Luxury hotel group Mandarin Oriental says underlying losses in the second quarter of the year are going to be even bigger than the $40m (£32.2m) loss it incurred in Q1 as a result of the ongoing Covid-19 outbreak.
It said that while most of its hotels outside of Asia were closed, those within Asia were open but experiencing single-digit occupancy levels.
The group said it had taken a number of actions to manage costs and preserve cash, including the suspension of non-essential expenses and capital expenditure, significantly reducing payroll costs through unpaid leave, furloughing, substantial voluntary salary reductions at all levels and participation in government support measures wherever possible.
It said it had some $229m of cash reserves available and debt facilities of $207m, enabling it to “sustain the current low levels of business activity for an extended period of time”.
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