Millennium & Copthorne Hotels

Telephone:

020 7872 2444

Activities:

Millennium & Copthorne owns, manages and franchises around 91 hotels in the four- to five-star bracket in 16 countries.

The group has a dual origin, starting in the UK in the 1970s as a hotel operator for British Caledonian Airways and in Singapore 1980s as part of City Development Limited (CDL).

It has two key brands. Millennium hotels are four-star deluxe and five-star properties in prime sites in international gateway cities or prominent business locations.

Copthorne hotels are four-star properties in major regional business centres or resorts in the UK, Germany, Malaysia, Singapore and New Zealand (where it is the country’s largest four-star brand).

In New Zealand, the group operates a third brand, Kingsgate Hotels.

The group has developed a boutique-style format for business travellers typified by the M Hotel Singapore. Although the company opted not to build on the brand, it has rolled out the style to other properties.

Key People:

Group chief executive : Tony Potter
Chairman: Kwek Leng Beng
Senior vice-president finance: Robin Lee

Commentary:

By late 2005, M&C owned most of its properties and, unlike many other international operators, seems happy to remain a hotel owner.

However, it is increasingly looking to expand through management contracts, franchising and joint ventures and, in the nine months to September 2005, had signed nine management contracts in the UK, New Zealand and Bangkok.

In the peer-reviewed Britain’s Most Admired Companies listing in 2004, M&C was voted ninth in the top 10 table for hotel and leisure companies. It was placed 189th in the listing of the top 220 companies across all industries.

Strategy:

"“In 2005, we delivered good earnings growth by exploiting our operating skills in an improving trading environment. We also used our real estate expertise and resources to derive further gains from our portfolio of assets. We have undoubtedly benefited from our twin strategy of both operating and owning hotels worldwide. We now propose an increase in our dividend of 23% over the ordinary dividend paid for 2004.

“In the first six weeks of 2006, trading has continued in line with the positive trends of 2005.."

Source: chairman's interim results statement, February 2006

Operating Data:

Figures for the year to December 2005

Group occupancy: 73% (2004: 71.8%)
Group average daily rate: £64.01 (2004: £60.59)
Group revenue per available room: £46.73 (2004: £43. 50)

London occupancy: 84.8% (2004: 83.5%)
London average daily rate: £80.20 (2004: £79.79)
London revenue per available room: £68.01 (2004: £66.62)

Number of hotels: 91 hotels in 16 countries

New Zealand: 31 hotels, including four Millenniums, 11 Copthornes, and 16 Kingsgates
USA: 19 hotels, including 16 Millenniums, one Comfort Inn, the Four Points Sheraton Sunnyvale and the Pine Lake Trout Club. The group also manages the Royal Palm Resort in Ecuador.
Europe, Middle East and Africa: France (two Millenniums), Germany (one Millennium, one Copthorne), UAE (three Millennium hotels) Egypt (the Coral Beach Diving Hotel Marsa Alam)
Asia: Indonesia (one Millennium hotel), Malaysia (one Copthorne hotel), The Philippines (the Heritage Hotel Manila); Singapore (five hotels – three Copthornes, M Hotel Singapore and the Orchard Hotel Singapore)

UK hotels: 17, including five in London

The group owns 16 of its UK hotels, while the Reading property is managed.

Millennium: six -  Millennium Hotel Glasgow, Millennium Madjeski in Reading, and four in London (Millennium Bailey’s Hotel London Kensington, Millennium Gloucester Hotel London Kensington,  Millennium Hotel London Knightsbridge, and Millennium Hotel London Mayfair)
Copthorne: eleven - in Aberdeen, Birmingham, Cardiff, Merry Hill in Dudley, Effingham Park Gatwick, Gatwick, London (the Copthorne Tara in Kensington), Manchester, Newcastle, Plymouth, Slough
Other: The Kirtons Farm Hotel in Reading will become a Copthorne hotel in 2005 after refurbishment.

Number of employees: 12,300 (worldwide)

Financial Snapshot:

Full year

Turnover: £595.2m (2004: £551m)
Pre-tax profit: £95.8m (2004: £91m)

Half year

Turnover: £281m (2004: £263.6m)
Pre-tax profit: £40.1m (2003: £18.6m)

Financial year end: 31 December 2005
Half-year end: 30 June 2005

Address:

Corporate Headquarters
Scarsdale Place
Kensington,

UK