Millennium and Copthorne Hotels sees increase revenue but drop in 2013 profit

06 November 2013 by
Millennium and Copthorne Hotels sees increase revenue but drop in 2013 profit

Millennium and Copthorne Hotels has announced an increase in revenue and revpar, and a drop in overall like-for-like profit before tax for the first nine months of 2013. Operating profit also decreased.

Revenue for the group was at £566.2m for the nine months to 2013, up £1.1m from £565.1m for the same time period in 2012 (a rise of 0.2%). Revpar (revenue per available room) was at £69.42m in 2013 compared to £66.81m in 2012 (up 3.9%) and also up for the third quarter at £73.62m (from £71.23m in 2012).

Conversely, profit before tax for the first nine months of 2013 was at £95.9m, down £21.2m from £117.1m in 2012 (down by 18.1%). However, for the third quarter like-for-like profit before tax in 2013 has increased from £38.1m to £40.4m, an increase of £2.3m (6%).

The company said that London and European hotels had positively benefited from the "Olympic effect" and an occupancy-led strategy, but that Asian destinations are still seeing difficulties due to economic uncertainty, such as fewer Japanese visitors to Korean capital Seoul.

Despite this, however, the report stated that the "lack" of London Olympics this year and the rising labour costs in Asia have resulted in concerns such as lower revpar levels.

Elsewhere, the Group has been continuing its refurbishment programme, established in 2011, with ONE UN New York, Millennium Seoul Hilton, Millennium Hotel Minneapolis and Grand Hyatt Taipei among the most significant properties to have been overhauled.

It was also stated that hotels in the USA have seen a year-on-year increase by 10.9%, a significant sign that the region's performance is improving.

Millennium and Copthorne Hotels has 22 hotels in the UK, including London, Glasgow, Aberdeen, Newcastle, Plymouth and Manchester. Its international portfolio extends worldwide, including properties in the USA, UAE, Kuwait, Jordan, China, Taiwan, Singapore, Malaysia and the Philippines.

Olympics boosts revpar for Millennium and Copthorne Hotels >> -

Millennium and Copthorne Hotels increases profit by 57% >>

TagsFinance and Hotels
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