Profits soar at Millennium & Copthorne

By THIS IS MONEY
Updated:

 

Hotel owner Millennium & Copthorne posted soaring profits today and said business in the build up to Christmas started well.

Millennium & Copthorne hotel doorman

Millennium said pre-tax profits were up 39% to £23.2m between July and September after a particularly good performance in London, New York and Singapore.

It also said revenues per room were up 11.6% on a like-for-like basis in the first 28 days of October as it prepared for a good run to the end of the year.

The Surrey-based company benefited from the sale of three Singapore hotels and their subsequent lease back during the third quarter.

Chairman Kwek Leng Beng said: 'We have delivered a strong set of results for the third quarter, particularly in London, New York and Singapore.

'The sale of long leasehold interests in three of our Singapore hotels demonstrates our ability to unlock value and create a platform to accelerate further portfolio growth.'

He added: 'The final quarter has begun well with group revenues per available room for the first 28 days of October up by 11.6% on a like-for-like basis.

'Trading for the full year remains in line with expectations.'

The rise in profits came as revenues lifted 6.5% to £156.1m in the third quarter. Revenues per room were up 20.9% in London while New York lifted 10.7% and Singapore jumped 31.4%.

For the nine months of the year so far, group revenues were up 9.6% to £468.8m while pre-tax profits were 37.2% higher at £59m.

The sale of the hotels in Singapore to CDL Hospitality Trusts generated £10.1m of profits in the third quarter. It also raised £210.6m in cash of which £78m was reinvested as Millennium took a 39.1% stake in CDL.

Millennium said its vacant chief executive post has attracted 'considerable interest' with the company now looking at 'an impressive selection of applicants'.

The firm, which has more than 100 hotels worldwide, said it will make an appointment as soon as possible and added that it will go to someone from outside the company.

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