Millennium & Copthorne posts strong revenue in Q1, Singapore RevPAR slips marginally

LONDON - Millennium & Copthorne Hotels (M&C) posted its first quarter results for the three months to March 31 on Friday (May 5), with revenue per available room (RevPAR) rising 17.7 per cent to £70.66 (S$127.37) during the period, and total revenue improving 16.1 per cent to £223 million.

Singapore RevPAR slipped marginally by 0.9 per cent, although occupancy increased by 4.7 per cent points, but average room rate dropped by 6.3 per cent, the company said in a release.

"Group revenue improved during the first three months of 2017, particularly in London and New Zealand," said chairman Kwek Leng Beng.

"Singapore RevPAR continues to be under pressure as a result of increased room supply and uncertain economic conditions."

The hotel arm of Singapore's City Developments recorded a net profit in reported currency of £3 million in the first quarter of 2017, down by half from £6 million in the corresponding quarter a year ago.

For the three months ended March 31, M&C posted a profit before tax in reported currency of £13 million, a decline of 27.8 per cent from Q1 2016. However, total revenue rose 16.1 per cent to £223 million in Q1 2017 from the same quarter a year ago.

New York RevPAR was higher by 7 per cent, helped by improved trading at ONE UN New York after the completion of its refurbishment at the end of 2016. Despite improved revenues, the group's New York hotels made an overall loss in the quarter.

"Performance in Rest of Asia was negatively affected by geo-political tensions impacting inbound tourism into Seoul and Taipei," Mr Kwek said.