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Millennium & Copthorne Hotels has reported a 9.3% fall in profits before tax in the first nine months of 2015 when compared with the same period last year.
The results, which follow a strong first half for the group, were hit by poor Q3 results – a 28% fall in profit before tax and a 2.8% fall in revenue.
Despite this revenue in the nine months increased in the period to £615m, but revenue per available room (RevPAR) fell by 2.3% compared with 2014.
Millennium & Copthorne said the RevPAR decline was due to a 9.6% fall in Asia in the third quarter, while the closure of its Millennium Bailey’s hotel in London also hit room revenue.
Meanwhile, average room rate increased by 2.5% during the first nine months of the year to £98.51 while occupancy fell 2% to 72.2%.
Chairman Kwek Leng Beng said: “Revenue and profit were lower in the third quarter because of weaker performance by our hotels in Singapore and Rest of Asia.
“The long-planned upgrades of Millennium Hotel London Mayfair and Millennium Hotel London Knightsbridge are under consideration to commence in 2016 pending final approvals. These projects are designed to re-position both properties to appeal to higher yielding customers and, once completed, are expected to deliver considerable benefits to the group.”
