Millennium & Copthorne profit edges lower amid uncertain outlook

In the first quarter to the end of March, pre-tax profit nudged down to £18m from £19m, while revenue per available room fell 2.6% to £60.02 and hotels revenue dropped to £165m from £170m.

The group said the drop in RevPAR was driven by lower occupancy and room rates in most regions, including the key gateway cities of New York, London and Singapore.

Still, group revenue rose £3m to £192m thanks to higher property revenue, increased contribution from the real estate investment trust and a weaker pound versus the US dollar compared to the same period last year.

Chairman Kwek Leng Beng said: “Our hotel trading performance in the first quarter of 2016 was weaker than last year, with disappointing results from a number of hotels in major gateway cities.

“The decline in performance reflects challenging conditions facing some hospitality markets as a result of political and economic uncertainty, structural change within the industry including the growth of 'sharing economy' lodging, online travel agencies and industry consolidation. We were pleased to see higher property income in the first quarter.”

M&C said it has responded to these conditions with a number of key senior executive appointments below board level, including a global head of branding & marketing, regional heads in Asia and the US and a chief financial officer, who will be joining in July 2016.

“Once they have familiarised themselves with the Group's business, these senior executives will implement our core strategy of driving revenue and profit from owning and operating hospitality assets over the long-term.”

This includes sharpening the brand offering through a recently re-launched online sales platform and loyalty programme.

Nevertheless, M&C said the trading outlook remains uncertain.

At 1000 BST, M&C shares were up 1.3% to 443.60p.