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Millennium & Copthorne London revenues drop in first quarter

The partial closure of a key London hotel and currency exchange losses dented the hotel group's first quarter

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Hotel revenue reduced 2.1% to £187mln

Millennium & Copthorne Hotels PLC (LON:MLC) updated on a first quarter that was affected by the refurbishment of a key property, the Millennium Hotel London Mayfair.

Hotel revenue reduced 2.1% to £187mln for the three months ended March 31, while RevPAR (revenue per available room) was down 3.1% to £68.48.

Stronger pound also impacted revenue

The company said the partially-closed Mayfair property is “normally a significant revenue contributor” and impacted the group’s overall performance in London.

Meanwhile, the revenue figure was also impacted by a currency exchange loss of £11mln, as a result of a comparatively stronger British pound. On a constant currency basis, the company highlighted a 3.9% rise in hotel revenue, thanks to higher contribution from hotels in New York and Auckland.

Total group revenue amounted to £217mln for the quarter, down £6mln or 2.7%, including a £13mln currency loss.

Quarterly profit before tax increased by £13mln to £26mln, including a £3mln gain from hotel disposals and higher contributions from associate companies.

"Performance over the first three months of the year was mixed,” said Kwek Leng Beng, Millennium & Copthorne chairman.

“London declined and Europe is showing indications of weakness, whilst our Millennium Broadway New York hotel continues to hold back overall trading performance in New York. 

“More positively, Asia showed some signs of a recovery and New Zealand continued to perform well.”

The chairman highlighted that the group is “on track to move forward” with a number of significant capital investment projects this year.

Quick facts: Millennium & Copthorne Hotels plc

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