Economic uncertainty puts dent in M&C profits

Economic uncertainty puts dent in M&C profits

Millennium & Copthorne Hotels saw pre-tax profits decline by 12% to £53.1 million in the three months to June over the same period last year.

This was despite a 4.5% improvement in revenue per available room driven by increased average room rates.

Total revenue was up by 3.1% to £197.3 million in the hotel operator's second financial quarter to June 30.

M&C attributed the decline in pre-tax profits to a £17.4 million profit achieved in May 2011 due to the sale and leaseback of Studio M in Singapore.

The company revealed that RevPAR in London dropped by 12.5% in July, due in part to a slowdown in visitor numbers ahead of the Olympic Games.

Chairman Kwek Leng Beng said: “Whilst trading is still in line with management expectations, the hospitality industry cannot be immune to the on-going euro crisis and global economic uncertainty.

“The strengthening of our management team, together with our excellent financial position, increases our ability to manage the challenges of an uncertain economic outlook and to take advantage of the strategic opportunities which the present environment is likely to offer.”

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