Chairman of hotel group Millennium & Copthorne (MLC) Kwek Leng Beng told the market he was "disappointed" by the group's first-half performance, particularly in New York and Singapore. First-half revenue per available room fell 4.2 per cent at constant currency during the first half, on the same period last year, while hotel revenue contracted 4.3 per cent on the same basis. That was mainly due to lower occupancy and room rates, although higher land sales in New Zealand helped push total revenue in the right direction.
In his statement, Mr Beng admitted the UK's decision to leave the EU and recent bout of terrorist incidents are unlikely to make things easier in the near term. While the board has announced a half-year dividend of 2.08p a share, a full-year return is under review and it also expects to reassess capital expenditure plans. That could have implications for future projects which are already in the works, including new hotel and serviced apartment developments in South Korea and California. Ongoing hotel refurbishment programmes at the Millennium Hotel London Mayfair and Knightsbridge sites could also be affected.