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Millennium & Copthorne has reported first half profits before tax of 6.9% to £58m during the first half of 2015.
This is according to the group’s first-half financial update in which it cited acquisitions and favourable exchange rates as the main factors. The group’s revenue rose 6.3% to £404m.
The group’s revenue per available room (RevPAR) grew 4% to £68.28 and its average room rate increased by 2.7% to £96.61, although its occupancy fell 1.2% to 70.7%.
Meanwhile, RevPAR for the group’s London hotels was down 4.2%, but excluding the Chelsea Harbour Hotel, London RevPAR decreased by 3.8%. The company said that lower RevPAR at the Millennium Bailey’s Hotel London was the largest factor in that decline due to the refurbishment of guestrooms which started at the end of last year.
Most of the other European hotels outside London posted RevPAR gains. Copthorne Hotel Aberdeen was the notable exception, with RevPAR falling due to reduced business from the oil and gas sector.
Kwek Leng Beng, chairman of the company, said: “The group continues to focus on its successful long-term strategy of owning and managing hotel assets. In the short-term, we see continuing pressure in our key hospitality markets with uncertainty in Asian economies, in the Middle East and in the Eurozone affecting business and leisure travel plans.”
