Global hotel operator, Millennium & Copthorne has reported revenue and profit decreased in the first half of 2014, compared to the same period last year, due to the strengthening pound sterling, challenging Asian markets - in particular Singapore - and higher costs.
Pre-tax profit for the six months to 30 June 2014 fell 14.9% to £58.4m (2013: £68.6m), while revenue was down 0.4% to £380.6m from £382.2m for the same period last year.
Revenue per available room (revpar) was down 2.4% at £65.7m from £67.3m, which the company blamed on the impact of foreign currency and challenging Asian markets.
The group's London region revpar was up by 1.9% compared to H1 2013. Excluding the acquisition of The Chelsea Harbour Hotel, revpar was down 0.6%.
Chairman Kwek Leng Beng said, “It is too early to predict results for the full year, but the Group is cautiously optimistic that with appropriate actions performance will meet management expectations.
'Group performance was disappointing in the first half of 2014. This was due to a broad range of factors including geopolitical events unsettling the hospitality sector - especially in Asia - and the rapid appreciation of our reporting currency, the pound sterling.
'Management is adopting a more cautious outlook and increasing its attention to cost control in uncertain markets.”