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comprehensive renovation planned for the Mandarin Oriental,
Hong Kong is to be completed within a single-phase eight-month
period commencing at the end of 2005. The renovation
programme, which has been enhanced to ensure a significant
re-positioning of the group’s flagship property,
will cost an estimated US$140 million.
The
extensive renovation will upgrade the facilities and
services of the hotel, while maintaining its classic,
Chinese-influenced elegance. A major component of the
work will be the enclosure of the hotel’s balconies,
which will increase the size of the guestrooms and provide
scope for the creation of spacious bathrooms. The overall
number of hotel rooms will be reduced from 541 to 503,
while the number of suites will increase to 69. The
exterior of the building will also be upgraded in keeping
with the contemporary facades of the hotel’s commercial
neighbours at the heart of Hong Kong’s business
district.
The
hotel’s public areas, restaurants and bars will
be refurbished, and a reconfiguration of the ground
floor will increase the rental space for luxury retail
outlets. A luxurious spa, in line with the group’s
award-winning international spa concepts, has also been
devised for the property.
The
hotel will close on 28th December 2005 and will re-open
in late August 2006, with the renovation of the public
areas and approximately 200 guestrooms complete. The
remaining rooms will become available progressively
over the remainder of the year.
During
the closure period, employees will be offered opportunities
for training and personal development. Some will transfer
to other hotels within the group while others will be
seconded to work at sister companies within the Jardine
Matheson Group in Hong Kong. The hotel closure will
inevitably dampen the group’s results in 2006,
although the loss of profit is expected to be offset
in part by the increasing contribution from the group’s
new properties.
In
the first half of 2005, Mandarin Oriental, Hong Kong’s
earnings before interest, tax and depreciation (EBITDA)
were US$17 million. The renovation programme will be
financed by existing group facilities.
“Throughout
its 40-year history, Mandarin Oriental, Hong Kong has
been an icon of this vibrant city and one of the group’s
best performing hotels. This refurbishment is designed
to ensure its position as one of the world’s legendary
hotels.” said Edouard Ettedgui, Group Chief Executive
of Mandarin Oriental Hotel Group.
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