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Trading statements

MLC sees Q1 pretax profit, RevPAR slip

05 May 2016 07:46

Millennium & Copthorne saw its Q1 pretax profit fall 5.3% to GBP18m, from GBP19m, while RevPAR in reported currency was down 2.6% to GBP60.02, from GBP61.6. It said the trading outlook remains uncertain.

Total revenue rose 1.6% to GBP192m, from GBP189m, but the contribution from hotels fell 2.9% to GBP165m, from GBP170m.

Chairman Kwek Leng Beng commented:

"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.

"The Group 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 as well as seeking ways to increase revenue from F&B and M&E, which are not included in RevPAR measurement and represent a substantial portion of the Group's hotel revenue. The trading outlook however remains uncertain."

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