Millennium & Copthorne Hotels expects US and Asia to drive growth

Millennium & Copthorne Hotels PLC has managed a 45 percent increase in its full year earnings to £95.8 million under IFRS standards.

As per the information available, this figure for the year ending December 31, 2005 was well above the £91 million posted at the same time in the previous year.

The total revenue during the period increased by eight percent to £595.2 million as compared to £551 million posted in 2004. Millennium & Copthorne also said that the revenue per available room increased by 7.4 percent in 2005 to £46.73 as against the £43.50 reported in 2004.

The hotel group added that the room occupancy in 2005 was 73 percent as compared to 71.8 percent in 2004. The room rent in this period increased to £64.01 from £60.59 at the same time last year.

Millennium & Copthorne chief executive Tony Potter said the growth in US and Asian operations would be the driving force this year. “We see them particularly buoyant going forward. They will be significant drivers. We expect the progress we've made in 2005 to continue.”

Potter said trading in the first six weeks of the current year has continued the positive trends seen in 2005. Revenue per available room (RevPAR) rose by 7.4 percent in 2005, and has accelerated to 9.4 percent in the period to February 14.

In terms of revenue, the US contributes 35 percent, while Asia accounts for 26 percent, Europe 18 percent and Australasia the remaining 21 percent, including a substantial land bank in New Zealand.