Millennium & Copthorne says impairment charges will dent 2015 profit

Millennium & Copthorne Hotels, which is due to release its full year results next Friday, expects to recognise a net charge of around £43m against pre-tax profits for 2015.

It said the net charge includes £76m of impairment losses relating primarily to four of its properties in the operating segments of New York, Rest of Europe and Rest of Asia, offset by net revaluation gains of around £33m on its investment properties.

“The performance of those assets, especially the four hotels referred to above, that are to be impaired is being closely monitored. With regard to such properties, management is considering appropriate strategies to further control costs and increase revenue, including exploring additional sales channels, enhanced sales and marketing efforts and the implementation of brand initiatives.”

The company added that the ongoing asset refurbishment programmes are continuing and are expected to yield benefits in the future.