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MILLENNIUM & COPTHORNE HOTELS PLC
RESULTS PRESENTATION
19 FEBRUARY 2016
WELCOME TO
OUR WORLD OF
HOSPITALITY
2015 HIGHLIGHTS
£m
2015
2014
%
Change
Revenue 847 826 2.5%
- at constant rates 847 836 1.3%
Profit before tax 109 188 (42.0%)
Net Assets 2,712 2,735 (0.8%)
Basic EPS 19.9p 34.0p (41.5%)
Ordinary dividend per share 6.42p 13.59p (52.8%)
FINANCIAL REVIEW
Angela Ong, SVP Finance
Millennium Baileys Hotel London Kensington
TOTAL REVENUE
REVENUE GROWTH OF 2.5%
826 847
2 7 2
10
750
770
790
810
830
850
870
Revenue2014
Hotel REIT Property Foreximpact
Revenue2015
£m REVENUE 2014 TO 2015
• Reported revenue is up £21m or 2.5%.
• Revenue at constant currencies increased £11m or
1.3%.
• Hotel revenues have increased £2m at constant
currencies which includes acquisitions (£21m) and
closures (£6m).
• REIT revenues are up £7m including £3m from the newly
acquired Cambridge property.
• Property revenues are up £2m at constant currencies, with
gains from Ginza Japan offset by the recognition of the final
three Glyndebourne units in H1 2014 (£7m).
• The weakening of the British Pound is having a positive
translation forex impact on our overseas income streams .
HOTEL REVENUE
HOTEL REVENUE GROWTH OF 2.0%
750
765
21 2
12
(4)
(16)
700
710
720
730
740
750
760
770
780
Hotel revenue2014
Acquisitions Net roomopenings
Hannover leaseended
Underlying Foreximpact
Hotel revenue2015
£m Hotel Revenue 2014 to 2015
• Full period’s trading in 2015 for 2014 hotel acquisitions -
The Chelsea Harbour Hotel, London, Novotel New York
Times Square and Grand Hotel Palace. Hard Days Night,
Liverpool was acquired in 2015.
• Net room openings - Grand Hyatt Taipei east wing was
closed for refurbishment during H1 2014. Auckland
Harbour City was closed for refurbishment at the end of
H1 2015.
• Lease for Millennium Hotel Hannover ended in December
2014 and was not renewed.
• Underlying revenues at constant rates are down £16m
from 2014, driven primarily by Asia.
• The weaker pound sterling had a positive translation forex
impact on overseas income streams. Excluding forex
impact, hotel revenues were up £3m (0.4%).
PROFIT BEFORE TAX
PBT DOWN 42.0%
PBT EXCLUDING REVALUATIONS AND IMPAIRMENT DOWN 5.6%
188
109
2 10
6 (24) (1)
(70) (2) (2) 507090
110130150170190210
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Share
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inance
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15
£m PBT 2014 to 2015
• PBT is down 42.0% from 2014, the main factor being
revaluation and impairment losses.
• Excluding revaluation and impairment losses, PBT is
down 5.6%.
• A net revaluations and impairments charge of £43m has
been recorded in 2015, an incremental charge of £70m at
constant rates compared to 2014.
• Hotel operating profit is down £24m, the main factor
being Asian revenue falls impacting the bottom line.
• Central costs, including provisions, have fallen £10m.
OPERATING PERFORMANCE
Aloysius Lee, CEO
Grant Hyatt Taipei
112.47
46.16
151.73
47.46
86.34
59.95
38.49
108.68
51.56
142.92
48.92
79.85
54.35 43.33
20
40
60
80
100
120
140
160
London Rest of Europe New York Regional US Singapore Rest of Asia Australasia
2014 *
2015
REGIONAL REVPAR TRENDS
* Restated at 2015 rates
GROUP REVPAR DOWN 1.3% AT CONSTANT RATES
Rest of Europe: RevPAR growth in most hotels, boosted by Rome and Liverpool acquisitions. Excluding acquisitions and closures, RevPAR grew 2.2%
New York: RevPAR fell due to increased inventory and weak Euro reducing European visitors. Excluding Novotel, RevPAR fell by 6.6%.
Singapore: RevPAR down due to reduced consumer spending and lower corporate demand against a backdrop of regional economic slowdown. Increased price competition from new and refurbished hotels and strong Singapore dollar relative to key Asian markets also a factor.
Rest of Asia: RevPAR down with the largest impacts being in Taipei and Seoul.
Australasia: Strong growth, driven by increased overseas visitors.
Regional US: RevPAR up in most hotels, with the largest gains at Chicago, Boulder and the recently refurbished Scottsdale property.
London: London RevPAR impacted by refurbishment of Baileys. Which finished in October 2015
(3.4%)
11.7%
(5.8%)
3.1%
(7.5%)
(9.3%)
12.6%
£
CAPITAL EXPENDITURE – NEW BUILDS
BUILDING FOR THE FUTURE
1
Sunnyvale, US
• Combines a new state of the art 263 room Millennium M Social brand
hotel with a 250-unit market rate apartment complex.
• The vision for the project is to create a dynamic urban style experience
for residents and guests with a curated collection of indoor and outdoor
social spaces integrated into a unique life style hotel and residential
experience as the flagship for the new M-Social brand in the United
States.
• Estimated cost is £200m, spread mainly over 2016 to 2017
Seoul, South Korea
• Based on the latest designs, the lifestyle hotel and serviced apartment has 306
and 209 keys respectively.
• The lifestyle hotel will feature a dynamic lobby atmosphere with a café / deli
style F&B outlet and bar that allows guests to relax and lounge or have a quick
“grab and go.
• The serviced apartment will feature an adjoining F&B space, in addition to other
social facilities.
• Estimated future development cost is around £90m, starting in the middle of
2016 and ending in 2018
CAPITAL EXPENDITURE - REFURBISHMENTS
CONTINUED INVESTMENT IN HOTEL REFURBISHMENT PROGRAMME
2014 and prior 2015 2016 2017 2018
Under Consideration 67 29 18
Approved 9 133
In Progress 50 2
Actual 130 42
-
20
40
60
80
100
120
140
160
180£m Project Capital Spending
Completed Major Refurbishments:
• The Lakefront Anchorage
• Millennium Bailey’s Hotel London Kensington
• Millennium Seoul Hilton
• Millennium Hotel Buffalo
• Copthorne Hotel and Resort Queenstown
Lakefront
Ongoing Major Refurbishments:
• Grand Hyatt Taipei
• Copthorne Hotel Auckland Harbour City
• ONE UN East Tower
• Millennium Hotel Durham
• Millennium Biltmore Los Angeles
Approved Major Refurbishments:
• Millennium Hotel London Mayfair
• Millennium Hotel London Knightsbridge
• Millennium Harvest House Boulder
All estimates are subject to the necessary consents.
Under consideration projects have not yet been
formally approved by the Board.
1
THE GUEST EXPERIENCE EVOLUTION
• Building a better relationship with our guests
• MyMillennium launches in Q1
THE GUEST EXPERIENCE EVOLUTION
• Guest-led brand evolution
THE GUEST EXPERIENCE EVOLUTION
• Increase Direct Sales
• Reduce Distribution Costs
• Develop a Single Brand Voice
CHINA STRATEGY
• Sales and Marketing
• Products
• China Orientation Programme
UPSELLING STRATEGY
• Room upgrades
• Club Services Package
• Staff incentive plans
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.
THANK YOU
Hard Days Night, Liverpool
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