WELCOME TO OUR WORLD OF HOSPITALITY. MILLENNIUM & COPTHORNE HOTELS PLC INTERIM RESULTS PRESENTATION 03 rd AUGUST 2016

Transcription

1 WELCOME TO OUR WORLD OF HOSPITALITY MILLENNIUM & COPTHORNE HOTELS PLC INTERIM RESULTS PRESENTATION 03 rd AUGUST 2016

2 H HIGHLIGHTS m H H1 % 2015 Change Revenue % - at constant rates Profit before tax (9.7)% - at constant rates (11.1)% Basic EPS 9.3p 11.2p (17.0)% Interim ordinary dividend per share 2.08p 2.08p -

3 H HIGHLIGHTS RevPAR key gateway cities H H % Change New York (15.8%) New York LFL (8.6)% London (5.3)% London LFL (7.1)% Singapore (10.2)% Singapore LFL (10.2)%

4 FINANCIAL REVIEW Angela Ong, SVP Finance The Bailey s Hotel London

5 TOTAL REVENUE Revenue Growth of 3.5% m Total Revenue H to H (16) Revenue H Hotel REIT Property Forex impact Revenue H Reported total revenue is up 14m or 3.5%. Revenue in constant currency is flat. Hotel revenues declined by 1.4%. Down by 4.3% in constant currency. Property revenues are up 11m in constant currency, with higher land sales in NZ. The weakening of the British Pound has a positive translation impact on our overseas income.

6 HOTEL REVENUE Hotel Revenue Declined By 1.4% m Hotel Revenue H to H (2) (16) Hotel Revenue H Acquisitions Net room openings Underlying Forex impact Hotel Revenue H Hotel revenue is down by 1.4%. In constant currency, hotel revenue declined by 4.3%. Deterioration of trading in our NY, London and Singapore hotels. FX gain of 11m.

7 PBT H Operating Profit Share of JV/Associates Net Finance cost Forex Impact PBT H OPERATING PROFIT AND PROFIT BEFORE TAX Operating Profit down 7.8% m Operating Profit H to H Op Profit H (15) 7 3 Hotels Property Central costs Insurance Claim Revaluation Deficit 2 (4) 2 Forex Impact 59 Op Profit H Operating profit is down by 7.8%. PBT is down by 9.7%. m PBT H to H New York hotel operating loss has increased by 8m to 62 10m. Property operations contributed 15m in profit, an increase of 7m (7) (1) (0) 2 56 Central costs is lower by 3m. Revaluation deficit relating to Tanglin Shopping Centre of 4m.

8 REGIONAL REVPAR TRENDS Group RevPAR down 4.2% in Constant Currency New York: Influx of new inventory and struggles with rates. Excluding ONE UN, RevPAR fell by 8.6%. London: London RevPAR impacted by threat of terrorism related attacks leading to reduction in group bookings and individual travellers. Excluding Bailey s, RevPAR fell by 7.1% (15.8%) Singapore: Weak demand in corporate travel segment and increasing room supply putting pressure on pricing. Rest of Asia: RevPAR up, with strong performance in Seoul after room refurbishment programme (5.3%) % % H * (10.2%) H % % London Rest of Europe New York Regional US Singapore Rest of Asia Australasia Rest of Europe: Paris was impacted by terrorist attacks. Excluding Hard Days Night Hotel, RevPAR declined by 1.6%. Regional US: Reflecting a pick-up in trading. Australasia: Strong growth, driven by increased overseas visitors. * Restated at H rates

9 REGIONAL REVPAR TRENDS Group RevPAR down 4.2% in Constant Currency New York: Influx of new inventory and struggles with rates. Excluding ONE UN, RevPAR fell by 8.6%. London: London RevPAR impacted by threat of terrorism related attacks leading to reduction in group bookings and individual travellers. Excluding Bailey s, RevPAR fell by 7.1% (15.8%) Singapore: Weak demand in corporate travel segment and increasing room supply putting pressure on pricing. Rest of Asia: RevPAR up, with strong performance in Seoul after room refurbishment programme (5.3%) % % H * (10.2%) H % % London Rest of Europe New York Regional US Singapore Rest of Asia Australasia Rest of Europe: Paris was impacted by terrorist attacks. Excluding Hard Days Night Hotel, RevPAR declined by 1.6%. Regional US: Reflecting a pick-up in trading. Australasia: Strong growth, driven by increased overseas visitors. * Restated at H rates

10 OPERATION REVIEW Aloysius Lee, CEO Grand Hyatt Taipei

11 Operation Review Brexit and Recent Events in Europe Terror Events (Late June July 2016) Brexit Referendum Result (June 24) 29 June (Istanbul, TUR) Airport Bombings 18 July (Wuezburg, GER) Train Incident 24 July (Anbach & Reutlingen, GER) Multiple 14 July (Nice, FRA) Lorry Attack 22 July (Munich, GER) Shopping mall Shooting Currency Fluctuation Uncertainties Staffing Issues 26 July (Saint-Etienne-du- Rouvray, France) Church Incident Referendum result could impact London, one of our most profitable regions, on revenue and cost lines Terrorist attacks and other events add to uncertainty regarding future trading

12 Operation Review Opportunities as well as Threats Boost in domestic tourism is noted by several media outlets to be the key effect following recent terror events and Brexit effects. M&C, with hotels in all key cities, are perfectly poised to capitalize on any inflow of domestic tourists to these cities

13 Operation Review Brexit Staff Issues London Regional UK Total UK ROW 17% UK Nationals 28% EU 55% ROW 8% UK Nationals 66% EU 26% ROW 13% UK Nationals 50% EU 37% ROW: Rest of the World Over one-third of UK hotel staff come from neighbouring EU nations. In London, more than half. Their eligibility to work in the UK is unclear. Contingency planning at this stage Additional pressure on costs from National Living Wage legislation

14 Operation Review Revenue Initiatives The Group is focused on several key areas to improve revenue and reduce cost. Cross-regional management team targeting key areas for growth Targeting Growing Markets Upselling Initiatives M&C Revenue Practices Digital Platform Prudent Cost Spending

15 THANK YOU Hard Days Night Hotel, Liverpool This presentation 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.