Millennium & Copthorne Hotels has today reported that Group RevPAR for the first quarter of 2018 fell by 3.1% to £68.48 (Q1 2017: £70.66). In constant currency, RevPAR increased by 3.2%.
Reported hotel revenue decreased by 2.1% to £187m (Q1 2017: £191m). Exchange loss arising from the stronger pound was £11m and this reduced the Group's reported hotel revenue.
The London performance of its seven hotels was affected by the partial closure to-date of the Millennium Hotel London Mayfair (pictured) during refurbishment, which is normally a significant revenue contributor for the region, together with slower trading at other London hotels.
In constant currency, hotel revenue increased by 3.9% with higher contributions from Millennium Hilton New York One UN Plaza (re-branded in August 2017) and M Social Auckland (opened in October 2017).
The total revenue for Q1 2018 fell by £6m or 2.7% to £217m (Q1 2017: £223m), including foreign exchange loss of £13m.
Profit before tax for the first quarter of 2018 increased by £13m to £26m (Q1 2017: £13m). Included in the Group pre-tax profit for this quarter is the gain from the disposal of two Australian hotels for £3m.
Kwek Leng Beng, Chairman, commented, 'Performance over the first three months of the year was mixed. London declined and Europe is showing indications of weakness, whilst our Millennium Broadway New York hotel continues to hold back overall trading performance in New York. More positively, Asia showed some signs of a recovery and New Zealand continued to perform well.
' We are on track to move forward on a number of significant capital investment projects this year, designed to improve returns on Group assets. We also remain alert to acquisition opportunities.'
He added, 'Following the close of the first quarter the Group announced the appointment of Jennifer Fox as Group Chief Executive Officer. Ms Fox, who will join the Group on 19 June 2018, has 30 years of experience in the global hospitality industry and has held senior executive roles in operations, branding and marketing across mid-scale, upscale and luxury segments of the industry.'