Millennium & Copthorne's Profit, Room Revenue Fall As Renovations Hurt
Britain's Millennium & Copthorne Hotels Plc has said that group revenue per room fell in the first quarter as ongoing renovations kept its major hotels in London and Singapore partially or fully closed.
The company, which is 65% owned by Singaporean billionaire chairman Kwek Leng Beng's City Developments, said profit before tax fell to £11 million from £26 million last year.
The company, whose CEO, Jennifer Fox, departed suddenly in September after just three months in the role, said its search for a permanent top boss was underway.
Another Challenging Year
The operator of the Millennium, Grand Millennium, Copthorne and Kingsgate hotels has flagged 2019 as another challenging year, with significant capital-heavy projects underway and several large hotels earmarked for major renovations.
"Despite the uncertainties and challenges in the global economy, we remain focused on making the best use of our hospitality assets," Kwek Leng Beng said in a statement.
Group revenue per available room was down 0.9% at £70.01 for the quarter that ended on March 31, while revenue fell 4% to £215 million on a constant currency basis.
Ongoing renovation at its Mayfair hotel in London had already lowered revenue by £20 million in 2018. It is looking to rebrand and open the hotel again by mid-2019.
"The group is prioritising the refurbishment of our key gateway city properties to reposition our hotels, whilst seeking to minimise the short-term negative impact on our trading results," Leng Beng added.