LONDON— The downturn in leisure and corporate air travel in the wake of Sept. 11 was largely to blame for the fall in profits posted by luxury hotel operator Mandarin Oriental for its full year ending December 31, 2001. Net profit fell 76% to US$4.3 million, with revenue also falling, by 15.6% to US$227.9 million. According to Finance Director John Witt, the companys hotel in San Francisco was worst affected by the downturn, although occupancy fell at all hotels, especially those dependent on US visitors. For example, occupancy at the Mandarin Oriental in Hong Kong fell 21% to 61%. Although its Chairman Simon Keswick points to 2002 being another challenging year, the company is pushing ahead with ongoing projects, including the construction of its flagship hotel in New York, which remains on schedule for its opening in 2003. SOURCE: HVS International
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