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UPDATE 1-New York demand lifts hotelier Millennium & Copthorne's revenue
October 30, 2017 / 8:17 AM / in 20 days

UPDATE 1-New York demand lifts hotelier Millennium & Copthorne's revenue

(Adds details, background)

Oct 30 (Reuters) - Millennium & Copthorne Hotels, which has received a buyout offer that values it at 1.8 billion pounds ($2.4 billion) from shareholder City Developments, reported higher nine-month room revenue due to strong growth in New York.

Reported revenue per available room (RevPAR) rose 11.5 percent to 82.41 million pounds for the nine months to Sept. 30, the operator of the Millennium, Grand Millennium, Copthorne and Kingsgate hotels said.

Excluding deals, closures and currency movements, like-for-like RevPAR was up 1.4 percent.

M&C’s nine-month pretax profit grew 16 percent to 118 million pounds, while revenue rose 13 percent to 748 million pounds.

At least four minority shareholders, including International Value Advisers, MSD Partners, Aberdeen Standard and Fidelity, have criticised Singapore-based City Development’s 552.5 pence per share proposed cash offer to buy the 34.8 percent stake it does not own, saying it undervalues M&C’s property holdings.

But M&C’s board has recommended the proposed offer, which needs approval from minority investors holding a collective 50 percent stake in the company to go through. Any deal would see M&C return to the fold of Singaporean billionaire Kwek Leng Beng’s property empire.

On Monday, M&C, which has 130 hotels around the world, and has focused on building its footprint in major cities such as London, New York and Singapore, did not make any fresh comments on the proposed offer.

Giving an indication on current trading, the group said that like-for-like group RevPAR was up by 0.7 percent for the three weeks ended Oct. 21.

M&C’s shares were up marginally at 588 pence at 0814 GMT. ($1 = 0.7614 pounds) (Reporting by Esha Vaish in Bengaluru; editing by Jason Neely and Louise Heavens)

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