1st Quarter Results

For Immediate Release 6 May 2011

MILLENNIUM & COPTHORNE HOTELS PLC

INTERIM MANAGEMENT STATEMENT

First quarter results to 31 March 2011

Highlights for the first quarter 2011:

·; Total revenue in reported currency increased by 8.5%.

·; Headline operating profit in reported currency increased by 14.2%.

·; Overall RevPAR (in constant currency terms) rose in the first quarter, primarily driven by an increase in average room rate. RevPAR in the key gateway cities increased: London 9.3%, Singapore 8.5% and New York 4.1%. On a like for like basis Group RevPAR increased by 4.9% (excluding the 3 Christchurch hotels, Copthorne Orchid and Studio M; and including Grand Millennium Beijing) and Singapore by 12.7% (excluding Copthorne Orchid and Studio M).

·; Strong cash flows from operating activities of £20.9m (2010: £14.8m). Net debt reduced from £165.7m at 31 December 2010 to £131.8m and gearing of 6.9% (31 December 2010: 8.5%).

·; Good progress on asset management initiatives with refurbishment work underway at the Millennium Seoul Hilton and additional sales of Glyndebourne condominiums, where 95% of units are sold.

·; Pre-tax profits in reported currency up, but quarterly financial performance impeded by side-effects of asset management activity: declining revenues from Copthorne Orchid (site of Glyndebourne development) in run-up to closure on April 1, Glyndebourne sales and marketing costs and temporary room closures at Millennium Seoul Hilton.

·; Additional impact on performance from closure of three hotels in New Zealand and consolidation of Grand Millennium Beijing.

·; Sale and leaseback of Studio M announced in February 2011 for S$154m (£76.3m) completed on 3 May 2011.

·; Hotel construction commenced in Chengdu by our joint venture in China, First Sponsor Capital Limited.

Commenting today Mr Kwek Leng Beng, Chairman said:

"The underlying performance of the Group showed continuing progress in the first quarter, with a 4.8% constant currency increase in RevPAR and a continuing focus on control of operating costs. Quarterly financial performance slowed, in part as a result of the short term impacts arising from our asset management initiatives, but overall trading to date is in line with management expectations. The Group's strong balance sheet means that we have the financial strength to remain focused on our strategic goals."

Enquiries

Millennium & Copthorne Hotels plc

Richard Hartman, Chief Executive Officer Tel: +44 (0) 20 7872 2444

Adrian Bushnell, Company Secretary

Beng Lan Low, Senior Vice President Finance

Peter Krijgsman, Financial Communications (Media)

Analyst briefing

There will be a conference call for investors and analysts hosted by Richard Hartman, Chief Executive Officer, at 8.30am (UK time) on 6 May 2011.

CHAIRMAN'S STATEMENT

Performance in the first quarter of the year was good in most parts of the Group's hotel portfolio. Across the global estate, constant currency RevPAR grew by 4.8%, led by advances in our key gateway cities of London, Singapore and New York. On a like for like basis Group RevPAR increased by 4.9% (excluding the 3 Christchurch hotels, Copthorne Orchid and Studio M; and including Grand Millennium Beijing).

Financial Performance

For the three months ending 31 March 2011 profit before tax increased by 5.9% to £19.7m (2010: £18.6m). Headline profit before tax - the Group's measure of underlying profit performance, which excludes one-off items - increased by 5.9% to £19.8m (2010: £18.7m). Headline operating profit increased by 14.2% to £24.1m (2010: £21.1m). Basic earnings per share increased by 15.4% to 4.5p (2010: 3.9p).

In constant currency terms, headline operating profit rose by 6.2% and both headline profit before tax and profit before tax fell by 2.5%. A number of factors impacted quarterly comparisons, some of which arose from the Group's various asset management initiatives. Closure of 277 rooms as a result of refurbishment work at the Millennium Seoul Hilton reduced quarterly profits by £1.4m, while sales and marketing efforts related to the Glyndebourne Development increased expenses by £1.0m for the quarter. Revenues from the Copthorne Orchid declined in the run-up to its closure on 1 April 2011.

Aside from asset management impacts, consolidation of Grand Millennium Beijing impacted profitability through making a loss after £1.1m of interest charges. We were also affected by the continuing closure of three hotels in New Zealand as a result of the February earthquake in Christchurch.

In addition, there were no REIT manager acquisition fees in Q1 2011 compared to £1.0m for Q1 2010 and Q1 2011 had the benefit of the full quarter of Studio M opening without the pre-opening costs in Q1 2010.

Financial Position

The Group strengthened its financial position over the three month period. Net debt fell to £131.8 million at 31 March 2011 (31 December 2010 - £165.7 million). Gearing at the end of the first quarter was 6.9%, compared to 8.5% at the end of last year and 10.8% at 31 March 2010. At 31 March 2011 the Group had cash reserves of £274.9 million and total undrawn committed bank facilities of £180.2 million available. Most of the facilities are unsecured with unencumbered assets representing 88.6% of our fixed assets and investment properties.

Asset Management

We continue to pursue the asset management initiatives detailed in previous quarterly statements. Refurbishment is underway at the Millennium Seoul Hilton and will step up at the Grand Hyatt Taipei in the third quarter. The strategic aim of both projects is to increase revenue and profitability at both hotels. We are formulating refurbishment plans for the Millennium UN Plaza and the Millennium Mayfair.

Development of the Glyndebourne condominiums in Singapore will commence during the second quarter, following closure of the Copthorne Orchid Hotel on 1 April.

Out of the 150 apartments for sale since the end of October, buyers have signed sales and purchase agreements on 143, leaving seven apartments remaining to be sold. The sales value of the 143 units is S$517.4 million (£253.9 million), representing a price of over S$ 2000 per square foot. Sales proceeds collected to date total S$ 100.1 million (£49.5 million). Revenue and development costs will be reflected in the income statement on completion, which is expected no later that 2015.

Whilst we regularly assess our hotels' individual capital expenditure requirements, refurbishment/modernisation is not the only approach available to the Group and will not always represent the most efficient use of capital. The Glyndebourne development, which is expected to be very profitable, is an example of how the Group deploys its asset management expertise - both to unlock value in its real estate (in this case through an alternative use strategy) and to manage the risks and liabilities inherent in hotel ownership. Upgrading and renewing the Copthorne Orchid would not have realised comparable returns.

As previously reported, the Group announced on 16 June 2010 that it had signed a collective sales agreement with other unit-holders in the Tanglin Shopping Centre, a shopping-cum-office development situated within the Orchard prime tourist district in Singapore, in which the Group has a 34% interest in the total strata area. The first tender for an en-bloc sale, which carried a very high reserve price, closed without any bid being received. The sales committee is considering a second tender, for which no date has yet been fixed.

Development of First Sponsor Capital Limited's ("FSCL") Cityspring project in Chengdu, China continues to progress. As at 31 March 2011, 659 of a total of 726 residential units of the Chengdu Cityspring project have been sold, including 27 units signed under option agreements. As at 4 May 2011, 683 residential units of the Chengdu Cityspring project have been sold, including 27 units signed under option agreements. Revenue and profit recognition for the residential component is expected to be met by end 2011. FSCL has commenced construction of a 124-room mid-scale hotel as part of the development. The hotel is intended to be managed/franchised by the Group. The development is scheduled for completion in 2012.

Pipeline

The Group opened one hotel in Oman under management contract. The Group's worldwide pipeline has 24 hotels and 6,712 rooms, These are all management contracts with the exception of a project in India.

CDL Hospitality Trusts REIT

The Group announced in March its intention to sell Studio M Singapore to its REIT associate, CDL Hospitality Trusts for a cash consideration of S$154 million (£76.3 million). The transaction was completed on 3 May, following the approval by holders of CDLHT's stapled securities on 29 April. The hotel will continue to be branded as a "Studio M Hotel" and the Group will continue to have management responsibility for it.

An estimated total realised pre-tax profit from the disposal of S$34.2 million (£17.0 million) will be credited to the Group's income statement and will appear in the interim results to be published in August. Total unrealised pre-tax profit from the disposal is S$18.4m (£9.1m) which will be credited to the balance sheet as an investment in joint ventures and associates, arising from the Group's 35.1% interest in the stapled securities of CDLHT.

Board Changes

Kwek Leng Joo will retire as a Director at the Annual General Meeting on 6 May 2011. We thank him for his contribution to the Group, where he has been a non-executive Director since its flotation on the London Stock Exchange in 1996.

Kwek Eik Sheng, who has been an alternate Director to Kwek Leng Joo since April 2008, will join the Board as a non-executive Director at the conclusion of the AGM. He is Assistant General Manager and Head, Corporate Development at City Developments Limited in Singapore.

The appointment of a successor to Richard Hartman as Group Chief Executive has not yet been made and a rigorous selection process is still underway. Whilst I would have preferred to have had a suitably qualified successor in place by now, this has not been possible. Richard Hartman will remain CEO until his successor has been appointed, after which he will become a non-executive Director of the Group. In the meantime, I am encouraged by the continuing powerful performance of the Group since Richard announced his intention to retire. Increased momentum and high levels of profitability reflect the expertise, confidence and purpose of our revitalised management structure, together with the strength of our distinctive business model.

Outlook

Improvement in the global hospitality market will be less marked in 2011 than last year, with economic recovery remaining mixed away from the big global gateway cities, particularly in Europe and the United States. The earthquakes in New Zealand and Japan are also impacting revenues in Australasia and parts of Asia. The Group's very strong financial position gives it the means to meet these short term challenges and continue to focus on long term strategic goals, whilst remaining committed to strict cost control.

While it is too early to predict performance for 2011, trading to date is in line with management expectations. For the month of April 2011, Group RevPAR increased by 3.2% with New York increasing by 9.8%, Singapore by 4.2% and London by 6.9%. Results were impacted in London by the extended Easter holiday. On a like for like basis Group RevPAR increased by 3.0% and Singapore by 4.9%

Kwek Leng Beng

CHAIRMAN

5 May 2011

¹. Based on £1=S$2.0175 as at 31 March 2011.

Financial and Operating Highlights

Notes

1. The Group believes that headline EBITDA, headline operating profit, headline profit before tax, headline profit after tax and headline earnings per share, net debt and gearing provide useful and necessary information on underlying trends to shareholders, the investment community and are used by the Group for internal performance analysis. Reconciliation of these measures to the closest equivalent GAAP measures are shown above and in notes 3 and 8 to these financial statements.

Financial Performance - first quarter overview

For the first quarter to 31 March 2011, profit before tax increased by 5.9% to £19.7m (2009: £18.6m).

Headline profit before tax, the Group's measure of underlying profit before tax, increased by 5.9% from £18.7m to £19.8m. Headline operating profit increased by 14.2% to £24.1m (2009: £21.1m).

Basic earnings per share increased by 15.4% to 4.5p (2009: 3.9p) and headline earnings per share increased by 12.5% to 4.5p (2009: 4.0p).

The impact of foreign exchange movements are shown below and in constant currency terms the operating profit variance of £0.9m represents a modest 8.9% conversion rate. At hotel level the GOP conversion is 41.2%.The conversion masks the impact of several factors including the selling expenses of Glyndebourne and refurbishment of the Millennium Seoul Hilton. Excluding the revenue and operating results of these two factors, the conversion rate is 29.2%. At hotel level the GOP conversion, similarly adjusted, is 49.2%. In common with all hotel businesses, the Group's costs also increased as a result of escalating food and energy prices.

The difference between the operating profit and hotel GOP conversion rates is principally attributable to variable rentals charged to the four Singapore hotels owned by CDLHT. These rentals are determined by both revenue and profit streams of the properties.

Taxation

The Group recorded a tax expense of £4.2m (2010: £4.5m) excluding the tax relating to joint ventures and associates, giving rise to an effective rate of 28.6% (2010: 32.8%).

A tax charge of £0.7m (2010: £0.6m) relating to joint ventures and associates is included in the reported profit before tax.

Earnings per share

Basic earnings per share was 4.5p(2010: 3.9p) and headline earnings per share increased to 4.5p (2010: 4.0p). The table below reconciles basic earnings per share to headline earnings per share.

PERFORMANCE BY REGION

For comparability, the following regional review is based on calculations in constant currency whereby 31 March 2010 average room rate, RevPAR, revenue and headline operating profit have been translated at 2011 average exchange rates.

UNITED STATES

New York

RevPAR increased by 4.1% to £97.00 (2010: £93.22) for the first quarter. Rate was the driver for this growth showing a 7.0% increase to £130.55 (2010: £122.02) while occupancy fell by 2.1 percentage points to 74.3% (2010: 76.4%). This trend was witnessed in all three hotels, with the highest RevPAR growth produced by the Millenium Hilton which has also benefited from a competitor being closed for refurbishment.

Regional US

The strongest RevPAR growth has been produced within Regional US with a 10.0% growth to £30.23 (2010: £27.49). This growth however hides the mixed fortunes actually witnessed throughout the region. Good double digit growth in Los Angeles, Chicago, Cincinnati and Minneapolis was counteracted by high single digit declines in Anchorage, St Louis, Buffalo and Avon. Overall though, both occupancy and rate have improved: Occupancy up 1.7 percentage points to 50.5% (2010: 48.8%) and rate up 6.2% to £59.86 (2010: £56.34).

EUROPE

London

RevPAR growth in London was a healthy 9.3% to £77.56 (2010: £70.99). This was built upon a 10% increase in rate to £104.95 (2010: £95.42) with a small decrease in occupancy of 0.7 percentage points to 73.9% (2010: 74.4%). Rate increases were experienced in all London hotels, although three of the hotels suffered occupancy falls.

Rest of Europe

Quarter one RevPAR fell by 1.5% in the rest of Europe region to £46.44 (2010: £47.16).

Regional UK

Regional UK remains a challenge with RevPAR falling by 4.6% to £38.41 (2010: £40.27). With the exception of three hotels, there were RevPAR falls across the estate. Average rate fell by 2.5% to £59.83 (2010: £61.39) and occupancy by 1.4 percentage points to 64.2% (2010: 65.6%).

France & Germany

The situation in France and Germany is better where RevPAR increased by 1.7% to £59.17 (2010: £58.19). This performance was entirely due to the Millennium Stuttgart however, which was the only hotel to show an increase in either rate or occupancy. Within the region, average rate fell by 0.3% to £90.48 (2010: £90.78) while occupancy grew by 1.3% to 65.4% (2010: 64.1%).

ASIA

RevPAR increased by 0.7% to £64.99 (2010: £64.51) driven by a 4.0% increase in average room rates to £87.70 (2010: £84.33) offset by a 2.4 percentage point occupancy fall to 74.1%. The two years are not directly comparable however, as explained in the next two paragraphs, and on a like for like basis RevPAR increased by 11.2% to £66.65 (2010: £59.96).

Singapore

Singapore reported an 8.5% increase in RevPAR to £85.38 (2010: £78.66). Singapore performance was adversely affected by the running down of business at the Copthorne Orchid, while Studio M's opening at the very end of the first quarter of 2010 also obscured the comparison between the two periods. On a like for like basis, excluding Studio M and the Copthorne Orchid, Singapore RevPAR increased by 12.7% to £96.61 (2010: £85.71). This was driven by an 8.9% increase in rate to £112.47 (2010: £103.27) and a 2.9 percentage point increase in occupancy to 85.9% (2010 83.0%).

Rest of Asia

RevPAR for the rest of Asia fell by 7.6% to £49.61 (2010: £53.67). Performance was impacted by consolidation of the Grand Millennium Beijing, following the Group's acquisition of additional equity in the hotel, in November 2010 and by the closure of 277 rooms in the refurbishment of the Millennium Seoul Hilton. On a like-for-like basis, excluding Seoul, but including Beijing for both periods, RevPAR grew by 9.0% to £46.91 (20109: £43.02). This was driven by occupancy, which increased by 4.2 percentage points to 68.9.0% (2009: 64.7%), and by a 2.4% increase in rate to £68.08 (2010: £66.49).

AUSTRALASIA

For the New Zealand group, RevPAR at £43.39 was 2.6% down on last year (2010: £44.55). While occupancy declined by 2.3 percentage point to 75.6% (2010: 77.9%) rates grew by 0.3% to £57.38 (2010: £57.19). RevPAR excluding the 3 Christchurch hotels that were closed following the earthquake was down 1.8% on last year at £42.29 (2010: £43.08). This was due to cancellations as a direct result of the 22 February Canterbury earthquake and the Japanese earthquake and tsunami. The loss of business as a result of both events will have a negative impact on the New Zealand H1 results. For Q1 2011, New Zealand has recovered £1.4m business interruption from the insurers for the impact of the Canterbury earthquake on its business.

Across the three brands, Copthorne showed growth while Millennium and Kingsgate experienced a decline.

As a result of the 6.3 magnitude earthquake on 22 February 2011, the three Christchurch hotels namely Millennium Hotel Christchurch (leased), Copthorne Hotel Christchurch Central (owned), and Copthorne Hotel Christchurch City (leased) were closed down and cordoned off inside the Christchurch Business District by Civil Defence Emergency Management. Further structural engineering inspections will be required when access to the hotels is restored. Damage to the Copthorne Hotel Christchurch City is most severe but has been stabilised for the time being. The building has been identified for possible demolition by Civil Defence Emergency Management. Because the damage to the three hotels cannot be reasonably quantified as yet, no provision for asset write-off has been made. All three hotels are insured for material damage and business interruption. .

Financial Position

The Group strengthened its financial position over the three month period. Net debt fell to £131.8 million at 31 March 2011 (31 December 2010 - £165.7 million). Gearing at the end of the first quarter was 6.9%, compared to 8.5% at the end of last year and 10.8% at 31 March 2010.

Financial structure

Group interest cover ratio, excluding share of results of joint ventures and associates, other operating income and expense, non-operating income and separately disclosed items of the Group improved to 19.5 times from 14.8 times in Q1 2010. The increase in net finance cost of £1.2m principally reflects interest on Beijing's external debt acquired on acquisition in November 2010.

At 31 March 2011, the Group had £274.9m cash and £180.2m of undrawn and committed facilities available, comprising revolving credit facilities which provide the Group with financial flexibility. Most of the facilities are unsecured with unencumbered assets representing 88.6% of fixed assets and investment properties. At 31 March 2011, total borrowing amounted to £406.7m of which £79.4m was drawn under £107.6m of secured bank facilities.

Future funding

Of the Group's total facilities of £637.5m, £208.2m matures in the nine months to 31 December 2011, comprising £79.0m committed facilities (of which £69.6m is currently undrawn) and £48.1m of uncommitted facilities and overdrafts subject to annual renewal, £58.4m unsecured bonds and £22.7m secured term loans. Plans for refinancing of maturing facilities are underway.

Consolidated income statement (unaudited)

for the three months ended 31 March 2011

 The financial results above all derive from continuing activities.

Consolidated statement of comprehensive income (unaudited)

for the three months ended 31 March 2011

Consolidated statement of financial position (unaudited)

as at 31 March 2011

Consolidated statement of cash flows (unaudited)

for the three months ended 31 March 2011

Consolidated statement of changes in equity (unaudited)

for the three months ended 31 March 2011

Notes to the consolidated financial statements (unaudited)

1. General information

Basis of preparation

The first quarter results for Millennium & Copthorne Hotels plc ('the Company') to 31 March 2011 comprise the Company and its subsidiaries (together referred to as 'the Group') and the Group's interests in joint ventures and associates.

The first quarter results were approved by the Board of Directors on 5 May 2010.

The financial information set out in this interim management statement does not constitute the Group's statutory accounts for the quarter ended 31 March 2011. Statutory accounts for 2010 will be delivered to the registrar of companies following the Annual General Meeting to be held on 6 May 2011. 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, 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 2010 has been extracted from the full IFRS compliant Annual Report and Accounts that was approved on 15 February 2011.

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 year ended 31 December 2010. The consolidated financial statements of the Group for the financial year ended 31 December 2010 are available from the Company's website www.millenniumhotels.co.uk.

The 31 March 2010 comparatives for the consolidated income statement have been restated to present information to enhance the readers understanding of the Group's performance for the year whereby operating profit is now analysed into more appropriate captions with no impact on overall operating profit. In addition, the comparatives in the consolidated statement of financial position for 31 March 2010 have been restated to include amendments to IAS 17 'Leases'. IAS 17 was amended so that leases of land with an indefinite economic life need not be classified as an operating lease. A land lease with a lease term of several decades may be classified as a finance lease, even if at the end of the lease term title does not pass to the lessee. Certain land leases had been reclassified from operating leases to finance leases. Previously these operating leases had a lease premium prepayment held on the Statement of Financial Position, which were amortised over the lease term. With the amendment to IAS 17, the lease premium prepayments have been reclassified to Land and Buildings. As at 31 March 2010 cost of £68.2m and accumulated amortisation of £0.8m was reclassified from non-current and current lease premium prepayment to property plant and equipment. There was no effect on the consolidated income statement, consolidated statement of changes in equity and consolidated statement of cash flows.

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

Other amendments and new interpretations do not have a material impact.

Non-GAAP information

Headline operating profit, headline EBITDA, headline profit before tax and headline profit after tax.

Reconciliation of headline profit before tax, headline operating profit and headline EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) to the closest equivalent GAAP measure, profit before tax is provided in note 3 'Segmental analysis'.

Net debt and gearing percentage

An analysis of net debt and calculated gearing percentage is provided in note 8.

Like-for-like growth

The Group believes that like-for-like growth which is not intended to be a substitute for or superior to, reported growth, provides useful and necessary information to investors and interested parties for the following reasons:

·; it provides additional information on the underlying growth of the business without the effect of factors unrelated to the operating performance of the business; and

·; it is used by the Group for internal performance analysis.

Notes to the consolidated financial statements

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 financial statements, even if their value has not changed in their original currency. 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 and net finance expense, taxation balances and corporate expenses.

Geographical segments

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

·; New York

·; Regional US

·; London

·; Rest of Europe

·; 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. Each operating segment has a Chief Operating Officer (COO) or equivalent who is directly accountable for the functioning of the segment and who maintains regular contact with the executive members of the CODM to discuss the operational and financial performance. The CODM makes decisions about allocation of resources based on all five reported segment profits contained in the segmental results to the regions managed by the COO.

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 Earnings before interest, tax, depreciation and amortisation.

3 Included within separately disclosed items - Group is an impairment charge on an additional interest on shareholder loan in the Group's 50% investment in Bangkok.

Notes to the consolidated financial statements (unaudited)

3. Operating segment information (continued)