City Development Limited’s hotel arm, Millennium & Copthorne Hotels (M&C), saw its profit before tax for the second quarter of 2017 increase by 22 percent year-on-year to £50 million (S$88.8 million) in constant currency term.
Revenue climbed 6.1 percent to £262 million (S$465 million) from £226 million (S$401 million) previously.
Group revenue per available room (RevPar) also rose five percent to £86.64 (S$154).
On a half-yearly basis, profit before tax inched up by 1.6 percent to £63 million (S$112 million) in constant currency term, while revenue and group RevPar grew by 4.3 percent and 4.9 percent to £485 million (S$861 million) and £78.69 (S$134), respectively.
In a release, the company noted that Singapore RevPAR was “down by 1.1 percent with a 4.1 percent points increase in occupancy more than offset by a 5.8 percent fall in average room rate”.
Looking ahead, chairman Kwek Leng Beng said there is a “continuing pressure on the profitability” of hotel operations, particularly in North Asia and New York.
In acknowledging that New York is under-performing, he revealed that the group has “agreed a contract with Hilton for the management of ONE UN New York which will be re-branded as the Millennium Hilton New York One UN Plaza from 30 August 2017”.
“In addition, management changes are currently underway, with increased focus on sales, costs and controls. These are significant steps in our strategy to strengthen our US operations,” he added.
This article was edited by Denise Djong.