Millennium & Copthorne enjoys 50% rise in pre-tax profits
Millennium & Copthorne Hotels posted a record year of results in 2011, with profits before tax rising by 50.3% to £193.3m.
Highlights of the year included overall revenue per available room (revpar) increasing globally by 5.8% - primarily driven by an increase in room rate - with London revpar increasing 8.8% to £97.92 (2010: £90.02).
Room rates in the capital increased 11.8% to £120.10, compared with £107.45 the previous year. However, there was a decrease in occupancy of 2.3 percentage points to 81.5% (2010: 83.8%).
During the fourth quarter of 2011 London achieved a 3.4% revpar growth to £101.12 (2010: £97.75), with room rate increasing 3.3% to £119.89 (2010: £116.04) and occupancy growing by 0.1 percentage points to 84.3% (2010: 84.2%).
Results in the UK regions were less impressive, with all UK hotels outside London - with the exception of one - experiencing revpar declines. Revpar fell by 5.1% to £42.48, compared with £44.77 in 2010. Occupancy decreased 2 percentage points to 70.9% (2010: 72.9%) and average room rate fell by 2.5% to £59.92 (2010: £61.45).
In the final quarter of the year, regional UK hotels experienced a decrease in revpar with a fall of 5.9% to £42.15 (2010: £44.78). Business remains a challenge outside London, owing to increased competition and pressure on room rates and occupancy.
Millennium & Copthorne Hotels currently has 108 hotels and 31,032 bedrooms worldwide, with a pipeline of 30 new properties (6,607 bedrooms).
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By Janet Harmer
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