Millennium & Copthorne posts robust FY earnings

Millennium & Copthorne posts robust FY earnings

	Published : Wed, 22 Feb 2006 01:55 By : Cedric Benson Print this Story

LONDON - Millennium & Copthorne Hotels PLC has posted a 45 percent increase in its full year earnings to £95.8 million under IFRS standards. This figure for the year ending December 31,2005 was well above the £91 million posted at the same time in the previous year.

The hotel group, which controls 91 hotels spread across Europe, the Americas, Middle East, Asia and New Zealand, also announced that the total revenue during the period increased by 8 percent to £595.2 million as compared to £551 million posted in 2004.

The hotel operating profit rose by 22 percent to £106.7 million as compared to £87.4 million at a corresponding period in 2004. The overall group operating profits increased by 17 percent to £99.6 million as against £85.2 million posted in 2004. Millennium & Copthorne also said that the revenue per available room increased by 7.4 percent in 2005 to £46.73 as against the £43.50 reported in 2004.

The hotel group added that the room occupancy in 2005 was 73 percent as compared to 71.8 percent in 2004. The room rent in this period increased to £64.01 from £60.59 at the same time last year. Millennium & Copthorne chief executive Tony Potter said that all four regions had improved strongly, adding that the growth in US and Asian operations would be the driving force this year.

"We see them particularly buoyant going forward. They will be significant drivers. We expect the progress we've made in 2005 to continue," Potter told reporters in a conference call. Group Chairman Kwek Leng Beng said that the profits were a reflection of the successful strategy of owning as well as operating hotels, "We have undoubtedly benefited from our twin strategy of both operating and owning hotels worldwide," he said.

Kwek added that M&C was not big enough to dispose off the property assets and operate as a hotel management chain, "For our size, it would not be sustainable. It is not sustainable if you do not have critical mass," he said. M&C said that it would raise its dividend by 23 percent to 7.7 pence over what it paid out in 2004.