Millennium & Copthorne has seen a sharp increase in profits during the first half of the year as the London-based hotel chain continues to recover from the recession.
Headline operating profit at the chain increased from £38.4 million in the first half of 2009 to £60.2 million this year, while total revenue was up 8.7 per cent to £350.5 million.
Average RevPAR across the company’s operations increased from £51.86 to £57.66, with growth reported in all regions except for regional United States which showed a marginal decline.
The results maintain the strong performance recorded during the first quarter.
Despite the strong performance, Millennium & Copthorne chairman, Kwek Leng Beng, remained cautious.
“Although these figures are very strong, we are mindful of the considerable macro-economic uncertainty over the next twelve to eighteen months, especially in Europe and the United States,” he said.
“We will therefore continue to be cautious in our approach, maintaining a tight rein on costs and testing very carefully our investment plans.”
Following the release of the results the board declared an interim dividend of 2.08p -unchanged from 2009.
The group said it continued to strengthen its balance sheet, reducing net debt to £182.1 million from £202.5 million at the end of December and reducing gearing to 9.8 per cent from 11.6 per cent.
Millennium & Copthorne presently operates 103 hotels under the Grand Millennium, Millennium, Copthorne and Kingsgate brands.
Key markets include China, New York, New Zealand and London.
Millennium & Copthorne has also moved today to clarify its position regarding a report in the Business Times of Singapore.
The article speculated land in Kuala Lumpur which is owned by a wholly owned subsidiary of M&C is to be sold for a new record price.
In response the company said: “The group will continue to consider its available options in respect of this site and is not in a position currently to make any further comment.
“If and when any agreement has been entered into for the sale of this site, further announcements will be made as appropriate.”