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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Millennium & Copthorne Hotels Plc | LSE:MLC | London | Ordinary Share | GB0005622542 | ORD 30P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 687.00 | 685.00 | 689.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMMLC
RNS Number : 1152G
Millennium & Copthorne Hotels PLC
02 November 2018
For Immediate Release 2 November 2018
MILLENNIUM & COPTHORNE HOTELS plc
TRADING UPDATE
Nine months and third quarter results to 30 September 2018
LEI: 2138003EQ104LZ1JNH19
Nine months 2018:
Hot Features
Premium
Reported Currency Constant Currency
9 mths 9 mths Change 9 mths Change
2018 2017 2017
------------ ------------------------- ----------- --------------------------
RevPAR GBP79.26 GBP82.41 GBP(3.15) (3.8)% GBP79.56 GBP(0.30) (0.4)%
------------ ------------ ------------- ---------- ----------- ------------ ------------
Revenue - total GBP730m GBP748m GBP(18)m (2.4)% GBP722m GBP8m 1.1%
------------ ------------ ------------- ---------- ----------- ------------ ------------
Revenue - hotel GBP627m GBP649m GBP(22)m (3.4)% GBP627m - -
------------ ------------ ------------- ---------- ----------- ------------ ------------
Profit before tax
(Note 1) GBP99m GBP118m GBP(19)m (16.1)% GBP114m GBP(15)m (13.2)%
------------ ------------ ------------- ---------- ----------- ------------ ------------
Third quarter 2018:
Reported Currency Constant Currency
Q3 Q3 Change Q3 Change
2018 2017 2017
------------ ------------------------- ----------- --------------------------
RevPAR GBP87.23 GBP89.75 GBP(2.52) (2.8)% GBP88.64 GBP(1.41) (1.6)%
------------ ------------ ------------- ---------- ----------- ------------ ------------
Revenue - total GBP253m GBP263m GBP(10)m (3.8)% GBP259m GBP(6)m (2.3)%
------------ ------------ ------------- ---------- ----------- ------------ ------------
Revenue - hotel GBP223m GBP231m GBP(8)m (3.5)% GBP228m GBP(5)m (2.2)%
------------ ------------ ------------- ---------- ----------- ------------ ------------
Profit before tax GBP34m GBP55m GBP(21)m (38.2)% GBP53m GBP(19)m (35.8)%
------------ ------------ ------------- ---------- ----------- ------------ ------------
Note 1: Pre-tax profit for the nine months of 2018 includes gain of GBP3m from the disposal of two Australian hotels that were owned by CDL Hospitality Trusts ("CDLHT"). During the same period last year, pre-tax profit included reversal of loan impairment of GBP12m and impairment of assets of GBP9m, with a net credit of GBP3m recognised in the income statement.
* Like-for-like comparisons exclude the impact of acquisitions, closures and refurbishments; and they are stated in constant currency terms.
-- In reported currency, Group RevPAR for the nine months of 2018 decreased by 3.8% to GBP79.26 (2017: GBP82.41). In constant currency, it fell by just 0.4% mainly reflecting a stronger pound sterling against the Group's main trading currencies.
-- Like-for-like* Group RevPAR for the nine months of 2018 increased by 1.5%. Like-for-like comparison excludes the Mayfair hotel which was impacted by its closure in July this year, the Millennium New Plymouth New Zealand which was acquired in March this year, and M Social Auckland which was re-opened in October 2017.
-- In constant currency, hotel revenue for the nine months of 2018 was flat. Reported hotel revenue was down by GBP22m or 3.4%, reflecting the stronger pound.
-- Reported total revenue for the first nine months of 2018 fell by GBP18m or 2.4% to GBP730m (2017: GBP748m). The impact from the strengthening of the pound sterling was GBP26m. In constant currency, total revenue for the period increased by GBP8m or 1.1%.
-- In reported currency, pre-tax profit for the nine months of 2018 decreased by GBP19m to GBP99m (2017: GBP118m). In constant currency, pre-tax profit for the period decreased by GBP15m (2017: GBP114m). As previously disclosed, the closure of the Mayfair hotel resulted in the reduction of the Group's revenue and a commensurate reduction in profit. The Group continued to incur certain fixed costs at the Mayfair hotel. In addition, the Group saw an increase in its operating costs mainly due to payroll expenditure.
-- In Q3 2018, Group RevPAR fell by 2.8% in reported currency and down by 1.6% in constant currency. Like-for-like* Group RevPAR increased slightly by 0.6%. Excluding Mayfair, RevPAR for London was up by 5.6%. RevPAR for Australasia was up by 2.9%. RevPAR for New York and Singapore were flat.
-- For the first 21 days of October 2018, like-for-like Group RevPAR was up by 7.3%.
Mr Kwek Leng Beng, Chairman commented:
"The Group experienced mixed trading results for the first nine months of the year, with hotel revenues flat for the period on a like-for-like basis and lower profit due to continuing cost pressures.
The hospitality sector is facing challenging trading conditions, including significant supply growth, technological "disruption", industry consolidation and rising minimum wage requirements and labour costs in key jurisdictions. These challenges, which are impacting the availability of talent and reducing margins, are exacerbated by geopolitical headwinds, such as the uncertainty surrounding Brexit and global trade tensions.
The Group will address these issues through product innovation, tighter cost control and by flattening the management structure to enhance our competitiveness. The Group also continues to focus on delivering value from significant capital expenditure projects in addition to the repositioning of the Mayfair property as a 5-star deluxe hotel and the development of our new hotel and residential apartment complex in Sunnyvale California, which broke ground in October 2018.
After the departure of the last Group Chief Executive Officer in September, Tan Kian Seng has been reappointed as the interim Group Chief Executive Officer. The Board is confident that Mr Tan will provide stability during the transition with his experience and knowledge accumulated over the past two years as interim Group CEO, Group Chief of Staff and President of Asia. Mr Tan, a chartered accountant with more than 30 years of business experience, had been CFO and President of one of the largest electronic manufacturing companies listed on the Singapore stock exchange. His overall management skills and strong financial background will contribute positively to the Group. The Board will take time to consider and search carefully for the next Group CEO, who must not only have relevant experience, but must also embrace and drive forward the Group's business model as a niche owner-operator."
Enquiries
Millennium & Copthorne Hotels plc Tel: +44 (0)20 7872 2444
Tan Kian Seng, Interim Group Chief Executive Officer
Kok-Kee Chong, Chief Financial Officer
Jonathon Grech, Group General Counsel and Company Secretary
David Allchurch, Tulchan Communications LLP Tel: +44 (0)20 7353 4200
FINANCIAL PERFORMANCE
For the nine months ended 30 September 2018, Group reported revenue decreased by 2.4% to GBP730m (2017: GBP748m). On a constant currency basis, Group revenue increased by GBP8m or 1.1%.
Reported Currency Constant Currency
9 mths 2017 Change 9 mths 2017 Change
GBPm GBPm
-------------- ----------------- -------------- ----------------
9 mths 2018 GBPm %
GBPm GBPm %
-------------- ------- -------- -------------- ------- -------
Hotel 627 649 (22) (3.4) 627 - -
-------------- -------------- ------- -------- -------------- ------- -------
Property 55 51 4 7.8 48 7 14.6
-------------- -------------- ------- -------- -------------- ------- -------
REIT 48 48 - - 47 1 2.1
-------------- -------------- ------- -------- -------------- ------- -------
Total Revenue 730 748 (18) (2.4) 722 8 1.1
-------------- -------------- ------- -------- -------------- ------- -------
In constant currency, hotel revenue for the first nine months of 2018 was flat compared to the same period last year. Higher contributions from Millennium Hilton New York One UN Plaza (re-branded in August 2017) and M Social Auckland (opened in October 2017); were partially offset by the closure of the Mayfair hotel due to refurbishment. In reported currency, hotel revenue for the nine months of 2018 decreased by GBP22m or 3.4% reflecting a stronger pound sterling against the Group's main trading currencies.
Revenues from property sector and CDL Hospitality Trusts ("CDLHT") increased by GBP7m and GBP1m respectively compared to the first nine months of 2017.
Central costs for the nine months of 2018 increased by GBP5m or 20% to GBP30m (2017: GBP25m) due mainly to higher payroll related costs.
As disclosed previously, the Group recorded a gain of GBP3m from the disposal of two Australian hotels that were owned by CDLHT. During the same period last year, pre-tax profit included reversal of loan impairment of GBP12m and impairment of assets of GBP9m, with a net credit of GBP3m recognised in the income statement.
Hotel operation
In constant currency, Group RevPAR for the nine months of 2018 decreased by 0.4% to GBP79.26 (2017: GBP79.56). However, like-for-like(*) Group RevPAR increased by 1.5%.
RevPAR Occupancy Average Room Rate
9 mths #9 mths 9 mths 9 mths 9 mths #9 mths
2018 2017 Change 2018 2017 Change 2018 2017 Change
GBP GBP % % % %pts. GBP GBP %
------- ------- ------- ------- ------- -------- -------
New York 153.18 147.74 3.7 85.1 84.0 1.1 179.95 175.92 2.3
Regional
US 61.21 62.17 (1.5) 59.8 62.9 (3.1) 102.39 98.87 3.6
------- -------- ------- ------- ------- ------- ------- -------- -------
Total US 91.51 90.34 1.3 68.1 69.8 (1.7) 134.31 129.38 3.8
------- -------- ------- ------- ------- ------- ------- -------- -------
London 98.03 110.73 (11.5) 78.0 84.3 (6.3) 125.64 131.42 (4.4)
Rest of
Europe 56.54 54.26 4.2 72.1 71.3 0.8 78.45 76.09 3.1
------- -------- ------- ------- ------- ------- ------- -------- -------
Total Europe 77.30 82.97 (6.8) 75.0 77.9 (2.9) 103.00 106.52 (3.3)
------- -------- ------- ------- ------- ------- ------- -------- -------
Singapore 82.91 83.05 (0.2) 86.2 86.8 (0.6) 96.18 95.73 0.5
Rest of
Asia 62.49 60.76 2.8 66.5 64.6 1.9 93.99 94.00 -
------- -------- ------- ------- ------- ------- ------- -------- -------
Total Asia 70.40 69.39 1.5 74.1 73.2 0.9 94.98 94.79 0.2
------- -------- ------- ------- ------- ------- ------- -------- -------
Australasia 70.26 66.32 5.9 81.3 80.4 0.9 86.40 82.46 4.8
------- -------- ------- ------- ------- ------- ------- -------- -------
Total Group 79.26 79.56 (0.4) 73.1 73.9 (0.8) 108.39 107.59 0.7
------- -------- ------- ------- ------- ------- ------- -------- -------
RevPAR Occupancy Average Room Rate
Q3 2018 #Q3 2017 Change Q3 2018 Q3 2017 Change Q3 2018 #Q3 2017 Change
GBP GBP % % % %pts. GBP GBP %
-------- -------- -------- ------- -------- --------- -------
New York 176.94 176.47 0.3 90.7 91.3 (0.6) 194.98 193.37 0.8
Regional
US 72.97 74.01 (1.4) 66.4 70.0 (3.6) 109.92 105.71 4.0
-------- --------- ------- -------- -------- ------- -------- --------- -------
Total US 107.25 107.74 (0.5) 74.4 77.0 (2.6) 144.11 139.91 3.0
-------- --------- ------- -------- -------- ------- -------- --------- -------
London 125.47 129.13 (2.8) 92.1 89.6 2.5 136.30 144.10 (5.4)
Rest of
Europe 60.22 58.60 2.8 74.9 74.6 0.3 80.44 78.57 2.4
-------- --------- ------- -------- -------- ------- -------- --------- -------
Total Europe 91.17 94.74 (3.8) 83.0 82.3 0.7 109.83 115.14 (4.6)
-------- --------- ------- -------- -------- ------- -------- --------- -------
Singapore 87.37 87.10 0.3 90.3 87.6 2.7 96.78 99.38 (2.6)
Rest of
Asia 61.96 63.29 (2.1) 69.5 66.2 3.3 89.18 95.55 (6.7)
-------- --------- ------- -------- -------- ------- -------- --------- -------
Total Asia 71.80 72.51 (1.0) 77.5 74.5 3.0 92.61 97.29 (4.8)
-------- --------- ------- -------- -------- ------- -------- --------- -------
Australasia 61.67 59.96 2.9 75.1 74.8 0.3 82.15 80.20 2.4
-------- --------- ------- -------- -------- ------- -------- --------- -------
Total Group 87.23 88.64 (1.6) 77.4 77.3 0.1 112.76 114.74 (1.7)
-------- --------- ------- -------- -------- ------- -------- --------- -------
# In constant currency whereby 30 September 2017 RevPAR and average room rates have been translated at average exchange rates for the period ended 30 September 2018.
* Like-for-like comparisons exclude the impact of acquisitions, closures and refurbishments; and they are stated in constant currency terms.
US
US RevPAR for the first nine months of 2018 increased by 1.3% to GBP91.51 (2017: GBP90.34). Average room rate increased by 3.8% offset partially by decrease in occupancy of 1.7% points.
New York RevPAR increased by 3.7% as a result of increases in both occupancy and average room rate of 1.1% points and 2.3% respectively. RevPAR for Regional US decreased by 1.5% to GBP61.21 (2017: GBP62.17) due to decrease in occupancy by 3.1% points offset partially by increase in average room rate of 3.6%.
In Q3 2018, US RevPAR fell by 0.5%. For New York, RevPAR was higher slightly by 0.3%.
Europe
Europe RevPAR for the first nine months of 2018 fell by 6.8%. Excluding the Mayfair hotel, like-for-like RevPAR increased by 1.1% helped by the warm summer.
Like-for-like RevPAR for the nine months of 2018 for London decreased by 0.5% with lower occupancy of 1.9% points partially offset by higher average room rate of 1.7%. Like-for-like RevPAR for Rest of Europe during the first nine months of 2018 grew by 3.8% with increases in both occupancy and average room rate of 0.7% points and 2.8% respectively.
In Q3 2018, Europe RevPAR fell by 3.8%. On a like-for-like basis, Europe RevPAR was up by 4.6% reversing the trend in H1 2018.
Asia
Asia RevPAR for the first nine months of 2018 increased by 1.5% to GBP70.40 (2017: GBP69.39) driven by increases in both average room rates and occupancy of 0.2% and 0.9% points respectively.
Singapore RevPAR is relatively flat, reflecting a 0.6% points fall in occupancy offset by a 0.5% increase in average room rate. Rest of Asia saw an improvement in performance with higher RevPAR of 2.8% contributed mainly by the Group's hotels in Taipei and Beijing.
In Q3 2018, Asia RevPAR decreased by 1.0% with room rates down by 4.8% partially offset by an increase in occupancy of 3.0% points.
Australasia
Like-for-like Australasia RevPAR grew by 3.0% during the first nine months of 2018. With the inclusion of M Social Auckland and Millennium New Plymouth, Australasia RevPAR increased by 5.9%; with average room rate and occupancy increasing by 4.8% and 0.9% points respectively. The softness in the market, first seen in April this year, has receded in July. International visitor arrivals grew by 2.9% for the first nine months of this year. However, competition is increasing both from new inventory and non-traditional supply.
In Q3 2018, Australasia RevPAR increased by 2.9% with room rates up by 2.4% and occupancy up by 0.3% points. Like-for-like RevPAR was down by 0.2% with the exclusion of M Social Auckland which opened in early October last year.
Developments
The Sunnyvale California project comprises the construction of a 263-room hotel and a 250-unit residential apartment block on 35,717m(2) mixed use freehold landsite. The ground-breaking ceremony was held on 16 October 2018. The project is scheduled to complete in Q1 2021. The construction cost is estimated at US$200m (GBP155m).
Key specialist consultants, including architect and engineers, have started to work and improve on the design proposal relating to the Yangdong development in Seoul. The construction cost will be determined once the new design is finalised.
Hotel refurbishments
The on-going refurbishment work at the Mayfair hotel, which started in November 2017, is on track, with the hotel to be re-opened as a 5-star deluxe property during Q1 2019. The total cost is now estimated to be around GBP50m following upgrades to the scope of the work.
The Group continues to work on plans for the staged refurbishment of key hotels in London, New York and Singapore.
Orchard Hotel Singapore has commenced work on its lobby and food & beverage outlets, which is expected to complete by Q4 2018. The hotel remains fully operational. In addition, the guest rooms in the Orchard wing and the ballroom & meeting spaces will also be renovated from Q4 2018 to Q2 2019.
Other Group operations
Joint ventures and associates contributed GBP14m to profit during the nine months of 2018 (2017: GBP11m).The Group has an effective interest of 36% in First Sponsor Group Limited, which is listed on the Singapore Exchange and reports its results publicly.
In April 2018, the Group subscribed for its full entitlement of FSGL's rights issue of new perpetual convertible capital securities ("PCCS") for a total cost of S$58.2m (GBP32m) and the PCCS were allotted on 19 April 2018.
Financial position
At 30 September 2018, the Group had net debt of GBP675m (Dec 2017: net debt of GBP650m). Excluding CDLHT, net debt at 30 September 2018 was GBP212m (Dec 2017: net debt of GBP186m).
Board and management changes
As previously announced, Jennifer Fox stepped down as Group Chief Executive Officer and as a member of the Board of Directors on 27 September 2018. Tan Kian Seng resumed the role of interim Group Chief Executive Officer on 28 September 2018. Sue Farr resigned as a non-executive director of the Company with effect from 31 October 2018.
Gervase McGregor notified the Company on 1 November 2018 of his intention to resign as a non-executive director with effect from 1 December 2018. Following these changes, the Board continues to be comprised of a majority of independent non-executive directors.
This trading update contains certain statements that are or may be forward-looking with respect to the financial condition, results or operations and business of Millennium & Copthorne Hotels plc. By their nature forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements. Undue reliance should not be placed on forward looking statements which speak only as of the date of this document. The Group accepts no obligation to publicly revise or update these forward-looking statements or adjust them to future events or developments, whether as a result of new information, future events or otherwise, except to the extent legally required.
Condensed consolidated income statement (unaudited)
for the nine months ended 30 September 2018
Third Quarter Third Quarter Nine Nine Full
2018 2017 Months Months Year
GBPm GBPm 2018 2017 2017
GBPm GBPm GBPm
Revenue 253 263 730 748 1,008
Cost of sales (109) (108) (321) (324) (431)
------------------------------------------------- ---------------- ---------------- --------- --------- -------
Gross profit 144 155 409 424 577
Administrative expenses (110) (101) (308) (304) (415)
Other operating income - - 3 12 30
Other operating expense - - - (9) (47)
Operating profit 34 54 104 123 145
Share of profit of joint ventures and
associates 6 5 14 11 22
Finance income 3 5 7 10 11
Finance expense (9) (9) (26) (26) (31)
------------------------------------------------- ---------------- ---------------- --------- --------- -------
Net finance expense (6) (4) (19) (16) (20)
Profit before tax 34 55 99 118 147
Income tax (expense)/credit (5) 6 (17) 2 12
------------------------------------------------- ---------------- ---------------- --------- --------- -------
Profit for the period 29 61 82 120 159
------------------------------------------------- ---------------- ---------------- --------- --------- -------
Attributable to:
Equity holders of the parent 20 50 48 92 124
Non-controlling interests 9 11 34 28 35
------------------------------------------------- ---------------- ---------------- --------- --------- -------
29 61 82 120 159
------------------------------------------------ ---------------- ---------------- --------- --------- -------
The financial results above were derived from continuing activities.
Condensed consolidated statement of financial position (unaudited)
as at 30 September 2018
As at As at As at
30 Sept 30 Sept 31 Dec
2018 2017 2017
GBPm GBPm GBPm
------------------------------------- ---------- ---------- ---------
Non-current assets
Property, plant and equipment 3,126 3,141 3,129
Lease premium prepayment 100 102 103
Investment properties 578 610 577
Investment in joint ventures and
associates 365 312 324
Other financial assets 3 - -
4,172 4,165 4,133
------------------------------------- ---------- ---------- ---------
Current assets
Inventories 4 4 4
Development properties 100 84 93
Lease premium prepayment 2 2 2
Trade and other receivables 111 97 88
Cash and cash equivalents 354 331 354
-------------------------------------- ---------- ---------- ---------
571 518 541
Assets held for sale - - 41
-------------------------------------- ---------- ---------- ---------
571 518 582
------------------------------------- ---------- ---------- ---------
Total assets 4,743 4,683 4,715
-------------------------------------- ---------- ---------- ---------
Non-current liabilities
Interest-bearing loans, bonds and
borrowings (722) (663) (791)
Employee benefits (17) (23) (19)
Provisions (9) (9) (9)
Other financial liabilities (1) (2) -
Other non-current liabilities (13) (13) (13)
Deferred tax liabilities (187) (198) (188)
-------------------------------------- ---------- ---------- ---------
(949) (908) (1,020)
------------------------------------- ---------- ---------- ---------
Current liabilities
Interest-bearing loans, bonds and
borrowings (307) (336) (213)
Trade and other payables (221) (223) (208)
Provisions (2) (1) (2)
Income taxes payable (12) (14) (23)
(542) (574) (446)
------------------------------------- ---------- ---------- ---------
Total liabilities (1,491) (1,482) (1,466)
-------------------------------------- ---------- ---------- ---------
Net assets 3,252 3,201 3,249
-------------------------------------- ---------- ---------- ---------
Equity
Issued share capital 97 97 97
Share premium 843 844 843
Translation reserve 419 428 431
Treasury share reserve (4) (4) (4)
Retained earnings 1,340 1,272 1,309
Total equity attributable to equity
holders of the parent 2,695 2,637 2,676
Non-controlling interests 557 564 573
-------------------------------------- ---------- ---------- --------- Total equity 3,252 3,201 3,249 -------------------------------------- ---------- ---------- ---------
Notes to the condensed consolidated financial statements
1. Operating segment information
Nine months 2018
Rest Central
New Regional Rest Singapore of Costs Total
York US London of Europe GBPm Asia Australasia GBPm Group
GBPm GBPm GBPm GBPm GBPm GBPm GBPm
-------------------- ------ --------- ------- ----------- ------------ ------ ------------ -------- -------
Revenue
Hotel 110 105 77 53 95 126 61 - 627
Property operations - 4 - - 2 7 42 - 55
REIT - - - 22 12 10 4 - 48
-------------------- ------ --------- ------- ----------- ------------ ------ ------------ -------- -------
Total revenue 110 109 77 75 109 143 107 - 730
-------------------- ------ --------- ------- ----------- ------------ ------ ------------ -------- -------
Hotel gross
operating
profit 13 22 33 12 38 41 29 - 188
Hotel fixed charges
(1) (24) (18) (16) (8) (3) (25) (5) - (99)
-------------------- ------ --------- ------- ----------- ------------ ------ ------------ -------- -------
Hotel operating
profit/(loss) (11) 4 17 4 35 16 24 - 89
Property operating
profit - 1 - - 1 7 22 - 31
REIT operating
profit/(loss) - - - 8 (2) 1 4 - 11
Central costs - - - - - - - (30) (30)
Other operating
income
- REIT - - - - - - 3 - 3
Operating
profit/(loss) (11) 5 17 12 34 24 53 (30) 104
Share of joint
ventures
and
associates profit - - - 3 - 11 - - 14
Add: Depreciation
and amortisation 7 9 5 3 9 15 2 2 52
EBITDA (2) (4) 14 22 18 43 50 55 (28) 170
Less: Depreciation,
amortisation &
impairment (52)
Net finance expense (19)
Profit before tax 99
-------------------- ------ --------- ------- ----------- ------------ ------ ------------ -------- -------
Nine months 2017
Rest Central
New Regional Rest Singapore of Costs Total
York US London of Europe GBPm Asia Australasia GBPm Group
GBPm GBPm GBPm GBPm GBPm GBPm GBPm
-------------------- ------ --------- ------- ----------- ------------ ------ ------------ -------- -------
Revenue
Hotel 111 113 91 52 98 127 57 - 649
Property operations - 4 - - 2 7 38 - 51
REIT - - - 15 12 15 6 - 48
-------------------- ------ --------- ------- ----------- ------------ ------ ------------ -------- -------
Total revenue 111 117 91 67 112 149 101 - 748
-------------------- ------ --------- ------- ----------- ------------ ------ ------------ -------- -------
Hotel gross
operating
profit 14 26 45 12 40 42 28 - 207
Hotel fixed charges
(1) (26) (16) (17) (7) (3) (27) (4) - (100)
-------------------- ------ --------- ------- ----------- ------------ ------ ------------ -------- -------
Hotel operating
profit/(loss) (12) 10 28 5 37 15 24 107
Property operating
profit - - - - 1 7 21 - 29
REIT operating
profit/(loss) - - - 3 (3) 4 5 - 9
Central costs - - - - - - - (25) (25)
Other operating
income - - - - - 12 - - 12
Other operating
expense - - - (4) - (5) - - (9)
Operating
profit/(loss) (12) 10 28 4 35 33 50 (25) 123
Share of joint
ventures
and
associates profit - - - 2 - 9 - - 11
Add: Depreciation
and amortisation 7 10 5 5 10 17 2 2 58
Add: Impairment - - - 4 - 5 - - 9
EBITDA (2) (5) 20 33 15 45 64 52 (23) 201
Less: Depreciation,
amortisation &
impairment (67)
Net finance expense (16)
Profit before tax 118
-------------------- ------ --------- ------- ----------- ------------ ------ ------------ -------- -------
(1) Hotel fixed charges include depreciation, amortisation of lease premium prepayments, property rent, taxes and insurance, operating lease rentals and management fees.
(2) EBITDA is earnings before interest, tax and, depreciation and amortisation.
APPIX 1: Key OPERATING STATISTICS
for the nine months ended 30 September 2018
Nine Months Nine Months Nine Months Full
2018 2017 2017 Year
Reported Constant Reported 2017
currency currency currency Reported
Owned or leased hotels* currency
------------------------------ ----------- ----------- ----------- ---------
Occupancy (%)
New York 85.1 84.0 85.3
Regional US 59.8 62.9 60.0
------------------------------ ----------- ----------- ----------- ---------
Total US 68.1 69.8 68.3
------------------------------ ----------- ----------- ----------- ---------
London 78.0 84.3 83.0
Rest of Europe 72.1 71.3 70.5
------------------------------ ----------- ----------- ----------- ---------
Total Europe 75.0 77.9 76.9
------------------------------ ----------- ----------- ----------- ---------
Singapore 86.2 86.8 85.6
Rest of Asia 66.5 64.6 66.4
------------------------------ ----------- ----------- ----------- ---------
Total Asia 74.1 73.2 73.9
------------------------------ ----------- ----------- ----------- ---------
Australasia 81.3 80.4 81.2
------------------------------ ----------- ----------- ----------- ---------
Total Group 73.1 73.9 73.5
------------------------------ ----------- ----------- ----------- ---------
Average Room Rate (GBP)
New York 179.95 175.92 186.19 193.18
Regional US 102.39 98.87 104.64 103.23 ------------------------------ ----------- ----------- ----------- --------- Total US 134.31 129.38 136.93 140.23 ------------------------------ ----------- ----------- ----------- --------- London 125.64 131.42 131.42 132.47 Rest of Europe 78.45 76.09 75.77 76.16 ------------------------------ ----------- ----------- ----------- --------- Total Europe 103.00 106.52 106.38 107.15 ------------------------------ ----------- ----------- ----------- --------- Singapore 96.18 95.73 97.59 97.91 Rest of Asia 93.99 94.00 96.08 96.93 ------------------------------ ----------- ----------- ----------- --------- Total Asia 94.98 94.79 96.77 97.37 ------------------------------ ----------- ----------- ----------- --------- Australasia 86.40 82.46 89.38 90.01 ------------------------------ ----------- ----------- ----------- --------- Total Group 108.39 107.59 111.46 112.68 ------------------------------ ----------- ----------- ----------- --------- RevPAR (GBP) New York 153.18 147.74 156.36 164.84 Regional US 61.21 62.17 65.80 61.90 ------------------------------ ----------- ----------- ----------- --------- Total US 91.51 90.34 95.62 95.79 ------------------------------ ----------- ----------- ----------- --------- London 98.03 110.73 110.73 109.98 Rest of Europe 56.54 54.26 54.03 53.66 ------------------------------ ----------- ----------- ----------- --------- Total Europe 77.30 82.97 82.86 82.35 ------------------------------ ----------- ----------- ----------- --------- Singapore 82.91 83.05 84.67 83.83 Rest of Asia 62.49 60.76 62.11 64.39 ------------------------------ ----------- ----------- ----------- --------- Total Asia 70.40 69.39 70.84 71.91 ------------------------------ ----------- ----------- ----------- --------- Australasia 70.26 66.32 71.88 73.06 ------------------------------ ----------- ----------- ----------- --------- Total Group 79.26 79.56 82.41 82.78 ------------------------------ ----------- ----------- ----------- --------- Gross Operating Profit Margin (%) New York 11.8 12.7 15.1 Regional US 21.6 23.2 21.2 ------------------------------ ----------- ----------- ----------- ---------- Total US 16.6 18.0 18.0 ------------------------------ ----------- ----------- ----------- ---------- London 42.6 49.8 49.5 Rest of Europe 22.8 22.6 22.2 ------------------------------ ----------- ----------- ----------- ---------- Total Europe 34.6 39.9 39.6 ------------------------------ ----------- ----------- ----------- ---------- Singapore 39.2 40.8 40.5 Rest of Asia 32.6 32.9 34.1 ------------------------------ ----------- ----------- ----------- ---------- Total Asia 35.4 36.3 36.9 ------------------------------ ----------- ----------- ----------- ---------- Australasia 47.6 48.6 49.1 ------------------------------ ----------- ----------- ----------- ---------- Total Group 30.0 31.9 32.2 ------------------------------ ----------- ----------- ----------- ----------
For comparability, the 30 September 2017 Average Room Rate and RevPAR have been translated at average exchange rates for the period ended 30 September 2018.
* excluding managed, franchised and investment hotels.
APPIX 2: Key OPERATING STATISTICS
for the quarter ended 30 September 2018
Q3 2018 Q3 2017 Q3 2017 FY 2017
Reported Constant Reported Reported
Owned or leased hotels* currency currency currency currency
------------------------------ --------- --------- --------- ---------
Occupancy (%)
New York 90.7 91.3 85.3
Regional US 66.4 70.0 60.0
------------------------------ --------- --------- --------- ---------
Total US 74.4 77.0 68.3
------------------------------ --------- --------- --------- ---------
London 92.1 89.6 83.0
Rest of Europe 74.9 74.6 70.5
------------------------------ --------- --------- --------- ---------
Total Europe 83.0 82.3 76.9
------------------------------ --------- --------- --------- ---------
Singapore 90.3 87.6 85.6
Rest of Asia 69.5 66.2 66.4
------------------------------ --------- --------- --------- ---------
Total Asia 77.5 74.5 73.9
------------------------------ --------- --------- --------- ---------
Australasia 75.1 74.8 81.2
------------------------------ --------- --------- --------- ---------
Total Group 77.4 77.3 73.5
------------------------------ --------- --------- --------- ---------
Average Room Rate (GBP)
New York 194.98 193.37 196.04 193.18
Regional US 109.92 105.71 107.15 103.23
------------------------------ --------- --------- --------- ---------
Total US 144.11 139.91 141.83 140.23
------------------------------ --------- --------- --------- ---------
London 136.30 144.10 144.10 132.47
Rest of Europe 80.44 78.57 78.59 76.16
------------------------------ --------- --------- --------- ---------
Total Europe 109.83 115.14 115.15 107.15
------------------------------ --------- --------- --------- ---------
Singapore 96.78 99.38 99.58 97.91
Rest of Asia 89.18 95.55 95.88 96.93
------------------------------ --------- --------- --------- ---------
Total Asia 92.61 97.29 97.57 97.37
------------------------------ --------- --------- --------- ---------
Australasia 82.15 80.20 86.74 90.01
------------------------------ --------- --------- --------- ---------
Total Group 112.76 114.74 116.18 112.68
------------------------------ --------- --------- --------- ---------
RevPAR (GBP)
New York 176.94 176.47 178.91 164.84
Regional US 72.97 74.01 75.01 61.90
------------------------------ --------- --------- --------- ---------
Total US 107.25 107.74 109.22 95.79
------------------------------ --------- --------- --------- ---------
London 125.47 129.13 129.13 109.98
Rest of Europe 60.22 58.60 58.62 53.66
------------------------------ --------- --------- --------- ---------
Total Europe 91.17 94.74 94.75 82.35
------------------------------ --------- --------- --------- ---------
Singapore 87.37 87.10 87.28 83.83
Rest of Asia 61.96 63.29 63.51 64.39
------------------------------ --------- --------- --------- ---------
Total Asia 71.80 72.51 72.71 71.91
------------------------------ --------- --------- --------- ---------
Australasia 61.67 59.96 64.85 73.06
------------------------------ --------- --------- --------- ---------
Total Group 87.23 88.64 89.75 82.78
------------------------------ --------- --------- --------- ---------
Gross Operating Profit Margin
(%)
New York 18.4 22.3 15.1
Regional US 27.0 28.4 21.2
------------------------------ --------- --------- --------- ----------
Total US 22.6 25.3 18.0
------------------------------ --------- --------- --------- ----------
London 49.5 54.3 49.5 Rest of Europe 26.8 25.2 22.2 ------------------------------ --------- --------- --------- ---------- Total Europe 40.6 44.1 39.6 ------------------------------ --------- --------- --------- ---------- Singapore 39.4 41.0 40.5 Rest of Asia 30.1 33.7 34.1 ------------------------------ --------- --------- --------- ---------- Total Asia 34.2 36.9 36.9 ------------------------------ --------- --------- --------- ---------- Australasia 44.1 45.3 49.1 ------------------------------ --------- --------- --------- ---------- Total Group 32.1 35.0 32.2 ------------------------------ --------- --------- --------- ----------
For comparability, the 30 September 2017 Average Room Rate and RevPAR have been translated at average exchange rates for the period ended 30 September 2018.
* excluding managed, franchised and investment hotels.
APPENDIX 3: HOTEL ROOM COUNT AND PIPELINE
as at 30 September 2018
Hotels Rooms
Hotel and room 30 Sep 31 Dec Change 30 Sep 31 Dec Change
count 2018 2017 2018 2017
------------------ ------- ------- ------- ------- ------- -------
Analysed by
region:
New York 4 4 - 2,238 2,238 -
Regional US 15 15 - 4,559 4,559 -
London 7 8 (1) 2,266 2,649 (383)
Rest of Europe 22 21 1 3,655 3,528 127
Middle East 35 31 4 11,657 10,346 1,311
Singapore 7 7 - 3,011 3,011 -
Rest of Asia 23 25 (2) 9,006 9,240 (234)
Australasia 24 25 (1) 3,461 3,831 (370)
------------------ ------- ------- ------- ------- ------- -------
Total 137 136 1 39,853 39,402 451
------------------ ------- ------- ------- ------- ------- -------
Analysed by
ownership type:
Owned or Leased 66 66 - 19,376 19,672 (296)
Managed 14 15 (1) 3,537 4,098 (561)
Franchised 43 38 5 12,739 10,982 1,757
Investment 14 17 (3) 4,201 4,650 (449)
------------------ ------- ------- ------- ------- ------- -------
Total 137 136 1 39,853 39,402 451
------------------ ------- ------- ------- ------- ------- -------
Analysed by
brand:
Grand Millennium 10 9 1 3,986 3,734 252
Millennium 54 52 2 17,481 17,415 66
Copthorne 34 33 1 6,639 6,469 170
Kingsgate 7 7 - 671 671 -
Other M&C 15 15 - 5,253 4,838 415
Third Party 17 20 (3) 5,823 6,275 (452)
------------------ ------- ------- ------- ------- ------- -------
Total 137 136 1 39,853 39,402 451
------------------ ------- ------- ------- ------- ------- -------
Hotels Rooms
Pipeline 30 Sep 31 Dec Change 30 Sep 31 Dec Change
2018 2017 2018 2017
------------------ --------- -------- --------- --------- -------- ---------
Analysed by
region:
Middle East 11 10 1 4,276 3,239 1,037
Asia 6 4 2 1,770 1,594 176
Regional US 1 1 - 263 263 -
London 1 - 1 336 - 336
Rest of Europe 1 1 - 318 184 134
Australasia - 1 (1) - 42 (42)
Total 20 17 3 6,963 5,322 1,641
------------------ --------- -------- --------- --------- -------- ---------
Analysed by
ownership type:
Managed 4 3 1 1,191 1,052 139
Franchised 12 11 1 4,594 3,423 1,171
Owned 3 3 - 1,141 847 294
Investment 1 - 1 37 - 37
Total 20 17 3 6,963 5,322 1,641
------------------ --------- -------- --------- --------- -------- ---------
Analysed by
brand:
Grand Millennium 1 1 - 318 251 67
Millennium 12 9 3 4,520 2,789 1,731
Copthorne 1 2 (1) 502 666 (164)
Other M&C 5 5 - 1,586 1,616 (30)
Third Party 1 - 1 37 - 37
Total 20 17 3 6,963 5,322 1,641
------------------ --------- -------- --------- --------- -------- ---------
The Group's worldwide pipeline comprises 20 hotels offering 6,963 rooms, which are mainly franchise contracts.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
QRTEAEFFEADPFAF
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November 02, 2018 03:00 ET (07:00 GMT)
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