'The luxury segment is seeing sustained growth' – Mandarin Oriental COO on sector positivity

Banking on London

The group’s third London hotel has also just been announced, due to open in 2028 on the South Bank with dramatic views over St Paul’s Cathedral. Mandarin Oriental Bankside, London is part of the Bankside Yards development, which reconnects the space between the Tate Modern and Blackfriars Station and is centred around 14 Victorian railway arches that will be restored and made publicly accessible for the first time in 150 years. 

The project is expected to have 171 guest rooms and 70 branded residences, a spa and four culinary outlets on the first and 19th floors. And in line with the brand’s sustainability commitment, the property will benefit from Bankside Yards’ plan to be the UK’s first operationally fossil fuel-free major mixed-use development. 

The group is not alone in developing its London footprint of course, with Peninsula and Raffles set to open hotels around the same time. But this does not seem to phase Mares, rather he welcomes it.

“First of all, Peninsula belongs in a city like London and we look forward to having them here quite frankly. It’s always an enrichment anywhere in the world when hotels such as these arrive. The new Raffles of course is also great to see, but its location is not so much of a direct competition for us,” he points out.

“We are blessed to have so many iconic hotels here and more coming, a bit of variety and competition is always helpful! Overall, demand is still very high and very consistent, particularly post-coronation, and especially from the US, as well as Asia.” 

Euro vision

The group operates 36 hotels and nine residences in 24 countries, and has long had a good presence in key European destinations, but there is always opportunity for more, and this August sees the opening of its first hotel in Greece. 

Mandarin Oriental, Costa Navarino is part of this eponymous sustainably-driven destination in Messenia in the southwest Peloponnese. The Mediterranean-facing resort features 99 suites and “earth-sheltered” villas with private pools and spacious terraces, all set among more than 2,700 replanted olive trees and 500,000 planted native shrubs. 

Among the other features are a beach club with expansive pool; 18-hole designer golf course; spa with a 25-metre pool; and five restaurants and bars. The overall project has been built to rigorous sustainable specifications that are in keeping with Mandarin Oriental’s deeply ingrained corporate responsibility ethos, Mares adds. And as with all the group’s hotels, the resort will be single-use plastic free throughout.

“Costa Navarino has been a very smart development from the start, and the sustainability component is considerable – our resort will even be self-sufficient in terms of energy, using all natural resources, rather than having to plug into the grid. This will be quite an active destination outside the main season as well, plus, there are other key brands there such as The Luxury Collection, Westin and W.”

Further down the line in Greece will be another project with the same developer as Costa Navarino, Temes. Mandarin Oriental Athens is set to open in 2027 and will be part of one of the largest sustainably-built urban regeneration projects in Europe, The Ellinikon.

The €8 billion redevelopment is designed to bring new life to this area of Athens, and Mandarin’s hotel there will have 123 rooms and suites.

Before that though, it’s the launch of Mandarin Oriental Savoy, Zurich, the result of a redevelopment of an iconic hotel dating back to 1838, in the city’s main square and a short walk from the shores of Lake Zurich.

This will be the third hotel for the brand in Switzerland – after Geneva and Lucerne, which launched last year – and the hotel has benefitted from a comprehensive two-year renovation designed to reposition it as the market leader in the city, boasting 80 rooms and suites and three dining outlets. 

Elsewhere, other major developments have included taking over the management of Emirates Palace in Abu Dhabi. “It’s an iconic property, but the room count was relatively small, around 400. But it was built as a place to house GCC royalty and guests, so the accommodation is very spread out to ensure that kind of privacy, on a 1.3km beachfront. 

“Now, our goal is positioning it as a leisure destination, especially for families. All rooms have been renovated, we have changed all the F&B options – it’s been a formidable programme,” says Mares. “We have two massive pool propositions, plus we have all the sports facilities, football fields and tennis, sailing – you can spend three weeks there and not run out of things to do! So, when one looks at the Middle East and compares Emirates Palace to Dubai, it’s reasonably good value for money. We have a few more things to complete there, but that will all be done by the middle of 2024.” 

People pleasing 

Mares says the much-talked about post-pandemic hospitality crisis affected many people – and Mandarin Oriental was no different. 

“It was very difficult for a couple of years, but things have stabilised. Of course, we also had to make some adjustments whether that be in scheduling, flexibility when people really need it, offering working from home and improving the financial components of the packages, including better benefits – we’ve had a variety of measures to make sure we keep and attract good people. 

“I think we’re an engaging employer, and well regarded in the colleague community, being seen as someone who develops people, and that makes us stand out a little,” adds Mares. “People also know we have growth, that we’re not a stagnant business, so I think we weathered that storm reasonably well. We’re seen as having strong internal development programmes, ones that have been self-created for purpose, and give everyone from entry level to more senior levels the opportunity to be make a true career path.”

He adds the implementation of diversity is very “alive” in the business, with very strong programmes to ensure representation at all levels, especially senior ones, with Mares keen on making sure “everybody’s represented and running the business”.

“I would like to think we are making good progress, but we’re by no means perfect. And I think the operating committee is where the diversity starts: we are comfortably at 50/50 male/female there. But at general manager level, that’s not the case, with too slim a representation of our female colleagues unfortunately. But we’re trying to turn that around as quickly as we can – I’d say that at least 30-40% of our hotel managers around the globe are female, and being taken through to general manager level so we can redress that balance.” 

He talks also about the possibility of “loosening up” how someone can get to the level of a general manager too, something he concedes can be a long journey, but could be reduced if somebody has enormous potential. 

“If we can bring somebody into GM-ship in 10 years or less, we would like to do that and we have the systems in place to do so. This would also support our succession pipeline, given that we’re going to have 60 hotels by 2026-27.”

With Mandarin Oriental set to be at 40 properties by the end of this year, encouraging promotion and development from within is key. Those who start at entry level jobs can make it all the way, Mares says. “Someone who comes to mind is our general manager in Dubai, who started in London as an assistant steward and developed his way through – and has also just become area vice president.”