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Millennium & Copthorne reports half-year profit rise

A higher contribution from joint ventures and associates and lower costs helped push up half-year profits at Millennium & Copthorne Hotels.

The pre-tax profit was up by £4 million to £62 million in the six months to June 30 over the same period last year.

However, the company’s chairman cautioned about short-term pressures, with revenue per available room in hotels in Asia falling by 10.3%.

Kwek Leng Beng said: “The group continues to focus on its successful long-term strategy of owning and managing hotel assets. In the short-term, we see continuing pressure in our key hospitality markets with uncertainty in Asian economies, in the Middle East and in the Eurozone affecting business and leisure travel plans.”

Half-year revenue increased by 6.3% to £404 million mainly as a result of acquisitions in 2014, together with favourable foreign exchange movements.

Group revpar increased by 0.8% to £68.28 with the average room rate up by 2.7% to £96.61.

M&C said good progress had been made on hotel refurbishments, including Millennium Bailey’s Hotel London and completion of work at Millennium Alaskan Hotel Anchorage, now re-branded as The Lakefront Anchorage.

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