Acquisitions drive profits and revenue at Millennium & Copthorne

Acquisitions made in 1999, particularly in the USA and Asia, helped Millennium & Copthorne Hotels boost turnover in 2000 by 101% to £690.9m, and pre-tax profits by 55% to £129.1m.

Last year, occupancy levels in its London hotels grew by four percentage points to a record 85.7%, and by just under one percentage point in the regions to 74.1%.

Average room rates increased by 6% in London to £93.63 and by 3% in the regions to £68.48, while yield per available room was up by 11% to £80.24 and by 4% to £50.74 respectively.

In the USA, where demand has slackened, the group disposed of eight of the 12 non-core Regal hotels it is seeking to sell.

Hotels in Continental Europe enjoyed significant growth, but the more limited growth in its Australasian properties (excepting those that benefited from the Sydney Olympics) is expected to continue into the current financial year.

The group, which started this year with 88 properties, says its Asian hotels will drive much of its growth in 2001.

Capital expenditure in 2001 is set to match last year's £64m, and will focus on the USA and Asia.