Millennium & Copthorne sees decline in revenue despite rise in RevPAR

Total full year revenue at Millennium & Copthorne Hotels declined by 6.4 per cent despite an increase in revenue per available room (RevPAR).

Total full year revenue at Millennium & Copthorne Hotels declined by 6.4 per cent despite an increase in revenue per available room (RevPAR).

Total revenue fell from £820.5m to £768.3m, while RevPAR on a constant currency basis rose 3.9% from £64.81 to £67.32. Revenue from hotels only dropped 2.1%, while headline operating profit slid 14.7% to £163.3m.

Headline profit before tax declined 14.6% to £157.7m.

However, the dividend was increased to 13.59p from 12.50p a year earlier.

The group's Chairman gave an upbeat statement, saying: "The group increased RevPAR, kept firm control of costs and strengthened its financial position in 2012. Revenue and headline pre-tax profit increased on a like-for-like, constant currency basis, and our hotels achieved good operating profit margins.

"Our asset management programme is building momentum and laying a strong foundation for future growth, supported by further strengthening of the management team.

"Our operating strategy was consistent with previous years, with sales teams focused on achieving an optimal balance between occupancy and average room rate across the estate.

"Management continued to achieve good levels of profitability despite a more challenging trading environment in the second half of 2012, with some regions seeing signs of economic uncertainty affecting personal and corporate hospitality budgets. Our consolidated hotel gross operating profit margin for the year was 38.5% (2011: 38.7%)."

More to follow...

NR

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