Millennium Hotels says Brexit causing recruitment problems
Group reports 28% fall in FY pre-tax profits
Hotel group Millennium & Copthorne said Brexit was impacting its ability to hire European Union nationals as full year profits fell 28% to £106m.
The company said EU workers made up more than half of its London workforce, where it Brexit concerns were having the greatest impact on recruitment.
Full-year reported revenue per available room fell to £81.57 from £82.78 a year earlier.
The company added that 2019 would be another “challenging” year for the Group, with significant capital projects underway and several large hotels earmarked for major renovations.
"The hospitality industry faced a range of geo-political and global economic headwinds in 2018, many of which look set to continue in the current year, including US/China trade relations, Brexit and increasing minimum wage levels in many jurisdictions," chairman Kwek Leng Beng said in a statement.
“The shortage of talent-from rank and file to senior management-is intensifying with many new hotels being built around the world, not to mention the growth of Airbnb and serviced apartments.”
“Any hospitality business that wants to progress will need to evolve and embrace these changes to stay relevant and profitable in the immediate and medium term. Restoring profitability in our New York hotels also remains at the top of the board's objectives.”