As Mandarin Oriental welcomes back guests, big plans mapped out for future

Mandarin Oriental Hotel Group sees great potential in the Chinese market and has pledged to create more experiences exceeding customers' expectations after the COVID-19 pandemic blues.

Christoph Mares, chief operating officer of the group, said the increase in hotel occupancy was incredibly fast just a few days after the lockdown finished.

From December to February, the occupancy of Mandarin Oriental hotels in Asia was up about 40 percent year-on-year. But it came from a low base, Mares said, adding that the occupancy rate in domestic hotels in China has risen to almost pre-pandemic levels again.

"Everything for us that we didn't have for three years seems to be coming back with strong intensity. We are very encouraged and happy to be back in China."

With China's reopening since the pandemic, people have significantly reclaimed foreign travel. Data from online travel service platform Ctrip showed outbound travel bookings surged 640 percent year-on-year during the Spring Festival holiday. Orders for overseas hotels booked by Chinese mainland tourists increased more than four times compared with the same period of 2022.

"What we see now in the post-pandemic period is that guests would like to travel longer and stay longer. And another big trend is the request for outdoor activities," Mares said.

Being a luxury hotel brand, Mandarin Oriental has been dedicated to providing bespoke services that exceed expectations and are personalized to guests' needs.

For example, Mandarin Oriental has a team of skilled interpreters who provide guests with multiple language services, especially Mandarin. Its digital platform Hello MO on WeChat allows guests to access various hotel services including housekeeping and spa treatment, as well as offering personalized recommendations for local attractions and real-time information on weather, transportation and others.

"Our digital technology capability is bespoke and quite advanced to make sure that we do receive the information from our clients quickly," Mares said. But he noted that digital technology can make workers more efficient more often than it will replace them. "Our business model is to help colleagues to be even better with guest interaction. Digital technology can only play a supportive role in enhancing service, but the fundamental service delivery will always be with people."

In response to new trends and customer demand in the post-pandemic era, the executive said the group will not only expand its properties but emphasize outdoor facilities to create unique experiences that are culturally connected to locations.

The group rebranded Emirates Palace Hotel, an iconic beachfront resort in Abu Dhabi, into Emirates Palace Mandarin Oriental in mid-February. It will open its second property in London, the Mandarin Oriental Mayfair, in spring. In July, the group will open its first property in Costa Navarino, Greece. Also, Mandarin Oriental's new resort in Muscat, Oman, will open this year.

"Boutique, niche and refined," said Mares, highlighting the essence of the Mandarin Oriental brand. "We're growing a bit faster now than we did in the past. But we also want to be organically growing so that we can be different in every location and have the service balanced and consistent."

In China, the group has announced it will launch new properties in cities including Nanjing, Hangzhou and Chengdu, which are scheduled to open in 2023, 2025 and 2028. With regard to the new properties located in these tourist attractions, Mares explained: "The brand's connection to the local heritage and culture makes it a good fit for us."

As a global hotelier with roots in Asia, Mandarin Oriental group now operates 36 hotels and eight residences in 24 countries and regions, with nine properties in China.

By the end of this year, Mandarin Oriental will have 40 hotels and resorts in operation and management globally, which is expected to grow to 60 by 2027, according to Mares.

"The next four years are going to be decisive as it is quite a considerable increase for us as a 'small' group," the executive said. Mandarin Oriental will double its portfolio on the Chinese mainland by 2028, Mares said. "The Chinese travelers are going to present (themselves) in ever greater numbers. We look forward to having them with us again."