Mandarin Oriental International Ltd., operator of 25 luxury hotels from Tokyo to San Francisco, may buy more brands as lodging companies struggle amid a decline in spending, Chief Executive Officer Edouard Ettedgui said.
'We probably can reach 80 to 100 hotels on our own, but if we want to get to 200, we have to do that through brand acquisitions,' Ettedgui said in an interview at the opening of the 392-room Mandarin Oriental in Las Vegas. 'If a luxury brand becomes available at a reasonable price, we're interested.'
Mandarin's newest hotel enters a market where room rates have slumped because of the global recession and is part of a resort co-owned by MGM Mirage and Dubai World, the state company that's in talks to restructure $26 billion of debt. Ettedgui said Asia and South America may present the best opportunities and interested sellers have approached the hotel chain, which had $563 million in cash as of June.
Hong Kong-based Mandarin, with properties in Asia, the Americas and Europe, is developing at least 16 hotels in cities including Beijing, Milan and Chicago.
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Source - Bloomberg
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