Millennium & Copthorne H1 lower on refurbishments; revPAR up

Takeover target Millennium & Copthorne Hotels said refurbishment at its Mayfair and Orchard hotels hit first half profits, although revenue per available room (revPAR) rose during the period.

RevPAR in the second quarter was £85.55, up 1.1% year on year on a constant currency basis, while for the half year it rose rose 0.2% to to £77.82.

Pre-tax profits fell to £46m from £65m on revenues for the six months to June 30 of £472m, down from £477m a year earlier.

For the first 21 days of July 2019, like-for-like group revPAR increased by 1.6% year-on-year.

The Mayfair hotel has been closed since July 2018 and was expected to re-open next month while the Orchard Hotel Singapore had been closed on a phased basis since the final quarter of 2018 and refurbishment work completed last month.

The total impact of the shutdowns was a reduction in revenue and profit by £7m and £6m respectively, the company said on Friday.

Millennium & Copthorne in June agreed a 685 pence per share cash takeover offer from City Developments which meant the company did not recommend a dividend.