42 hotels

over 10,000 rooms

present in 27 countries
18 hotels in Asia
12 hotels in The Americas

12 hotels in Europe, Middle East and North Africa.

13 Residences connected to its properties
equity interests in a number of its properties and net
assets of approximately USD 2.3 billion as at 31st
December 2010.
 In 1963 ,The Mandarin was opened in Hong Kong
In 1974 it expanded through the acquisition of a 49
percent interest in The Oriental, Bangkok
In 1985, the Company rationalized its corporate
structure by combining the two prestigious properties
under a common name, Mandarin Oriental Hotel
Group.
 Being widely recognized as the worlds best luxury
hotel group
Strengthening its competitive position in all markets
Achieving a strong financial performance
 Distinctive
Exotic
Lively
Imaginative
Guest centered
Harmonious
Time giving
 Its Legendary!
The Residences at Mandarin Oriental offer a truly
unique lifestyle with the best of both worlds: the
comforts of a private home combined with the
unsurpassed amenities and legendary services of
Mandarin Oriental.
 plug-and-play live broadcast
capabilities
live television feeds
video conferencing
web streaming
live interviews to be transmitted
globally
97 television channels
digital library of film: art, films,
music, video games
Combining local cultural elements of each host country and
city, with Oriental traditional ones.

The Oriental touches delight

and surprise the guests.

Mainly found in:

design
restaurant menus
staff
in spa services
Lance Armstrong, cyclist Sa Dingding, singer & songwriter Helene Grimau, pianist

Sigourney Weaver, actress KenzoTakada, fashion designer Harry Connick Jr, musician & actor
 Restaurants

Passion for creating memorable dining experiences, adding value to the brand.

Clientele made up of: hotel clients + local clients

The menus fulfill the needs and preferences of both international travelers
and local clients.
 The SPA
Mandarin Oriental Bangkok became the worlds first well-known hotel
spa in 1999.

Provides various treatments and programs for the body, mind and spirit.

Tailor-made services

Distinguishes the brand from its competitors

 Leisure activities
Complex range of luxurious leisure activities meant to relax
and entertain the guests.
swimming
sports (tennis, squash, golf, boxing)
cooking classes, yoga & fitness
many others
 Edouard Ettedgu-appointed CEO in 1998
Wanted to add value to the company by turning it into an
international brand
North America was seen as a critical market- the company
needed to strengthen its overall corporate presence in the
region
 New York was chosen as the first city in the new
expansion strategy
Why?
Center of luxury media industry
One of the top 3 cities
in the world

How to develop?
acquire and transform an existing hotel
build a brand new hotel
 Challenges of the new environment:
High labor costs due to location (the industry is
labor intensive)

Difference in the perception of dining and leisure

habits

The heavy investment in restaurant and spa

services would be faced with high failure rates and
a ratio of profit to sales very low
 In 1999, travel and tourism accounted for 10.8% of
the global GDP and 200 million 200 million jobs
worldwide

By 2010 the industry was expected to grow to 11.6%

of global GDP and support 250 million jobs

The expected growth was slowed down by the

financial crisis of 2007 and in 2009 the industry
accounted for 9.2% of world GDP and more than 235
million jobs worldwide.
 Target group: high average
net worth individuals

Customer expectations:
amenities and facilities like
spa services, celebrity chef
run restaurants, design
quality and aesthetics and the
experience of a superior
service
 Main competitors in the luxury hotel industry:
Accor Hospitality
Four Seasons
Starwood Hotels and Resorts (St. Regis)
The Peninsula Hotels
Marriott Hotels (Ritz-Carlton)
 Two main ways to manage competition:

A global outlook focusing on the strongest

competitors in the industry (including individual
properties with historical heritage)

A regional outlook by focusing on the five primary

luxury competitors in the geographical proximity
 Total revenue: $ 513.2 million
Net profit: $44.1 million
Earnings per share: 4.48 US cents