LONDON (Alliance News) - Millennium & Copthorne Hotels PLC posted a surge in profit for the third quarter, though London slowed down, as the deadline approaches for its majority shareholder to make a firm offer for the rest of the company.
Pretax profit for the quarter was up 20% to GBP55.0 million from GBP46.0 million at reported rates, and for the year so far rose by 16% to GBP118.0 million from GBP102.0 million the same period last year.
At constant currency, quarterly pretax profit rose 17% and for the year-to-date by 8.3%.
Revenue for the quarter, which ended September 30, rose 6.5% to GBP263.0 million from GBP247 million at reported currency and by 4.8% at constant currency.
For the year to date, revenue rose 13% at reported currency to GBP748.0 million from GBP665.0 million. At constant currency, this figure rose by 4.5%.
Revenue per available room, a key industry metric, for the quarter in London saw a 2.5% decrease, however, to GBP129.13 from GBP132.48. This compares to a rise in New York of 1.2% and a group rise for the period of 4.6% to GBP89.75 from GBP85.78.
The company did not give a reason for the slowdown in London but the quarter was the first full period since a number of terrorist attacks in the UK.
Millennium & Copthorne said the rise in group revenue was mainly due to the acquisition of Grand Millennium in Auckland, New Zealand, at the end of 2016, as well as the re-opening of the Millennium Hilton in New York, which was closed last year for refurbishment work.
The hotel operator did say, however, that excluding these two factors revenue for the year was flat.
Earlier this month, Millennium & Copthorne set out details of a takeover offer from City Developments Ltd. The offer is at a proposed price of 552.50 pence per share at a total of GBP1.79 billion.
The stock was quoted up 0.6% at 590.00p midday Monday, giving the company a market capitalisation of 1.92 billion, above the offer price.
Millennium & Copthorne's shares have risen sharply in October, with the stock at a price of 445.50p on October 6 rising to 560.00p at the close on October 9, the day the offer was announced.
The company recommended the offer from its controlling shareholder for the rest of the company. City Developments, as of October 18, owned 65.2% of M & C, and has until November 6 to make a firm offer or walk away.
Group revPar rose by 12% at constant currency for the first nine months of the year rose to GBP82.41 from GBP73.94, and by 4.0% at constant rates.
US revPar for the year-to-date rose 6.4% to GBP95.62 from GBP89.83 with occupancy increasing 4.2% and the average room rate flat. New York revPar grew 10% due to the Millennium Hilton re-opening. Excluding this, New York revPar grew 1.1% and the US total 1.8%.
In Europe, revPar for the first nine months was up 3.5% with London growing by 5.2% to GBP110.73 from GBP105.29 with increases in both the average room rate and occupancy. The figure for the rest of Europe for the year-to-date fell 0.2%.
Asian revPar for the nine months fell 2.1% to GBP70.84 from GBP72.37 and for Australasia this rose 23% due to the Auckland acquisition. On a like-for-like basis it nevertheless rose 7.8%.
Revenue from the company's hotels rose 12% at reported rates to GBP649.0 million for the year-to-date from GBP581.0 million and rose 4.0% at constant currency.
Property revenue rose 21% to GBP51.0 million from GBP42.0 million at reported rates and rose 8.5% at constant currency, whilst real estate investment revenue rose 14% to GBP48.0 million from GBP42.0 million and 6.7% at constant currency.
Since the period end, group revPar was up 1.8% for the three weeks to October 21. RevPar for New York and regional US were up 7.5% and 7.0% respectively, though London and the rest of Europe were down 1.7% and 5.0% respectively.
RevPar for Singapore was down 5.3% and in the rest of Asia down 0.8%, with Australasia posting revPar growth of 16%.