Millennium and Copthorne Hotels releases encouraging quarterly results

Millennium & Copthorne Hotels (MLC) has released encouraging third quarter results following increased profit due to higher occupancy and room rates.Revenue rates for the third quarter of 2014 showed a 5.5% increase from the previous year's figure, rising to a total of £215.9m. Profit before tax increased 6.6% to £50.2m.Basic earnings per share for the quarter also improved dramatically compared to last year's quarter, jumping to 10.1% to 10.9p per share.According to the the company's interim statement, improved performance in the third quarter was attributed to a 1.7% increase in occupancy rate, along with a rise in the average room rate from £96.35 in 2013, to £99.26 in 2014.Higher contributions from recently refurbished hotels, and contributions from two further recent hotel acquisitions also helped improve the firm's financial position.Chairman of Millennium & Copthorne Hotels, Kewk Leng Beng, said: "Our newly acquired hotels contributed to revenue and profit in the third quarter, together with the return of refurbished rooms to inventory and stronger trading in regional US and New Zealand."Together, these factors helped to improve performance for the Group as a whole despite challenges and economic uncertainties in some of our key markets and the continuing negative impact on reported currency results of a strong pound sterling."Shares of Millennium & Copthorne Hotels dropped slightly by 0.44% as of 15:43 on Thursday, hitting 564p per share. Analysts at Credit Suisse and Panmure Gordon confirmed a "neutral" rating on shares of Millennium & Copthorne Hotels in a research note on Thursday.