Millennium records a small drop in demand

SIGNS that the demand for hotel rooms in London and New York could be slowing down were in evidence from Millennium & Copthorne Hotels this week.

Reporting interim results for the six months to 30 June, the group revealed a slight dip in occupancy levels in London from 82.5% to 82.3% and a drop of 1.2 percentage points in New York to 76.9%.

Developments at its London hotels included an extension to the Millennium Gloucester, which added 62 rooms, but chairman Kwek Leng Beng said that noise and disruption during the development ofthe Millennium Britannia "undoubtedly affected business" during the period.

Revenue continued to rise, with yield per available room in London showing a growth of 8% to £70.54. In New York room yield was up 12% to $173.06 (£106.17).

Group turnover for the six months was up 10% to £104.7m with pre-tax profit growth of 22% to £24.3m. Operating profit for the period increased by 21% to £33m.