Millennium & Copthorne

Millennium & Copthorne's short-term outlook "uncertain"

RevPAR was down 3.7% year-on-year as the global hopsitality market was hit by falling commodity prices and terrorist fears

In the first 31 days of trading in 2016 group RevPAR decreased by 5.9%

Hotels group Millennium & Copthorne (LON:MLC) halved its full-year dividend after a disappointing end to 2015.

The full-year pay-out was reduced to 6.42p from 13.59p the year before, as profit before tax in the fourth quarter slumped to £109mln from £188mln the year before.

Revenue per available room (RevPAR), one of the key performance indicators in the hotels business, fell 3.7% to £73.64 from £76.48 in the fourth quarter of the previous year.

Fourth quarter revenue for the group rose 1.3% to £232mln from £229mln the year before.

“"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,” warned Kwek Leng Beng, chairman of the Millennium & Copthorne.

“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," he added.

Shares tumbled 6.9% to 363.3p in early trading.

Quick facts: Millennium & Copthorne

Price: £6.85

Market: LSE
Market Cap: £2.23 billion

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