M&C puts in "very satisfactory" performance
Millennium & Copthorne Hotels has announced pre-tax profit up by 88% and turnover up by 161% during the six months ended 30 June.
The increases follow Millennium's acquisitions last year of the Asian hotel interests of its parent company, CDL, and of US hotel chain Regal International.
Group turnover rose to £322.2m, from £123.6m during the same period last year. Pre-tax profit was £53.6m, against £28.5m in 1999.
Chairman Kwek Leng Beng described the performance as "very satisfactory". The group had benefited from the ongoing economic recovery in Asia and the strength of the US and UK economies.
Although he saw scope to increase earnings through refurbishments, economies of scale and new e-commerce initiatives, Kwek added: "We will continue to evaluate suitable acquisition opportunities as and when they occur."
Occupancy for the group was 69.1%, average room rate £67.04 and the resultant revenue per available room (revpar) £46.32.
This compares with 67.5% occupancy in the same properties last year, an average room rate of £63.97 and revpar of £43.18.
On continuing operations, the company recorded an underlying growth of 8% in turnover to £122.4m and 11% in pre-tax profit to £29.7m.
In London, bedroom refurbishments were completed at the Millennium Brittannia, Millennium Gloucester and Copthorne Tara hotels. Occupancy in London was up by 4.6 percentage points to 83.9%, average room rate was up by nearly 5% to £91.05 and revpar was up by 11% to £76.39.
Fortunes in the group's provincial UK hotels were mixed. Properties such as the Copthornes at Slough and Gatwick recorded growth, but the Manchester hotel suffered from "an imbalance between supply and demand" in the local market and Cardiff was hit by an increase in the number of hotel bedrooms in the city.
The Millennium Glasgow hotel is undergoing a major refurbishment at a cost of £5m.
Overall occupancy for the group's UK regional hotels was down by 0.6 percentage points to 71.5%, although average room rate increased by 3% to £68.91. This produced a 2% increase in revpar to £49.27.
In Continental Europe, occupancy was up by 3.2 percentage points to 67.6%. Average room rate in sterling was down by 4% to £74.32, although this was due to the strength of the pound against other European currencies.
In the USA, the 12 Regal properties are set to be refurbished and converted into Millennium-branded hotels, while 12 unbranded hotels acquired as part of the Regal takeover are up for sale.
In Asia, occupancy was up by two percentage points to 67.4%, average rate up by 5% to £59.98 and revpar up by 8% to £40.43.
Millennium suffered a strike at the Seoul Hilton in South Korea between 23 June and 5 August over union membership and working conditions. This hit food and beverage sales during July, as all but two outlets were closed.
In Australia and New Zealand, occupancy rose by 0.7 percentage points to 63.8%, average room rate rose by 3% and revpar by 4%.
by David Shrimpton david.shrimpton@rbi.co.uk
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