1st Quarter Results

For Immediate Release 2 May 2013

MILLENNIUM & COPTHORNE HOTELS PLC

INTERIM MANAGEMENT STATEMENT

First quarter results to 31 March 2013

Group highlights for the first quarter 2013:

·; Revenue down £6.3m due a combination of factors:

- Ongoing refurbishment programme removed over 100,000 room nights over the period with the revenue and profit impact felt particularly at Grand Hyatt Taipei where 461 rooms were closed and Millennium Minneapolis, which was closed completely during the quarter;

- Regional geo-political tensions affected Millennium Seoul Hilton;

- Harsh weather conditions deterred travellers in Europe and the United States;

- Singapore performance was down, reflecting a slowing economy, continuing restraint in corporate travel budgets an increasing supply of competitor hotel rooms and a reduction in foreign labour quotas, which is putting pressure on costs.

·; Profit before tax has fallen by 34.7% as the Group's high operating leverage resulted in most of the reduction in revenue impacting the bottom line.

·; RevPAR up 1.6%. Group average room rate increased by 1.7% whilst occupancy decreased slightly by 0.1 percentage point.

·; Net cash increased from £52.2m at 31 December 2012 to £56.5m (before paying 2012 final dividend of £37.3m).

Commenting today Mr Kwek Leng Beng, Chairman said:

"Although Group RevPAR increased by 1.6% over the three months ended 31 March 2013, revenue declined due to a number of factors, which are unlikely to abate in the foreseeable future. Asia, which accounted for over 40% of Group revenues last year and has led our revenue and profit growth in recent years, is facing a number of political, economic and other challenges that are likely to impact performance. Europe also continues to face challenges as a result of austerity programmes and the ongoing fallout from the financial crisis. In addition, our ongoing refurbishment programme will reduce Group revenue and profits as rooms are taken out of the network over the course of the programme. Against this challenging backdrop, the Group's strong financial position equips us to overcome the ongoing economic headwinds and gives us flexibility, both to act quickly on attractive acquisition opportunities and to support our asset investment activities. We are continuing to strengthen and reinvigorate the Group's management team."

Enquiries

Millennium & Copthorne Hotels plc

Wong Hong Ren, Chief Executive Officer Tel: +44 (0) 20 7872 2444

John Chang, Chief Financial Officer

Alan Scott, Company Secretary

Peter Krijgsman, Financial Communications (Media)

¹ The Directors have reassessed the presentation of the income statement in light of the Group's continuing evolution and best reporting practice and have made a number of disclosure and categorisation amendments to the income statement, together with relevant comparatives. The Directors consider that these adjustments better reflect the commercial dynamics of the Group and facilitate comparison with peers. The amendments have no impact on revenue, profit before tax or profit for the period.

BUSINESS REVIEW

Financial Performance

The difficult trading conditions reduced revenues and profits for the quarter. For the three months ended 31 March 2013 revenue decreased by 3.6% to £169.2m (Q1 2012: £175.5m). Reflecting the Group's high operating leverage, operating profit fell by 48.3% to £10.7m (Q1 2012: £20.7m).

Operating Performance

Some of the Group's biggest hospitality markets in Asia and Europe, which together account for two-thirds of the Group's business, slowed during the opening weeks of 2013. Subdued trading in the Singapore hotels reflected the contraction in estimated first quarter GDP announced by the Singapore Government in April, as well as the increase in available hotel rooms. Singapore is also facing a labour squeeze, following government restrictions on use of migrant labour in the country, which will impact costs in the hospitality sector. Geo-political tensions had a significant impact on results from Millennium Seoul Hilton. Severe weather and resulting travel disruptions affected performance of some of our hotels in Europe and US during January.

The temporary closure for refurbishment of some hotels, including a major portion of Grand Hyatt Taipei, further impacted Group revenue and profit for the period. Refurbishment of ONE UN's west tower last year will help the hotel's rate growth, but has yet to re-build occupancy to previous levels.

Slower performance in Asia and Europe was partially offset by improved trading in Regional US and Australasia, which helped Group RevPAR to increase by 1.6% to £60.14 compared to the same period last year (Q1 2012: £59.17). Management anticipated harsher trading conditions by adjusting trading strategies in some markets, limiting the impact on RevPAR. Average room rate increased by 1.7% to £89.34 (Q1 2012: £87.81) whilst occupancy decreased slightly by 0.1 percentage point.

Financial Position

The Group further strengthened its financial position over the period. Net cash at 31 December 2012 of £52.2m increased to £56.5m at 31 March 2013. This was before payment of the 2012 final dividend on 17 May 2013, totalling £37.3m.  At 31 March 2013, the Group had cash reserves of £410.9m and £273.3m undrawn committed bank facilities. Most of the facilities are unsecured with unencumbered assets representing 87.0% of our fixed assets and investment properties.

Asset Management

As one of the world's largest owner/operator hospitality companies, The Group aims to invest in its hotels so as to re-position them in an innovative manner that preserves and enhances the value of the property portfolio. Asset management is inextricably linked to hotel operations because the Group recognises that its brand and the experience that it provides for customers are key drivers of both returns and asset value. The programme comprises a range of initiatives, including alternative use, refurbishment, and hotel construction.

- Refurbishment programme

The £240m programme of investment in the Group's existing hotels, which is in addition to underlying run rate capital expenditure, is making progress with several initiatives under way and a number of others in the planning stage. £58m of the £240m has been spent up to 31 March 2013, of which £12m was spent in the first quarter of 2013. In total, £75m is anticipated to be spent in 2013. Timing of investment is dependent on planning and other consents.

Renovation of the 461-room west wing of the Grand Hyatt Taipei is scheduled to complete during the second quarter of 2013, after which we will commence renovation of the 392-room east wing. East wing renovation is scheduled to complete in the middle of 2014. Total capital expenditure of approximately £60 million is anticipated for the room renovations, of which we had spent £16.7m at 31 March 2013. Further investment is being planned for the lobby and food and beverage outlets.

Following the circa £18m renovation of the west wing of ONE UN in New York in 2012, planning is underway for the renovation of the east wing.

Detailed discussions are continuing with the Group's freeholder, Grosvenor Estates, to refurbish and reposition the Millennium Hotel London Mayfair. Timing and cost of this development will depend on the outcome of negotiations and obtaining necessary planning consents.

Discussions have taken place with the Group's freeholder, Cadogan Estates for the non-structural remodelling of the interior of Millennium Hotel London Knightsbridge during 2013. Work is at an early stage with both architects and designers preparing draft proposals.

Work commenced on renovation of the 321-room Millennium Hotel Minneapolis at the end of 2012, requiring full closure. Re-opening is scheduled for May 2013. The cost of refurbishment is estimated at c.£14m.

- New hotel development

Construction of the Group's new hotel in Tokyo's Ginza district is proceeding according to plan with construction costs previously announced of JPY5.6b (£38.8m). The land was acquired in 2011 for a consideration of ¥9.5b (£73.m).

On 2 April 2013, the Group announced that it completed the acquisition of a plot of land with a total area of 1,563.7m2, adjacent to the Millennium Seoul Hilton Hotel in South Korea for a consideration of £17.2m. The Group is currently developing detailed plans to build hospitality facilities on the site which will complement the Millennium Seoul Hilton, following further studies with architects and other external consultants.

- Development properties

Construction and fitting work at Glyndebourne, a condominium development on the site of the former Copthorne Orchid hotel in Singapore, is almost complete. Of the 150 apartments for sale since the end of October 2010, buyers have signed sales and purchase agreements for 144 units as at 31 March 2013 with sales value of S$522.5m (£272.3m). Sales proceeds collected to-date total S$249.9m (£130.2m) representing approximately 47.83% of the sales value. Revenue and development costs will appear in the income statement on completion. Judging from progress to-date, this is expected to be earlier than previously anticipated. The Glyndebourne sales programme was well-timed, preceding the recent slowdown in Singapore's economy, and achieved good prices.

First Sponsor Capital Limited ("FSCL")

FSCL is making good progress. The first phase of the 195-room M Hotel Chengdu, part of the Cityspring project, is scheduled to soft-open in mid-2013 and will be managed by the Millennium & Copthorne Group.

Development of FSCL's latest project, Millennium Waterfront in Chengdu is proceeding satisfactorily. Of the 5 blocks comprising 779 residential units launched since 24 November 2012, 627 units have been sold either under option agreements or sale and purchase agreements, with approximately 57% of the sales proceeds collected. FSCL launched a further 2 blocks comprising 376 residential units for sale in late April 2013. Further development and sales launches will be phased according to demand. FSCL plans to commence construction of a Millennium-branded hotel with convention facilities at Millennium Waterfront in the second half of 2013 which will be financed by cash flows from residential sales.

FSCL was not affected directly by last month's earthquake in Sichuan. However it recognizes that there is likely to be some impact arising from this disaster.

Outlook

Trading during the first three months of 2013 was challenging in harsh economic conditions. Whilst the Group is mindful that the world economic and political environment remains volatile, its strong financial position enables it to weather market squalls whilst remaining focused on maximising the potential of the asset portfolio. The Group continues to review acquisition opportunities.

Group RevPAR was up 1.9% in the first four weeks of trading in the current quarter compared to the same period last year, with London up 7.4% and New York up 5.0%. Singapore was down 9.3% and Rest of Asia was down 10.8%.

PERFORMANCE REVIEW

For comparability, the following regional review is based on calculations in constant currency whereby 31 March 2012 average room rate and RevPAR have been translated at average exchange rates for the period ended 31 March 2013.

EUROPE

* % points

Europe had a challenging start to the quarter, with disappointing early trading, as each geographical sector of the market contracted. Management has seen performance slowly rebound as the quarter has progressed, with more encouraging performance in March.

RevPAR in London fell by 4.1% to £79.54 (2012: £82.96). This decrease was driven by the fall in occupancy of 3.6 percentage points to 73.3% (2012: 76.9%) being partially offset by a marginal increase in average room rate.

RevPAR for both regional UK and Continental Europe was marginally down on prior period. UK regional performance was driven by a 4.4% reduction in occupancy against an average room rate increase of 1.0%. Continental Europe suffered a 6.4% reduction in room rates but saw a compensatory increase in occupancy of 3.8%.

ASIA

* % points

Asia's revenue has fallen by £6.5m due to the reduction in rooms available with the planned partial closure of the Grand Hyatt Taipei, our largest hotel in the region, together with geo-political tension affecting performance of Millennium Seoul Hilton. Regional hotel revenues have reduced by 8.0%, whilst available rooms have decreased over the period by 8.5%. Grand Millennium Beijing also saw subdued trading in the wake of the change of national government.

Singapore has continued to see a softening in the corporate market, together with increased supply pressure, and this has resulted in a 9.0% reduction in RevPAR, with all hotels across the portfolio impacted.

RevPAR for the Rest of Asia decreased by 3.5% to £60.13 (2012: £62.34). This has been driven by a significant reduction in the Millennium Seoul Hilton with occupancy down by 20 percentage points. Hotels in Southeast Asia, excluding Singapore, have performed more strongly including Grand Millennium Kuala Lumpur and Heritage Hotel Manila.

UNITED STATES

* % points

Lower occupancy levels, pending the re-build of occupancy at ONE UN following its refurbishment last year, have been principally responsible for a fall of £0.8m in New York revenue on a constant currency basis. Average room rate increased, principally due to ONE UN, where room rate has increased by 18.6% post renovation.

There has been a slow and steady recovery in Regional US performance, with double digit RevPAR gains in Anchorage, Chicago, Cincinnati and LA Biltmore. Regional performance is impacted by the closure of nearly 10% of available rooms due to the refurbishment of Minneapolis and partial closure of St Louis, where 616 of its 780 rooms have been removed from the hotel and regional RevPAR calculation.

AUSTRALASIA

* % points

The year on year reduction in hotel revenues is driven by the inclusion in 2012 of both the Kingsgate Hotel Parnell Auckland (which closed in [August 2012]) and increased insurance receipts in respect to our Christchurch portfolio. On a like-for-like basis when these adjustments are stripped out revenues have increased from £11.8m to £12.2m. This demonstrates the strong performance in the quarter from the New Zealand, as occupancy rates have increased across the portfolio. With a flat average room rate year-to-year, RevPAR at £48.56 was 9.2% up on the comparative period (2012: £44.48).

Consolidated income statement (unaudited)

for the three months ended 31 March 2013

The financial results above derive from continuing activities.

Consolidated statement of comprehensive income (unaudited)

for the three months ended 31 March 2013

Consolidated statement of financial position (unaudited)

as at 31 March 2013

Consolidated statement of cash flows (unaudited)

for the three months ended 31 March 2013

Consolidated statement of changes in equity (unaudited)

for the three months ended 31 March 2013

Notes to the consolidated financial statements (unaudited)

1. General information

Basis of preparation

The first quarter results announcement for Millennium & Copthorne Hotels plc ("the Company") as at and for the period ended 31 March 2013 comprise the Company and its subsidiaries (together referred to as "the Group") and the Group's interests in joint ventures and associates.

The financial information set out in this interim management statement does not constitute the Group's statutory accounts for the quarter ended 31 March 2013. Statutory accounts for 2012 will be delivered to the registrar of companies following the Annual General Meeting to be held on 2 May 2013. The auditors have reported on those accounts; their reports were (i) unqualified; (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report; and (iii) did not contain a statement under section 498(2) or (3) of the Companies Act 2006.

Whilst the financial information included in this interim management statement has been prepared in accordance with IFRS as adopted by the EU, this statement does not itself contain sufficient information to comply with all disclosure requirements of IFRS. Information contained in this statement relating to the year ended 31 December 2012 has been extracted from the full IFRS compliant Annual Report and Accounts that was approved on 21 February 2013.

The results have been prepared applying the accounting policies and presentation that were used in the preparation of the Group's published consolidated financial statements for the financial year ended 31 December 2012 and which were prepared in accordance with IFRS as adopted by the EU. The consolidated financial statements of the Group for the financial year ended 31 December 2012 are available from the Company's website http://www.millenniumhotels.com/corporate/news-and-announcements.html.

The first quarter results were approved by the Board of Directors on 2 May 2013.

The financial statements are presented in the Company's functional currency of sterling, rounded to the nearest hundred thousand.

The Directors have reassessed the presentation of the income statement in light of the group's continuing evolution and best reporting practice and have made a number of disclosure and categorisation amendments to the income statement, together with relevant comparatives. The Directors consider that these adjustments better reflect the commercial dynamics of the Group and facilitate comparison with peers. The amendments have no impact on revenue, profit before tax or profit for the year.

Non-GAAP information

Net cash/debt and gearing percentage

An analysis of net cash/debt and calculated gearing percentage is provided in note 7 'Non-GAAP measures'.

Notes to the consolidated financial statements (unaudited)

2. Foreign currency translation

The Company publishes its Group financial statements in sterling. However, the majority of the Company's subsidiaries, joint ventures and associates report their revenue, costs, assets and liabilities in currencies other than sterling. The Company translates the revenue, costs, assets and liabilities of those subsidiaries, joint ventures and associates into sterling, and this translation of other currencies into sterling could materially affect the amount of these items in the Group's financial statements, even if their values have not changed in their original currencies. The following table sets out the sterling exchange rates of the other principal currencies of the Group.

3. Operating segment information

Disclosure of segmental information is principally presented in respect of the Group's geographical segments.

Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items principally comprise: interest-bearing loans, borrowings, cash and cash equivalents, net finance expense, taxation balances and corporate expenses.

Geographical segments

The hotel and property operations are managed on a worldwide basis and operate in seven principal geographical areas as follows:

·; New York

·; Regional US

·; London

·; Rest of Europe (including the Middle East)

·; Singapore

·; Rest of Asia

·; Australasia

The segments reported reflect the operating segment information included in the internal reports that the Chief Operating Decision Maker ("CODM"), which is the Board, regularly reviews.

The reportable segments are aligned with the structure of the Group's internal organisation which is based according to geographical region. Discrete financial information is reported to and is reviewed by the CODM on a geographical basis. Operating segments have Chief Operating Officers ("COOs") or equivalent who are directly accountable for the functioning of their segments and who maintain regular contact with the Chief Executive Officer and Chairman of the CODM to discuss the operational and financial performance. The CODM makes decisions about allocation of resources to the regions managed by the COOs.

Notes to the consolidated financial statements (unaudited)

3. Operating segment information (continued)

Notes to the consolidated financial statements (unaudited)

3. Operating segment information (continued)

1 Hotel fixed charges include depreciation, amortisation of lease premium prepayments, property rent, taxes and insurance, operating lease rentals and management fees.

2 See note 4 for details of other operating income or expense.

3 EBITDA is earnings before interest, tax, depreciation, amortisation and impairment.

Notes to the consolidated financial statements (unaudited)

3. Operating segment information (continued)

Segmental assets and liabilities