Millennium & Copthorne unveils improved interim performance

Millennium & Copthorne Hotels (M&C) has announced an improved performance during the first half of the year, with strong improvements in revenue and profits.

Group revenue per available room (revpar) rose 9.3% from January to June 2010, led by high growth rates in Singapore (33.3%), New York (13.5%) and the rest of Asia (11.7%).

Revpar growth across all of the group's trading areas was greater in the second quarter (14.7%) than the first (3.2%).

London increased revpar by 1.7% during the first six months of the year to £81.16, with 5.6% growth to £91.28 in the second quarter. This partly reflects London's relatively strong performance during the first half of 2009, compared to other regions, when revPAR fall was minimal.

Management focused on a rate-led strategy, resulting in a 4% fall in occupancy and a 6.8% rate gain for the six months as a whole.

The capital's slower growth, compared to the rest of the world, was partly attributable to the impact of the reduction in aircrew business, the firm said.

Excluding airline business in the region, London revpar grew by 10.3% in the first six months compared to the same period last year.

"Recovery in profits demonstrate continuing and effective cost management discipline amidst better trading conditions," said M&C chairman, Kwek Leng Beng. "Although these figures are very strong, we are mindful of the considerable macro-economic uncertainty over the next 12 to 18 months, especially in Europe and the US.

"We will therefore continue to be cautious in our approach, maintaining a tight rein on costs and testing very carefully our investment plans."

M&C currently has 120 hotels in 19 countries across the world, with 20 properties in the UK. The 21st UK hotel - the 224-bedroom Southampton Ocean Village - is due to open at the end of 2011 or early 2012.

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By Janet Harmer

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