Revenue strong but earnings fall at Millennium & Copthorne

Millennium & Copthorne Hotels posted its first quarter results for the three months to 31 March on Friday, with revenue per available room (RevPAR) rising 17.7% to £70.66 during the period, and total revenue improving 16.1% to £223m.

The FTSE 250 firm said hotel revenue was up 15.8% to £191m, although profit before tax slipped 27.8% to £13m.

On a constant currency basis, profit before tax was down 38.1% to £21m.

London RevPAR grew 14.5%, which the company said reflected the lower pound boosting tourist numbers and a weak comparative quarter in the previous year.

New York RevPAR was higher by 7.0%, which was helped by improved trading at ONE UN New York after the completion of its refurbishment at the end of 2016.

Despite improved revenues, the group's New York hotels made an overall loss in the quarter.

Singapore RevPAR was down slightly by 0.9%, although occupancy increased by 4.7% points but average room rate dropped by 6.3%.

“Group revenue improved during the first three months of 2017, particularly in London and New Zealand,” said chairman Kwek Leng Beng.

“Singapore RevPAR continues to be under pressure as a result of increased room supply and uncertain economic conditions.”

Performance in the rest of Asia was said to be negatively affected by geopolitical tensions impacting inbound tourism into Seoul and Taipei.

“Poor performance in the US region especially New York, remains a concern.

“We are addressing the issues contributing to the under-performance in this region and our immediate focus is on the US management structure, which is currently under review.”