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Weaker demand in Hong Kong, Paris dent Mandarin Oriental earnings

SOFTER demand in Hong Kong and Paris put a dent in the earnings of hotelier Mandarin Oriental, part of the Jardine group.

Mandarin Oriental's full-year net profit for 2015 slid 8 per cent from the previous year to US$89.3 million, the company said in a Singapore Exchange filing on Thursday.

Revenue for the 12 months ended Dec 31 declined to US$607.3 million, nearly 11 per cent lower than the US$679.9 million the year before.

The group said the contribution from Asia had fallen due to "softer demand in Hong Kong and Singapore, together with disruption from a renovation in Kuala Lumpur". Its showing in Europe was "affected by challenging conditions in Paris following the terrorist attacks and by the adverse impact of a renovation in Munich, which were only partially offset by improved results in London", it added.

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Earnings per share for 2015 came in at 7.44 US cents, down from 9.29 US cents for 2014. Net asset value per share was US$0.98 as at Dec 31, 2015, slightly higher than the US$0.92 as at Dec 31, 2014.

The company, which has a secondary listing on the Singapore mainboard, proposed a final dividend of three US cents per share. This and the interim dividend of two US cents per share add up to a total annual dividend of five US cents per share, reduced from seven US cents per share in 2014.

Mandarin Oriental shares dipped half a cent to close at US$1.300 on Thursday before it announced the results.