Login to UKBP
Commercial Property News
Millennium & Copthorne Hotels FY2009 pre-tax profits fall 20% to £81.9 million
Millennium & Copthorne Plc., the UK-based global hotel operator, today announced a better than expected outcome to 2009 but the RevPAR was down only 8% on last year as average room rates across the world dropped 10%, resulting in a 20% fall in pre-tax profits to £81.9 million on revenues of £654 million.
The firm operates the Millennium branded 4 & 5 star hotels and the 3 star Copthorne brand. RevPAR was most hit in New York, where it collapsed to £118.62 from £165.30 in 2008 and Singapore where the % fall was greatest at 31.8% with a RevPAR of £58.84, compared to London, where RevPAR increased 1.9% to £86.91.
During the year the Group opened three new hotels under management contract; one in Europe (the 158-room Copthorne Hotel Sheffield), and two in China. The Group also announced the signing of a further 15 management contracts, with two in the UK, six in the United Arab Emirates, three in Iraq, two in Saudi Arabia, one in Yemen and one in Taiwan. These properties are due to open between 2010 and 2013 and account for 4,368 additional rooms, bringing the number of rooms in the Group's worldwide pipeline to 8,361 rooms (27 hotels).
Mr Kwek Leng Beng, Chairman said:
"As I noted in our third quarter statement, we were anticipating stronger demand towards the year end and the actual results for the fourth quarter have exceeded our expectations. For the year as a whole the results are very pleasing owing, in large part, to tough, prudent and analytical management which has served us well in navigating through stormy seas to calmer waters. We have benefitted from ownership of a wide geographical spread of properties which has smoothed the overall impact of the economic crisis.
Over the past few years we have actively, and consistently, reduced the Group's debt profile and, through such foresight, now have gearing of 11.6% which is substantially lower than the hospitality sector generally. Through a combination of rigorous cost control, a focus on maximising returns on our assets and an enviable balance sheet we are now finely positioned to tackle any challenges and to grasp new opportunities."
The firm operates the Millennium branded 4 & 5 star hotels and the 3 star Copthorne brand. RevPAR was most hit in New York, where it collapsed to £118.62 from £165.30 in 2008 and Singapore where the % fall was greatest at 31.8% with a RevPAR of £58.84, compared to London, where RevPAR increased 1.9% to £86.91.
During the year the Group opened three new hotels under management contract; one in Europe (the 158-room Copthorne Hotel Sheffield), and two in China. The Group also announced the signing of a further 15 management contracts, with two in the UK, six in the United Arab Emirates, three in Iraq, two in Saudi Arabia, one in Yemen and one in Taiwan. These properties are due to open between 2010 and 2013 and account for 4,368 additional rooms, bringing the number of rooms in the Group's worldwide pipeline to 8,361 rooms (27 hotels).
Mr Kwek Leng Beng, Chairman said:
"As I noted in our third quarter statement, we were anticipating stronger demand towards the year end and the actual results for the fourth quarter have exceeded our expectations. For the year as a whole the results are very pleasing owing, in large part, to tough, prudent and analytical management which has served us well in navigating through stormy seas to calmer waters. We have benefitted from ownership of a wide geographical spread of properties which has smoothed the overall impact of the economic crisis.
Over the past few years we have actively, and consistently, reduced the Group's debt profile and, through such foresight, now have gearing of 11.6% which is substantially lower than the hospitality sector generally. Through a combination of rigorous cost control, a focus on maximising returns on our assets and an enviable balance sheet we are now finely positioned to tackle any challenges and to grasp new opportunities."
Fri, 19th Feb 2010