Mandarin Oriental (SGX:M04) is a luxury hotel company that grew from a single Hong Kong property build in 1963 into a global chain of 29 hotels.
It consists of both a real estate business and a hotel management business. Through full or partial ownership of 16 hotel properties, the company has acquired a portfolio of trophy real estate assets in London, Paris, Hong Kong and other cities. In addition to operating these 16 owned hotels, Mandarin Oriental manages the other 13 hotels, which are owned by property developers who pay the company to use its brand and reimburse it for operating the hotels. An additional 17 hotels currently under development on this same basis will require no capital investment from Mandarin Oriental. The company trades on the Singapore Exchange, and 74% of its equity is owned by a publicly listed holding company.
The security mentioned above is not to be interpreted as a recommendation to buy or sell.
From March CommentaryGlobal Investing: The Benefits of a Broader View.
