Party continues for hotel chain
The upcoming Lions tour this winter and New Zealand’s ongoing tourism boom are expected to herald more good times for hotel and property developer Millennium & Copthorne Hotels New Zealand.
The NZX-listed company – reportedly the country’s second largest hotel owner – saw profit lift 86 per cent to $40.4 million in the year to December 31.
Revenue rose 26 per cent to $172m, off the back of strong hotel room occupancy and ongoing property sales from its majorityowned subsidiary, CDL Investments New Zealand.
Chairman RH Wong said hotel revenue had risen nearly 10 per cent and revenue per available room had jumped nearly 15 per cent. He put the increase down to better sales and marketing initiatives, profit conversions and continued productivity improvements.
He expected the company to do even better in 2017. ‘‘We expect to benefit from the growing tourism interest in New Zealand and the Lions Rugby Tour.’’
The chain owns or operates 19 hotels in New Zealand and began managing the Grand Millennium Auckland in September.
The Copthorne Hotel Auckland Harbourcity is undergoing refurbishment and is expected to reopen in the second quarter of the year, under the name MSocial Auckland.
Remaining insurance claims for the Millennium Hotel Christchurch had been settled, and the company was ‘‘actively considering’’ development and rebuild options for its former Copthorne Hotel Christchurch Central site on Colombo St.
CDL Investments made a record operating profit of $27m, up from $17.5m, and it planned to buy more development land in the coming year.
It owns land in Westgate, West Auckland, and is developing subdivisions at Greville Rd in Auckland, at Magellan Heights in Hamilton, and at Prestons Park near Christchurch.
Millennium owns 66.7 per cent of CDL Investments and its parent company is the second biggest hotel player in New Zealand, according to property consultancy JLL.