With a historic legacy of operating luxury hotels in prime city locations, Mandarin Oriental is taking a more active approach to the leisure market as demand grows in that segment, according to Luca Finardi, area vice president of operations and general manager of Mandarin Oriental, Milan.
Resorts in places like Lake Como, Italy, and Dubai will soon by joined by the company’s first Greek property this summer — Mandarin Oriental, Costa Navarino, a beachfront resort.
“We strongly believe we should follow both the leisure and business channels,” Finardi said. “This is a perfect time” for Mandarin Oriental.
The brand has several openings in the near future including Mandarin Oriental Mayfair, London, in spring 2023, Zurich in fall 2023, and Boca Raton, Florida, in 2024, as well as the rebranding of the Emirates Palace in Abu Dhabi as the Emirates Palace Mandarin Oriental, Abu Dhabi. In addition, a historic hotel in Lucerne, Switzerland, was converted into the Mandarin Oriental Palaze, Luzerne.
Primary goals for the near future are to expand to 50 properties by 2025, redirect the customer mix toward leisure and grow the new Exclusive Homes by Mandarin Oriental private homes inventory, he said.
Accelerated growth comes after a strong 2022, Finardi said, with extraordinary demand and a “fantastic recovery from COVID.” While the last year was challenging in terms of recruitment and retention, 2023 has already shown “very good signs as far as staffing among those with the passion to go back to the hospitality business.”
Though some hotels are fully owned and others are joint ventures, Finardi said in the future the majority will be management arrangements. But he stressed, “we will never exclude any possible acquisition.”
Homes, Residences in Demand
Finardi said Mandarin Oriental Exclusive Homes, which he oversees, is a high priority for the company. The venture is a cooperative arrangement between Mandarin Oriental and StayOne, which so far has collected 20 homes in destinations like Bali, Marbella and Mallorca in Spain, the French Riviera, the west country in the U.K. and a mountain resort in Austria. The homes offer features such as pools, spas and outdoor facilities.
What makes the product special, Finardi said, are dedicated concierge services, private chefs, housekeeping and family-friendly experiences as well as the benefits of the brand’s loyalty program, Fans of M.O., a recognition-based plan offering benefits like complimentary breakfast and late checkout. The properties are meant to appeal to, among others, families celebrating special occasions who prefer a private villa with the standards of a luxury hotel brand.
StayOne is responsible for the reservations and payment system while Mandarin Oriental oversees operations. The hotel company is a minority shareholder of StayOne, and both companies are acting on behalf of the actual owners of the villas.
After the pandemic, Mandarin Oriental has seen more and more demand for private accommodations, not necessarily in hotels, he said. Some of these clients are also regular hotel guests, but are typically travelers who would like to experience a destination for a longer period of time.
“More people now want to spend money on experiences rather than luxury products or buildings,” he said, “and a special vacation is something priceless. This is a trend that we think will continue.”
The villa product is separate from Mandarin Oriental residences, which are managed by the company in a different way. While not all properties have residences, there are locations — like one under development in Los Angeles — that are residences only. The lodging category depends on the market, quality, safety and security.
Mandarin Oriental stands out from its competitive set in multiple ways, Finardi said. One is its location-centric focus. The company always aims to have a different architect, often local, to bring a sense of place to a project.
That community connection extends to food and beverage, which is a point of reference for the brand. The bar and restaurant should be popular with locals, as well as business people or vacationers who might be staying, he said.
As a result, Finardi said “locals become ambassadors for the hotel and will recommend it to friends when they visit.”
Drawing On Heritage
A distinctive element for Mandarin Oriental is its Asian heritage, tracing back to the 1963 opening of The Mandarin in Hong Kong. The hotel was the tallest building on the island when it opened and became internationally known for its service standards.
In 1974, The Oriental in Bangkok, often acknowledged as one of the world's finest hotels, was partially acquired by the group, giving the company two "flagship" hotels, eventually forming the Mandarin Oriental Hotel Group brand with its well-known fan logo.
While there is an Italian management team in Milan, for example, Finardi said, “we aim to bring the Asian elements of grace, respect and a humble approach without losing any authenticity.” Every hotel offers an Asian tea service at check-in.
“We try to show you the hotel in an Italian way but with a grace that comes from Asia," he said. "It is not always easy, but that is our goal.”
Finardi said there will always be multiple dishes from Asia on restaurant menus. For instance, the Milan hotel’s bistro offers dim sum and noodles.
And Mandarin Oriental, with no current presence in India, has a partnership with Oberoi hotels.
“We believe the Indian market has great potential,” he said.
The partnership involves commercial initiatives and joint marketing in an effort to cross-sell.
Looking ahead, Finardi said the company is hoping to increase the number of hotels in Italy, while the Middle East and Japan are also areas of interest and a U.S. presence should also be strong. While the company-owned Mandarin Oriental in Washington, D.C., rebranded to Salamander after selling last year, Finardi said every destination in the U.S. that makes sense for the positioning of the brand is being explored.
“Wherever we go we aim to be the best,” Finardi said. “We always compete to be the best performers in a market and sometimes that makes it a little difficult because we are picky in finding the right location.”
The good news, he said, is that investments have been very successful. The new Madrid property — Mandarin Oriental Ritz, formerly the Ritz Madrid — which is 50% owned by the company, boasts what he calls “probably the best chef” in Spain and one of its restaurants, Deessa, has earned two Michelin stars. That is a perfect example of where we want to be,” he said.
“The group is evolving and really looking at becoming sustainable," Finardi said. "We want to highlight this because it is very important for us.”
The brand also wants to extend its offering of experiences at every destination. Rather than simply enjoying luxury accommodations, said Finardi, “if you book with us you will have access to extraordinary experiences. It is not only about a hotel stay or bedroom but about comprehensive immersion in a place.”
He said the company is intent on developing talent within the brand rather than sourcing from outside. It believes in preparing and training colleagues right out of school.
In addition, he said a core standard is the importance of the time employees spend with their families.
“We need to make sure they have a life outside the hotel that will enrich them and recharge them,” Finardi said. “If our colleagues are not sincere in their hospitality, the guest will recognize it.”
“We are hoteliers who believe in making people happy and relaxed,” Finardi said. ”It is energy, positivity and passion that makes us different. We put the guest in the center of things, but we also want to make our associates very happy and healthy.”