Millennium and Copthorne revPAR still rising

Hotels group Millennium and Copthorne said revenue per available room (RevPAR), a key performance metric in the hotel industry, rose by 4.5 per cent in the second quarter, primarily driven by an increase in average room rate.RevPAR increased to £70.06 during the second quarter to 30 June 2012 from £66.37 the same quarter a year earlier. On a constant currency basis RevPar rose 5.6 per cent.Headline pre-tax profit rose by 32.3% to £52.9m. Profit before tax fell by 12.4% to £53.1m, partly due to the inclusion of £17.4m profit on the sale and leaseback of Studio M in May 2011.Commenting on the results, chairman Kwek Leng Beng said: "Whilst trading is still in line with management expectations, the hospitality industry cannot be immune to the on-going Euro crisis and global economic uncertainty.""The strengthening of our management team, together with our excellent financial position, increases our ability to manage the challenges of an uncertain economic outlook and to take advantage of the strategic opportunities which the present environment is likely to offer."Cash flows from operating activities surged to £84m from £40.3m previously while net debt reduced to £10.6m from £100.2m in 2011. Gearing was 0.5% compared to 4.8% at 31 December 2011.Millennium has kept is interim dividend payment at 2.08p per share and its scrip dividend option is suspended.CJ