Brexit, trade tensions hit Millennium & Copthorne

Millennium & Copthorne Hotels on Friday said global trade tensions and Brexit contributed to a sharp fall in third-quarter pre-tax profits.

The company reported a 38.2% decrease to £34m. Revenue fell 3.8% to £253m and revenue per available room (RevPAR) was 2.8% lower to £87.23m.

In constant currency RevPAR fell by 0.4%, mainly reflecting a stronger pound sterling against the group's main trading currencies.

Chairman Kwek Leng Beng said the hospitality sector was facing “challenging trading conditions, including significant supply growth, technological ‘disruption’, industry consolidation and rising minimum wage requirements and labour costs in key jurisdictions”.

“These challenges, which are impacting the availability of talent and reducing margins, are exacerbated by geopolitical headwinds, such as the uncertainty surrounding Brexit and global trade tensions.”