Weak pound boosts Millennium & Copthorne's London revpar
Millennium & Copthorne Hotels saw London revpar growth of 14.5% in its first quarter trading update to 31 March released this morning.
The report suggests the results reflect the lower pound boosting tourist numbers and a weak comparative quarter in the previous year.
Revpar for London grew to £86.90 (Q1 2016: £75.89), with increases in both average room rate and occupancy in line with the general market, and a significantly higher contribution from the Bailey's hotel in London following its refurbishment last year.
In constant currency, group revpar grew by 4.6% to £70.66 with increases in both occupancy and average room rate of 2.9% and 0.3%, respectively.
Total revenue for the group increased 16.1% from £192m Q1 2016 to £223m Q1 2017. Profit before tax fell by £5m, or 27.8%, for the period.
Europe revpar for Q1 2017 increased by 8.9% to £65.97, reflecting a better start to the year compared with Q1 2016 when the region was affected by terror attacks in Paris and Brussels.
Phased refurbishments of the Millennium Hotel London Mayfair and Millennium Hotel London Knightsbridge are planned to commence later this year.
Chairman Kwek Leng Beng said: "Group revenue improved during the first three months of 2017, particularly in London and New Zealand. Poor performance in the US region especially New York, remains a concern. We are addressing the issues contributing to the under-performance in this region and our immediate focus is on the US management structure, which is currently under review."
Millennium & Copthorne has 21 hotels in the UK: 12 under the Copthorne brand, six Millennium hotels and three unbranded, the Bailey's and Chelsea Harbour hotels in London and Hard Days Night in Liverpool.
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