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Millennium & Copthorne Q2 pre-tax profit up 22%; declares interim dividend of 2.08p
LONDON-LISTED Millennium & Copthorne Hotels (M&C) posted a profit before tax of £50 million (S$89.2 million) in the second quarter ended June 30, up 22 per cent year-on-year in constant currency terms.
The hotel arm of Singapore's City Developments Limited revenue went up by 6.1 per cent to £262 million from a year ago, with increased contributions from hotel trading and property, offset by reduced revenue from CDL Hospitality Trusts.
In constant currency terms, group revenue per available room (RevPAR) grew by 5 per cent to £86.64.
An interim dividend of 2.08p per share was declared for the first half.
Chairman Kwek Leng Beng noted the improved results in the first half of 2017, but said that there is "continuing pressure" on the profitability of hotel operations, particularly in North Asia and New York.
He also acknowledged that the New York region was underperforming.
He said: "As part of our regional strategy, the group has agreed a contract with Hilton for the management of One UN New York which will be re-branded as the Millennium Hilton New York One UN Plaza from Aug 30. In addition, management changes are currently underway, with increased focus on sales, costs and controls. These are significant steps in our strategy to strengthen our US operations."