Millennium & Copthorne performance in Q1 hurt by renovations

BENGALURU • Britain's Millennium & Copthorne Hotels said yesterday 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, 65 per cent owned by Singaporean billionaire chairman Kwek Leng Beng's City Developments, said profit before tax fell to £11 million (S$19.5 million) from £26 million last year.

The company, whose chief executive officer Jennifer Fox departed suddenly in September after just three months in the role, said its search for a permanent top boss was under way.

The operator of the Millennium, Grand Millennium, Copthorne and Kingsgate hotels has flagged this year as another challenging year, with significant capital-heavy projects under way 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," Mr Kwek said in a statement.

Group revenue per available room was down 0.9 per cent at £70.01 for the quarter ended March 31, while revenue fell 4 per cent to £215 million on a constant currency basis.

Ongoing renovation at its Mayfair hotel in London had already lowered revenue by £20 million last year. It is looking to rebrand and open the hotel again by mid-2019.

REUTERS

A version of this article appeared in the print edition of The Straits Times on May 11, 2019, with the headline 'Millennium & Copthorne performance in Q1 hurt by renovations'. Print Edition | Subscribe