2012
11/07

Category:
Revenue

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UPDATE 1-M&C Hotels room revenue falls on weakness in Asia

* Hotels revenue down 4 pct in third quarter

* Singapore RevPAR down 1.6 pct

* Group RevPAR up 2.6 pct

* Shares down nearly 4 pct

By Karen Rebelo

Nov 2 (Reuters) – Millennium Copthorne Hotels Plc
reported a fall in third-quarter average revenue per room in its
hotels in Asia, its biggest market, and said it remained
cautious about the outlook in an uncertain global economy.

Shares in the company, whose hotel brands include
Millennium, Grand Millennium, Copthorne and Kingsgate, fell
about 4 percent on the London Stock Exchange on Friday.

MC Hotels reported a 1.6 percent fall in revenue per
available room (RevPAR) in its Singapore market, which accounted
for about a fifth of its revenue in the quarter.

For sure (in) Singapore, which is our biggest contributor
to the Asia performance, there has been a slowdown, Chief
Executive Wong Hong Ren said in a call with reporters.

Along with subdued corporate spending in Singapore, demand
in Asia was hurt by renovations at the Grand Hyatt hotel in
Taipei, which involved closing more than 500 rooms, MC said.

Excluding Singapore, RevPAR fell 0.7 percent in Asia, which
contributed a little over 18 percent of the companys revenue.

Group RevPAR grew 2.6 percent, boosted by a 20.2 percent
increase in London, home to the 2012 Olympics.

MC, majority-owned by Chairman Kwek Leng Bengs
Singapore-based property company City Developments Ltd
, said total revenue fell 21 percent to 191.2 million
pounds, while revenue from hotels fell 4 percent to 187.7
million pounds.

July-September profit before tax fell 45 percent to 38.1
million pounds ($61.50 million) on a reported currency basis.

Profit in the year-ago quarter included a 33.8 million pound
gain from land sale in Kuala Lampur.

The company said it had not yet fully assessed the impact of
superstorm Sandy on its operations in New York, where its
properties include the Premier in Times Square, One UN and the
Millennium Broadway.

Shares in MC, which operates over 100 hotels around the
world, were down at 492 pence at 1217 GMT on the London Stock
Exchange on Friday.

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