Millennium and Copthorne Hotels, a UK based hotel company, has reported a low RevPar (revenue per available room) at its London properties during the days before the 2012 Olympics, according to its half yearly statements, which were released recently.
The hotel group has reported a drop of around 12.5 percent in RevPar in the first 24 days of July 2012, which is believed to be due to London having attracted fewer visitors ahead of the Olympics.
However, in the first six months of 2012, the company has reported that RevPAR in London increased by 4.3 percent to £95.76, compared to £91.79 in the six months ended June 30, 2011. The increase has been partially offset by a decrease in occupancy of 1.0 percent to 77.8 percent in first half of 2012, compared to the first half of 2011.
While the company properties in the Mayfair area of London, the Tara and the Gloucester, have reported an increase in revenue, Baileys in Knightsbridge reported lower occupancy than in the first half of 2012.
Regional UK revenues have decreased by 0.3 percent to GBP40.78 in the first half of 2012, compared to £40.90 in the first half of 2011. The average room rate has decreased by 2.0 percent to £58.78 in the first half of 2012, compared to £59.95 in the same period last year.
Kwek Leng Beng, the company chairman, said, ‘The Group delivered a successful overall performance from its hotel operations in the first half of 2012, with additional profits from our joint venture in China and good progress on asset management projects. Whilst trading is still in line with management expectations, the hospitality industry cannot be immune to the on-going Euro crisis and global economic uncertainty.
The strengthening of our management team, together with our excellent financial position, increases our ability to manage the challenges of an uncertain economic outlook and to take advantage of the strategic opportunities which the present environment is likely to offer.’