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Annual Results

Millennium & Copthorne's FY pretax profit slips

19 February 2016 07:17

Millennium & Copthorne has booked a FY pretax profit of GBP109m, from a year-ago's profit of GBP188m. Revenue was GBP847m, from GBP826m. Dividend was 6.42p a share, from 13.59p.

RevPAR came in at GBP71.98, against GBP71.55.

Chairman Kwek Leng Beng commented:

"In 2015, global hospitality markets were impacted by falling commodity prices, mounting concern with regard to terrorism, health advisory travel alerts and uncertainty regarding growth of the Chinese market.

"These external factors, which negatively affected the year's performance, are expected to continue in the current year.

"Although the short term trading outlook is uncertain, the Group has a long term perspective. Management considers that asset ownership is key to creating long term value in a changing hospitality industry landscape. The Group will therefore continue to focus on its strategy of ownership and management of hospitality real estate assets.

"In 2016, management will work on optimising returns on the Group's assets by undertaking refurbishment projects, whilst remaining vigilant with regard to controlling costs."


· The main contributor to the reduction of 1.3% in RevPAR was the performance of the Group's Asian hotels, where RevPAR fell by 9.0% across Singapore and Rest of Asia combined. London and New York also saw RevPAR declines during 2015, due mainly to the impact of refurbishments at Millennium Bailey's Hotel London and ONE UN New York respectively.

· Revenue for 2015 increased by 2.5% to £847m (2014: £826m) reflecting contributions from hotel acquisitions and the opening of Millennium Mitsui Garden Hotel Tokyo in December 2014, together with favourable foreign exchange movements.

· As previously announced, the Group has recognised a net charge of £43m against pre-tax profits in 2015. This net charge includes £76m of impairment losses relating primarily to four of the Group's properties located in New York, Rest of Europe and Rest of Asia; offset by net revaluation gains of £33m on its investment properties.

· In the first 31 days of trading in 2016 Group RevPAR decreased by 5.9%, with Europe down by 10.1%, the US down by 10.9% and Asia down by 3.6%. RevPAR for Australasia increased by 20.7%.

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