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

Full-year profits plunge by 32% at Millennium & Copthorne

19 February 2010 by
Full-year profits plunge by 32% at Millennium & Copthorne

London proved to be the most resilient market for International hotel firm Millennium & Copthorne hotels over 2009.

Revenue per available room (revpar) in the company's London hotels declined by just 2.5% for the year. Overall, the company, which operates 120 hotels in 19 countries, saw a 16.3% decrease in revpar throughout the year.

Full-year revenue at the company fell by16.8% (excluding currency variations) to £654m from £703m the year before. Pre-tax profit dropped by 31.9% (excluding currency variations) to £81.9m.

Overall group revpar stood at £56.13 for the fourth quarter of 2009, down from £59.79 in the same period of 2008.

While the London market held up well, others, particularly New York and Singapore suffered, although the situation improved towards the end of the year. New York saw a severe revpar decline of 37.8% in the first quarter, falling to 11.7% in the fourth, while Singapore's saw a second quarter decline of 44.5%, easing to 18.9% in the fourth quarter.

Millennium & Copthorne opened three new hotels under management contract throughout the year: the 158-room Copthorne Hotel, Sheffield; the 306-room Millennium Wuxi in China; and the 343-room Millennium Chengdu, China. It closed the 299-room Wynfield Inn Orlando Convention Centre in the US, and the management contract for the 304-room Millennium Oy Oun Hotel in Sharm el Sheik in Egypt ended.

The hotel firm also managed to shrink its debt pile, with net debt reduced by £82.6m to £202.5m.

Chairman Kwek Leng Beng said: "For the year as a whole the results are very pleasing owing in large part to tough, prudent and analytical management which has served us well in navigating through stormy seas to calmer waters. We have benefitted from a wide geographical spread of properties which has smoothed the overall impact of the economic crisis."

Hard year for hotel groups >>

2009 revpar slumps at M&C >>

M&C to manage Wembley Stadium hotel >>

By Neil Gerrard

E-mail your comments to Neil Gerrard here.

If you have something to say on this story or anything else join the debate at Table Talk - Caterer's new networking forum. Go to www.caterersearch.com/tabletalk

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

Blogs on Caterersearch.com](http://www.caterersearch.com/blogs) Catch up with more news and gossip on all Caterer's blogs
[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