Millennium & Copthorne adds to upbeat air

Hotel chain Millennium & Copthorne (M&C) today added to the air of cautious optimism pervading the sector, reporting a continuing recovery in the first three months of this year after the tough times of 2003.

The group said it had seen improved revenue per available room (revpar) in all regions in the three months to the end of March, rising by 3.7% overall when compared with the same point last year.

Its figures come after Whitbread yesterday also reported a relatively upbeat start to the year.

M&C's turnover rose to £126.6m in the three months to 31 March, against £125.1m during the same period last year. Operating profit was up to £13.9m, compared with £9.6m in 2003.

Underlying pre-tax profits, before disposals, were £5.1m, an improvement on the £1.4m loss reported at the same time in 2003. Overall pre-tax profits rose to £5.6m, from £4.7m.

The results were boosted by the re-opening of the Millenium Hilton Hotel in New York and, across the group, occupancies increased to 68.5%, from 64.9%.

Chairman Kwek Leng Beng said: "Although still early in the group's financial year, the group's performance for the first quarter of 2004 confirms that our recovery is on track. Group revpar for the four weeks to 28 April was up 24.4% albeit against easier comparatives in 2003."

In London, where the focus had been on tactical price cuts rather than across-the-board slashing, occupancies dipped slightly, from 75.4% to 74.7%.

Revpar, at £57.57, was 4.6% higher, with an average room rate of £77.07, against £72.97.

Revpar for UK provincial hotels was up by 3.6%, although the average rate of £65.38 was down marginally on last year's £65.66.

In Continental Europe revpar was up by 1.8% and Asia saw revpar improve by 7% to £31.89. M&C's Australasian hotels reported a 3% improvement in revpar.

Recovery within the USA was uneven, said M&C, with revpar up by 2.6% for the quarter.

by Nic Paton

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