welcome to our world of hospitality/media/files/m/...hotel revenue h1 2015 £m hotel revenue h1 2014...
TRANSCRIPT
MILLENNIUM & COPTHORNE HOTELS PLC
INTERIM RESULTS PRESENTATION
30 JULY 2015
WELCOME TO
OUR WORLD OF
HOSPITALITY
H1 2015 HIGHLIGHTS
£m H1
2015
H1
2014
%
Change
Revenue 404 380 6.3%
- at constant rates 404 391 3.3%
Profit before tax 62 58 6.9%
- at constant rates 62 59 5.1%
Basic EPS 11.2p 9.4p 19.1%
Interim ordinary dividend per share 2.08p 2.08p - -
H1 2015 HIGHLIGHTS
£m H1
2015
H1
2014
%
Change
Revenue 404 380 6.3%
- at constant rates 404 391 3.3%
Profit before tax 62 58 6.9%
- at constant rates 62 59 5.1%
Basic EPS 11.2p 9.4p 19.1%
Interim ordinary dividend per share 2.08p 2.08p - -
FINANCIAL REVIEW
&
OPERATING PERFORMANCE
Angela Ong, SVP Finance
The McCormick Scottsdale Grand Hyatt Taipei Millennium Bailey’s Hotel London Kensington
TOTAL REVENUE
REVENUE GROWTH OF 6.3%
380 404
15 2 11
(4)
300
320
340
360
380
400
420
RevenueH1 2014
Hotel REIT Property Foreximpact
RevenueH1 2015
£m REVENUE H1 2014 TO H1 2015
• Reported revenue is up £24m or 6.3%.
• Revenue at constant currencies increased £13m or
3.3%.
• Hotel revenues have increased £15m at constant
currencies which includes acquisitions (£18m).
• Property revenues are down £4m at constant currencies, with
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 .
TOTAL REVENUE
REVENUE GROWTH OF 6.3%
380 404
15 2 11
(4)
300
320
340
360
380
400
420
RevenueH1 2014
Hotel REIT Property Foreximpact
RevenueH1 2015
£m REVENUE H1 2014 TO H1 2015
• Reported revenue is up £24m or 6.3%.
• Revenue at constant currencies increased £13m or
3.3%.
• Hotel revenues have increased £15m at constant
currencies which includes acquisitions (£18m).
• Property revenues are down £4m at constant currencies, with
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 7.7%
339
365
18 4
10
(2) (4)
300
310
320
330
340
350
360
370
Hotel revenueH1 2014
Acquisitions Net roomopenings
Hannover leaseended
Underlying Foreximpact
Hotel revenueH1 2015
£m Hotel Revenue H1 2014 to H1 2015
• Full period’s trading in H1 2015 for 2014 hotel
acquisitions - The Chelsea Harbour Hotel, London,
Novotel New York Times Square and Grand Hotel Palace.
• Net room openings - Grand Hyatt Taipei east wing was
closed for refurbishment during H1 2014.
• Lease for Millennium Hotel Hannover ended in December
2014 and was not renewed.
• Underlying revenues at constant rates are down £4m
from H1 2014, driven by Asia.
• The weaker pound sterling had a positive translation forex
impact on overseas income streams. Excluding forex
impact, hotel revenues were up £16m (4.6%).
HOTEL REVENUE
HOTEL REVENUE GROWTH OF 7.7%
339
365
18 4
10
(2) (4)
300
310
320
330
340
350
360
370
Hotel revenueH1 2014
Acquisitions Net roomopenings
Hannover leaseended
Underlying Foreximpact
Hotel revenueH1 2015
£m Hotel Revenue H1 2014 to H1 2015
• Full period’s trading in H1 2015 for 2014 hotel
acquisitions - The Chelsea Harbour Hotel, London,
Novotel New York Times Square and Grand Hotel Palace.
• Net room openings - Grand Hyatt Taipei east wing was
closed for refurbishment during H1 2014.
• Lease for Millennium Hotel Hannover ended in December
2014 and was not renewed.
• Underlying revenues at constant rates are down £4m
from H1 2014, driven by Asia.
• The weaker pound sterling had a positive translation forex
impact on overseas income streams. Excluding forex
impact, hotel revenues were up £16m (4.6%).
HOTEL REVENUE
HOTEL REVENUE GROWTH OF 7.7%
339
365
18 4
10
(2) (4)
300
310
320
330
340
350
360
370
Hotel revenueH1 2014
Acquisitions Net roomopenings
Hannover leaseended
Underlying Foreximpact
Hotel revenueH1 2015
£m Hotel Revenue H1 2014 to H1 2015
• Full period’s trading in H1 2015 for 2014 hotel
acquisitions - The Chelsea Harbour Hotel, London,
Novotel New York Times Square and Grand Hotel Palace.
• Net room openings - Grand Hyatt Taipei east wing was
closed for refurbishment during H1 2014.
• Lease for Millennium Hotel Hannover ended in December
2014 and was not renewed.
• Underlying revenues at constant rates are down £4m
from H1 2014, driven by Asia.
• The weaker pound sterling had a positive translation forex
impact on overseas income streams. Excluding forex
impact, hotel revenues were up £16m (4.6%).
OPERATING PROFIT AND PROFIT BEFORE TAX
PBT UP 6.9%
65 64
4
(5)
50
55
60
65
70
Operating ProfitH1 2014
Hotels Central costs Operating ProfitH1 2015
£m Operating Profit H1 2014 to H1 2015
• Operating profit is down 1.5% and PBT up 6.9%.
• Hotel operating profit is down £5m with Asian revenue
falls impacting the bottom line
• Central costs, including provisions, have fallen £4m
• Share of JV/Associates is up £5m with an increased
contribution from First Sponsor as the Waterfront
development starting to be sold in H1 2015.
58 62
5
1
50
55
60
65
H1
201
4
Ope
ratin
g P
rofit
Share
of
JV
/Asso
cia
tes
H1
201
5
£m PBT H1 2014 to H1 2015
OPERATING PROFIT AND PROFIT BEFORE TAX
PBT UP 6.9%
65 64
4
(5)
50
55
60
65
70
Operating ProfitH1 2014
Hotels Central costs Operating ProfitH1 2015
£m Operating Profit H1 2014 to H1 2015
• Operating profit is down 1.5% and PBT up 6.9%.
• Hotel operating profit is down £5m with Asian revenue
falls impacting the bottom line
• Central costs, including provisions, have fallen £4m
• Share of JV/Associates is up £5m with an increased
contribution from First Sponsor as the Waterfront
development starting to be sold in H1 2015.
58 62
5
1
50
55
60
65
H1
201
4
Ope
ratin
g P
rofit
Share
of
JV
/Asso
cia
tes
H1
201
5
£m PBT H1 2014 to H1 2015
100.88
43.84
129.90
44.28
87.46
60.94
39.62
96.66
49.23
128.32
46.91
80.56
54.38 45.90
20
40
60
80
100
120
140
London Rest of Europe New York Regional US Singapore Rest of Asia Australasia
H1 2014 *
H1 2015
REGIONAL REVPAR TRENDS
* Restated at H1 2015 rates
GROUP REVPAR UP 0.8% AT CONSTANT RATES
Rest of Europe: RevPAR growth in most hotels, boosted by Rome acquisition. Excluding acquisitions and closures, RevPAR grew 4.3%
New York: Price pressure depressing RevPAR. Excluding Novotel, RevPAR fell by 6.4%.
Singapore: Falling overseas visitors and increasing room supply putting pressure on pricing. Rest of Asia: RevPAR down, the largest
faller being Millennium Seoul Hilton following MERS outbreak.
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. Excluding Baileys, RevPAR fell 1.8%.
(4.2%)
12.3%
(1.2%)
5.9%
(7.9%)
(10.8%)
15.9%
£
100.88
43.84
129.90
44.28
87.46
60.94
39.62
96.66
49.23
128.32
46.91
80.56
54.38 45.90
20
40
60
80
100
120
140
London Rest of Europe New York Regional US Singapore Rest of Asia Australasia
H1 2014 *
H1 2015
REGIONAL REVPAR TRENDS
* Restated at H1 2015 rates
GROUP REVPAR UP 0.8% AT CONSTANT RATES
Rest of Europe: RevPAR growth in most hotels, boosted by Rome acquisition. Excluding acquisitions and closures, RevPAR grew 4.3%
New York: Price pressure depressing RevPAR. Excluding Novotel, RevPAR fell by 6.4%.
Singapore: Falling overseas visitors and increasing room supply putting pressure on pricing. Rest of Asia: RevPAR down, the largest
faller being Millennium Seoul Hilton following MERS outbreak.
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. Excluding Baileys, RevPAR fell 1.8%.
(4.2%)
12.3%
(1.2%)
5.9%
(7.9%)
(10.8%)
15.9%
£
100.88
43.84
129.90
44.28
87.46
60.94
39.62
96.66
49.23
128.32
46.91
80.56
54.38 45.90
20
40
60
80
100
120
140
London Rest of Europe New York Regional US Singapore Rest of Asia Australasia
H1 2014 *
H1 2015
REGIONAL REVPAR TRENDS
* Restated at H1 2015 rates
GROUP REVPAR UP 0.8% AT CONSTANT RATES
Rest of Europe: RevPAR growth in most hotels, boosted by Rome acquisition. Excluding acquisitions and closures, RevPAR grew 4.3%
New York: Price pressure depressing RevPAR. Excluding Novotel, RevPAR fell by 6.4%.
Singapore: Falling overseas visitors and increasing room supply putting pressure on pricing. Rest of Asia: RevPAR down, the largest
faller being Millennium Seoul Hilton following MERS outbreak.
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. Excluding Baileys, RevPAR fell 1.8%.
(4.2%)
12.3%
(1.2%)
5.9%
(7.9%)
(10.8%)
15.9%
£
INVENTORY AND PIPELINE
INVENTORY GROWTH IN H1 2015 OF 3.6%
33,367 34,578
1,323
(108) (4)
30,000
31,000
32,000
33,000
34,000
35,000
De
c 1
4In
ve
nto
ry
Ne
w M
gm
tC
ontr
acts
Ce
ssation
of
Fra
nchis
e
Oth
er
Jun 1
5In
ve
nto
ry
Rooms H1 2015 Inventory Growth
34,578
40,923 507 1,169
4,669
30,000
32,000
34,000
36,000
38,000
40,000
42,000
Jun 1
5In
ve
nto
ry
Ow
ne
d h
ote
ls
Asia
n m
gm
tcontr
acts
Mid
dle
Ea
st
mg
mt
co
ntr
acts
Futu
re In
ve
nto
ry
Rooms Inventory Pipeline • 5 hotels added to inventory in H1 2015, all under
management contract in the Middle East
• End of franchise agreement of Kingsgate Hotel
Wellington in New Zealand reducing room count
• 19 hotels in the pipeline including the planned
construction of a hotel in Seoul, South Korea
CAPITAL EXPENDITURE
CONTINUED INVESTMENT IN HOTEL REFURBISHMENT PROGRAMME
2014 and prior 2015 2016 2017 2018
Under Consideration 34 72 12 12
Approved 5 10 5
In Progress 36 37 4
Actual 130 12
-
20
40
60
80
100
120
140£m Project Capital Spending
Completed Major Refurbishments:
• The Lakefront Anchorage
Ongoing Major Refurbishments:
• Grand Hyatt Taipei
• Copthorne Hotel Auckland Harbour City
• ONE UN East Tower
• Millennium Bailey’s Hotel London Kensington
Ongoing Major Refurbishments (continued):
• Millennium Seoul Hilton
• Millennium Hotel Buffalo
• Millennium Biltmore Los Angeles
• Copthorne Hotel and Resort Queenstown Lakefront
All estimates are subject to the necessary consents.
Under consideration projects have not yet been formally
approved by the Board.
1
CAPITAL EXPENDITURE
CONTINUED INVESTMENT IN HOTEL REFURBISHMENT PROGRAMME
2014 and prior 2015 2016 2017 2018
Under Consideration 34 72 12 12
Approved 5 10 5
In Progress 36 37 4
Actual 130 12
-
20
40
60
80
100
120
140£m Project Capital Spending
Completed Major Refurbishments:
• The Lakefront Anchorage
Ongoing Major Refurbishments:
• Grand Hyatt Taipei
• Copthorne Hotel Auckland Harbour City
• ONE UN East Tower
• Millennium Bailey’s Hotel London Kensington
Ongoing Major Refurbishments (continued):
• Millennium Seoul Hilton
• Millennium Hotel Buffalo
• Millennium Biltmore Los Angeles
• Copthorne Hotel and Resort Queenstown Lakefront
All estimates are subject to the necessary consents.
Under consideration projects have not yet been formally
approved by the Board.
1
OUR STRATEGIC PRIORITIES
TALENT, ASSETS, BRANDING
ALOYSIUS LEE, CEO
Millennium Hotel Buffalo The Lakefront Anchorage Millennium Seoul Hilton
OUR STRATEGIC PRIORITIES
TALENT, ASSETS, BRANDING
ALOYSIUS LEE, CEO
Millennium Hotel Buffalo The Lakefront Anchorage Millennium Seoul Hilton
OUR STRATEGIC PRIORITIES
TALENT, ASSETS, BRANDING
ALOYSIUS LEE, CEO
Millennium Hotel Buffalo The Lakefront Anchorage Millennium Seoul Hilton
OUR STRATEGIC PRIORITIES
TALENT, ASSETS, BRANDING
ALOYSIUS LEE
Millennium Hotel Buffalo The Lakefront Anchorage Millennium Seoul Hilton
OUR STRATEGIC PRIORITIES
TALENT, ASSETS, BRANDING
ALOYSIUS LEE, CEO
Millennium Hotel Buffalo The Lakefront Anchorage Millennium Seoul Hilton
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
ONE UN New York