Millennium & Copthorne's annual results negatively impacted by weak pound
The fall in the value of sterling against major currencies has a significant impact on the financial results of Millennium & Copthorne Hotels, with revenue in constant currency at a flat £847m during 2016. Total revenue grew by 9.3% to £926m.
Global group revenue per available room (revpar) for the year decreased by 2.3% to £76.71, mainly due to challenging conditions in the group's gateway cities and disruption from refurbishment..
In Europe, London performed significantly better than the rest of Europe with occupancy up 1.7 percentage points to 81.9%, compared with 72.7% (down 0.5 percentage points) across the rest of the continent.
Revpar in London was 1.4% down to £107.18, while in the rest of Europe it was £52.61 (down 1.6%), while average room rate in the capital and rest of Europe was £130.83 (down 3.5%) and £72.86 (down 1%) respectively.
Kwek Leng Beng, chairman of Millennium & Copthorne, said: "Our trading performance in 2016 declined with group revpar in constant currency falling in each quarter of the year. Pressure on revenue and profit was intense in all of our key gateway cities. In London, leisure business in the first quarter was impacted by the November 2015 Paris terror attacks and in the second half of the year trading was affected by reduced corporate business.
"In constant currency group pre-tax profit dropped by 12.9%. The significant depreciation in Sterling resulted in reported profit before tax (both before and after net revaluation deficit and impairment losses) remaining flat."
In the Millennium & Copthorne has 21 hotels: 13 under the Copthorne brand, five Millennium hotels and three unbranded, Bailey's and Chelsea Harbour in London and Hard Day's Night in Liverpool.
Fall in sterling boosts Millennium & Copthorne revenue and profit >>
Uncertainty leads to decline in revpar at Millennium & Copthorne Hotels >>
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