15 internationally-recognised
Scope 3 categories. In 2025 and beyond, we will build our Scope 3 measurement capabilities in preparation for
reporting and strengthen engagement with stakeholders, with a focus on major suppliers to start, to collectively
reduce Scope 3 emissions.
As a GSTC-Committed company, we align our sustainability programme with the framework of GSTC Criteria
to address all key sustainability issues for our sector. Many of our existing targets and initiatives which address
waste and sustainable sourcing are in synergy with reducing emissions and addressing climate change-related issues.
They include:
Reduce waste intensity by 50 % by 2030 (from 2012 baseline)
Elimination of 99% of single-use plastics, excluding supplier packaging
100% responsibly sourced coffee, tea, vanilla, cocoa and sugar
100% sustainably sourced paper
Increase sourcing of sustainably certified seafood
As of 2023, 11 of our hotels have received GSTC Certification. We aim to have our entire portfolio GSTC certified
by 2025.
27Annual Report 2023
Sustainability Continued
Impact on financial planning
Operating Cost: To advance our 2030 Environmental Targets, we allocate a budget for each hotel to undertake at
least one efficiency initiative annually. Through these initiatives, we seek to achieve measurable improvements in
the priority areas identified for each hotel, which are informed by sustainability risk assessment results. Enhancing
operational efficiencies will reduce associated operating expenses and reduced exposure and sensitivity to changes
in carbon tax rates.
Indirect Cost: We invest more deeply in insurance coverage and preventive maintenance programmes to minimise
exposure to climate-related physical risks, particularly in regions where the likelihood of more frequent and severe
extreme weather events is higher.
Revenues: We endeavour to maintain a strong competitive position by continually enhancing our sustainability
performance and sustainable offerings to cater to increased consumer preference for sustainable products and
services. We continue to refine our sustainable offerings through market research and active engagement of guests
for feedback.
Acquisitions/Divestments and Access to Capital: The Company considers climate-related risks in acquisition and
divestment decisions, as well as sustainable financing opportunities (e.g. sustainability-linked loans) to leverage on
in the implementation of our sustainability strategy.
Resilience of strategy, taking into account different scenarios, including a 2 degree celsius or lower scenario
Our sustainability risk assessment was conducted in accordance with the RCP 4.5 scenario. This scenario correlates
with the intermediate pathway where temperature increase ranges from 2°C to 3°C. This temperature scenario was
chosen as it is one of the most plausible pathways. Please refer to the tables under the Strategy section for more
details on our key sustainability and climate risk findings and opportunities identified in response.
In our decarbonisation pathway modelling exercise, we analysed the Company’s emissions trajectory against our target
to halve carbon intensity by 2030, as well as the more ambitious 1.5°C pathway. In the coming year, we intend to carry
out the next sustainability risk assessment with consideration of other recommended temperature scenarios alongside
publicly accessible transition scenarios. This move aims to integrate the findings of the sustainability risk assessment
and decarbonisation pathway model and enhance our capacity to effectively address climate change challenges.
28 Mandarin Oriental International Limited
Risk management
Process for identifying and assessing climate-related risks
Mandarin Oriental undertakes sustainability risk assessments to identify property-level physical and transition
climate risks. Hotels perform overall risk assessment at the property-level annually. As part of this assessment, the
physical climate risk of Mandarin Oriental’s key assets is evaluated based on the likelihood, financial and reputational
impact, and the speed at which the risk materialises, to then determine the inherent risk exposure in a scale. Transition
risks are also monitored by keeping abreast of key sustainability related policy changes. Environmental, social and
governance regulations for the locations that we operate in are identified via Greenview’s Global Policy ESG Tracker.
Mitigation measures have been in place to reduce the risk exposure for further monitoring at the residual level.
We will continue to refine our process to improve identification and assessment of climate-related risks.
Processes for managing climate-related risks
Climate-related risks are managed under Mandarin Oriental’s Risk Management Framework, which is based on
ISO 31000 and COSO principles. The framework includes four main steps: risk identification, risk assessment, risk
treatment, and risk reporting and monitoring. This process is informed by the portfolio-wide sustainability risk
assessment conducted by our third-party consultant and a comprehensive risk assessment by our insurers.
Risks are accepted if they fall within the Company’s risk tolerance level, but if they surpass this threshold, they are
mitigated or eliminated. Climate-related risks may be accepted if mitigated to an appropriate level. Strategies for
mitigating these risks include comprehensive insurance coverage for natural disasters, increased adoption of clean
renewable energy, and the implementation of energy and water efficiency projects, as detailed in the ‘Impact on
Business and Strategy’ section.
Integration into overall risk management
Mandarin Oriental Audit Committee mandates that the Company conducts its business in accordance with the
Group Risk Management Policy. To oversee adherence and reinforce enforcement of this policy, we have established
a Group Risk Management Committee (‘GRMC’) vested with the authority to ensure the Company’s risk
management objectives are achieved. The GRMC comprises key members from various executive functions,
including Finance, Operations, IT, Legal, and Engineering, and convenes at least biannually.
The Functional Audit Committee evaluates the Company’s primary climate risks, uncertainties, and potential
alterations to the risk profile. It assesses the functionality and efficacy of the Company’s internal control systems
(financial, operational, and compliance), along with the procedures employed for monitoring and mitigating these
risks. Regular identification and analysis of climate risks, as well as the review of climate risk management processes,
are conducted through the Functional Audit Committee, with inputs from sustainability and climate risk assessments
conducted by our third-party consultant and insurers.
29Annual Report 2023
Sustainability Continued
Metrics and targets
Metrics used
Mandarin Oriental uses the metrics below in relation to climate-related risks and opportunities.
Energy
Metrics used 2023 Performance
Total Energy Consumption (GJ) 1,871,590
Total Energy Consumption per square metre (MJ/m
2
) 1,422
Percentage of Renewable Energy Use
2
8%
Total GHG Emissions (Scope 1 and 2) (metric tons kg CO
2
e) 203,660
Total GHG Emissions per square metre (kg CO
2
e/m
2
) 155
Water
Metrics used 2023 Performance
Total Water Consumption (m
3
) 5,172,150
Total Water Consumption per square metre (Litres/m
2
) 3,931
Waste
Metrics used 2023 Performance
Non-diverted Waste per square metre (kg/m
2
) 8.32
Waste Diversion Rate 40%
GHG emissions
Mandarin Oriental’s GHG reporting scope covers all 35* hotels that were fully operational in 2023.
Greenhouse Gas Emissions
†
2023 Performance
Total GHG Emissions (metric tons CO
2
e) 203,660
Scope 1 Emissions (metric tons CO
2
e) 25,080
Scope 2 Emissions (metric tons CO
2
e) 178,580
GHG Emissions per square metre(kg CO
2
e) 155
* Properties excluded: Mandarin Oriental, Singapore (under renovation in 2023); Mandarin Oriental, Costa Navarino and Mandarin
Oriental Savoy, Zurich (opened within 2023).
†
GHG emissions are based on market-based calculations.
Targets used and performance against targets
To assess and manage relevant climate-related risks and opportunities, Mandarin Oriental set the following 2030
Environmental Targets:
2030 Targets 2023 Achievement
50% GHG intensity reduction
3
29% reduction
15% renewable energy use 8%
2
Either produced onsite or procured
3
Baseline year 2012
30 Mandarin Oriental International Limited
Financial Review
Management Business
2023
US$m
2022
US$m
Revenue* 94 68
Underlying EBITDA from
Management Business 53 34
Less: depreciation and amortisation (9) (9)
Underlying operating profit 44 25
Net financing income 3 –
Tax (6) (8)
Underlying profit attributable
to shareholders 41 17
*Includes management fees from subsidiary hotels
Revenue in the Management Business consists of
hotel and residences management fees, and residences
branding fees. The Group’s strategic focus remains the
growth of the Management Business, by accelerating
the development pipeline over time.
In 2023, total hotel management fees were
US$78 million, representing a 30% increase
compared to 2022. Growth of management fees in
Asia and Europe was exceptionally strong, with all
hotels except Singapore contributing higher fees.
The hotel in Singapore was under renovation for
six months in 2023, and if we exclude this, hotels
in Asia would have achieved a 97% increase in fee
income compared to 2022.
Residences branding fees, generally earned when
individual residences are sold, or certain development
milestones are achieved, were more than triple the fees
earned in 2022. This outperformance in branding fees
was mainly driven by Mayfair in London and Fifth
Avenue in New York.
As a result of increased hotel management fees
and branding fees, underlying EBITDA of the
Management Business was US$53 million, a 55%
improvement from 2022.
Results
Overall
In 2023, Mandarin Oriental delivered much improved
operating performance and profitability compared to
the prior year, driven by growth in revenue.
The growth in top-line performance was achieved in all
regions, with hotels in Asia recording a notable rebound
in both rates and occupancy. Rate performance in
EMEA was strong with the vast majority of our hotels
reporting an improvement over record rates in 2022,
demonstrating the competitiveness of our portfolio in the
region. Overall, combined total revenue from all hotels
under management in 2023 was US$1,890 million,
21% up from 2022.
The Group’s consolidated revenue, consisting of
revenues from subsidiary hotels, and management
and residences branding fees from the Management
Business, was US$558 million, 23% higher than 2022,
with all subsidiary hotels delivering higher revenues.
The Group uses underlying
1
earnings before interest,
tax, depreciation, and amortisation (‘EBITDA’) to
analyse operating performance. In 2023, the Group
achieved underlying EBITDA of US$178 million,
59% higher than 2022. Underlying EBITDA by
business activity is shown below:
2023
US$m
2022
US$m
Management Business 53 34
Owned Hotels
– Subsidiary hotels 102 45
– Share of results of associate and
joint venture hotels 24 32
126 77
Property Development (1) –
Underlying EBITDA 178 111
1
The Group uses ‘underlying profit’ in its internal financial reporting to distinguish between ongoing business performance and non-trading
items, as more fully described in note 34 to the financial statements. Management considers this to be a key measure which provides
additional information to enhance understanding of the Group’s underlying business performance.
31Annual Report 2023
Financial Review Continued
Owned Hotels
Following the sale of the Jakarta hotel in June 2023,
the Group has an equity interest in 13 hotel properties.
In 2023, the Group’s Owned Hotels reported a
combined EBITDA of US$126 million, a 63% increase
compared to 2022. Most properties maintained or
improved their earnings, with Hong Kong and Tokyo
achieving a strong rebound in performance as those
markets exited COVID restrictions at the end of 2022.
EBITDA in 2022 included US$5 million of
government financial support and US$3 million of
other income primarily from insurance proceeds.
Subsidiary hotels
The Group’s results from its subsidiary hotels were
as follows:
2023
US$m
2022
US$m
Revenue 487 401
Underlying EBITDA from
subsidiary hotels 102 45
Less: depreciation and amortisation (43) (49)
Underlying operating profit/(loss) 59 (4)
Net financing charges (9) (12)
Tax (5) (1)
Underlying profit/(loss) attributable
to shareholders 45 (17)
In 2023, subsidiary hotels delivered a revenue of
US$487 million and an EBITDA of US$102 million,
significantly higher than the revenue of US$401
million and the EBITDA of US$45 million in 2022.
Depreciation and amortisation for subsidiary hotels,
which is a non-cash item, was lower in 2023. Net
financing charges were also lower due to higher interest
income from short-term deposits. Tax for the year was
US$5 million, compared to US$1 million in 2022.
Overall, subsidiary hotels reported an underlying profit
of US$45 million, compared to an underlying loss of
US$17 million in 2022, primarily driven by strong
recovery of operating performance of Hong Kong,
Tokyo, and continued strength in earnings from
London, Paris and Munich.
Associate and joint venture hotels
The Group’s share of results from associate and joint
venture hotels was as follows:
2023
US$m
2022
US$m
Underlying EBITDA from associate
and joint venture hotels 24 32
Less: depreciation and amortisation (15) (16)
Underlying operating profit 9 16
Net financing charges (9) (5)
Tax – (1)
Underlying profit attributable
to shareholders – 10
The majority of associate and joint venture hotels
delivered improved revenue and EBITDA in 2023,
offset by lower contributions from Singapore due to
its closure for renovation, and Miami due to softer
local leisure demand in America leading to a marginal
decrease in rates.
As a result, the Group made no profit in aggregate
from its associate and joint venture hotels in 2023,
compared to a profit of US$10 million in 2022.
32 Mandarin Oriental International Limited
Underlying earnings attributable to shareholders
The underlying profit attributable to shareholders is
as follows:
2023
US$m
2022
US$m
Management Business 41 17
Owned Hotels
– Subsidiary hotels 45 (17)
– Share of results of associate and
joint venture hotels – 10
45 (7)
Property Development (5) (2)
Total underlying profit attributable
to shareholders 81 8
In light of much improved operating performance from
the vast majority of the hotels, both the Management
Business and subsidiary hotels achieved excellent
growth in profitability with total underlying profit of
US$81 million in 2023, compared to US$8 million
in 2022.
Non-trading items
2023
US$m
2022
US$m
Changes in fair value of
investment properties (487) (104)
Gain on sale of a subsidiary/
asset disposals 41 47
Total (446) (57)
In 2023, the Group recorded a net non-trading loss
of US$446 million, predominantly due to a 17%
non-cash reduction (US$488 million) in the fair
value of the Causeway Bay site under development,
valued at US$1,972 million at the end of 2023.
The valuation methodology for the project was
updated to the residual value method, in line with
normal market practice as the development project
progresses toward completion. This loss was partially
offset by a US$41 million net gain realised from the
sale of the Jakarta hotel in June. In 2022, a non-trading
loss of US$57 million was recognised also primarily in
relation to the Causeway Bay site under development,
which represented a 3% decrease in the valuation of
the site.
Cash flow
The Group’s consolidated cash flows are summarised
as follows:
2023
US$m
2022
US$m
Operating activities 141 56
Investing activities
Capital expenditure on
existing properties (14) (13)
Redevelopment of the Causeway
Bay site (71) (30)
Net proceeds from asset disposals 76 131
Net repayment from associates
and joint ventures 47 2
Others (7) (3)
Financing activities
Net repayment of borrowings (190) (116)
Dividends (19) –
Other (6) (6)
Net (decrease)/increase in cash (43) 21
Cash and cash equivalents
at 1st January 226 213
Effect of exchange rate changes 7 (8)
Cash and cash equivalents
at 31st December 190 226
Gross debt at 31st December (415) (602)
Closing net debt at 31st December (225) (376)
The Group’s cash inflow from operating activities was
US$141 million in 2023, substantially higher than the
US$56 million in 2022, predominantly due to better
earnings achieved by Owned Hotels and higher fee
income from the Management Business.
In investing activities, the Group generated a net cash
inflow of US$31 million, mostly due to the sale of the
Jakarta hotel for US$76 million and repayments of
loans from the Madrid hotel of US$64 million. This
was partially offset by the continued investment in the
Group’s existing hotel properties of US$14 million, the
majority of which was spent on the renovation of the
Geneva hotel, and investment in the Causeway Bay site
under development in Hong Kong of US$71 million,
as well as additional loans provided to the Miami hotel
of US$17 million. The Group is committed to investing
another US$351 million in the Causeway Bay site
under development which is expected to be completed
in the first half of 2025, with a mix of external debt
and existing cash reserves.
33Annual Report 2023
Financial Review Continued
Dividends
A final dividend of US¢3.50 per share has been
proposed to the Board. This, together with the interim
dividend of US¢1.50 per share declared, will result in
total dividends of US¢5.00 per share.
Treasury activities
The Group manages its exposure to financial risk using
a variety of techniques and instruments. The main
objective is to manage foreign exchange and interest
rate risks and to provide a degree of certainty in respect
of costs. At the end of 2023, the Group had fixed or
capped interest rates on 51% of its gross borrowings.
In respect of specific hotel financing, borrowings are
normally taken in local currency to hedge partially the
investment and the projected income. At 31st December
2023, the Group’s net assets were denominated in the
following currencies:
Shareholders’ funds/
net assets
Adjusted
shareholders’ funds/
net assets*
US$m % US$m %
Hong Kong dollar 1,923 65 2,863 62
Euro 418 14 597 13
United Kingdom Sterling 209 7 418 9
United States dollar 234 8 298 6
Singapore dollar 64 2 264 6
Thai baht 16 1 94 2
Swiss franc 62 2 62 1
Others 34 1 41 1
Total 2,960 100 4,637 100
*See supplementary information section below.
The Group, excluding associates and joint ventures,
had committed borrowing facilities totalling
US$1,074 million, of which US$415 million was
drawn at 31st December 2023. The principal amounts
due for repayment are as follows:
Facilities
committed
US$m
Facilities
drawn
US$m
Unused
facilities
US$m
Within one year 754 414 340
Between one and two years 320 1 319
Between two and three years – – –
Between three and four years – – –
Between four and five years – – –
Beyond five years – – –
Total 1,074 415 659
At 31st December 2023, consolidated net debt was
US$225 million, and gearing was 8%, lower than
consolidated net debt of US$376 million and gearing
of 11% at 31st December 2022. Reduced net debt was
primarily driven by the proceeds from the sale of the
Jakarta hotel (US$76 million), repayment of loans
from the Madrid hotel (US$64 million), and improved
operating cash inflows, partially offset by investment
in the Causeway Bay site under development, as well as
ongoing hotel capital expenditure. Gearing was 5% of
adjusted shareholders’ funds2 at 31st December 2023,
lower than the prior year of 8%.
The Group’s liquidity position remains robust with
US$659 million of committed, undrawn facilities
in addition to its cash balances of US$190 million.
The average tenor of the Group’s borrowings was
0.9 years compared to 1.8 years in 2022. In February
2024, the Group has refinanced bank facilities of
US$409 million for three to five years.
2
Adjusted shareholders’ funds take into account the fair market value of the Group’s freehold and leasehold interests (which are accounted
for at amortised cost).
34 Mandarin Oriental International Limited
Interest cover
EBITDA is used as an indicator of the Group’s
ability to service debt and finance its future capital
expenditure, although there are no cash-based
covenants in the Group’s debt facilities. Interest cover3
in 2023 was 7.1 times, higher than the 4.9 times
interest cover in 2022.
Supplementary information
Although the Group’s accounting policy in respect
of its freehold land and buildings and the building
component of owner-occupied leasehold properties
is based on the amortised cost model, the Directors
continue to review on an annual basis the fair market
values in conjunction with independent appraisers.
The fair market value of both freehold and leasehold
land and buildings is used by the Group to calculate
adjusted net assets, which the Directors believe gives
important supplementary information regarding
net asset value per share and gearing as shown in the
table below.
The decrease in 2023 adjusted shareholders’ funds
was primarily due to the total loss attributable to
shareholders of US$365 million, mainly due to the
17% decrease in valuation of the Causeway Bay site
under development, partially compensated by the net
gain on sale of the Jakarta hotel.
2023 2022
US$m
Per share
US$ US$m
Per share
US$
Shareholders’ funds/
net assets 2,960 2.34 3,294 2.61
Add: surplus for fair
market value of
freehold and leasehold
land and buildings 1,677 1.33 1,603 1.26
Adjusted shareholders’
funds/net assets 4,637 3.67 4,897 3.87
Principal risks and uncertainties
A review of the principal risks and uncertainties facing
the Group is set out on pages 134 to 140.
Accounting policies
The Directors continue to review the developments
in International Financial Reporting Standards and
their impact on the Group’s accounting policies.
The accounting policies adopted are consistent with
those of the previous year, except that the Group
has adopted the IFRS 17 – Insurance Contracts,
Disclosure of Accounting Policies – Amendments to
IAS 1 and IFRS practice Statement 2, Amendment to
IAS 12 – Deferred Tax related to Assets and Liabilities
arising from a Single Transaction, and Amendment
to IAS 12 – International Tax Reform – Pillar Two
Model Rules. This is more fully detailed in the note 1
‘Basis of preparation’ in the financial statements. The
adoption of the standard and amendments does not
have a material effect on the financial statements.
Matthew Bishop
Chief Financial Officer
7th March 2024
3
Interest cover is calculated as underlying EBITDA (including the Group’s share of underlying EBITDA from associates and joint ventures)
before the deduction of amortisation/depreciation of right-of-use assets and net of actual lease payments, divided by net financing charges
(including the Group’s share of net financing charges from associates and joint ventures) before the deduction of capitalised interest and
excluding interest on lease liabilities.
35Annual Report 2023
Ben Keswick Chairman
Ben Keswick joined the Board as Managing Director
in April 2012 and held the position until June 2020.
He has been Chairman since 2013. He was also
managing director of Jardine Matheson from 2012
to 2020. He has held a number of executive positions
since joining the Jardine Matheson group in 1998,
including finance director and then chief executive
officer of Jardine Pacific between 2003 and 2007,
and group managing director of Jardine Cycle &
Carriage until March 2012. He is executive chairman
of Jardine Matheson and chairman of DFI Retail
Group and Hongkong Land. He is also chairman
of Jardine Cycle & Carriage and a commissioner of
Astra. He has an MBA from INSEAD.
John Witt
*
Managing Director
John Witt rejoined the Board as Managing Director
in June 2020, having previously served as the Chief
Financial Officer between 2000 and 2010. He has been
with the Jardine Matheson group since 1993 and has
held a number of senior positions, including group
finance director of Jardine Matheson from 2016 to
2020 and the chief financial officer of Hongkong Land.
John is chairman of Jardine Matheson Limited, group
managing director of Jardine Matheson and managing
director of DFI Retail Group and Hongkong Land.
He is also a director of Jardine Pacific, as well as
a commissioner and chairman of the executive
committee of Astra. John is a Chartered Accountant
and has an MBA from INSEAD.
Laurent Kleitman
*
Group Chief Executive
Laurent Kleitman joined the Board as Group Chief
Executive in September 2023. His career is centred
on building and leading iconic brands, including in
high-end luxury segment, as well as growth strategies
focussed on customer-centric innovation and
experience. He was previously President and Chief
Executive of Parfums Christian Dior, the largest
luxury fashion beauty business of LVMH, before
which he was President of the Consumer Beauty
division of Coty in New York and held global and
regional leadership roles at Unilever in UK, Europe
and Asia.
Matthew Bishop
*
Chief Financial Officer
Matthew Bishop joined the Board as Chief Financial
Officer in 2021. A Chartered Accountant, he joined
the Jardine Matheson group in 2009 and held a
number of senior finance positions across the group,
including most recently group treasurer of Jardine
Matheson since January 2019. He was previously a
diplomat with the Foreign & Commonwealth Office
in Beijing and London.
Jinqing Cai
Jinqing Cai joined the Board in 2021. She is a member
of the Audit Committee of the Company. She is the
president, Greater China at Kering, vice chairman of
Teach for China and an independent non-executive
director of Xiaomi Corporation. Jinqing was former
president and chairman of Christie’s China.
* Executive Director
Directors’ Profiles
36 Mandarin Oriental International Limited
Adam Keswick
Adam Keswick joined the Board in 2012. Having
joined Jardine Matheson in 2001, he was appointed to
the Jardine Matheson board in 2007 and was deputy
managing director from 2012 to 2016. Adam is a
director of DFI Retail Group and Hongkong Land.
He is also a director of Ferrari NV, Schindler
1
and
Yabuli China Entrepreneurs Forum and vice chairman
of the supervisory board of Rothschild & Co.
Archie Keswick
Archie Keswick joined the Board in 2019. Having
joined the Jardine Matheson group in 2007, he held a
number of senior executive positions within the group,
including most recently CEO, Pizza Hut Vietnam and
the general manager of The Landmark Mandarin
Oriental, Hong Kong.
Y.K. Pang
Y.K. Pang joined the Board in 2016. He is a member
of the Audit Committee of the Company. He is deputy
managing director and chairman of Hong Kong of
Jardine Matheson, and chairman of Jardine Pacific.
He has held a number of senior executive positions in
the Jardine Matheson group, which he joined in 1984,
including chief executive of Hongkong Land between
2007 and 2016. Y.K. is also deputy chairman of
Jardine Matheson Limited, and a director of Gammon,
Hongkong Land and Jardine Matheson (China).
He is chairman of the Hong Kong Tourism Board
and the Hong Kong Management Association, and
a member of the Council and General Committee of
the Hong Kong General Chamber of Commerce and
the Employers’ Federation of Hong Kong. Y.K. will be
retiring from the Board and the Audit Committee of
the Company on 31st March 2024.
Richard Solomons
Richard Solomons joined the Board in 2021. He is the
Chairman of the Audit Committee of the Company.
He is the non-executive chairman of Rentokil Initial plc
and the chair of its nomination committee. He is also
the non-executive chairman of HBG Limited, as well
as the chair of its advisory committee and remuneration
committee. Richard was previously the chief executive
officer of InterContinental Hotels Group plc and a
non-executive director of Aston Martin Lagonda
Global Holdings plc and Marks and Spencer Group plc.
1
Adam Keswick will be retiring from the board of Schindler on 19th March 2024.
37Annual Report 2023
for the year ended 31st December 2023
Consolidated Profit and Loss Account
2023 | 2022 | ||||||
| Underlying | Underlying | ||||||
| business | Non-trading | business | Non-trading | ||||
| performance | items | Total | performance | items | Total | ||
| Note | US$m | US$m | US$m | US$m | US$m | US$m | |
Revenue | 2 | ||||||
Cost of sales | ( | ( | ( | ( | |||
Gross profit | |||||||
Selling and distribution costs | ( | ( | ( | ( | |||
Administration expenses | ( | ( | ( | ( | |||
Other operating income/(expense) | ( | ||||||
Change in fair value of investment properties | 12 | ( | ( | ( | ( | ||
Gain on sale of a subsidiary/asset disposals | 8 | ||||||
Operating (loss)/profit | 3 | ( | ( | ( | ( | ||
Financing charges | ( | ( | ( | ( | |||
Interest income | |||||||
Net financing charges | 4 | ( | ( | ( | ( | ||
| Share of results of associates | |||||||
and joint ventures | 5 | ( | ( | ( | |||
(Loss)/profit before tax | ( | ( | ( | ( | |||
Tax | 6 | ( | ( | ( | ( | ( | |
(Loss)/profit after tax | ( | ( | ( | ( | |||
| Attributable to: | |||||||
Shareholders of the Company | 7&8 | ( | ( | ( | ( | ||
Non-controlling interests | |||||||
( | ( | ( | ( | ||||
US¢ | US¢ | US¢ | US¢ | ||||
(Loss)/earnings per share | 7 | ||||||
– basic | ( | ( | |||||
– diluted | ( | ( |
38 Mandarin Oriental International Limited
Note
| 2023 | 2022 | ||
| US$m | US$m | ||
Loss for the year | ( | ( | |
| Other comprehensive expense | |||
| Items that will not be reclassified to profit or loss: | |||
Remeasurements of defined benefit plans | 16 | ( | ( |
Revaluation surplus of right-of-use assets before transfer to investment properties | 11 | ||
Tax on items that will not be reclassified | 6 | ||
( | |||
| Items that may be reclassified subsequently to profit or loss: | |||
| Net exchange translation differences | |||
– net gain/(loss) arising during the year | ( | ||
– transfer to profit and loss | |||
| Cash flow hedges | |||
– net (loss)/gain arising during the year | ( | ||
Tax relating to items that may be reclassified | 6 | ( | |
Share of other comprehensive income of associates and joint ventures | |||
( | |||
Other comprehensive income for the year, net of tax | |||
Total comprehensive expense for the year | ( | ( | |
| Attributable to: | |||
Shareholders of the Company | ( | ( | |
Non-controlling interests | |||
( | ( |
for the year ended 31st December 2023
Consolidated Statement of Comprehensive Income
39Annual Report 2023
at 31st December 2023
Consolidated Balance Sheet
Note
| 2023 | 2022 | ||
| US$m | US$m | ||
| Net assets | |||
Intangible assets | 9 | ||
Tangible assets | 10 | ||
Right-of-use assets | 11 | ||
Investment properties | 12 | ||
Associates and joint ventures | 13 | ||
Other investments | 14 | ||
Deferred tax assets | 15 | ||
Pension assets | 16 | ||
Non-current debtors | 17 | ||
Non-current assets | |||
Stocks | |||
Current debtors | 17 | ||
Current tax assets | |||
Cash and bank balances | 18 | ||
Assets classified as held for sale | 19 | ||
Current assets | |||
Current creditors | 20 | ( | ( |
Current borrowings | 21 | ( | ( |
Current lease liabilities | 22 | ( | ( |
Current tax liabilities | ( | ( | |
( | ( | ||
Liabilities directly associated with assets classified as held for sale | 19 | ( | |
Current liabilities | ( | ( | |
Net current (liabilities)/assets | ( | ||
Long-term borrowings | 21 | ( | ( |
Non-current lease liabilities | 22 | ( | ( |
Deferred tax liabilities | 15 | ( | ( |
Pension liabilities | 16 | ( | |
Non-current creditors | 20 | ( | ( |
Non-current liabilities | ( | ( | |
| Total equity | |||
Share capital | 24 | ||
Share premium | 25 | ||
Revenue and other reserves | |||
Shareholders’ funds | |||
Non-controlling interests | |||
Approved by the Board of Directors
Laurent Kleitman
Matthew Bishop
Directors
7th March 2024
40 Mandarin Oriental International Limited
for the year ended 31st December 2023
Consolidated Statement of Changes in Equity
| Asset | Attributable to | Attributable to | Total | |||||||
| Share | Share | Capital | Revenue | revaluation | Hedging | Exchange | shareholders of | non-controlling | equity | |
| capital | premium | reserves | reserves | reserves | reserves | reserves | the Company | interests | ||
| US$m | US$m | US$m | US$m | US$m | US$m | US$m | US$m | US$m | US$m | |
| 2023 | ||||||||||
At 1st January | ( | ( | ||||||||
Total comprehensive income | ( | ( | ( | ( | ||||||
Dividends paid by the Company | ( | ( | ( | |||||||
| Unclaimed dividend | ||||||||||
| forfeited | ||||||||||
| Subsidiary | ||||||||||
| disposed of | ( | – | ( | ( | ||||||
Transfer | ( | |||||||||
At 31st December | ( | ( | ||||||||
| 2022 | ||||||||||
At 1st January | ( | ( | ||||||||
Total comprehensive income | ( | ( | ( | ( | ||||||
Transfer | ( | |||||||||
At 31st December | ( | ( | ||||||||
| Revenue reserves as at 31st December 2023 included cumulative fair value losses on the investment property under |
| development of US$1,207.8 million (2022: US$720.2 million). |
41Annual Report 2023
for the year ended 31st December 2023
Consolidated Cash Flow Statement
Note
| 2023 | 2022 | ||
| US$m | US$m | ||
| Operating activities | |||
Operating loss | 3 | ( | ( |
Depreciation, amortisation and impairment | |||
Other non-cash items | 28a | ||
Movements in working capital | 28b | ( | ( |
Interest received | |||
Interest and other financing charges paid | ( | ( | |
Tax paid | ( | ( | |
Dividends and interest from associates and joint venture | |||
Cash flows from operating activities | |||
| Investing activities | |||
Purchase of tangible assets | ( | ( | |
Additions to investment properties | ( | ( | |
Purchase of intangible assets | ( | ( | |
Additions to right-of-use assets | ( | ||
Refund on Munich expansion | 28c | ||
Purchase of other investments | ( | ( | |
Purchase of an associate | 28d | ( | |
Advance to associates and joint ventures | 28e | ( | ( |
Repayment of loans to associates and joint ventures | 28f | ||
Sale of a subsidiary | 28g | ||
Net proceeds from asset disposals | 8 | ||
Cash flows from investing activities | |||
| Financing activities | |||
Drawdown of borrowings | 21 | ||
Repayment of borrowings | 21 | ( | ( |
Principal elements of lease payments | 28h | ( | ( |
Dividends paid by the Company | 27 | ( | |
Cash flows from financing activities | ( | ( | |
Net (decrease)/increase in cash and cash equivalents | ( | ||
Cash and cash equivalents at 1st January | |||
Effect of exchange rate changes | ( | ||
Cash and cash equivalents at 31st December | 28i | ||
42 Mandarin Oriental International Limited
Notes to the Financial Statements
43Annual Report 2023
Notes to the Financial Statements Continued
44 Mandarin Oriental International Limited
45Annual Report 2023
Notes to the Financial Statements Continued
46 Mandarin Oriental International Limited
47Annual Report 2023
Notes to the Financial Statements Continued
5 Share of results of associates and joint ventures
EBITDA
US$m
Depreciation
and
amortisation
US$m
Operating
profit/
(loss)
US$m
Net
financing
charges
US$m
Tax
US$m
Net
profit/
(loss)
US$m
2023
Analysis by business activity
Hotel ownership 23.8 (15.2) 8.6 (8.9) 0.2 (0.1)
Other 0.4 (0.5) (0.1) (0.1) – (0.2)
24.2 (15.7) 8.5 (9.0) 0.2 (0.3)
Non-trading items
– closure costs (0.6) – (0.6) – – (0.6)
23.6 (15.7) 7.9 (9.0) 0.2 (0.9)
Analysis by geographical area
Asia 10.4 (10.1) 0.3 (3.3) 0.1 (2.9)
EMEA 5.5 (3.6) 1.9 (3.3) 0.1 (1.3)
America 8.3 (2.0) 6.3 (2.4) – 3.9
24.2 (15.7) 8.5 (9.0) 0.2 (0.3)
Non-trading items
– closure costs (0.6) – (0.6) – – (0.6)
23.6 (15.7) 7.9 (9.0) 0.2 (0.9)
2022
Analysis by business activity
Hotel ownership 32.3 (15.4) 16.9 (5.6) (1.0) 10.3
Other – (0.5) (0.5) (0.1) – (0.6)
32.3 (15.9) 16.4 (5.7) (1.0) 9.7
Analysis by geographical area
Asia 19.2 (10.4) 8.8 (2.4) (1.1) 5.3
EMEA 4.0 (3.4) 0.6 (1.1) 0.1 (0.4)
America 9.1 (2.1) 7.0 (2.2) – 4.8
32.3 (15.9) 16.4 (5.7) (1.0) 9.7
48 Mandarin Oriental International Limited
49Annual Report 2023
Notes to the Financial Statements Continued
50 Mandarin Oriental International Limited
51Annual Report 2023
Notes to the Financial Statements Continued
52 Mandarin Oriental International Limited
53Annual Report 2023
Notes to the Financial Statements Continued
54 Mandarin Oriental International Limited
55Annual Report 2023
Notes to the Financial Statements Continued
56 Mandarin Oriental International Limited
57Annual Report 2023
Notes to the Financial Statements Continued
58 Mandarin Oriental International Limited
59Annual Report 2023
Notes to the Financial Statements Continued
60 Mandarin Oriental International Limited
2023 and 2022.
61Annual Report 2023
Notes to the Financial Statements Continued
62 Mandarin Oriental International Limited
63Annual Report 2023
Notes to the Financial Statements Continued
64 Mandarin Oriental International Limited
65Annual Report 2023
Notes to the Financial Statements Continued
66 Mandarin Oriental International Limited
67Annual Report 2023
Notes to the Financial Statements Continued
68 Mandarin Oriental International Limited
69Annual Report 2023
Notes to the Financial Statements Continued
70 Mandarin Oriental International Limited
71Annual Report 2023
Notes to the Financial Statements Continued
72 Mandarin Oriental International Limited
73Annual Report 2023
Notes to the Financial Statements Continued
74 Mandarin Oriental International Limited
75Annual Report 2023
Notes to the Financial Statements Continued
76 Mandarin Oriental International Limited
77Annual Report 2023
Notes to the Financial Statements Continued
78 Mandarin Oriental International Limited
79Annual Report 2023
Notes to the Financial Statements Continued
80 Mandarin Oriental International Limited
33 Principal subsidiaries, associates, joint ventures and managed hotels
The principal subsidiaries, associates, joint ventures and managed hotels of the Group at 31st December 2023 are set out below.
81Annual Report 2023
Notes to the Financial Statements Continued
82 Mandarin Oriental International Limited
83Annual Report 2023
Notes to the Financial Statements Continued
84 Mandarin Oriental International Limited
85Annual Report 2023
Notes to the Financial Statements Continued
86 Mandarin Oriental International Limited
87Annual Report 2023
Notes to the Financial Statements Continued
88 Mandarin Oriental International Limited
89Annual Report 2023
Notes to the Financial Statements Continued
90 Mandarin Oriental International Limited
91Annual Report 2023
Notes to the Financial Statements Continued
92 Mandarin Oriental International Limited
93Annual Report 2023
Notes to the Financial Statements Continued
94 Mandarin Oriental International Limited
95Annual Report 2023
Notes to the Financial Statements Continued
96 Mandarin Oriental International Limited
97Annual Report 2023
Notes to the Financial Statements Continued
98 Mandarin Oriental International Limited
99Annual Report 2023
To the Members of Mandarin Oriental International Limited
(incorporated in Bermuda with limited liability)
Report on the Audit of the Consolidated Financial Statements
Opinion
What we have audited
The consolidated financial statements of Mandarin Oriental International Limited (the “Company”) and its subsidiaries
(the “Group”), included within the Annual Report, which comprise:
the Consolidated Balance Sheet at 31st December 2023;
the Consolidated Profit and Loss Account for the year then ended;
the Consolidated Statement of Comprehensive Income for the year then ended;
the Consolidated Statement of Changes in Equity for the year then ended;
the Consolidated Cash Flow Statement for the year then ended; and
the Notes to the Consolidated Financial Statements, comprising material accounting policy information and other
explanatory information.
Certain required disclosures have been presented elsewhere in the Annual Report, rather than in the notes to the
consolidated financial statements. These disclosures are cross-referenced from the consolidated financial statements and
are identified as audited.
Our opinion
In our opinion, the consolidated financial statements give a true and fair view of the consolidated financial position of
the Group as at 31st December 2023, and of its consolidated financial performance and its consolidated cash flows for
the year then ended in accordance with IFRS Accounting Standards as issued by the International Accounting Standards
Board (“IASB”).
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (“ISAs”). Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial
Statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We are independent of the Group in accordance with the International Code of Ethics for Professional Accountants
(including International Independence Standards) issued by the International Ethics Standards Board for Accountants
(“IESBA Code”), and we have fulfilled our other ethical responsibilities in accordance with the IESBA Code.
Our Audit Approach
Overview
Materiality
Overall Group materiality: US$29.6 million, based on 1% of the net assets of the Group.
Specific Group materiality, applied to balances and transactions not related to investment properties: US$4.3 million,
based on 5% of consolidated underlying profit before tax of the Group.
Independent Auditor’s Report
100 Mandarin Oriental International Limited
Audit scope
A full scope audit was performed on seven of the Mandarin Oriental hotels and two entities engaged in hotel
management services and holding the under development leasehold commercial investment property.
These hotels and entities, together with procedures performed over specific balances and transactions for one further
hotel, one further entity engaged in hotel management services, and work performed at the Group level, accounted
for 97% of the Group’s revenue, 97% of the Group’s loss before tax, 93% of the Group’s underlying profit before tax
and 83% of the Group’s net assets.
Key audit matter identified in our audit is summarised as follows:
Valuation of under development leasehold commercial investment property.
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the
consolidated financial statements. In particular, we considered where the Directors made subjective judgements; for
example, in respect of significant accounting estimates that involved making assumptions and considering future events
that are inherently uncertain. As in all of our audits, we also addressed the risk of management override of internal
controls, including among other matters, consideration of whether there was evidence of bias by the Directors that
represented a risk of material misstatement due to fraud.
Materiality
The scope of our audit was influenced by our application of materiality. An audit is designed to obtain reasonable
assurance whether the consolidated financial statements are free from material misstatement. Misstatements may arise
due to fraud or error. They are considered material if individually or in aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of the consolidated financial statements.
Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the overall
group materiality for the consolidated financial statements as a whole as set out in the table below. These, together with
qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit
procedures and to evaluate the effect of misstatements, both individually and in aggregate on the consolidated financial
statements as a whole.
Overall Group materiality US$29.6 million
How we determined it 1% of the net assets of the Group
Rationale for benchmark applied Net assets is a primary measure used by the shareholders in assessing the
performance of the Group, together with the consolidated underlying profit
before tax, which we have used as the basis for our specific materiality as
detailed below.
We set a specific materiality level of US$4.3 million, which was applied to balances and transactions not related to
investment properties. This was based upon 5% of the consolidated underlying profit before tax of the Group for the year
ended 31st December 2023. In arriving at this judgement, we had regard to the fact that underlying profit before tax is
one of the primary financial indicators of the Group.
For each component in the scope of our Group audit, we allocated a materiality that is less than our overall
Group materiality.
We agreed with the Audit Committee that we would report to them misstatements identified during our audit above
US$0.4 million. We would also report misstatements below these amounts that in our view, warranted reporting for
qualitative reasons.
101Annual Report 2023
Independent Auditor’s Report Continued
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
consolidated financial statements of the current period. These matters were addressed in the context of our audit of the
consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters.
Key Audit Matter
Valuation of under development leasehold commercial
investment property
Refer to note 34 (Material accounting policies), note 37
(Critical accounting estimates and judgements) and note
12 (Investment properties) to the financial statements.
The fair value of the Group’s under development
leasehold commercial investment property amounted
to US$1,971.9 million at 31st December 2023, with a
revaluation loss of US$487.6 million recognised as a
non-trading item in the Consolidated Profit and Loss
Account for the year.
The valuation of the under development leasehold
commercial investment property is inherently subjective
due to, among other factors, the individual nature of
the property, its location, prevailing market returns and
expected future rentals.
The valuation was carried out by a third party valuer
(the “valuer”). There is inherent estimation uncertainty
in determining a property’s valuation as the valuation
involves assumptions, judgements and estimates in
key areas.
The valuation was derived using the residual method.
Judgement is required in determination of the gross
development value, estimated costs to complete and
expected developer’s profit margin.
We focused on the valuation of the under development
leasehold commercial investment property due to
the significant judgements and estimates involved
in determining the valuation.
How our audit addressed the Key Audit Matter
We understood management’s controls and processes
for determining the valuation of the under development
leasehold commercial investment property and assessed
the inherent risk of material misstatement by considering
the degree of estimation uncertainty and the judgement
involved in determining assumptions to be applied.
We assessed the qualification and expertise of the valuer,
considering whether there were any matters that might
have affected their objectivity or may have imposed
scope limitations upon its work. We found no evidence
to suggest that the objectivity of the valuers in their
performance of the valuations was compromised.
We read the valuation report to consider whether the
valuation methodology used was appropriate and suitable
for use in determining the fair value.
The audit team, including our valuation experts,
discussed with the valuer the methodology and key
assumptions applied in the valuation, and assessed key
assumptions including:
the appropriateness of the key assumptions adopted
in the assessment of the gross development value by
comparing them with comparable market data on
yields and unit rentals;
the expected developer’s profit margin by comparing
the adopted parameters with the market norm in the
industry; and
the estimated construction costs to complete,
by examining the approved project budget, and
evaluated past budget to actual variance to assess
the reliability of the project budget.
With the support of our internal valuation experts, we
also questioned the external valuer as to the extent that
climate change and related environmental, social and
governance (“ESG”) matters have been considered in
the valuation.
102 Mandarin Oriental International Limited
Key Audit Matter
Valuation of under development leasehold commercial
investment property continued
How our audit addressed the Key Audit Matter
Based on the procedures performed, we found that
the methodology used in preparing the valuation was
appropriate and that the key assumptions applied
in the valuation were supportable based on the
available evidence.
We also assessed the adequacy of disclosures related to
the under development leasehold commercial investment
property and related fair value measurements in the
context of IFRS Accounting Standards. We are satisfied
that appropriate disclosure has been made.
How We Tailored Our Group Audit Scope
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the
consolidated financial statements as a whole, taking into account the structure of the Group, the accounting processes
and controls, and the industries in which the Group operates.
The Group’s accounting processes are structured around finance functions, which are responsible for their own
accounting records and controls, which in turn, report financial information to the Group’s finance function to enable
them to prepare consolidated financial statements.
In establishing the overall approach to the Group audit, we determined the type of work that needed to be performed
by members of the Group engagement team or by component auditors from member firms within the PwC Network
operating under our instruction. Where the work was performed by component auditors, we determined the level of
involvement necessary for us to have in the audit work at those components to be able to conclude whether sufficient,
appropriate audit evidence had been obtained as a basis for our opinion on the financial statements as a whole. The Group
engagement team was involved in the significant reporting hotels and entities in scope for Group reporting during the
audit cycle through a combination of meetings, visits and conference calls. The engagement partner and other senior
team members undertook visits to both London and Tokyo during the year to direct and oversee the audit, along with
regular communication through conference calls and remote as well as on-site review of the work of component teams
in those locations.
A full scope audit was performed on seven of the Mandarin Oriental hotels and two entities engaged in hotel
management services and holding the under development leasehold commercial investment property. These hotels
and entities, together with procedures performed over specific balances and transactions for one further hotel, one
further entity engaged in hotel management services, and work performed at the Group level, accounted for 97% of
the Group’s revenue, 97% of the Group’s loss before tax, 93% of the Group’s underlying profit before tax and 83% of
the Group’s net assets.
This gave us the evidence we needed for our opinion on the consolidated financial statements as a whole.
103Annual Report 2023
Independent Auditor’s Report Continued
Other Information
The Directors of the Company are responsible for the other information. The other information comprises all of
the information included in the Annual Report other than the consolidated financial statements and our auditor’s
report thereon.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial
statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information,
we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Directors and the Audit Committee for the Consolidated Financial Statements
As explained more fully in the Responsibility Statements and the Corporate Governance section in the Annual Report,
the Directors of the Company are responsible for the preparation of the consolidated financial statements that give a true
and fair view in accordance with IFRS Accounting Standards as issued by the IASB, and for such internal control as the
Directors determine is necessary to enable the preparation of consolidated financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the Directors are responsible for assessing the Group’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless the Directors either intend to liquidate the Group or to cease operations, or have no realistic
alternative but to do so.
The Audit Committee assists the Directors in discharging their responsibilities for overseeing the Group’s financial
reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of these consolidated financial statements.
104 Mandarin Oriental International Limited
As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism
throughout the audit. We also:
Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s
internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by the Directors.
Conclude on the appropriateness of the Directors’ use of the going concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant
doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or,
if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained
up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue
as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the
disclosures, and whether the consolidated financial statements represent the underlying transactions and events in
a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities
within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction,
supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with the Audit Committee regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the Audit Committee with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be
thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated with the Audit Committee, we determine those matters that were of most significance
in the audit of the consolidated financial statements of the current period and are therefore the key audit matters.
We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter
or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits
of such communication.
105Annual Report 2023
Independent Auditor’s Report Continued
Use of this report
This report, including the opinion, has been prepared for and only for the Company’s members as a body in accordance
with Section 90 of the Companies Act 1981 (Bermuda) and for no other purpose. We do not, in giving these opinions,
accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose
hands it may come, including without limitation under any contractual obligations of the Company, save where expressly
agreed by our prior consent in writing.
The engagement partner on the audit resulting in this independent auditor’s report is Pui Shan, Lo.
Other Matter
In due course, as required by the United Kingdom Financial Conduct Authority Disclosure Guidance and Transparency
Rule 4.1.14R, these consolidated financial statements will form part of the ESEF-prepared annual financial report filed
on the National Storage Mechanism of the Financial Conduct Authority in accordance with the ESEF Regulatory
Technical Standard (“ESEF RTS”). This auditor’s report provides no assurance over whether the annual financial report
will be prepared using the single electronic format specified in the ESEF RTS.
Pricewaterhouse Coopers
Certified Public Accountants
Hong Kong
7th March 2024
106 Mandarin Oriental International Limited
To Mandarin Oriental International Limited
Dear Sirs
Revaluation of Under Development Leasehold Commercial Investment Property
Further to your instruction, we have valued in our capacity as external valuers of the Causeway Bay site under
development at No. 281 Gloucester Road, Causeway Bay, Hong Kong, being a commercial investment property
held on lease as described in the consolidated financial statements of Mandarin Oriental International Limited.
We are of the opinion that the market value of the commercial investment property as at 31st December 2023 was
US$1,971,900,000 (United States Dollar One Billion Nine Hundred Seventy One Million Nine Hundred Thousand).
Our valuation was prepared in accordance with the International Valuation Standards by the International Valuation
Standards Council and The HKIS Valuation Standards by The Hong Kong Institute of Surveyors. We have inspected
the property without either conducting site nor structural surveys or testing of the services.
We have been provided with details of tenure, proposed development scheme and other relevant information. The property
has been valued by the residual method, which is based on an assessment of the completed gross development value and
the deduction of development costs and the developer’s return to arrive at the residual value of a development property.
For the assessment of the completed gross development value, given the heterogeneous nature of real estate properties,
appropriate adjustments are usually required to allow for any qualitative or quantitative differences that may affect the
values likely to be achieved by the property under consideration.
Yours faithfully
Jones Lang LaSalle Limited
Hong Kong
29th February 2024
Report of the Valuers
107Annual Report 2023
Five Year Summary
Consolidated Profit and Loss Account
2019
US$m
2020
US$m
2021
US$m
2022
US$m
2023
US$m
Revenue 566.5 183.7 316.9 454.1 558.1
Operating loss (29.0) (660.0) (99.3) (42.6) (341.0)
Net financing charges (14.7) (12.6) (12.7) (14.4) (9.9)
Share of results of associates and joint ventures (1.7) (26.8) (21.8) 9.7 (0.9)
Loss before tax (45.4) (699.4) (133.8) (47.3) (351.8)
Tax (10.2) 19.4 (7.6) (2.1) (13.5)
Loss after tax (55.6) (680.0) (141.4) (49.4) (365.3)
Loss attributable to shareholders (55.5) (680.1) (141.4) (49.5) (365.4)
Underlying profit/(loss) attributable to shareholders 41.2 (205.9) (68.1) 7.6 81.0
Loss per share (US¢) (4.39) (53.84) (11.19) (3.92) (28.91)
Underlying earnings/(loss) per share (US¢) 3.26 (16.30) (5.39) 0.60 6.41
Dividends per share (US¢) 1.50 – – – 5.00
Consolidated Balance Sheet
2019
US$m
2020
US$m
2021
US$m
2022
US$m
2023
US$m
Intangible assets 53.0 45.4 46.7 45.7 43.7
Tangible assets 1,174.6 1,181.5 1,098.2 916.3 618.6
Right-of-use assets 300.3 297.4 273.3 242.4 229.1
Investment properties 2,967.7 2,528.3 2,462.0 2,472.6 2,060.3
Associates and joint ventures 203.1 231.6 201.5 203.8 155.8
Other investments 15.9 16.1 16.5 14.0 14.0
Deferred tax assets 10.6 17.8 13.7 14.2 14.0
Pension assets 1.3 5.5 7.1 3.0 0.6
Non-current debtors 6.2 5.1 8.9 12.2 10.9
Net current assets/(liabilities) 181.4 19.5 113.2 142.9 (27.2)
Long-term borrowings (568.6) (606.6) (727.8) (599.8) (0.6)
Non-current lease liabilities (168.4) (170.1) (147.4) (123.5) (110.6)
Deferred tax liabilities (59.4) (47.1) (50.1) (41.6) (42.0)
Pension liabilities (0.2) (0.3) (0.3) (0.1) –
Non-current creditors (0.9) (10.9) (3.2) (4.5) (1.1)
Net assets 4,116.6 3,513.2 3,312.3 3,297.6 2,965.5
Share capital 63.2 63.2 63.2 63.2 63.2
Share premium 499.7 499.7 500.5 500.7 500.9
Revenue and other reserves 3,550.1 2,946.6 2,745.1 2,730.2 2,396.3
Shareholders’ funds 4,113.0 3,509.5 3,308.8 3,294.1 2,960.4
Non-controlling interests 3.6 3.7 3.5 3.5 5.1
Total equity 4,116.6 3,513.2 3,312.3 3,297.6 2,965.5
Net asset value per share (US$) 3.26 2.78 2.62 2.61 2.34
Consolidated Cash Flow Statement
2019
US$m
2020
US$m
2021
US$m
2022
US$m
2023
US$m
Cash flows from operating activities 112.9 (83.5) 26.4 56.5 141.2
Cash flows from investing activities (80.4) (108.5) (32.5) 86.7 30.9
Net cash flow before financing activities 32.5 (192.0) (6.1) 143.2 172.1
Cash flow per share from operating activities (US¢) 8.94 (6.61) 2.09 4.47 11.17
108 Mandarin Oriental International Limited
Responsibility Statements
The Directors of the Company confirm to the best of their knowledge that:
a) the consolidated financial statements prepared in accordance with International Financial Reporting Standards,
including International Accounting Standards and Interpretations as issued by the International Accounting
Standards Board, give a true and fair view of the assets, liabilities, financial position and profit or loss of
the Group; and
b) the Chairman’s Statement, Group Chief Executive’s Review, Financial Review and the description of Principal Risks
and Uncertainties facing the Group as set out in this Annual Report, which constitute the management report
required by the Disclosure Guidance and Transparency Rule 4.1.8, include a fair review of all information required
to be disclosed under Rules 4.1.8 to 4.1.11 of the Disclosure Guidance and Transparency Rules issued by the
Financial Conduct Authority in the United Kingdom.
For and on behalf of the Board
Laurent Kleitman
Matthew Bishop
Dire ctors
7th March 2024
109Annual Report 2023
Overview of the Group’s governance approach
The Mandarin Oriental Hotel Group (Mandarin Oriental International Limited (the ‘Company’) and its subsidiaries
together known as the ‘Group’) understands the value of good corporate governance in driving the long-term sustainable
success of business. It attaches importance to the corporate stability that strong governance brings, and the opportunities
that result from it being part of the Jardine Matheson Holdings Limited (‘Jardine Matheson’) group.
The Group is committed to high standards of governance. The system of governance it has adopted has been developed,
over many years, by the members of the Jardine Matheson group, and both the Group and its stakeholders regard it
as appropriate to the nature of its business and the long-term strategy it pursues in its Asian markets. The Group’s
governance framework is tailored to its size, ownership structure, complexity and breadth of business. It enables the
Group to benefit from Jardine Matheson’s strategic guidance and professional expertise while at the same time ensuring
that the independence of the Board is respected and clear operational accountability rests with the Company’s executive
management teams.
The Company also ensures that the Group retains and promotes those characteristics and values of a family-owned
business that have enabled the Group to prosper over the long-term:
A long-term perspective – the Group takes a long-term view in its decision-making and investments and draws
on the many years’ experience of our Directors, as opposed to focussing on short-term profitability. This leads to
long-term, sustainable growth generation for our shareholders and benefits the communities where we operate.
Credibility, stability and trust – the credibility, stability and trust that family ownership brings to the business are
highly valued by our partners and other stakeholders, especially in developing markets.
Deep knowledge of the business and our markets – the involvement of many generations of the family in the
running of the Group has led to a deep understanding of how to drive successful growth by the business across its
markets, giving the Group a competitive advantage.
The Group believes that its stakeholders gain significant value from the long-standing governance approach the Group
has taken as a family-owned business and that it is therefore important to retain the key elements of this approach. It is
also important, without losing these benefits, to adapt to changing circumstances in our markets and, where appropriate,
to the developing expectations of stakeholders and changes in best practice.
Accordingly, the Company continues to focus on enhancing the Group’s approach to corporate governance more
generally, focussing on changes that benefit the Group.
Independent Non-Executive Directors with a broad and diverse range of backgrounds are a valuable source of external
perspectives and are a key element of good governance and decision-making. The Company has taken steps to increase
the independence and diversity of its Board and the Company and the Group benefit from the expertise and experience
they bring.
During the year, the Company underwent several changes in its governance, Laurent Kleitman was appointed as the
new Group Chief Executive, succeeding James Riley, effective from 1st September 2023. Y.K. Pang retired from the
Board and the Audit Committee on 31st March 2024. Accordingly, from 1st April 2024, the Board comprised eight
Directors of whom 25% are considered Independent Non-Executive Directors, taking into account the independence
considerations under the UK Corporate Governance Code (the ‘Code’), and 13% are female. Richard Solomons was
appointed as Chairman of the Audit Committee on 2nd March 2023, and Jinqing Cai was appointed as a member of
the Audit Committee on 2nd March 2023. The Company’s Audit Committee comprises a majority of Independent
Non-Executive Directors.
Having an effective corporate governance framework supports the Board in delivering the Group’s strategy and supports
long-term sustainable growth, and ensuring it operates transparently and in accordance with the best practice.
Corporate Governance
110 Mandarin Oriental International Limited
Group structure
Jardine Matheson is the ultimate holding company of the Group. The structural relationship between the Jardine
Matheson group and the Group is considered a key element of the Group’s success. By coordinating objectives,
establishing common values and standards, and sharing experience, contacts and business relationships, the Jardine
Matheson group companies, including Mandarin Oriental Hotel Group, aim to optimise their opportunities across
the countries in which they operate.
Governance and legal framework
The Company is incorporated in Bermuda and was established as an Asian-based hotel group, and has since extended its
operations to numerous destinations around the world. The primary listing of the Company’s equity shares is a standard
listing on the Main Market of the London Stock Exchange (the ‘LSE’). The Company also has secondary listings in
Singapore and Bermuda . As the Company has only secondary listings on these exchanges, many of the listing rules of
such exchanges are not applicable. Instead, the Company must release the same information in Singapore and Bermuda
as it is required to release under the rules which apply to it as a standard-listed company on the LSE.
As a company incorporated in Bermuda , the Company is governed by:
The Bermuda Companies Act 1981 (the ‘Bermuda Companies Act’);
The Bermuda Mandarin Oriental International Limited Consolidation and Amendment Act 1988 (as amended),
pursuant to which the Company was incorporated and the Bermuda Mandarin Oriental International Limited
Regulations 1993 (as amended) was implemented; and
The Company’s Memorandum of Association and Bye-laws.
The shareholders can amend the Company’s Bye-laws by way of a special resolution at a general meeting of the Company.
The Company’s standard listing on the LSE means that it is bound by many, but not all, of the same rules as
premium-listed companies under the UK Listing Rules, the Disclosure Guidance and Transparency Rules (the ‘DTRs’)
issued by the Financial Conduct Authority in the United Kingdom (the ‘FCA’), the UK Market Abuse Regulation
(the ‘MAR’) and the Prospectus Regulation Rules, including in relation to continuous disclosure, periodic financial
reporting, disclosure of interests in shares, market abuse and the publication and content of prospectuses in connection
with admission to trading or the offering of securities to the public. The Company is also subject to regulatory oversight
from the FCA, as the Company’s principal securities regulator, and is required to comply with the Admission and
Disclosure Standards of the Main Market of the LSE. In addition, the Company and its Directors are subject to
legislation and regulations in Singapore relating, among other things, to insider dealing.
Although some of the rules applicable to premium-listed companies do not apply to the Company, when the shareholders
approved the Company’s move to a standard listing from a premium listing in 2014, the Company stated that it intended
to maintain certain governance principles which were then-applicable to the Company’s premium listing. As a result, the
Company adopted several governance principles (the ‘Governance Principles’) based on the then-applicable requirements
for a premium listing, which go further than the standard listing requirements.
111Annual Report 2023
Corporate Governance Continued
Governance and legal framework continued
The key elements of the Governance Principles are as follows:
When assessing a significant transaction (a larger transaction which would be classified as a class 1 transaction
under the provisions of the UK Listing Rules), the Company will engage an independent financial adviser to provide
a fairness opinion on the terms of the transaction.
If the Company carries out a related party transaction which would require a sponsor to provide a fair and reasonable
opinion under the provisions of the UK Listing Rules, it will engage an independent financial adviser to confirm
that the terms of the transaction are fair and reasonable as far as the shareholders of the Company are concerned.
In addition, the Company shall observe the mandatory related party transaction rules under the DTRs, including
assessment, approval and disclosure requirements for material related party transactions, that apply to UK
standard- listed companies.
Further, as soon as the terms of a significant transaction or a related party transaction are agreed, the Company will
issue an announcement, providing such details of the transaction as are necessary for investors to evaluate the effect of
the transaction on the Company.
At each annual general meeting (‘AGM’), the Company will seek shareholders’ approval to issue new shares on
a non-pre-emptive basis for up to 33% of the Company’s issued share capital, of which up to 5% can be issued for
cash consideration.
The Company adheres to a set of Securities Dealing Rules, which follow the provisions of MAR with respect to
market abuse and disclosure of interests in shares.
The Company is not required to comply with the Code, which applies to all premium-listed companies and sets out the
governance principles and provisions expected to be followed by companies subject to the Code. However, the Company
does have regard to the Code in developing and implementing its approach to corporate governance and disclosure.
The management of the Group
The Board
The Board is responsible for ensuring that the Group is appropriately managed and achieves its strategic objectives, in a
way that is supported by the right culture, values and behaviours throughout the Group. The Group’s culture operates
provides the foundation for the delivery of our strategy and our long-term, sustainable success while generating value for
shareholders. Our workforce policies and practices are consistent with our values and support the long-term, sustainable
success of the Group.
The Board is also responsible for ensuring that appropriate systems and controls are in place throughout the Group to
enable efficient management and well-grounded decision-making. Our business processes incorporate efficient internal
reporting, robust internal controls, and supervision of current and emerging risk themes, all of which form a vital part of
our governance framework. As a key part of this, the Company Secretary has set up processes and systems to ensure that
all Directors receive information in a timely, accurate and clear manner. The Group uses a board paper distribution
portal to disseminate Board and Committee papers instantly and securely.
The Chairman facilitates discussions at Board meetings by ensuring all Directors have an opportunity to make
comments and ask questions. In addition, the Chairman, from time to time, discusses Group matters with Directors
individually and collectively outside of Board meetings. The Chairman also uses other gatherings of the Directors, such
as Board dinners, to facilitate discussions in a less formal environment. The Company Secretary has set up processes and
systems to ensure that all Directors receive information in a timely, accurate and clear manner. The Group uses a board
paper distribution portal to disseminate Board and Committee papers instantly and securely.
112 Mandarin Oriental International Limited
The Board continued
The Board has full power to manage the business affairs of the Company, other than matters reserved to be exercised by
the Company in general meeting under Bermuda legislation or the Company’s Bye-laws. Key matters for which the
Board is responsible include:
The overall strategic aims and objectives of the Group;
Establishing the Company’s purpose and values;
Approval of the Group’s strategy and risk appetite to align with the Group’s purpose and values;
Approval and oversight of the Group policy framework and approval of appropriate Group policies;
Approval of the annual budget and monitoring of performance against it;
Oversight of the Group’s operations;
Approval of major changes to Group’s corporate or capital structure;
Approval of major capital expenditure and significant transactions in terms of size or reputational impact;
Approval of interim and annual financial statements upon recommendation from the Audit Committee, as well as
interim management statements;
Approval of the annual report and accounts;
Approval of dividend policy and the amount and form of interim and final dividend payments for approval by
shareholders as required;
Ensuring relevant sustainability and ESG matters are incorporated into purpose, governance, strategy, decision-
making and risk management;
Overseeing the management of risk within the Group;
Any significant changes to the Company’s accounting policies or practices, upon recommendation from the Audit Committee;
Appointment, re-appointment or removal of the external auditor, subject to shareholders’ approval, upon
recommendation from the Audit Committee;
Approval of matters relating to AGM resolutions and shareholder documentation;
Approval of all shareholder circulars, prospectuses and listing particulars issued by the Company; and
Approval of material public announcements concerning matters decided by the Board.
Responsibility for certain matters, including the approval of borrowing facilities and of capital expenditures (other
than significant capital expenditure which is required to be approved by the Board), has been delegated to the finance
committee established within the Hong Kong-based Group management company, Mandarin Oriental Hotel Group
International Limited (‘MOHG’), with specific written terms of reference outlining its role and authorities.
The Company sees the value of regularly reviewing the effectiveness of its processes, and making improvements
where appropriate.
Board activities
1. Strategy
We have always focussed on evolving our business to reflect changes in the environment in which we operate and the
needs of our customers, and we have invested in our digital capabilities, the Group’s brand and sustainability initiatives.
Our application of these principles over many years has delivered steady growth in returns, through economic cycles.
To facilitate oversight and provide opportunities for the Board to challenge and measure progress against the Group’s
strategic priorities, at each Board meeting, the Group Chief Executive and Chief Financial Officer provide updates on
the operational and financial performance of the Group.
In 2023, the Board meetings discussed strategy on various topics relevant to the Group. The Board meetings provide
Directors with the opportunity to review progress against strategic priorities, inform Directors about the latest trends
relevant to our businesses, assist the Directors in identifying opportunities and risks and give the Directors the
opportunity to contribute views and ask questions of management and share experiences for the benefit of the Group.
113Annual Report 2023
Corporate Governance Continued
The Board continued
Board activities continued
2. Operational performance
We operate in highly dynamic markets and need to constantly innovate and pivot our businesses to remain relevant
and achieve long-term, sustainable success. In the past years, Asia has seen a large influx of new capital, the rapid rise of
digital companies and an increasing desire among consumers for convenient digital services. In response, we aim to put
innovation, operational excellence and an entrepreneurial spirit at the heart of everything we do.
At each Board meeting, an update is provided on each business segment which offers important insights into the
opportunities and challenges faced by these areas. In addition, a deeper understanding of how our varied markets
function and perform and the implications for stakeholder-related issues equip the Board with the necessary perspective
to enhance strategic decision-making.
The Group attaches great importance to attracting, developing and retaining leadership talent. We strive to develop
leaders with an owner mindset and who are entrepreneurial in how they develop their businesses. This has helped the
Group to capitalise on new business opportunities to achieve long-term, sustainable growth. We continue to enhance our
performance management structures to recognise, reward and retain such talents. As the Group increasingly embraces
digital ways of working and invests in new economy businesses, we are focussed on recruiting and developing digital
talent across our Group. To provide the Board with oversight of talent attraction, development and retention, progress
of Inclusion, Equity and Diversity (‘IE&D’), and colleague engagement and movements, information on the Group’s
employees is provided at every Board meeting.
Building leadership capability to develop and grow diverse talent and strengthen future pipelines through tailored
development programmes is a key focus for the Board. The Board is committed to creating an inclusive workplace and
reflecting the diversity of the communities we serve. The Group has a clear IE&D strategy in place to ensure that
colleagues treat each other in a way they would expect others to treat them.
3. Financial performance and risk
We take a disciplined long-term approach to capital allocation, to maximise financial performance, maintain our
financial strength and manage risks. Over time, and in addition to be being part of the Jardine Matheson group of
business, we have developed deep relationships with a diverse portfolio of well-capitalised, leading banks and corporate
partners, which have supported and continue to support our financial strength.
The Chief Financial Officer presents a detailed overview of the financial performance of the business at each meeting to
ensure the Board is provided with sufficient information to enable it to exercise the appropriate financial oversight and
has the opportunity to challenge the management as appropriate. This includes details of the performance of each
business unit and an overview of the sales, profit, cash flow, debt levels and capital expenditure.
The Board also reviews the Group’s capital allocation, dividend policy and shareholder returns as well as the management
of the Group debt levels, interest cover and capital markets activities.
The Board has overall responsibility for risk management and is actively engaged in risk discussions. The Audit Committee,
on behalf of the Board, undertakes an annual assessment of the effectiveness of the management of the principal risks
facing the Group and actions taken to mitigate them, validating the key risks and approving any necessary actions arising
from the risk assessments. Maintaining and enhancing the risk and internal control environment is fundamental to the
Group’s governance framework and stewardship of the Company.
114 Mandarin Oriental International Limited
The Board continued
Board activities continued
4. Governance and stakeholder engagement
The Chief Financial Officer provides Directors with regular updates on stakeholder engagement, including engagement
with shareholders, governments and other relevant third parties, and relevant regulatory developments. Increasing the
Directors’ understanding of our stakeholders’ views supports the Board’s decision-making.
Updates from the Chief Financial Officer provide the Board with feedback on investor views and expectations, visibility
of market conditions, share price performance, shareholder returns and the future outlook.
Governance matters are discussed at Board meetings, including directors’ and officers’ insurance, litigation, regulatory
changes, review and approval of statutory reporting and shareholder documentation and governance-related matters.
The Chief Financial Officer provides the Board with Sustainability updates twice a year, which include the progress
of the Group’s sustainability commitments, concerning the four strategic pillars, namely planet, colleagues, guest
and community.
In addition, the Audit Committee Chair provides an update on the activities of the Audit Committee to the Board after
each Audit Committee meeting.
Board composition and operational management
The Board’s composition and the way it operates provide stability, allowing the Company to take a long-term view as it
seeks to grow its business and pursue investment opportunities.
The Chairman has been appointed in accordance with the provisions of the Bye-laws of the Company, which provide that
the chairman of Jardine Matheson, or any Director nominated by him, shall be the Chairman of the Company.
The Company has a dedicated executive management team led by the Group Chief Executive. The Memorandum of
Association of the Company, however, provides for the chairman of Jardine Matheson to be, or to appoint, the Managing
Director of the Company. The chairman of Jardine Matheson has appointed the Jardines group managing director as
Managing Director of the Company. Reflecting this, and the Jardine Matheson group’s 80% interest in the Company’s
share capital, the Group Chief Executive and the Managing Director meet regularly. Similarly, the board of MOHG and
its finance committee are chaired by the Managing Director and include Mandarin Oriental Hotel Group executives and
Jardine Matheson’s deputy managing director, group finance director and group general counsel.
The presence of Jardine Matheson representatives on the Board and Audit Committee of the Company, as well as on the
board and finance committee of MOHG, provides an added element of stability to the Company’s financial planning
and supervision, enhancing its ability to raise finance and take a long-term view of business development. In addition,
the presence of Jardine Matheson representatives on the Company’s Board, Audit, Nominations and Remuneration
Committees, as well as MOHG’s finance committee, also strengthens the ability of management to work effectively
together in exploiting the full range of the Jardine Matheson group’s commercial strengths.
As at 7th March 2024, the Company comprises nine Directors, two of whom (22%) – Jinqing Cai and Richard Solomons
– are considered Independent Non-Executive Directors, taking into account the independence considerations under the
Code. Y.K. Pang retired from the Board and the Audit Committee on 31st March 2024. Accordingly, from 1st April 2024,
the Board comprised eight Directors of whom 25% are considered Independent Non-Executive Directors, taking into
account the independence considerations under the Code. There are detailed succession plans in place to ensure that
plans are in place for orderly succession to the Board. The names of all the Directors and brief biographies appear on
pages 36 and 37 of this Annual Report.
Ben Keswick has been Chairman of the Board since 16th May 2013. John Witt has held the role of Managing Director
from 15th June 2020. Laurent Kleitman has been Group Chief Executive since 1st September 2023, to succeed James Riley.
115Annual Report 2023
Corporate Governance Continued
Board composition and operational management continued
The Board considers that there is a clear division of responsibilities among the Chairman, the Managing Director and the
Group Chief Executive to ensure an appropriate balance of power and authority is maintained at all times.
Board composition details as at 7th March 2024 are shown below.
Directors’ experience
Age of Directors
Hotel sector-related industry knowledge/experience
International business
Executive leadership
Strategy & business acumen
Financial acumen
Corporate governance, risk management and/or sustainability
Property management
Food and beverage
Luxury retail
Health, beauty and lifestyle
Nationality of Directors
British 5 years or below
6-10 years
Over 10 years
40-49
50-59
60-69
Age of Director
1 12
5
1 26
0 62 841 73 5 9
0 62 841 73 5 9
Canadian
Chinese
French
4
2
3
Capacity of Directors
0 1 3 4
Independent Non-Executive Directors
Non-Executive Directors
Executive Directors
0 62 841 73 5 9
Tenure of Directors
2
116 Mandarin Oriental International Limited
Board composition and operational management continued
The Board also considered the diversity of the Group’s Board and senior executives in the context of the new Listing
Rules’ requirements that listed companies should publish information on the gender and ethnic representation of the
Board and executive management. As at 31st December 2023, being the reference date for the purposes of 14.3.33R(1)(a)
of the UK Listing Rules, which requires the disclosure of certain diversity statistics, and as shown below:
The Board met its target of having one Director from a minority ethnic background;
The Company does not currently meet the target of the Board comprising at least 40% female directors but will
continue to take IE&D considerations into account for future Board appointments; and
The Board does not currently meet the target to have a female director occupying one of the senior Board positions
(chair, chief executive or chief financial officer). The Directors who hold these roles were appointed following formal,
rigorous and transparent nomination procedures and are the most suitable and experienced individuals for their roles
and the Group’s needs. The Board will continue to take IE&D considerations into account for future appointments
for these roles.
The Company did not meet the targets of the Board comprising at least 40% female directors and having one of the
senior Board positions occupied by a female director due to the significant change to the composition of the Board and
senior management which would be required to meet these requirements. The Company will continue to take IE&D
considerations into account with respect to future appointments of directors and senior Board positions.
The table below illustrates the ethnic background and gender diversity of the Group’s Board and executive management –
which includes the Company Secretary, but excludes administrative or support staff – pursuant to 14.3.33R(2) of UK
Listing Rules, as at 31st December 2023 which is our chosen reference date in accordance with the UK Listing Rules.
As at 31st December 2023
1
Number of
Board members
Percentage of
the Board
Number of senior
positions on
the Board (Group
Chief Executive,
Chief Financial
Officer, Senior
Independent
Director and
Chairman)
Number in
executive
management
(MOHG Board
and Company
Secretary)
Percentage of
executive
management
(MOHG Board
and Company
Secretary)
Gender diversity
Men 8 89% 3 9 75%
Women 1 11% – 3 25%
Not specified/prefer not to say – – – – –
Ethnic diversity
White British or other White
(including minority-white groups) 6 67% 2 10 84%
Mixed/Multiple Ethnic Groups 1 11% 1 1 8%
Asian/Asian British 2 22% – 1 8%
Black/African/Caribbean/Black British – – – – –
Other ethnic group, including Arab – – – – –
Not specified/prefer not to say – – – – –
1
The numbers had been changed after the chosen reference date owing to the stepping down of Y.K. Pang from the Board of the Company and
MOHG on 31st March 2024.
117Annual Report 2023
Corporate Governance Continued
Board composition and operational management continued
Data relating to the gender and ethnic diversity of the Board and executive management was gathered by the Company
Secretary via the collection of each individual’s identification documents, which are held within the Company’s secure
filing system. Apart from the retirement of Y.K. Pang from the Board of the Company and MOHG on 31st March 2024,
there is no change in board composition since the reference date.
The Company has a Board Diversity Policy but does not have a separate Diversity Policy for the Audit Committee in
place. IE&D issues are and will be taken into account where relevant to Board and Audit Committee decisions.
Chairman
The Chairman’s role is to lead the Board, ensure its effectiveness while taking into account the Group’s various
stakeholders’ interests, and promote high standards of corporate governance.
The Chairman’s principal responsibilities are in the areas of strategy, external relationships, governance and people. In
addition, he leads the Board in overseeing the long-term strategic direction of the Group and approving its key business
priorities. His key responsibilities include:
Leading, with the Managing Director and the Group Chief Executive, the development of the culture and values of
the Group;
Supporting the development and maintenance of relationships with existing and new key business partners,
governments and shareholders;
Ensuring, together with the Managing Director and Group Chief Executive, an appropriate focus on attracting and
retaining the right people and carrying out succession planning for senior management positions;
Creating a culture of openness and transparency at Board meetings;
Building an effective Board supported by a robust governance framework;
Ensuring all Directors effectively contribute to discussions and feel comfortable in engaging in healthy debate and
constructive challenge;
Leading, with the Managing Director, the succession planning for the Group Chief Executive;
Ensuring all Directors receive accurate, timely and clear information; and
Promoting effective communication between Executive and Non-Executive Directors (including the Independent
Non-Executive Directors).
Managing Director
The Managing Director acts as chairman of MOHG and of its finance committee and is a member of the Company’s
Nominations and Remuneration Committees. He has responsibility for representing Jardine Matheson, as the major
shareholder of the Company, including:
Providing oversight of the day to-day management by the Group Chief Executive and his leadership team of
the business;
Carrying out ongoing reviews of the business, financial and operational performance against agreed objectives;
Providing regular feedback to the Group Chief Executive on his/her performance and conducting an annual
performance review;
Leading the Group Chief Executive succession planning;
Ensuring that there is appropriate discussion of future competencies required of the management team to execute
the strategy;
Ensuring that the information submitted to the Board is of high quality and provided on a timely basis;
Ensuring the Board conducts reviews on past significant capex decisions; and
Communicating with shareholders as appropriate.
118 Mandarin Oriental International Limited
Group Chief Executive
The responsibility for running the Group’s business and all the executive matters affecting the Group rest with the Group
Chief Executive. The implementation of the Group’s strategy is delegated to the Company’s executive management, with
decision-making authority within designated financial parameters delegated to the MOHG finance committee. The
Group Chief Executive has day-to-day operational responsibility for:
Effective management of the Group’s business;
Leading the development of the Company’s strategic direction and implementing the agreed strategy;
Identifying and executing new business opportunities;
Managing the Group’s risk profile and implementing and maintaining an effective framework of internal controls;
Developing targets and goals for his executive team;
Ensuring effective communication with shareholders and key stakeholders and regularly updating institutional
investors on the business strategy and performance;
Providing regular operational updates to the Board on all matters of significance relating to the Group’s business
or reputation;
Overseeing the Group’s capital allocation, business planning and performance;
Ensuring (together with the Chairman and the Managing Director) an appropriate focus on attracting and retaining
the right people and carrying out succession planning for senior management positions; and
Fostering innovation and entrepreneurialism to drive the Group’s business forward.
Non-Executive Directors
The Non-Executive Directors bring insight and relevant experience to the Board. They have responsibility for constructively
challenging the strategies proposed by the Executive Directors, and scrutinising the performance of management in
achieving agreed goals and objectives. In addition, Non-Executive Directors work on individual initiatives as appropriate.
Board meetings
The Board usually holds four scheduled meetings each year, and ad hoc procedures are adopted to deal with urgent
matters between scheduled meetings. Board meetings are usually held in different locations around the Group’s markets.
In March 2023, an in-person Board meeting was held in Singapore. The May 2023 Board meeting was held virtually.
In-person Board meetings were held in Shenzhen, China in July 2023 and Shanghai, China in December 2023.
The Board receives high quality, up to date information for each of its meetings, which is provided to Directors via a
secure online board information portal. The Company reviews the information provided to the Board regularly, to ensure
that it remains relevant to the needs of the Board in carrying out its duties.
The Directors of the Company who do not serve on the board of MOHG and who are based outside Asia will usually visit
Asia to discuss the Group’s business and inspect the Group’s hotels and branded residences.
119Annual Report 2023
Corporate Governance Continued
Board attendance
Directors are expected to attend all Board meetings. The table below shows the attendance at the scheduled 2023
Board meetings:
Meetings eligible
to attend Attendance
Directors
Non-Executive Directors
Ben Keswick 4/4 100%
Jinqing Cai 4/4 100%
Adam Keswick 4/4 100%
Archie Keswick 4/4 100%
Y.K. Pang
1
4/4 100%
Richard Solomons 4/4 100%
Executive Directors
John Witt 4/4 100%
Laurent Kleitman
2
1/1 100%
Matthew Bishop 4/4 100%
Former Director
James Riley
3
3/3 100%
1
Y.K. Pang retired as Director on 31st March 2024.
2
Laurent Kleitman joined the Board as Director and was appointed as Group Chief Executive on 1st September 2023. In 2023, only one
Board meeting was held after 1st September 2023.
3
James Riley retired as Director and Group Chief Executive on 31st July 2023. In 2023, three Board meetings were held before 31st July 2023.
Appointment and retirement of Directors
There are detailed succession plans in place to ensure that plans are in place for orderly succession to the Board.
The Board is focussed on development and succession plans at both Board and executive level to strengthen the diverse
management pipeline. The Chairman, in conjunction with other Directors, reviews the size, composition, tenure and
skills of the Board. The Chairman leads the process for new appointments, monitors Board succession planning, and
considers independence, diversity, inclusion and Group governance matters when recommending appointments to
the Board. Non-Executive Directors are appointed on merit, against objective criteria and are initially appointed for
a three-year term.
Upon appointment, all new Directors receive a comprehensive induction programme over several months. This is
designed to facilitate their understanding of the business and is tailored to their individual needs. The Chief Financial
Officer and the Company Secretary are responsible for delivering the programme covering the Company’s core purpose
and values, strategy, key areas of the business and corporate governance.
The Chairman regularly assesses the time commitments of Directors to ensure that they each continue to have
sufficient time for their role. He also considers the potential additional time required in the event of corporate stress.
Prior to appointment, the Chairman assesses the commitments of a proposed candidate, including other directorships,
to ensure they have sufficient time to devote to the role. Any Director’s external appointments, which may affect existing
time commitments relevant to the Board, must be agreed with the Chairman in advance.
120 Mandarin Oriental International Limited
Appointment and retirement of Directors continued
The Board appoints each new Director, and the Nominations Committee has been established to assist the Board in
such matters. In accordance with the Company’s Bye-laws, each new Director is subject to retirement and re-election
at the first AGM after the appointment. After that, Directors are subject to retirement by rotation requirements under
the Bye-laws, whereby one-third of the Directors retire at the AGM each year. These provisions apply to both Executive
and Non-Executive Directors, but the requirement to retire by rotation does not extend to the Chairman or Managing
Director of the Company. The Company has determined that it is appropriate for the Chairman and the Managing
Director to be exempted from the retirement by rotation requirements because an important part of the Group’s strong
governance is corporate stability, and this is provided by the long-term stewardship of the business by family as well
as related and like-minded shareholders, who hold a significant proportion of the shares of the Company. John Witt,
being the Managing Director, has a service contract with the Company that has a notice period of six months.
On 31st July 2023, James Riley stepped down as a Director and Group Chief Executive of the Company, and Laurent
Kleitman joined the Board in his place on 1st September 2023. As announced in November 2023, Y.K. Pang stepped
down from the Board on 31st March 2024.
In accordance with Bye-law 85, Matthew Bishop and Jinqing Cai will retire by rotation at this year’s AGM and,
being eligible, offer themselves for re-election. In accordance with Bye-law 92, Laurent Kleitman will also retire and,
being eligible, offer himself for re-election. Both Laurent Kleitman and Matthew Bishop have service contracts with a
subsidiary of the Company that has a notice period of six months. Jinqing Cai does not have a service contract with the
Company or its subsidiaries.
Directors need to obtain the Chairman’s approval before accepting additional appointments that might affect their time
to devote to the role as a Director of the Company.
Board and Audit Committee Training
During the year, certain Board members and Audit Committee members received trainings in Gen AI and cybersecurity,
respectively.
Company Secretary
All Directors have access to the advice of the Company Secretary, who is responsible for advising the Board on all
governance matters.
Committees
The Board is supported by the activities of its Committees (the Nominations, Remuneration and Audit Committees),
which ensure the right level of attention and consideration are given to specific matters. Matters considered by each of
the Committees are set out in their respective terms of reference. Copies of these documents can be obtained from the
Company’s website at www.mandarinoriental.com.
121Annual Report 2023
Corporate Governance Continued
Committees continued
Nominations Committee
The Board established a Nominations Committee (the ‘Nominations Committee’) in March 2021. The key
responsibilities of the Nominations Committee are to:
Review the structure, size and composition of the Board and its committees and make recommendations to the Board
on any appointments to maintain a right balance of skills, knowledge and experience and independence, as well as
a diversity of perspectives;
Support the Chairman to lead the process for Board appointments and nominate suitable candidates to the Board;
Assess suitable candidates based on merit and objective criteria (considering the promotion of the diversity of social
and ethnic backgrounds, knowledge, experience and skills), taking into account their ability to meet the required
time commitments;
Oversee the development of succession pipelines for both the Board and senior management positions to ensure talent
is identified and nurtured to meet the challenges and opportunities facing the Group; and
Satisfy itself that any skill gaps are addressed in the reviews of Board composition and that appropriate development
opportunities are in place for Directors to keep abreast of market knowledge and industry trends to perform their
role effectively.
The Nominations Committee consists of a minimum of three members, selected by the Chairman of the Board. The
Chairman of the Board is the chairman of the Nominations Committee. The current members of the Nominations
Committee are Ben Keswick, Adam Keswick and John Witt. The Nominations Committee meets as circumstances
require, or by the circulation of Committee circulars to make recommendations to the Board for approval as it deems
appropriate. It plays a key role in the process of recruiting senior executives. Candidates for appointment as Executive
Directors of the Company or other senior management positions may be sourced internally or externally, including by
using the services of specialist executive search or recruitment firms. The aim is to appoint individuals who combine
international business knowledge and experience, industry knowledge and experience, if possible, and familiarity with,
or adaptability to, Asian markets. When appointing Non-Executive Directors, the Nominations Committee pays
particular attention to the Asian business experience and relationships that they can bring.
Insurance and indemnification
The Company purchases insurance to cover its Directors against their costs in defending themselves in civil proceedings
taken against them in that capacity and in respect of damages resulting from the unsuccessful defence of any proceedings.
To the extent permitted by applicable law, every Director shall be indemnified and secured harmless out of the assets of
the Company against all liability and loss suffered and expenses reasonably incurred. However, neither insurance nor
indemnity provides cover where the Director has acted fraudulently or dishonestly.
Delegations of authority
The Group has in place an organisational structure with defined lines of responsibility and delegation of authority.
There are established policies and procedures for financial planning and budgeting, information and reporting systems,
assessment of risk; and monitoring of the Group’s operations and performance. The information systems in place are
designed to ensure that the financial information reported is reliable and up to date.
The Group’s delegation of authority establishes a clear pathway for decision-making. This ensures that judgements are
made at the correct business level by the team members most equipped to do so. Every decision made aligns with our
culture and values, taking into account the advantages, risks, financial consequences, and effects on all stakeholders.
The Board, bolstered by the Audit Committee, places significant emphasis on maintaining high governance standards
throughout the Group. This reinforcement assists the Board in accomplishing its strategic goals and fulfilling key
performance objectives.
122 Mandarin Oriental International Limited
Directors’ responsibilities in respect of the financial statements
Under the Bermuda Companies Act, the Directors are required to prepare financial statements for each financial year and
present them annually to the Company’s shareholders at the AGM. The financial statements are required to present fairly,
in accordance with the International Financial Reporting Standards (‘IFRS’), the financial position of the Group at the
end of the year, and the results of its operations and its cash flows for the year then ended. The Directors consider that
applicable accounting policies under IFRS, applied consistently and supported by prudent and reasonable judgements
and estimates, have been followed in preparing the financial statements. The financial statements have been prepared on
a going concern basis.
Substantial shareholders
As classified as a non-UK issuer, the Company is subject to the provisions of the DTRs, which require that a person must,
in certain circumstances, notify the Company of the percentage of voting rights attaching to the share capital of the
Company that person holds. The obligation to notify arises if that person acquires or disposes of shares in the Company
and that results in the percentage of voting rights which the person holds reaching, exceeding, or falling below, 5%, 10%,
15%, 20%, 25%, 30%, 50% and 75%.
The Company has been informed of the holding of voting rights of 5% or more attaching to the Company’s issued
ordinary share capital by Jardine Strategic Limited (‘Jardine Strategic’), which is directly interested in 1,014,132,905
ordinary shares carrying 80.24% of the voting rights. By virtue of its interest in Jardine Strategic, Jardine Matheson is
also interested in the same ordinary shares. Apart from this shareholding, the Company is not aware of any holders of
voting rights of 5% or more attaching to the Company’s issued ordinary share capital as of 7th March 2024.
There were no contracts of significance with substantial corporate shareholders during the year under review.
Related party transactions
Details of transactions with related parties entered into by the Company during the course of the year are included in
note 31 to the financial statements on page 79.
Engagement with shareholders, other stakeholders and colleagues
Engaging with our stakeholders, including our employees, investors, creditors, partners and government, enables us to
understand their perspectives and ensure we address their expectations and improve accordingly.
The Group regularly engages with its shareholders to provide an opportunity to ask questions of senior management.
Since the beginning of 2023, the Group have held two results briefings and six analyst and institutional shareholder
meetings to answer those questions, discuss concerns, and hear feedback on areas where improvements could be made.
The Group has also engaged with thought leaders to listen, learn and understand how we can improve. They include
global and regional non-profit associations at the forefront of driving sustainable travel and tourism, an independent
think tank and the world’s leading conservation non-governmental organisation. The engagements provide an
opportunity for us to explore and discuss key social, environmental and economic issues facing society and where
our businesses operate. They also provide an important touch point to sense-check the issues that matter most to
society and help us better understand evolving expectations. The meetings with key thought leaders are attended by
senior management including the Group Chief Executive.
Securities purchase arrangements
The Directors have the power under the Bermuda Companies Act and the Company’s Memorandum of Association
to purchase the Company’s shares. Any shares so purchased shall be treated as cancelled and, therefore, reduce the
Company’s issued share capital. When the Board considers the possibility of share repurchases, it will consider the
potential for enhancing earnings or asset values per share. When purchasing such shares, the Company is subject to
the provisions of MAR.
123Annual Report 2023
Corporate Governance Continued
Colleague engagement
The Group is working hard to support the growth of the next generation of leaders within our businesses, ensuring our
colleagues can develop the skills they need and further their careers with the Group.
We also aim to create an owner mindset among our senior leadership and support this by enhancing our incentive
structures to focus less on current profits and more on value creation over a longer time horizon.
The Group conducted a colleague experience survey with a global completion rate of 99%. Results from the survey led to
a global sustainable engagement score of 90%, compared to 88% in 2022, and a global colleague retention score of 63%,
compared to 61% in 2022. Action plans have been developed by each hotel and the corporate teams to address the
survey outcomes.
Annual General Meeting
The 2024 AGM will be held on 8th May 2024. The full text of the resolutions and explanatory notes regarding the
meeting are contained in the Notice of AGM, despatched at the same time with this Annual Report and can be found
at www.mandarinoriental.com/en/investors/regulatory.
Corporate website
A corporate website is maintained containing a wide range of information of interest to investors at
www.mandarinoriental.com.
Group policies
Code of Conduct
The Group conducts business in a professional, ethical and even-handed manner. Its ethical standards are set out in its
Code of Conduct, a set of guidelines to which every employee must adhere. It is reinforced and monitored by an annual
compliance certification process and modelled on the Jardine Matheson group’s code of conduct. The Code of Conduct
requires that all Group companies comply with all laws of general application, all rules and regulations that are industry
specific and proper standards of business conduct. In addition, the Code of Conduct prohibits the giving or receiving of
illicit payments. It requires that all Directors and employees must be fully aware of their obligations under the Code of
Conduct and establish procedures to ensure compliance at all levels within their businesses.
The Company’s policy on commercial conduct underpins the Group’s internal control process, particularly in the area of
compliance. The policy is also set out in the Group’s Code of Conduct.
Data privacy
The Group is committed to being a responsible custodian of the data entrusted to it by customers, employees, business
partners and other stakeholders. In addition, it is subject to multiple data privacy and security laws and regulations
in the global jurisdictions in which it operates. Accordingly, the Group is dedicated to complying with such laws and
regulations, regularly monitoring for legislative changes and adjusting its policies and procedures when appropriate.
Appropriate protections are in place to prevent misuse and unauthorised disclosure of personal data.
The Group’s Privacy Policy, and internal guidelines and procedures, underline the Group’s commitment to being a
responsible data custodian and ensuring compliance with applicable law.
124 Mandarin Oriental International Limited
Whistleblowing policy
The Group has a whistleblowing policy covering how employees can report matters of serious concern. The Audit
Committee has responsibility for overseeing the effectiveness of the formal procedures for colleagues to raise such
matters and is required to review any reports made under those procedures referred to it by the internal audit function.
In addition, the Group has a whistleblowing service managed by an independent third-party service provider to
supplement existing whistleblowing channels to assist employees in reporting suspected illegal or unethical behaviour
or other matters of serious concern and is intended to help foster an inclusive, safe and respectful workplace. The service,
which is available 24 hours in multiple local languages, and is accessible through phone hotline or online, and as
anonymous submissions, may be used by colleagues to report a matter of concern to a manager supervisor, Human
Resources or Legal representative.
Reports may be lodged by one of three channels: email, website and telephone hotline. Each report is allocated a unique
case number which enables follow-up with the reporter, if appropriate. Once a report is lodged, it is sent to certain
authorised persons at the relevant business units. These include senior representatives from legal, compliance and
Human Resources teams who have experience in dealing with such matters. The authorised persons will follow up
on the report and investigate where necessary. The reporter will be notified of the outcome.
All reports are treated confidentially and any retaliation against a person reporting a potential breach of the Code of
Conduct is a cause for disciplinary action under the Group’s whistleblowing policy.
Inclusion, Equity and Diversity
The Group will continue to foster a culture of inclusivity and empowerment, where colleagues with different backgrounds
feel comfortable in being themselves, in voicing their ideas and have equal opportunities to thrive. The Group applies the
principle that colleagues should always treat others in a way they would expect others to treat them. No form of bullying,
intimidation, discrimination, and harassment of others has a place in the Group and would not be tolerated.
As a global hospitality employer, the Group believes in promoting equal opportunities in recruiting and developing all
employees, regardless of ethnicity, gender, age, sexual orientation, disability, background or religion, should be treated
fairly and with respect, and be valued for the contributions they make in their role. The high service expectations and
overall quality of the Mandarin Oriental brand necessitate that the Group seeks the best people from the communities
in which it operates most suited to its needs.
All colleagues are encouraged and supported to develop their full potential and contribute to the sustainable growth
of the Group. Colleagues’ views and ideas are essential, and they are encouraged to express them respectfully with
colleagues at all levels within the organisation.
To build an inclusive workplace, we incorporate IE&D principles across our businesses and People and Culture practices.
This includes:
Ensuring a set of inclusive working arrangements and policies to support IE&D;
Keeping our recruitment, promotion and retention systems fair, based on aptitude, merit and ability;
Providing active talent management and career support for the Group’s colleagues to open up opportunities that
will facilitate a future pipeline of excellent leaders; and
Cultivating leadership behaviour through learning campaigns to ensure colleagues behave in accordance with
the Group’s value.
The Company keeps the composition of its Board and senior management positions under review, to ensure that it
adapts to the changing business landscape. The Company is actively focussed on increasing gender diversity at all levels
of the organisation.
125Annual Report 2023
Corporate Governance Continued
Remuneration Report
Message from the Board/Remuneration Committee
The Board is pleased to present shareholders with the 2023 Remuneration Report. This report sets out the Group’s
approach to remuneration for its executives and Directors, particularly the link between the Group’s values, strategy
and its remuneration framework, and the link between performance and reward, in determining remuneration outcomes
for senior executives.
The Group’s remuneration philosophy and framework for rewarding staff
The remuneration outcomes in 2023 reflect the intended operation of the remuneration framework.
At the heart of the Group’s remuneration framework is our commitment to deliver competitive remuneration for
excellent performance to attract the best and motivate and retain talented individuals, while aligning the interests of
the business and shareholders. The Company aims to ensure that its remuneration system is designed in a manner that
is aligned with the values and strategic priorities of the Company.
The Group achieves this through:
Performance-based variable compensation;
Incentives based on financial measures and strategic objectives that reflect key goals critical to long-term sustainable
organisational success;
Consideration of business and operational risk as well as a sustainability development goal through the design of
performance objectives;
Providing incentives and policies which align the interests of executives to those of shareholders;
Best-practice governance and ensuring remuneration outcomes are reasonable, taking into account community and
stakeholder expectations; and
Targeting remuneration levels and outcomes appropriately reflect the challenge and complexity of being a
multinational Asian-based hotel group with diverse hospitality businesses.
The Company’s policy is to offer competitive remuneration packages to its senior executives. The Company relies
on a reward framework that provides varying levels of remuneration and benefits depending on colleague level. It is
recognised that, given the nature of the Group and its diverse geographic base, a number of its senior executives are
required to be offered international terms, and the nature of the remuneration packages is designed to reflect this. This
structure of remuneration varies from senior executives to more junior level colleagues, but the link of remuneration
to strategic goals is consistent. The nature of goals used for remuneration varies depending on colleague level, but
the Company ensures goals are relevant and measurable while aligned with company values and strategic priorities.
In addition, Executive Directors joining from outside the Group may be offered an initial fixed-term service contract
to reflect any requirement for them to relocate.
Accordingly, the remuneration mix for colleagues varies depending on level. At senior executive levels, more
remuneration is variable , depending on performance levels against goals. At more junior levels, remuneration is
directed toward fixed remuneration. The Company strives to provide an appropriate amount of remuneration ‘at risk’
for the achievement of goals – whether those are short- or long-term in nature.
126 Mandarin Oriental International Limited
Directors’ Remuneration
Shareholders decide in general meetings the Directors’ fees which are payable to all Directors other than the Group Chief
Executive and the Chief Financial Officer, as provided for by the Company’s Bye-laws.
The remuneration of the Company’s Non-Executive Directors is not linked to performance. This is consistent with
Non-Executive Directors being responsible for objective and independent oversight of the Group. The total amount
provided to all Directors (including the Managing Director but exclusive of salaried Executive Directors who are not
entitled to such fees) must not exceed the sum agreed by shareholders at a general meeting. The maximum aggregate
remuneration of US$1.0 million per annum was approved by shareholders at the 2022 AGM and would be subject
to review at the 2025 AGM. Executive Directors (excluding the Managing Director, who is also the Jardines group
managing director) are paid a basic fixed salary as well as discretionary annual incentive bonuses by and receive certain
employee benefits from the Group. Non-Executive Directors do not receive bonuses or any other incentive payments
or retirement benefits. The Non-Executive Directors are reimbursed for expenses properly incurred in performing their
duties as a Director of the Company. The schedule of fees paid to Directors in respect of the financial year 2023 is set out
in the table below. Fees are annual fees, unless otherwise stated:
USD (per annum)
Chairman/Managing Director fee: 100,000
Base Director fee: 90,000
Audit Committee fee (Chairman): 45,000
Audit Committee fee (member): 35,000
Nominations Committee fee: 15,000
Director
Director Fee
US$
Audit
Committee Fee
US$
Nominations
Committee Fee
US$
Total Fees
US$
1 Ben Keswick (Chairman) 100,000 – 15,000 115,000*
2 John Witt (Managing Director) 100,000 – 15,000 115,000*
3 James Riley
1
– – – –
4 Laurent Kleitman
2
– – – –
5 Matthew Bishop – – – –
6 Jinqing Cai
3
90,000 35,000 – 125,000
7 Adam Keswick 90,000 – 15,000 105,000*
8 Archie Keswick 90,000 – – 90,000
9 Y.K. Pang
4
90,000 36,644 – 126,644*
10 Richard Solomons
5
90,000 45,000 – 135,000
Total 650,000 116,644 45,000 811,644
* Fees surrendered to Jardine Matheson
1
James Riley retired from the Board on 31st July 2023.
2
Laurent Kleitman joined the Board on 1st September 2023.
3
Jinqing Cai was appointed as a member of the Audit Committee on 2nd March 2023.
4
Y.K. Pang ceased to be the Chairman of Audit Committee and remained as a member of Audit Committee on 2nd March 2023, and he
retired from the Board and Audit Committee on 31st March 2024.
5
Richard Solomons was appointed as the Chairman of Audit Committee, in place of Y.K. Pang on 2nd March 2023.
127Annual Report 2023
Corporate Governance Continued
Remuneration Committee
The Board has overall responsibility for setting remuneration across the Group, ensuring it is appropriate and supports
the Group’s strategy, creating value for stakeholders. The Remuneration Committee has been established to assist the
Board in these remuneration matters.
The Board established a Remuneration Committee (the ‘Remuneration Committee’) at the Company level in December
2021. The role of the Remuneration Committee is governed by its terms of reference. The key responsibilities of the
Remuneration Committee are to:
Oversee the formulation of a Group-wide reward strategy and ensure the business implements the reward strategy
in alignment with its industry-specific needs;
Review and approve the compensation of the Group Chief Executive and leadership team of the business;
Review the terms of and design of performance-related incentives (both short- and long-term), including the review
and approval of any changes to plan design, targets and metrics;
Review and approve the overall compensation costs, including salary and bonus budgets, of the business; and
Remain abreast of trends and developments in executive compensation and corporate governance related to the
Group’s industry and countries of operation.
The Remuneration Committee consists of a minimum of three members, selected by the Chairman of the Board. The
Chairman of the Board is the chairman of the Remuneration Committee. The current members of the Remuneration
Committee are Ben Keswick, John Witt and Graham Baker. In addition, the Group Chief Executive, the Group Chief
People Officer and Jardine Matheson group head of human resources will generally attend meetings of the Remuneration
Committee. The Remuneration Committee meets as circumstances require, or by the circulation of Committee circulars
which make recommendations to the Board for approval as it deems appropriate.
How remuneration framework is linked to the business strategy
The Group’s remuneration strategy is designed to support and reinforce its business and sustainability strategies, both
short- and long-term. The ‘at risk’ components of remuneration are tied to measures that reflect the successful execution
of these strategies in both the short- and long-terms. Our strategic drivers of ‘Elevating our brand, Lifting our people,
Powering our core and Exceptional quality’ are reflected in bonus performance measures. So, the Group’s actual
performance directly affects what executives are paid.
Remuneration outcomes in 2023
For the year ended 31st December 2023, the Directors received from the Group US$7.9 million (2022: US$5.7 million)
in Directors’ fees and employee benefits, being:
US$0.8 million (2022: US$0.8 million) in Directors’ fees;
US$5.3 million (2022: US$4.7 million) in short-term employee benefits, including salary, bonuses, accommodation
and deemed benefits in kind;
US$0.2 million (2022: US$0.1 million) in post-employment benefits; and
US$1.6 million (2022: US$0.1 million) in long-term incentive benefits.
The information set out in the section above headed ‘Remuneration outcomes in 2023’ forms part of the audited
financial statements.
Share schemes
Share-based long-term incentive plans have also been established to provide incentives for Executive Directors and senior
managers. The scheme trustee grants share options and share awards after consultation between the Chairman and the
Group Chief Executive and other Directors as they consider appropriate. Share options are granted at prevailing market
prices, while share awards will vest free of payment. The share options and share awards normally vest on or after the
third anniversary of the grant date. Grants may be made in several instalments. Share options and share awards are not
granted to Non-Executive Directors.
128 Mandarin Oriental International Limited
Directors’ share interests
The Directors of the Company in office on 7th March 2024 had interests* as set out below in the Company’s ordinary
share capital. These interests include those notified to the Company regarding the Directors’ closely associated persons*.
John Witt 4,894,068
* Within the meaning of MAR
Audit Committee Report
Audit Committee
The Board had established an Audit Committee (the ‘Audit Committee’) at the Company level in December 2021.
The Audit Committee consists of three members, the current members of which are:
Richard Solomons (Chairman of the Audit Committee and Independent Non-Executive Director);
Graham Baker (Financial Expert); and
Jinqing Cai (Independent Non-Executive Director).
None of them is directly involved in the operational management of the Company. On 2nd March 2023, Richard
Solomons was appointed as Chairman of the Audit Committee in place of Y.K. Pang, who remained as a member of the
Audit Committee until 31st March 2024. As a result, the Audit Committee is chaired by an Independent Non-Executive
Director. Jinqing Cai, an Independent Non-Executive Director, was also appointed as a member of the Audit Committee
on 2nd March 2023.
With the appointment of Richard Solomons and Jinqing Cai, both Independent Non-Executive Directors, in December
2021 and March 2023 to the Audit Committee and Y.K. Pang’s resignation from the Audit Committee on 31st March
2024, accordingly, from 1st April 2024, the Company considers that the Audit Committee has a majority of independent
members. Graham Baker is also a member of the Audit Committee with recent financial experience and expertise, as well
as a deep understanding of risk management.
The Group Chief Executive and Chief Financial Officer, together with representatives of the internal and external
auditors, also attend the Audit Committee meetings by invitation. In addition, other individuals may attend part of a
meeting for specific agenda items as appropriate. The Audit Committee meets twice a year and reports to the Board after
each meeting.
Its terms of reference govern the role of the Audit Committee. The Audit Committee’s remit includes:
Independent oversight and assessment of financial reporting processes, including related internal controls;
Independent oversight of risk management and compliance;
Independent oversight and responsibility for cybersecurity;
Monitoring and reviewing the effectiveness of the internal and external audit functions;
Considering the independence and objectivity of the external auditors; and
Reviewing and approving the level and nature of non-audit work performed by the external auditors.
Before completion and announcement of the half-year and year-end results, a review of the Company’s financial
information and any issues raised in connection with the preparation of the results, including the adoption of new
accounting policies, is undertaken by the Audit Committee with the executive management and a report is received from
the external auditors. The external auditors also have access to the entire Board when necessary, in addition to the Group
Chief Executive, Chief Financial Officer and other senior executives.
129Annual Report 2023
Corporate Governance Continued
The matters considered by the Audit Committee during 2023 included:
Reviewing the 2022 annual financial statements and 2023 half-year financial statements, with particular focus on
the provisioning and impairment assessments, assumptions that underpinned key valuation models and effectiveness
of financial controls;
Reviewing the actions and judgements of management in relation to changes in accounting policies and practices to
ensure clarity of disclosures and compliance with new accounting standards;
Receiving reports from the internal audit function on the status of the control and compliance environment of the
Group and its business divisions and progress made in resolving matters identified in the reports;
Reviewing the principal risks, evolving trends and emerging risks that affect the Group, and monitoring changes to
the risk profile, as well as the effectiveness of risk management measures and crisis management arrangements;
Receiving updates on the cybersecurity threat landscape and the Group’s cybersecurity environment, risk
management approach, training, priorities and control effectiveness;
Receiving reports from risk management and legal functions on key legal matters and compliance and code of
conduct issues, and the actions taken in addressing those issues and strengthening controls;
Reviewing the annual internal audit plan and status updates;
Reviewing the Group’s governance approach to cybersecurity management, data security and privacy management
across its businesses;
Reviewing the biennial assessment of the effectiveness of PwC;
Reviewing the independence, audit scope and fees of PwC, and recommending their re-appointment as the external
auditor at general meeting;
Conducting a review of the terms of reference of the Audit Committee;
Recommending the change of auditor from PwC LLP to PwC Hong Kong to the Board for approval; and
Approving the adoption of Non-Assurance Services Concurrence Policy, which establishes procedures and
delegations by which the Audit Committee intends to fulfil its responsibilities for the engagement of the independent
auditor to perform non-assurance services to comply with the revised Code of Ethics issued by the International
Ethics Standards Board for Accountants.
Audit Committee attendance
The table below shows the attendance at the scheduled 2023 Audit Committee meetings:
Meetings eligible
to attend Attendance
Members of the Audit Committee
Directors of the Company
Y.K. Pang 1/2 50%
Richard Solomons 2/2 100%
Jinqing Cai
1
1/1 100%
Director of MOHG
Graham Baker 2/2 100%
1
Jinqing Cai was appointed to the Audit Committee on 2nd March 2023. In 2023, only one Audit Committee meeting was held after
2nd March 2023.
130 Mandarin Oriental International Limited
Auditor independence and effectiveness
The Group auditor’s independence and objectivity are safeguarded by control measures including:
Reviewing the nature of non-audit services (including the adoption by the Company of a non-audit services policy);
The external auditor’s own internal processes to approve requests for non-audit work to the external audit work;
Monitoring changes in legislation related to auditor independence and objectivity;
The rotation of the lead auditor partner after five years;
Independent reporting lines from the external auditor to the Audit Committee and providing an opportunity for
the external auditor to have in-camera sessions with the Audit Committee;
Restrictions on the employment by the Group of certain employees of the external auditor;
Providing a confidential helpline that employees can use to report any concerns; and
An annual review by the Audit Committee of the policy to ensure the objectivity and independence of the
external auditor.
The Board’s annual review in 2023 of the Auditor’s independence and effectiveness found that PwC performed their
duties effectively. The Board found the level of professional scepticism, the number and regularity of meetings with the
Audit Committee, feedback from Audit Committee members and internal stakeholders and the levels of technical skills
and experience to be effective.
At each AGM of the Company, the Company is required to appoint an Auditor to hold office until the conclusion of the
next AGM. The Company's previous Auditor was PricewaterhouseCoopers LLP (‘PwC LLP’). In March 2023, the Audit
Committee recommended that the Company appoint PwC Hong Kong, also a PricewaterhouseCoopers network firm
and which had conducted much of the audit work on behalf of PwC LLP for many years, as its Auditor in place of PwC
LLP for future audit processes, to streamline audit procedures and align the location of the firm acting as Auditor more
closely with the location of the Company’s businesses. The Company’s shareholders approved the appointment of PwC
Hong Kong as the Company’s Auditor at the AGM on 4th May 2023.
Risk management and internal control
The Board has overall responsibility for the Group’s risk management systems and internal control. The Board has
delegated responsibility to the Audit Committee for providing oversight regarding risk management activities. The Audit
Committee considers the Group’s principal risks and uncertainties and potential changes to the risk profile. It reviews
the operation and effectiveness of the Group’s internal control systems (financial, operational and compliance) and the
procedures by which these risks are monitored and mitigated.
The Audit Committee considers the systems and procedures regularly and reports to the Board semi-annually. The
Jardine Matheson Group Audit and Risk Management (‘JM GARM’) is appointed to assist the Audit Committee in
fulfilling its assurance and reporting roles. JM GARM adheres to international standards for the professional practice of
internal audit. To safeguard its independence and objectivity, JM GARM reports functionally to the Audit Committee
of the Company and has full and unrestricted access to all business functions, records, properties and personnel.
The internal control systems are designed to manage, rather than eliminate, business risk; to help safeguard the Group’s
assets against fraud and other irregularities; and give reasonable, but not absolute, assurance against material financial
misstatement or loss. Executive management is responsible for implementing the systems of internal control throughout
the Group.
131Annual Report 2023
Corporate Governance Continued
Risk management and internal control continued
The Group has an established risk management process that is reviewed regularly and covers all business units within the
Group. This includes the maintenance of risk registers that detail the emerging and existing risks to the future success of
the business and the relevant key controls and mitigating factors that address those risks. The Group’s risk management
process and risk registers are reviewed on a regular basis.
The internal audit function also monitors the approach taken by the business units to risk. The internal audit function is
independent of the operating businesses and reports its findings and recommendations for any corrective action required
to the Audit Committee.
The Company’s principal risks and uncertainties are set out on pages 134 to 140.
Risk governance structure
MO Board of Directors
MO Management
MO Audit Committee
MO Risk Management
Internal Audit
(‘JM GARM’)
Delegate/
Oversee
Report Monitor/
Review
External Audit
(‘PwC’)
The Group’s Management is responsible for:
Identifying and assessing principal risks and uncertainties to which it is exposed;
Implementing the most appropriate actions to mitigate and control those risks to an acceptable level;
Providing adequate resources to minimise, offset or transfer the effects of any loss that may occur while managing
acceptable risk/benefit relationships;
Monitoring the effectiveness of the systems of risk management and internal control;
Reporting periodically to its Board of Directors via the Audit Committee and JM GARM on the principal risks and
uncertainties; and
Working with external and internal auditors to monitor and improve its control environment.
132 Mandarin Oriental International Limited
Risk Management Framework
Risk management is integrated into each business unit’s strategic planning, budgeting, decision-making and operations.
Central to this is the continuous and systematic application of:
Risk Identification
Risk
Treatment
Risk Reporting
& Monitoring
Risk
Assessment
A Risk Management Framework based on ISO 31000 and COSO principles is embedded in the Group to identify, assess
and define the strategies to monitor risks. The risk registers prepared by each business unit provide the basis for the
aggregation process, which summarises the principal risks and uncertainties facing the Group as a whole.
Risk Identification Identify and document the Group’s exposure to uncertainty with existing
strategic objectives.
Adopt structured and methodical techniques to identify critical risks.
Risk Assessment Evaluate risks by estimating likelihood, financial and reputational damage, and the
speed at which the risk materialises, based on its inherent and residual level.
Determine risk rating using the risk heatmap, with four levels of residual risk status.
Risk Treatment Tolerate – accept if within the Group’s risk appetite.
Terminate – dispose or avoid risks were no appetite.
Risks may be accepted if mitigated to an appropriate level via:
– Transfer – take out insurance or share risk through contractual arrangements with
business partners; and
– Treat – redesign or monitor existing controls or introduce new controls.
Risk Reporting
& Monitoring
Periodic review of principal risks and uncertainties.
Setting key risk indicators to enhance monitoring and mitigation of risks.
Regular reporting of principal risks and uncertainties from the Group’s business units to
the Board of Directors via Audit Committee and JM GARM.
133Annual Report 2023
Corporate Governance Continued
Principal risks and uncertainties
Set out below are the principal risks and uncertainties facing the Company as required to be disclosed pursuant to the
DTRs issued by the FCA, as well as a summary of the steps taken to mitigate those risks. These risks are in addition to the
matters referred to in the Chairman’s Statement, Group Chief Executive’s Review, and other parts of this Annual Report.
Reputational risk and
value of the brand
Description
The Group’s brand equity and global reputation is fundamental in supporting its ability
to offer premium products and services and to achieving acceptable revenues and profit
margins. Accordingly, any damage to the Group’s brand equity or reputation, including as
a result of adverse effects relating to health and safety, acts or omissions by Group personnel,
and any allegations of socially irresponsible policies and practices, might adversely impact
the attractiveness of the Group’s properties or the loyalty of the Group’s guests.
Mitigation
Engage external consultants and experts where necessary.
Perform regular cybersecurity and data vulnerability assessment at least annually and/or
penetration testing to identify weaknesses.
Active monitoring and use of social media.
Concentration risk Description
Certain locations in Asia contribute a significant portion of the Group’s underlying profit.
Adverse conditions such as social upheaval, erosion of the rule of law or travel restrictions
could reduce a location’s competitiveness and impact the Group’s businesses with
operations and exposure to that jurisdiction.
Mitigation
Geographical diversification of the businesses through organic growth.
Maintaining financial strength under challenging scenarios.
Further strengthening the Group’s brand to sustain competitiveness and resilience.
Commercial risk Description
The Group operates within the highly competitive global hotel industry. Failure to compete
effectively in terms of product quality, service levels, or price can adversely affect earnings.
This may also include failure to adapt to rapidly evolving customer preferences and
expectations. Significant competitive pressure or the oversupply of hotel rooms in a specific
market can reduce margins. Advances in technology creating new or disruptive competitive
pressures might also negatively affect the trading environment.
The Group competes with other luxury hotel operators for new opportunities in the areas
of hotel management, residences management and residences branding. Failure to establish
and maintain relationships with hotel owners or developers could adversely affect the
Group’s businesses.
The Group also makes investment decisions regarding acquiring new hotel properties and
undertaking significant renovations or redevelopments in its owned properties, exposing
it to construction risks. The success of these investments is measured over the longer term
and, as a result, is subject to market risk.
Mandarin Oriental’s continued growth depends on opening of new hotels and branded
residences. Most of the Group’s new developments are controlled by third-party owners and
developers. As a result, they can be subject to delays due to issues attributable to planning
and construction, sourcing of finance, and the sale of residential units. In extreme
circumstances, such factors might lead to the cancellation of a project.
134 Mandarin Oriental International Limited
Commercial risk
continued
Mitigation
Utilise market intelligence and deploy strategies for business-to-consumer business.
Establish customer relationship management and digital commerce capabilities.
Engage in longer-term contracts and proactively approach suppliers for contract renewals.
Re-engineer existing business processes to take advantage of new technological capabilities.
Invest in and partner with companies that can provide the Group access to different
capabilities and technologies.
Environmental
and climate risk
Description
Environmental disasters such as earthquakes, floods and typhoons can damage the Group’s
assets and disrupt operations. Global warming-induced climate change has increased
the frequency and intensity of storms, leading to higher insurance premiums or reduced
coverage for such natural disasters.
With governments also taking a more proactive approach towards carbon taxes, renewable
energies and electric vehicles, additional investments, and efforts to address physical and
transition risks of climate change are anticipated from businesses.
With interest in sustainability surging in recent years from investors, governments and the
general public, expectations by regulators and other stakeholders for accurate corporate
sustainability reporting and commitments towards carbon neutrality to address climate
change are also growing. This brings increasing challenges to the Group to meet key
stakeholders’ expectations.
There is potential for negative publicity and operational disruption arising from conflict
between activists and the Group’s businesses that is perceived to be engaged in trade and
activities that are environmentally unfriendly.
Mitigation
Executive Advisory Panel, Sustainability Leadership Council and Hotel Sustainability
Committees have been in place to mobilise and coordinate sustainability efforts across
the Group.
A sustainability strategy framework, including a pillar for the planet, drives the Group’s
sustainability agenda.
Renewed environmental targets for 2025 and 2030 have been determined per property
through a Group-wide inventory management plan.
Identify environmental impact opportunities that address multiple problems and risks
and gaps that are generally relevant to all properties and society in general.
Assess emerging Environmental, Social and Governance (‘ESG’) reporting standards
and requirements, to align Group disclosures to best market practice.
Conduct climate risk assessments and adaptation action plans based on
recommendations of Task Force on Climate-Related Financial Disclosures (‘TCFD’),
including implementing measures to address physical risks posed by climate change and
identifying opportunities in global transition to a low carbon economy.
Principal risks and uncertainties continued
135Annual Report 2023
Corporate Governance Continued
Principal risks and uncertainties continued
Financial strength
and funding
Description
The Group’s activities expose it to a variety of risks to its financial strength and funding,
including market risk, credit risk and liquidity risk.
The market risk the Group faces includes i) foreign exchange risk from future commercial
transactions, net investments in foreign operations and net monetary assets and liabilities
that are denominated in a currency that is not the entity’s functional currency; ii) interest
rate risk through the impact of rate changes on interest bearing assets and liabilities;
and iii) securities price risk as a result of its equity investments and limited partnership
investment funds which are measured at fair value through profit and loss, and debt
investments which are measured at fair value through other comprehensive income.
The Group’s credit risk is primarily attributable to deposits with banks, contractual cash flows
of debt investments carried at amortised cost and those measured at fair value through
other comprehensive income, credit exposures to customers and derivative financial
instruments with a positive fair value.
The Group may face liquidity risk if its credit rating deteriorates or if it is unable to meet its
financing commitments.
Mitigation
Set clear policies and limits on market, credit, and liquidity risks, including in relation
to foreign exchange exposure, interest rate risks, cash management and prohibition on
derivatives not used in hedging.
Regular internal audits of compliance with treasury policies.
Adopt appropriate credit guidelines to manage counterparty risk.
When economically feasible, take borrowings in local currency to hedge foreign
exchange exposures on investments.
Fix a portion of borrowings in fixed rates.
Maintain adequate headroom in committed facilities to facilitate the Group’s capacity
to pursue new investment opportunities and to provide some protection against
market uncertainties.
Keep an appropriate funding balance between equity and debt from banks and capital
markets, both short- and long-term in tenor, to give flexibility to develop the business.
Maintain sufficient cash and marketable securities, and availability of funding
from an adequate amount of committed credit facilities and the ability to close out
market positions.
The Group’s treasury operations are managed as cost centres and are not permitted to
undertake speculative transactions unrelated to underlying financial exposures.
The detailed steps taken by the Group to manage its exposure to financial risk are set out in
the Financial Review on pages 31 to 35 and note 36 to the financial statements on pages 90
to 97.
136 Mandarin Oriental International Limited
Principal risks and uncertainties continued
Governance and
misconduct
Description
Effective management of the Group’s risks depends on the existence of an appropriate
governance structure, tone from top leadership, and functioning system of internal
controls. Ethical breaches, management override of controls, employee fraud and
misconduct, or other deficiencies in governance and three lines of internal controls
may result in financial loss and reputational damage for the Group.
Inadequate capability and diversity in management or the Board may also lead to
sub-optimal deliberations and decisions.
Mitigation
Established Group-wide mandatory code of conduct.
Maintain a robust Corporate Governance Framework which includes
a whistleblowing channel.
Maintain functionally independent internal audit function that reports to the Group
Audit Committee on risk management, the control environment and significant
non-compliance matters.
Maintain Professional Indemnity, Crime and General Liability insurance policies with
adequate coverage.
Health, safety, and
product quality
Description
The Group’s colleagues engage in physical activities that may lead to serious injury or
fatal incidents if work conditions are unsafe or workers do not take due care to observe
safety procedures.
The safety and quality of food products and other items provided by the Group are
fundamental to its reputation with customers. Any actual or perceived deficiency in product
safety or quality may damage consumer confidence and the brand’s reputation, leading to
financial loss.
Mitigation
Establish safe working environments and regular safety training for all employees
and subcontractors.
Establish contractual requirements for contractors to comply with high expected levels
of safety standards.
Conduct occupational health and safety awareness campaigns.
Establishing product quality and safety standards, guidelines.
Ensure suppliers follow the Group’s guidelines, principals’ requirements, and
local regulations.
137Annual Report 2023
Corporate Governance Continued
Principal risks and uncertainties continued
IT and cybersecurity Description
The Group’s businesses are ever more reliant on technology in their operations and
face increasing cyber-attacks from groups targeting both individuals and businesses.
As a result, the privacy and security of customer and corporate information are at
risk of being compromised through a breach of our or our suppliers’ IT systems or the
unauthorised or inadvertent release of information, resulting in brand damage, impaired
customer trust, loss of competitiveness or regulatory action.
Cyber-attacks stemming from inadequate cybersecurity or lack of employee cybersecurity
awareness may also adversely affect the Group’s ability to manage daily business operations,
resulting in business interruption, reputational damage, regulatory penalties, lost revenues,
repair or other costs.
Mitigation
Engage external consultants to perform assessments on the business units with
industry benchmarks.
Define cybersecurity programme and centralised function to provide oversight,
promote cybersecurity hygiene, strengthen cybersecurity defences and manage
cybersecurity incidents.
Perform regular vulnerability assessment and penetration testing to identify weaknesses.
Maintain disaster recovery plans and backup for data restoration.
Arrange regular security awareness training at least annually and phishing testing to
raise users’ cybersecurity awareness.
Conduct regular internal audits of IT general controls and cybersecurity.
Pandemic Description
COVID-19 has demonstrated the wide-ranging and long-lasting impacts and disruptions
for businesses, communities and employees that may result from the spread of a pandemic.
While the governments and businesses have gained experience from COVID-19 in
preparing for and responding to future pandemic scenarios, nevertheless significant
disruptions and uncertainties would likely result from global or regional pandemics
of a similar nature if they raise the prospect of lockdowns, restrictions on cross-border
mobility, interruptions to supply chains, and dampened consumer sentiment while
vaccines are unavailable.
Mitigation
Increase flexibility and resilience of work arrangements, including tools that enable
employees to effectively work from home, where possible.
Test business continuity plans periodically for various scenarios including loss of
premises, systems, people, and extended periods of split teams.
Increase resilience of supply chain with sourcing alternative suppliers for key inputs and
close coordination with logistics partners.
138 Mandarin Oriental International Limited
Principal risks and uncertainties continued
Political and
economic risk
Description
Changes and uncertainties in the political landscape pose risks for business activity and
sentiment in the territories where the Group operates and consequently for the current
investments and future growth of the Group. In recent years, sources of uncertainty include
geopolitical tensions between China and the United States, terrorism, and government
instability in parts of South East Asia. Rising costs of fuel and staple foods are particularly
sensitive for developing markets where the Group operates, heightening the risk of civil
discontent and political instability. The imposition of export bans by some governments on
food and raw materials adds further uncertainties in the availability and cost of supplies for
the Group’s hotels and residences that import these items.
The Group’s business is exposed to the risk of adverse developments in global and regional
economies and financial markets, either directly, or through the impact such developments
might have on the Group’s joint venture partners, associates, bankers, suppliers, or
customers. These developments could include recession, inflation, deflation, currency
fluctuations, restrictions in the availability of credit, business failures, or increases in
financing costs, oil prices or the cost of raw materials. Such developments might increase
operating costs, reduce revenues, lower asset values or result in some or all of the Group’s
hotels and residences being unable to meet their strategic objectives.
Mitigation
Maintain the Group’s financial strength and funding sources under scenarios of
economic downturn and other stresses.
Monitor the volatile macroeconomic environment and consider economic factors in
strategic and financial planning processes.
Make agile adjustments to existing business plans and explore new business streams and
new markets.
Review pricing strategies and keep conservative assumptions on global commodity prices.
Insurance programme covering business interruption due to civil unrest.
People and talent Description
The competitiveness of the Group’s businesses depends on the quality of the people that it
attracts and retains. The unavailability of needed human resources may impact the ability of
the Group’s businesses to operate at capacity, implement initiatives and pursue opportunities.
Recent and future workforce rationalisation may raise the potential for organisational gaps
in capabilities, succession and controls.
With worker preferences shifting towards greater importance attached to mental health
and well-being, the Group faces heightened risk for talent attraction and retention if they
cannot adapt their propositions for workers.
139Annual Report 2023
Corporate Governance Continued
People and talent
continued
Mitigation
Support workforce practices that promote well-being and flexible work arrangements
that are competitive with the market.
Ensure proactive manpower planning and succession planning are in place.
Enhance modern employer branding, training for staff members, compensation, and
benefits, including retention incentives.
Implement strategy to promote IE&D across the Group.
Establish employee assistance and counselling programmes.
Enhance talent development plans to increase employees’ visibility on future career
paths, including identifying strategic talent pools.
Delivering new learning programmes to equip staff with finance, procurement, HR,
digital, IT and innovation technical capabilities for business transformation.
Compliance with
and changes to laws
and regulations
Description
The Group’s business is subject to several regulatory regimes in the territories they
operate in. New or changing laws and regulations in a wide range of areas such as foreign
ownership of assets and businesses, exchange controls, building and environmental
standards, competition, tax, employment, and data privacy could potentially impact
the operations and profitability of the Group’s business. Non-compliance may lead to
reputational damage from media exposure and financial loss due to litigation or penalties
by government authorities.
Mitigation
Engage legal experts at early stage to assess implications of new rules.
Stay connected and informed of relevant new and draft regulations.
Engage external consultants where necessary.
Raise awareness via principals’ brand conference with an annual update on new
regulations that may have been implemented in other markets.
Lobby relevant associations and authorities through appropriate channels.
Perform early scenario planning to assess implications of new rules and prepare
for contingencies.
Effectiveness review of risk management and internal control systems
The effectiveness of the Company’s risk management and internal control systems is monitored by the internal audit
function, which reports functionally to the Audit Committee of the Group. The findings of the internal audit function
and recommendations for any corrective action required are reported to the Audit Committee and, if appropriate, to
the Jardine Matheson’s audit committee.
Principal risks and uncertainties continued
140 Mandarin Oriental International Limited
Shareholder Information
Financial calendar
2023 full-year results announced 7th March 2024
Shares quoted ex-dividend 21st March 2024
Share registers closed 25th to 29th March 2024
Annual General Meeting to be held 8th May 2024
2023 final dividend payable 15th May 2024
2024 half-year results to be announced 1st August 2024 *
Shares quoted ex-dividend 22nd August 2024 *
Share registers to be closed 26th to 30th August 2024 *
2024 interim dividend payable 16th October 2024 *
* Subject to change
Dividends
Shareholders will receive cash dividends in United States Dollars, except when elections are made for alternate currencies
in the following circumstances.
Shareholders on the Jersey Branch Register
Shareholders registered on the Jersey branch register can elect for their dividends to be paid in Sterling. These shareholders
may make new currency elections for the 2023 final dividend by notifying the United Kingdom transfer agent in writing
by 26th April 2024. The Sterling equivalent of dividends declared in United States Dollars will be calculated by reference
to a rate prevailing on 2nd May 2024.
Shareholders holding their shares through CREST in the United Kingdom will receive cash dividends in Sterling only,
as calculated above.
Shareholders on the Singapore Branch Register who hold their shares through The Central
Depository (Pte) Limited (‘CDP’)
Shareholders who are on CDP’s Direct Crediting Service (‘DCS’)
Those shareholders on CDP’s DCS will receive their cash dividends in Singapore Dollars unless they opt out of CDP
Currency Conversion Service, through CDP, to receive United States Dollars.
Shareholders who are not on CDP’s DCS
Those shareholders not on CDP’s DCS will receive their cash dividends in United States Dollars unless they elect,
through CDP, to receive Singapore Dollars.
Registrars and transfer agent
Shareholders should address all correspondence with regard to their shareholdings or dividends to the appropriate
registrar or transfer agent.
Principal Registrar
Jardine Matheson International Services Limited, P.O. Box HM 1068, Hamilton HM EX, Bermuda
Jersey Branch Registrar
Link Market Services (Jersey) Limited, IFC 5, St Helier, Jersey JE1 1ST, Channel Islands
Singapore Branch Registrar (with effect from 1st March 2024)
Boardroom Corporate & Advisory Services Pte. Ltd., 1 Harbourfront Avenue, Keppel Bay Tower #14-07, Singapore 098632
United Kingdom Transfer Agent
Link Group, Central Square, 29 Wellington Street, Leeds LS1 4DL, United Kingdom
Press releases and other financial information can be accessed through the internet at www.mandarinoriental.com.
141Annual Report 2023
Mandarin Oriental Hotel Group Contact Addresses
Hong Kong Corporate Office
8th floor One Island East
Taikoo Place
18 Westlands Road
Quarry Bay, Hong Kong
Telephone +852 2895 9288
mandarinoriental.com
Asia
Mandarin Oriental, Bangkok
48 Oriental Avenue
Bangkok 10500
Thailand
Telephone +66 (0) 2 659 9000
Email mobkk-reservations
@
mohg.com
Mandarin Oriental Wangfujing, Beijing
No. 269 Wangfujing Street, Dongcheng District
Beijing 100006, China
Telephone +86 (10) 8509 8888
Email mowfj-reservations
@
mohg.com
Mandarin Oriental, Guangzhou
389 Tianhe Road, Tianhe District
Guangzhou 510620, China
Telephone +86 (20) 3808 8888
Email mogzh-reservations
@
mohg.com
Mandarin Oriental, Hong Kong
5 Connaught Road Central
Hong Kong
Telephone +852 2522 0111
Email mohkg-reservations
@
mohg.com
The Landmark Mandarin Oriental, Hong Kong
The Landmark
15 Queen’s Road Central
Hong Kong
Telephone +852 2132 0188
Email lmhkg-reservations
@
mohg.com
Mandarin Oriental, Jakarta
Jalan M H Thamrin
Jakarta 10310
Indonesia
Telephone +62 (21) 2993 8888
Email mojkt-reservations
@
mohg.com
Mandarin Oriental, Kuala Lumpur
Kuala Lumpur City Centre
50088 Kuala Lumpur
Malaysia
Telephone +60 (3) 2380 8888
Email mokul-reservations
@
mohg.com
Mandarin Oriental, Macau
N.945, Avenida Dr Sun Yat Sen
NAPE, Macau, China
Telephone +853 8805 8888
Email momac-reservations
@
mohg.com
Mandarin Oriental, Sanya
12 Yuhai Road
Sanya 572000
Hainan, China
Telephone +86 (898) 8820 9999
Email mosan-reservations
@
mohg.com
Mandarin Oriental Pudong, Shanghai
111 Pudong Road (S), Pudong
Shanghai 200120, China
Telephone +86 (21) 2082 9888
Email mopud-reservations
@
mohg.com
Mandarin Oriental, Shenzhen
No. 5001 Huanggang Road
Futian District, Shenzhen
Guangdong 518036, China
Telephone +86 (755) 8802 6888
Email moszn-reservations
@
mohg.com
142 Mandarin Oriental International Limited
Mandarin Oriental, Singapore
5 Raffles Avenue, Marina Square
Singapore 039797
Telephone +65 6338 0066
Email mosin-reservations
@
mohg.com
Mandarin Oriental, Taipei
No. 158 Dunhua North Road
Taipei 10548, Taiwan
Telephone +886 2 2715 6888
Email motpe-reservations
@
mohg.com
Mandarin Oriental, Tokyo
2-1-1 Nihonbashi Muromachi, Chuo-ku
Tokyo 103-8328, Japan
Telephone +81 (0) 3 3270 8800
Email motyo-reservations
@
mohg.com
E
UROPE
, the M
IDDLE
E
AST
AND
A
FR ICA
Emirates Palace Mandarin Oriental, Abu Dhabi
West Corniche Road
Abu Dhabi, United Arab Emirates
Telephone +971 2 690 9000
Email moauh-reservations
@
mohg.com
Mandarin Oriental, Barcelona
Passeig de Gràcia, 38-40
08007 Barcelona, Spain
Telephone +34 93 151 88 88
Email mobcn-reservations
@
mohg.com
Mandarin Oriental, Bodrum
Gölköy Mahallesi 314
Sokak No. 10, 48483,
Bodrum, Muğla, Turkey
Telephone +90 (252) 311 18 88
Email mobod-reservations
@
mohg.com
Mandarin Oriental, Costa Navarino
Navarino Bay, Costa Navarino
Pylos, Messenia, 24001
Greece
Telephone +30 272 3099888
Email mocna-reservations
@
mohg.com
Mandarin Oriental, Doha
Barahat Msheireb Street
Msheireb Downtown Doha
PO Box 23643
Doha, Qatar
Telephone +974 4008 8888
Email modoh-reservations
@
mohg.com
Mandarin Oriental Jumeira, Dubai
Jumeirah Beach Road, Jumeira 1
PO Box 62092
Dubai, United Arab Emirates
Telephone +971 4 777 2222
Email modub-reservations
@
mohg.com
Mandarin Oriental, Geneva
Quai Turrettini 1
1201 Geneva, Switzerland
Telephone +41 (22) 909 0000
Email mogva-reservations
@
mohg.com
Mandarin Oriental Bosphorus, Istanbul
Kuruçeşme, Muallim Naci Caddesi No: 62
34345 Beşiktaş, İstanbul, Turkey
Telephone +90 212 349 8888
Email moist-reservations
@
mohg.com
Mandarin Oriental, Lago di Como
Via Caronti, 69
22020 Blevio (Co)
Italy
Telephone +39 031 32 511
Email mocmo-reservations
@
mohg.com
143Annual Report 2023
Mandarin Oriental Hyde Park, London
66 Knightsbridge
London, SW1X 7LA
United Kingdom
Telephone +44 (0) 20 7235 2000
Email molon-reservations
@
mohg.com
Mandarin Oriental Palace, Luzern
Haldenstrasse 10
6002 Lucerne, Switzerland
Telephone +41 41 588 1888
Email molzn-reservations
@
mohg.com
Mandarin Oriental Ritz, Madrid
Plaza de la Lealtad 5
28014 Madrid, Spain
Telephone +34 91 701 67 67
Email mrmad-reservations
@
mohg.com
Mandarin Oriental, Marrakech
Route du Golf Royal
40 000 Marrakech, Morocco
Telephone +212 5 24 29 88 88
Email momrk-reservations
@
mohg.com
Mandarin Oriental, Milan
Via Andegari 9
20121 Milan, Italy
Telephone +39 02 8731 8888
Email momln-reservations
@
mohg.com
Mandarin Oriental, Munich
Neuturmstrasse 1
80331 Munich, Germany
Telephone +49 (89) 290 980
Email momuc-reservations
@
mohg.com
Mandarin Oriental, Paris
251 rue Saint-Honoré
75001 Paris, France
Telephone +33 (0)1 70 98 78 88
Email mopar-reservations
@
mohg.com
Mandarin Oriental, Prague
Nebovidská 459/1, Malá Strana
118 00 Prague, Czech Republic
Telephone +420 233 088 888
Email moprg-reservations
@
mohg.com
Mandarin Oriental Al Faisaliah, Riyadh
PO Box 4148
King Fahad Road, Al Olaya
Riyadh 12212
Saudi Arabia
Telephone +966 11 273 2000
Email moryd-reservations
@
mohg.com
Mandarin Oriental Savoy, Zurich
Poststrasse 12, 8001 Zurich
Switzerland
Telephone +41 (0) 43 588 38 38
Email mozrh-reservations
@
mohg.com
America
Mandarin Oriental, Boston
776 Boylston Street
Boston, Massachusetts 02199, USA
Telephone +1 (617) 535 8888
Email mobos-reservations
@
mohg.com
Mandarin Oriental, Canouan
Carenage Bay, Canouan Island VC0450
Saint Vincent and the Grenadines
Telephone +1 (212) 461 8068
Email mocan-reservations
@
mohg.com
Mandarin Oriental, Miami
500 Brickell Key Drive
Miami, Florida 33131, USA
Telephone +1 (305) 913 8288
Email momia-reservations
@
mohg.com
Mandarin Oriental, New York
80 Columbus Circle
New York, New York 10023, USA
Telephone +1 (212) 805 8800
Email monyc-reservations
@
mohg.com
Mandarin Oriental, Santiago
Avenida Presidente Kennedy 4601
7560994 Las Condes, Santiago, Chile
Telephone +56 2 2950 3088
Email mostg-reservations
@
mohg.com
Mandarin Oriental Hotel Group Contact Addresses Continued
144 Mandarin Oriental International Limited
mandarinoriental.com
Mandarin Oriental International Limited