Mandarin Oriental

Mandarin Oriental: FY12 results released; earnings beat estimates by 14.5%; adjusted earnings increased 20% to US$70.8m y/y. The growth was in line with the rise in its combined total revenue from hotels under management. Resilient demand from the leisure sector enabled most of the Group’s hotels to increase average rates during the year despite the impact on corporate business from the continued uncertainty in the global economy. Going forward, While global economic conditions remain uncertain, the Group’s results should benefit from the strength of its portfolio, the acquisition of the Paris property and the limited new supply of luxury hotels in the Group’s key markets. Group declared a final dividend of US$0.05 (increased 25% from FY11); indicative yield of 3.4%