Millennium & Copthorne Hotels posts net profit of £3 million in Q1

LONDON-LISTED Millennium & Copthorne Hotels (M&C) recorded a net profit in reported currency of £3 million (S$5.4 million) in the first quarter of 2017, down by half from £6 million in the corresponding quarter a year ago.

For the three months ended March 31, the hotel arm of Singapore's City Developments Limited posted a profit before tax in reported currency of £13 million, a decline of 27.8 per cent from Q1 2016. However, total revenue rose 16.1 per cent to £223 million in Q1 2017 from the same quarter a year ago.

In constant currency, group revenue per available room (RevPAR) inched up 4.6 per cent with increases in both occupancy and average room rate of 2.9 percentage points and 0.3 per cent respectively. In reported currency, group RevPAR jumped 17.7 per cent.

Singapore RevPAR slipped marginally by 0.9 per cent. While occupancy rose 4.7 percentage points, average room rate dropped by 6.3 per cent.

London RevPAR growth of 14.5 per cent reflected the lower pound boosting tourist numbers and a weak comparative quarter in the previous year.

New York RevPAR was higher by 7 per cent, helped by improved trading at ONE UN New York after the completion of its refurbishment at the end of 2016. Despite improved revenues, the group's New York hotels made an overall loss in the quarter.

M&C chairman Kwek Leng Beng said: "Group revenue improved during the first three months of 2017, particularly in London and New Zealand. Singapore RevPAR continues to be under pressure as a result of increased room supply and uncertain economic conditions.

"Performance in Rest of Asia was negatively affected by geo-political tensions impacting inbound tourism into Seoul and Taipei.

"Poor performance in the US region especially New York, remains a concern. We are addressing the issues contributing to the under-performance in this region, and our immediate focus is on the US management structure which is currently under review."