Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

2009 revpar slumps at Millennium & Copthorne

18 February 2009 by
2009 revpar slumps at Millennium & Copthorne

Millennium and Copthorne Hotels (M&C) today revealed that it experienced a dramatic decline in group revenue per available room (revpar) in the first five weeks of 2009.

The biggest decline suffered in revpar was seen at the group's three New York hotels, which fell by 41%, while Asian hotels saw a fall of 20%. London, however, suffered a lower 4% decline as the weak pound served to draw more visitors to the UK capital.

For the 12 months ended 31 December 2008, overall revpar increased 7.6%. Group revenue rose 5% to £702.9m, although it fell 1.2% in constant currency terms, and pre-tax profit dropped 34.5% to £102.8m.

M&C, which operates 103 upmarket hotels around the world, has halted virtually all new capital expenditure apart from essential health and safety spending to conserve cash in the wake of the global downturn.

Against this background, the group is anticipating that the next few quarters will "present challenging trading conditions".

However, it expects the decline to be partially mitigated by the fact that global rooms supply from new build hotels is limited due to the lack of debt financing.

Singaporian billionaire Kwek Leng BengKwek, M&C chairman and 53% shareholder, said: "I believe that with a continued policy of tough, prudent and analytical management we can steer our ship through the roughest of waters."

During 2008, M&C opened seven new hotels; one in Beijing, two further hotels in China operating under franchise agreements and four in the Middle East operating under management contracts.

Since the start of this year, M&C has opened a new managed hotel in Sheffield and signed a management contract for two hotels in Liverpool.

Hilton and Millennium announce new hotels in Liverpool >>

Millennium & Copthorne to manage Wembley Stadium hotel >>

M&C sells Seoul hotel for nearly £233m >>

M&C sees turnover and profits rise with new man at helm >>

By Gemma Sharkey

E-mail your comments to Gemma Sharkey here.

Caterersearch.com jobs
Looking for a new job? Find your next hotel job here with Caterersearch.com jobs

The Caterer Blog](http://www.caterersearch.com/blogs/catering-news-blog/) Catch up with more news and gossip on the Caterer Blog here
[Newsletters For the latest hospitality news, sign up for our e-mail newsletters.
TagsFinance and Hotels
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.


Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking