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Thursday 9th September, JW Marriott Grosvenor House
ExCeL London - 30 Sep - 01 Oct 2021
18 October 2021 - Virtual
Millennium & Copthorne Hotels has increased its average room rate in London by 3.5% in the first nine months of 2014, helped by the acquisition of the Chelsea Harbour Hotel.
M&C’s London hotels saw a 2.8% rise in average rates from £126.28 last year to £129.86 in 2014, according to the company’s latest management statement to the London Stock Exchange.
Prices in the UK capital were boosted by the takeover of the all-suite Chelsea Harbour Hotel in March. The property, which was previously branded as a Wyndham hotel, “commands higher average room rates than other group hotels in London”.
For the first nine months of the year, the company recorded a 1.9% rise in total revenue to £596.5 million although pre-tax profit fell by 6.1% year-on-year to £108.6 million, partly due to the strength of the pound and a lower return from joint ventures.
The London-based company saw average room rates across its global hotels increase by 3.6% to £94.15 between January and September, compared with £90.86 for the same period last year when currency changes have been stripped out.
M&C is continuing to expand with the acquisition of its first hotel in Rome completing earlier this month. The 87-room hotel, formerly known as the Boscolo Palace Roma, has been renamed as the Grand Hotel Palace.
The company is also due to open the Millennium Mitsui Garden Hotel Tokyo in Japan on December 17. While the former Millennium Resort and Villas Scottsdale in Arizona has reopened as The McCormick Scottsdale following a three-month renovation of its 125 suites and rooms.
But M&C has decided not to renew the lease on Copthorne Hotel Hannover which ends on December 31 because the property has “historically been unprofitable”.
Chairman Kwek Leng Beng said: “Our newly acquired hotels contributed to revenue and profit in the third quarter, together with the return of refurbished rooms to inventory and stronger trading in regional US and New Zealand.
“Together, these factors helped to improve performance for the group as a whole despite challenges and economic uncertainties in some of our key markets and the continuing negative impact on reported currency results of a strong pound sterling.”