WELCOME TO OUR WORLD OF HOSPITALITY

WELCOME TO
OUR WORLD OF
HOSPITALITY
MILLENNIUM & COPTHORNE HOTELS PLC
RESULTS PRESENTATION
19 FEBRUARY 2016
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%
£m
REVENUE 2014 TO 2015
870
10
850
2
7
2
830
810
790
847
826
770
750
Revenue
2014
Hotel
REIT
• 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).
Property
Forex
impact
Revenue
2015
• 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%
£m
780
21
Hotel Revenue 2014 to 2015
2
12
770
760
(4)
750
(16)
740
765
730
750
720
710
700
Hotel revenue
2014
Acquisitions
Net room
openings
Hannover lease
ended
• 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
Underlying
Forex
impact
Hotel revenue
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
closed for refurbishment during H1 2014. Auckland
impact on overseas income streams. Excluding forex
Harbour City was closed for refurbishment at the end of
impact, hotel revenues were up £3m (0.4%).
H1 2015.
PROFIT BEFORE TAX
PBT DOWN 42.0%
PBT EXCLUDING REVALUATIONS AND IMPAIRMENT DOWN 5.6%
PBT 2014 to 2015
£m
2
(2)
• 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.
Share of
JV/Associate
Revaluations
& Impairment
Central costs
Property
REIT
Hotel
(70)
(2)
109
PBT
2015
6
(1)
Forex
(24)
10
Net Finance
Costs
188
PBT
2014
210
190
170
150
130
110
90
70
50
• 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
REGIONAL REVPAR TRENDS
GROUP REVPAR DOWN 1.3% AT CONSTANT RATES
£
160
New York: RevPAR fell due to
increased inventory and weak Euro
reducing
European
visitors.
Excluding Novotel, RevPAR fell by
6.6%.
140
120
(3.4%)
100
London: London
RevPAR impacted
by refurbishment
of Baileys. Which
finished in October
2015
112.47 108.68
142.92
11.7%
46.16
2014 *
2015
(9.3%)
3.1%
86.34
40
Rest of Asia: RevPAR down with the
largest impacts being in Taipei and Seoul.
(7.5%)
151.73
80
60
(5.8%)
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.
51.56
47.46
12.6%
79.85
59.95
48.92
54.35
38.49
43.33
20
London
Rest of Europe
Rest of Europe: RevPAR growth in most
hotels, boosted by Rome and Liverpool
acquisitions. Excluding acquisitions and
closures, RevPAR grew 2.2%
New York
Regional US
Singapore
Regional US: RevPAR up in most hotels, with the
largest gains at Chicago, Boulder and the recently
refurbished Scottsdale property.
Rest of Asia
Australasia
Australasia: Strong growth, driven by
increased overseas visitors.
* Restated at 2015 rates
CAPITAL EXPENDITURE – NEW BUILDS
BUILDING FOR THE FUTURE
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
1
CAPITAL EXPENDITURE - REFURBISHMENTS
CONTINUED INVESTMENT IN HOTEL REFURBISHMENT PROGRAMME
£m
180
160
140
120
100
80
60
40
20
-
Project Capital Spending
2016
2017
2018
Under Consideration
67
29
18
Approved
9
133
In Progress
50
2
Actual
2014 and prior
130
2015
42
Completed Major Refurbishments:
•
•
•
•
•
Ongoing Major Refurbishments:
•
•
•
•
•
The Lakefront Anchorage
Millennium Bailey’s Hotel London Kensington
Millennium Seoul Hilton
Millennium Hotel Buffalo
Copthorne Hotel and Resort Queenstown
Lakefront
Grand Hyatt Taipei
Copthorne Hotel Auckland Harbour City
ONE UN East Tower
Millennium Hotel Durham
Millennium Biltmore Los Angeles
Approved Major Refurbishments:
All estimates are subject to the necessary consents.
Under consideration projects have not yet been
formally approved by the Board.
1
•
•
•
Millennium Hotel London Mayfair
Millennium Hotel London Knightsbridge
Millennium Harvest House Boulder
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
THANK YOU
Hard Days Night, 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.