23rd Feb 2007 07:02
Millennium & Copthorne Hotels PLC23 February 2007 23 February 2007 MILLENNIUM & COPTHORNE HOTELS PLC FOURTH QUARTER AND FULL YEAR RESULTS TO 31 DECEMBER 2006 Millennium & Copthorne Hotels plc today announces fourth quarter and full yearto 31 December 2006 results together with a trading update. The Group has aportfolio of 108 hotels located in the Americas, Europe, Middle-East, Asia andNew Zealand. Fourth quarter highlights • Group RevPAR up by 5.0% and up by 10.4% at constant rates of exchange • Revenue up 5.9% to £177.5m (2005: £167.6m), up 10.9% at constant rates of exchange • Hotel operating profit up 15.0% to £42.1m (2005: £36.6m), up 17.9% at constant rates of exchange • Headline operating profit up 13.3% to £43.4m (2005: £38.3m) (1) • Headline profit before tax up 14.2% to £35.4m (2005: £31.0m) (1) • Headline earnings per share up 6.8% to 9.4p (2005: 8.8p) (3) Full year highlights • Group RevPAR up by 8.1% and up by 8.9% at constant rates of exchange with particularly strong performances in the US and Asia with RevPAR growth of 10.6% and 13.8% respectively (at constant rates of exchange) • Group average rate growth of 6.8% at constant rates of exchange, reflects success in implementing rate-driven RevPAR strategy • Revenue up 8.6% to £646.3m (2005: £595.2m) • Hotel operating profit up 12.7% to £120.3m (2005: £106.7m) • Headline operating profit up 15.4% to £124.7m (2005: £108.1m) (1) • Headline profit before tax up 27.6% to £94.4m (2005: £74.0m) (1) • Headline earnings per share up 16.6% to 21.8p (2005: 18.7p) (3) • Dividends of 12.5p per share for the year, up 62.3% comprising ordinary dividend of 8.5p per share and special dividend of 4.0p per share • Sale of long-term leasehold interests in three Singapore hotels and subsequent leaseback gave rise to a £10.1m pre-tax profit, realised £210.6m in cash of which £78.0m was reinvested for a 39.1% stake in a CDLHT(2) • Results of CDLHT and its impact on the Group have improved profit before tax by £2.7m, excluding the gains from the sale of long-term leasehold hotel interests and the Group's share of fair value adjustment to properties owned by CDLHT (1) Adjusted to exclude other operating income (Group and share of associates) and impairment (2) CDL Hospitality Trusts (a combination of a hospitality real estate investment trust and hospitality business trust, newly listed on the Stock Exchange of Singapore in July 2006) (3) Adjusted to exclude other operating income (Group and share of associates)and impairment (net of tax) Commenting today, Mr Kwek Leng Beng, Chairman said: I am pleased to report on our 2006 results which show an improvement inoperating profits and further capital gains from the realisation of some of ourassets. This has led to the Group's highest level of profits since our listingin 1996. Since the industry's low point in 2003, the Group has achieved a steady andsustainable recovery through a focused strategy laid down by the Board in 2004.This strategy was aimed at restoring the Group's profitability, redeploying theGroup's assets and developing the hotel brand whilst maintaining a dividendconsistent with the Group's overall performance. Revenue increased 8.6% to £646.3m with headline operating profit up 15.4% to£124.7m. Headline profit before tax rose to £94.4m an increase of 27.6%. Duringthe period under review we sold the long term leasehold interests in 3 Singaporehotels to the Hospitality REIT, CDLHT. This realised £210.6m in cash of which£78m was reinvested for a 39.1% stake in the REIT. The Board is recommending a dividend of 10.42p per share comprising a finaldividend of 6.42p per share plus a special dividend of 4.00p per share. Togetherwith the interim dividend of 2.08p per share (2005: 2.08p), the total dividendof 12.5p represents an increase of 62.3% over last year's total of 7.7p. Thedividend increase reflects both the growth in profit before tax and the Group'sfuture investment needs. The Group remains committed to its priority to grow its international hotelbusiness. Despite the divestment trend evident in a number of hotel groups inrecent years, our strategy has always been to be both long-term owner andoperator of hotels given the size of our portfolio. The Group will continue togrow the hotel business by adopting sustainable strategies. The financialcapacity reflected in the Group's balance sheet and the flexibility createdthrough the CDLHT platform put us in an advantageous position to seizeopportunities. As a hotel chain with substantial real estate assets, the Group is able tomaximise the value of our hotels at the right time to create a largersustainable earnings stream. We have demonstrated our ability to unlockshareholder value. The sale of The Plaza Hotel in New York is an example of howthe Group maximised value by selling an asset based on its real estate potentialrather than on earnings alone. The recent flotation of the CDLHT is anotherexample where we have realised both one off gains and continue to enjoy thevalue that CDLHT is generating. The Group is now well placed for growth. This will be realised through continuedfocus on improvements in operational performance and, in the medium term, byelevating the status of some of our key strategic hotels in prime locations.This repositioning exercise will be achieved through the total refurbishment andredevelopment of these hotels, with the ultimate objective of enhancing theirearnings potential and value. We have commissioned a study of the Millennium brand. This study confirmsfurther improvement in both our brand recognition and reputation. This progressis particularly encouraging following a recovery period in which we reducedbrand investment to protect Group earnings. In global terms, our brand awarenesscontinues to grow and its strength is underlined by our success in winningmanagement contracts in the highly competitive Asian, Middle Eastern and UKmarkets. The Group announced 9 new management contracts during the year takingthe total number of rooms signed since 2004 to just under 4,000 and the totalnumber of management contracts to 21. In 2005, the Group announced its commitment to grow the Copthorne chain. Sincethat announcement, we have secured 4 management contracts. Over time, thereremains a significant opportunity to increase the total number of Copthornerooms without further acquisitions due to existing redevelopment potentialwithin these properties. The Manchester Copthorne, for instance, should besuitable for redevelopment to take advantage of the transformation of the citywhere the super casino will be located. Asia is a key region in the Group's future development. It has fully recoveredfrom the Asian financial crisis and is once again a resurgent region. The growthin inter-city business and leisure travel resulting in increased demand foraccommodation is expected to outstrip the growth in hotel rooms. This situationis expected to remain particularly acute in Singapore for at least the nextthree years. Beyond this timeframe visitor arrivals to Singapore are expected toincrease from the current 9 million to 17 million, by 2015, as a result ofinitiatives to be implemented by the Singapore tourism board. The Group owns andoperates prime assets in gateway Asian cities such as Bangkok, Kuala Lumpur,Taipei, Seoul, Shanghai and from 2008, Beijing. With the substantial growth ofreal estate values in some of these key cities, acquisition of prime sites hasbecome more restricted and more expensive. The appointment of Peter Papas as the Group Chief Executive Officer, with effectfrom 1 March, will bring a fresh perspective to the management team. His broadexperience as a chartered accountant, investment banker, director within thehospitality and private equity sectors as well as being a hands-on leader willbe invaluable to the Group. Peter will be able to offer new approaches andprovide the Group with fresh impetus to drive organic growth, and, if the rightopportunities arise, growth through acquisition. In the first six weeks of 2007, trading has continued to be in line with thepositive trends of 2006 with RevPAR growth of 10.5%. We remain confident,therefore, of a successful outcome to the year as a whole. I am confident that, with the new management team, we have a solid foundationfrom which we can move our business forward into the next stage of itsdevelopment. Enquiries: Robin Lee, Senior Vice President Finance +44 (0) 20 7872 2444Millennium & Copthorne Hotels plc Ben Foster/Charlie WatenphulFinancial Dynamics +44 (0) 20 7831 3113 There will be an audio webcast of the results presentation from 9:15am on 23rdFebruary 2007 on http://www.millenniumhotels.com MILLENNIUM & COPTHORNE HOTELS PLCFOURTH QUARTER AND FULL YEAR RESULTS TO 31 DECEMBER 2006 FINANCIAL REVIEW Fourth Fourth Full year Full year quarter quarter 2006 2005 2006 2005 £m £m £m £m Revenue 177.5 167.6 646.3 595.2 Headline operating profit 43.4 38.3 124.7 108.1Other operating income - subsidiaries(1) 11.2 12.2 21.6 28.3Other operating income - share of associates(1) 17.7 - 17.7 -Impairment (3.5) (6.5) (3.5) (6.5)Other(2) (2.6) (1.9) (6.3) (5.0) Operating profit 66.2 42.1 154.2 124.9 Headline profit before tax(3) 35.4 31.0 94.4 74.0 Profit before tax 60.8 36.7 130.2 95.8 Headline EPS 9.4p 8.8p 21.8p 18.7p Basic EPS 17.4p 8.8p 34.5p 21.3p Key performance measures RevPAR growth at constant rates of exchange* 10.4% n/a 8.9% n/aOccupancy growth 2.5% n/a 1.9% n/aAverage room rate growth at constant rates of exchange* 7.7% n/a 6.8% n/aHotel revenue growth at constant rates of exchange* 9.7% n/a 7.4% n/aHotel operating profit growth at constant rates of exchange* 17.9% n/a 12.9% n/aEffective tax rate (excluding joint ventures and associates)Free cash flow 21.1% 28.2% £283.3m £69.0m 1. Other operating income - subsidiaries represents profit on disposal of operating assets, business interruption insurance proceeds and fair value adjustments to investment property. Other operating income - share of associates, represents the Group's 39.1% share of fair value adjustment to properties owned by CDLHT. 2. Other represents share of interest, tax and minority interests of joint ventures and associates. 3. Headline profit before tax excludes other operating income and impairment. * At constant rates of exchange (December 2006 exchange rates) Trading performance For the fourth quarter, the Group recorded a pre tax profit of £60.8m (2005:£36.7m). Hotel operating profit margin improved to 24.8% compared to 22.6% in2005. Headline profit before tax increased by £4.4m to £35.4m (2005: £31.0m).Basic earnings per share increased by 97.7% to 17.4p (2005: 8.8p) and headlineEPS increased by 6.8% to 9.4p (2005: 8.8p). Group RevPAR for the fourth quarter increased by 10.4% at constant rates ofexchange. Group occupancies increased by 2.5% and average rate grew by 7.7%. Atconstant rates of exchange, total hotel revenues increased by £15.1m and hoteloperating profit by £6.4m to £42.1m. For the full year, the Group recorded a pre tax profit of £130.2m (2005:£95.8m). Hotel operating profit margin improved to 19.4% compared to 18.4% in2005. Headline profit before tax increased by £20.4m to £94.4m (2005: £74.0m).Basic earnings per share increased by 62.0% to 34.5p (2005: 21.3p) and headlineEPS increased by 16.6% to 21.8p (2005: 18.7p). Group RevPAR for the year increased by 8.9% at constant rates of exchange. Groupoccupancies increased by 1.9% and average rate grew by 6.8%. At constant ratesof exchange, total hotel revenues increased by £43.0m and hotel operating profitby £13.7m to £120.3m. The impact of CDLHT results on the Group has improved profit before tax by£2.7m, excluding the gains from sale of long-term leasehold interests. Other operating income of the Group includes increases in the fair value ofinvestment property £4.9m (2005: £5.9m), profit on sale and leaseback of threeSingapore hotels of £10.1m and business interruption insurance proceeds £5.5m(2005: £12.8m). The share of associates other income of £17.7m represents theGroup's share of uplift in value of properties owned by CDLHT. Taxation The total Group tax charge excluding the tax relating to joint ventures is£22.1m (2005: £26.0m), giving rise to an effective rate of 21.1% (2005: 28.2%).The lower rate in 2006 is primarily due to a tax credit arising on the disposalof three of our Singapore hotels. A tax charge of £1.8m (2005: £1.4m) relating to joint ventures and associates isincluded in the reported profit before tax. Sale of three Singapore hotels and investment in CDL Hospitality Trusts Following a strategic review of its Singapore hotels and with a view to build anasset-light, fee based income platform, the Group has capitalised on the strongmarket sentiments of real estate investment trusts in Singapore and unlockedvalue through the sale of long term leasehold interests in three Singaporeanhotels for a consideration of S$612.2m (£210.6m) to CDL Hospitality Trusts ('CDLHT'), a hospitality real estate investment trust group on 19 July 2006. Thishas created a platform for the acceleration of future asset portfolio and feeincome growth for the Group. To demonstrate our commitment to CDLHT, the Groupre-invested £78.0m for a 39.1% interest in CDLHT. Net proceeds from the sale have been used to reduce the Group's net debt. CDLHT also acquired the Grand Copthorne Waterfront Hotel, a Group-managed hotel,from our intermediate parent company City Developments Limited for S$234.1m(£80.5m). CDLHT, in turn entered into an agreement on 19 July 2006 to lease allfour hotels back to the Group. The Group entered into a further agreement withCDLHT to manage CDLHT for which the Group receives a management fee. The Group recorded a £10.1m pre-tax profit from the sale of long leaseholdinterests in the three hotels. This is calculated after the deduction of anunrealised pre-tax profit element of £6.5m (£9.3m post-tax profit) representing39.1% of total profit which is in line with the Group's accounting policywhereby transactions with associates are eliminated to the extent of the Group'sinterest in the entity. This unrealised element has been reflected in acomparable reduction of the Group's cost of investment in associates shown inthe balance sheet. The CDLHT's initial public offering price of S$0.83 has increased by S$0.84 toS$1.67 as at 31 December 2006. As at 30 January 2007, the share price wasS$1.76. Fair value adjustments of investment properties At the end of 2006, the Group's investment commercial properties consisting ofthe King's Tanglin Shopping Centre in Singapore and the Biltmore Court & Tower,Los Angeles were subject to an external professional valuation. These propertiesrecorded an aggregated uplift in value of £4.9m (2005: £5.9m). In line with theGroup's accounting policy this has been credited to the income statement underother operating income. Under its accounting policies the properties of CDLHT were also subject toexternal valuation. The properties recorded an uplift for which the Group's39.1% share was £17.7m. This has been credited to the income statement underother operating income - share of associates. Valuation of hotel assets The Group states land and buildings at depreciated deemed cost, being their UKGAAP carrying value, including revaluations as at 1 January 2004 together withadditions thereafter less subsequent depreciation or provision for impairment.External professional open market valuations on certain of the Group's hotelportfolio have taken place at 31 December in each of the years 2004, 2005 and2006 covering the entire Group's hotel portfolio over this three year period.Valuation surpluses have not been recorded in the accounts. Based on externalvaluations conducted at 31 December 2006 on 29% (based on net book value) of theGroup's hotel portfolio, a valuation surplus of £78.3m is estimated but this hasnot been recorded in the accounts. The Group undertakes an annual review of the carrying value of hotel andproperty assets for indications of impairment. An impairment charge of £3.5m(2005: £6.5m) has been recorded in the year. Earnings per share Basic earnings per share grew by 13.2p to 34.5p (2005: 21.3p). In the same way that the Group adjusts profit before tax to remove the impact ofother operating income and impairment in arriving at headline profit before tax,it also reports headline earnings per share. The adjustments to earnings pershare are set out in note 5 to this announcement. Headline earnings per sharerose from 18.7p per share in 2005 to 21.8p per share in 2006, a 3.1p increase.The growth in headline earnings per share is due to a combination of bothoperating profit growth and a lower current tax rate noted above. Dividend The Group is recommending a final dividend of 6.42p per share this year plus aspecial dividend of 4.00p per share, compared to 5.62p last year. Taken togetherwith the interim dividend of 2.08p (2005: 2.08p), the total dividend of 12.5prepresents an increase of 62.3% over last year's total of 7.7p. The dividendincrease is a reflection of both the growth in profit before tax and the Group'sfuture investment needs. This dividend for 2006 is covered 2.8 times by earnings (2005: 2.8 times).Subject to approval by shareholders at the Annual General Meeting to be held on3 May 2007, the final dividend and special dividend will be paid on 18 May 2007to shareholders on the register on 23 March 2007. The ex-dividend date of theCompany's shares is 21 March 2007. Future funding With the Group's modest gearing levels, it substantial interest cover, £156.4mof undrawn and committed facilities and demonstrable ability to unlock propertyvalue through a REIT, the Group is confident that it will be able to finance itsplanned capital commitments. Cash Flow and Balance sheet During the year, the Group generated free cash flow (before dividend payments)of £283.3m, an increase of £214.3m compared to 2005. The improvement in freecash flow reflects the increase in profits, a net working capital outflow of£2.0m and disposal proceeds from the sale of long term leasehold interests inthree Singapore hotels. Of the £2.5m net additions to development properties, £6.2m was invested in theredevelopment of the Four Points Sunnyvale Hotel in California into 240residential condominiums for sale and a 250-room hotel. Development of FourPoints Sunnyvale Hotel is expected to complete in 2009. At 31 December 2006, the Group's net debt was £220.0m lower than 2005 at£260.4m (2005: £480.4m). 2006 2005 £m £m Cash generated from operations (excluding development properties) 147.0 133.7Interest and tax (37.4) (42.4)Total investment in properties (37.1) (56.8) Analysed betweenDevelopment and refurbishment of hotels (34.6) (39.2)Expenditure on development properties (2.5) (17.6) Disposals 210.8 34.5 Free cash flow 283.3 69.0Investment in associate (39.1% in CDL Hospitality Trusts) (78.0) -Increase in loan to joint venture (3.3) -Proceeds from disposal of joint venture 4.0 6.5Dividends paid - to equity holders of the parent (9.1) (31.5) - to minorities (2.2) (2.3)Other movements 25.3 (39.1) Decrease in net debt 220.0 2.6Opening net debt (480.4) (483.0) Closing net debt (260.4) (480.4) Property, plant and equipment has been reduced by £185.7m comprising the netbook values of the three hotels in which long term leasehold interests were soldless a nominal reversionary interest carrying values from the two freeholdhotels disposed (Orchard Hotel and M-Hotel). Leasehold premium prepayment hasalso been reduced by £7.6m, being the land element of the remaining longleasehold interest of the Kings Hotel, now assigned to CDLHT. Investments in associates have been: (i) increased by the Group's 39.1%investment in CDLHT of £78.0m which, as noted above, has been reduced by £9.3mof unrealised post-tax profits arising from the sale of the long leaseholdinterests; (ii) increased by CDLHT earnings, equity accounted for, that have notbeen distributed by way of dividend and its share of the asset revaluationreserves; and (iii) adjusted by exchange translation differences. FULL YEAR PERFORMANCE BY REGION UNITED STATESNew York RevPAR growth in New York continues to be heavily rate-driven with average rateincreases of 11.7% while occupancy has grown by 2.0 percentage points. This hasresulted in a RevPAR improvement of 14.4%. GOP margin has increased from 34.2%in 2005 to 37.7% in 2006. Market demand remains high in New York and, combined with our strong marketposition, this has allowed a continuation of the Group's aggressive ratestrategy that was introduced in 2005. The Millennium Hotel UN Plaza, in addition to good rate growth experienced thelargest occupancy increase of our New York hotels and is now the strongest interms of occupancy level. The Millennium Broadway and Millenium Hilton whichcontinue to have higher occupancies used that base to sell for higher roomrates. Regional US Excluding the impact of the Wynfield Hotel which the Group repossessed inDecember 2005 and the closure of the Sunnyvale Four Points Hotel at thebeginning of 2006, like-for-like RevPAR increased by 10.3% to £35.92 (2005:£32.57). This was the result of a 2.0 percentage point occupancy increase and a7.1% rate increase. The Regional US recovery continues to gain momentum,although it is not equally spread across the portfolio. All properties with oneexception increased RevPAR, with particularly strong growth in our three keylocations of Los Angeles, Boston and Chicago. On an unadjusted basis, RevPAR was up 6.1% to £34.55 (2005: £32.56). EUROPE London Full year RevPAR increased by 9.5% to £74.50 (2005: £68.01) driven by increasesof 2.2 percentage points in occupancy and 6.8% in rate. Overall London figures were impacted by the 142 room refurbishment during thefirst quarter at the Millennium Gloucester Hotel. RevPAR growth for thisproperty in the second half of the year was much stronger once the refurbishedroom stock was available. Year on year growth at the Copthorne Tara Hotel has been flat. This is theresult of a decision to shed two large but low yielding pieces of business toenable future higher yielding corporate business to be booked in their place.Excluding the Tara's performance, London's RevPAR growth was 14%. Rest of Europe RevPAR increased by 2.7% to £52.08 with occupancy up by 0.5 percentage points to73.3%, and average rate up 2.0% to £71.05. Regional UK RevPAR increased 2.8% to £53.90 which was entirely driven by rate. Growth in the UK market remains mixed with the strongest improvements comingfrom our two Scottish hotels whilst over supply of room stock in Cardiff has hada negative impact on RevPAR in this city. France & Germany Our presence in these two countries remains limited to four hotels. RevPARincreased by 2.1% to £49.12 primarily through occupancy with a small increase inrate. All four properties experienced positive RevPAR growth with our two Germanproperties producing the stronger performance. ASIA Our rate-driven growth strategy in Asia achieved an increase in average rate of10.2% to £59.07. Occupancy increased by 2.4 percentage points resulting inRevPAR up 13.8% to £44.95. Singapore Singapore was the strongest market in the Group this year. On a like for likebasis, with full year pro-forma figures for the Grand Copthorne Waterfront,Singapore properties have grown RevPAR by 31.5% driven by occupancy growth andstrong rate increases. Rest of Asia Outside of Singapore, overall growth has been more modest. RevPAR increased by6.1% driven mainly by rate increases. All hotels improved on prior year RevPAR with the strongest growth arising inour two Malaysian properties. Of our larger Asian properties, Grand Hyatt Taipeisaw rate growth at the expense of occupancy whilst the Millennium Seoul Hiltonshowed a modest rate increase. NEW ZEALAND In New Zealand, where we operate under the Millennium, Copthorne and Kingsgatebrands, RevPAR has remained flat at £27.65 with little change in occupancy oraverage rate. There was modest growth in both the Millennium and Copthorne brands offset by ashortfall in the Kingsgate brand. The leases on two of the Kingsgate hotels weredue to expire this year and sales and marketing activities were consequentlyscaled down. Subsequently, the leases were extended by one and two years. Thisresulted in the loss of specific seasonal business which was not readilyreplaceable. Also contributing to the shortfall within Kingsgate is therefurbishment of the Kingsgate Oriental Bay. REVIEW AND OUTLOOK I am pleased to report on our 2006 results which show an improvement inoperating profits and further capital gains from the realisation of some of ourassets. This has led to the Group's highest level of profits since our listingin 1996. Since the industry's low point in 2003, the Group has achieved a steady andsustainable recovery through a focused strategy laid down by the Board in 2004.This strategy was aimed at restoring the Group's profitability, redeploying theGroup's assets and developing the hotel brand whilst maintaining a dividendconsistent with the Group's overall performance. Revenue increased 8.6% to £646.3m with headline operating profit up 15.4% to£124.7m. Headline profit before tax rose to £94.4m an increase of 27.6%. Duringthe period under review we sold the long term leasehold interests in 3 Singaporehotels to the Hospitality REIT, CDLHT. This realised £210.6m in cash of which£78m was reinvested for a 39.1% stake in the REIT. The Board is recommending a dividend of 10.42p per share comprising a finaldividend of 6.42p per share plus a special dividend of 4.00p per share. Togetherwith the interim dividend of 2.08p per share (2005: 2.08p), the total dividendof 12.5p represents an increase of 62.3% over last year's total of 7.7p. Thedividend increase reflects both the growth in profit before tax and the Group'sfuture investment needs. The Group remains committed to its priority to grow its international hotelbusiness. Despite the divestment trend evident in a number of hotel groups inrecent years, our strategy has always been to be both long-term owner andoperator of hotels given the size of our portfolio. The Group will continue togrow the hotel business by adopting sustainable strategies. The financialcapacity reflected in the Group's balance sheet and the flexibility createdthrough the CDLHT platform put us in an advantageous position to seizeopportunities. As a hotel chain with substantial real estate assets, the Group is able tomaximise the value of our hotels at the right time to create a largersustainable earnings stream. We have demonstrated our ability to unlockshareholder value. The sale of The Plaza Hotel in New York is an example of howthe Group maximised value by selling an asset based on its real estate potentialrather than on earnings alone. The recent flotation of the CDLHT is anotherexample where we have realised both one off gains and continue to enjoy thevalue that CDLHT is generating. The Group is now well placed for growth. This will be realised through continuedfocus on improvements in operational performance and, in the medium term, byelevating the status of some of our key strategic hotels in prime locations.This repositioning exercise will be achieved through the total refurbishment andredevelopment of these hotels, with the ultimate objective of enhancing theirearnings potential and value. We have commissioned a study of the Millennium brand. This study confirmsfurther improvement in both our brand recognition and reputation. This progressis particularly encouraging following a recovery period in which we reducedbrand investment to protect Group earnings. In global terms, our brand awarenesscontinues to grow and its strength is underlined by our success in winningmanagement contracts in the highly competitive Asian, Middle Eastern and UKmarkets. The Group announced 9 new management contracts during the year takingthe total number of rooms signed since 2004 to just under 4,000 and the totalnumber of management contracts to 21. In 2005, the Group announced its commitment to grow the Copthorne chain. Sincethat announcement, we have secured 4 management contracts. Over time, thereremains a significant opportunity to increase the total number of Copthornerooms without further acquisitions due to existing redevelopment potentialwithin these properties. The Manchester Copthorne, for instance, should besuitable for redevelopment to take advantage of the transformation of the citywhere the super casino will be located. Asia is a key region in the Group's future development. It has fully recoveredfrom the Asian financial crisis and is once again a resurgent region. The growthin inter-city business and leisure travel resulting in increased demand foraccommodation is expected to outstrip the growth in hotel rooms. This situationis expected to remain particularly acute in Singapore for at least the nextthree years. Beyond this timeframe visitor arrivals to Singapore are expected toincrease from the current 9 million to 17 million, by 2015, as a result ofinitiatives to be implemented by the Singapore tourism board. The Group owns andoperates prime assets in gateway Asian cities such as Bangkok, Kuala Lumpur,Taipei, Seoul, Shanghai and from 2008, Beijing. With the substantial growth ofreal estate values in some of these key cities, acquisition of prime sites hasbecome more restricted and more expensive. The appointment of Peter Papas as the Group Chief Executive Officer, with effectfrom 1 March, will bring a fresh perspective to the management team. His broadexperience as a chartered accountant, investment banker, director within thehospitality and private equity sectors as well as being a hands-on leader willbe invaluable to the Group. Peter will be able to offer new approaches andprovide the Group with fresh impetus to drive organic growth, and, if the rightopportunities arise, growth through acquisition. In the first six weeks of 2007, trading has continued to be in line with thepositive trends of 2006 with RevPAR growth of 10.5%. We remain confident,therefore, of a successful outcome to the year as a whole. I am confident that, with the new management team, we have a solid foundationfrom which we can move our business forward into the next stage of itsdevelopment. Kwek Leng Beng Chairman22 February 2007 Consolidated income statementfor the fourth quarter and full year ended 31 December 2006 Notes Fourth quarter Fourth quarter Full year Full year 2006 2005 2006 2005 £m £m £m £m Revenue 2 177.5 167.6 646.3 595.2 Cost of sales (72.7) (69.4) (277.4) (259.1) Gross profit 104.8 98.2 368.9 336.1 Administrative expenses (70.3) (69.6) (261.5) (243.0) Other operating income 3 11.2 12.2 21.6 28.3 45.7 40.8 129.0 121.4 Share of profit of joint ventures and associates 20.5 1.3 25.2 3.5 Analysed between share of: 5.4 3.2 13.8 8.5 Operating profit before other incomeOther operating income 17.7 - 17.7 -Interest, tax and minority interests (2.6) (1.9) (6.3) (5.0) Operating profit 66.2 42.1 154.2 124.9 Analysed between: Headline operating profit 2 43.4 38.3 124.7 108.1 Other operating income - Group 3 11.2 12.2 21.6 28.3 Other operating income - Share of jointventures and associates 17.7 - 17.7 - Impairment (included within administrativeexpenses) (3.5) (6.5) (3.5) (6.5) Share of interest, tax and minorityinterests of joint ventures and associates (2.6) (1.9) (6.3) (5.0) Finance income 1.8 0.3 5.8 6.7 Finance expense (7.2) (5.7) (29.8) (35.8) Profit before tax 60.8 36.7 130.2 95.8 Income tax expense 4 (7.6) (8.4) (22.1) (26.0) Profit for the period 53.2 28.3 108.1 69.8 Attributable to: 50.5 25.3 100.1 61.1 Equity holders of the parent Minority interests 2.7 3.0 8.0 8.7 53.2 28.3 108.1 69.8 Basic earnings per share 5 17.4p 8.8p 34.5p 21.3pDiluted earnings per share 5 17.3p 8.8p 34.4p 21.2p The financial results above all derive from continuing activities. Consolidated statement of recognised income and expensefor the year ended 31 December 2006 Year Year ended ended 31 December 31 December 2006 2005 £m £m Foreign exchange translation differences (84.2) 80.7Cash flow hedges: amounts recycled to income statement - 4.0Share of associates other reserve movements (2.3) -Actuarial losses arising in respect of defined benefit pension schemes (1.4) (2.4)Taxation credit arising on defined benefit pension schemes 0.4 0.6Taxation credit arising in respect of revalued property 2.2 - Income and expense recognised directly in equity (85.3) 82.9Profit for the period 108.1 69.8 Total recognised income and expense for the period 22.8 152.7 Attributable to:Equity holders of the parent 25.1 138.3Minority interests (2.3) 14.4 Total recognised income and expense for the period 22.8 152.7 Consolidated balance sheetas at 31 December 2006 As at As at 31 December 31 December Notes 2006 2005 £m £mNon-current assetsProperty, plant and equipment 1,612.4 1,943.4Lease premium prepayment 74.6 80.8Investment properties 49.6 48.0Investments in joint ventures and associates 115.5 29.0Loans due from joint ventures and associates 26.5 26.3Other financial assets 3.2 2.2 1,881.8 2,129.7 Current assetsInventories 4.6 4.4Development properties 68.6 48.5Lease premium prepayment 1.3 1.0Trade and other receivables 57.8 53.2Other financial assets 7.2 5.9Cash and cash equivalents 162.3 104.6 301.8 217.6 Total assets 2,183.6 2,347.3 Non-current liabilitiesInterest-bearing loans, bonds and borrowings (283.1) (530.1)Employee benefits (15.0) (16.0)Provisions (1.3) (1.6)Other non-current liabilities (6.8) (6.8)Deferred tax liabilities (224.6) (239.9) (530.8) (794.4) Current liabilitiesInterest-bearing loans, bonds and borrowings (139.6) (54.9)Trade and other payables (102.6) (100.3)Provisions (0.4) (0.4)Income taxes payable (18.1) (19.5) (260.7) (175.1) (791.5) (969.5) Total liabilities Net assets 1,392.1 1,377.8 EquityTotal equity attributable to equity holders of the parent 1,269.1 1,250.3Minority interests 123.0 127.5 Total equity 7 1,392.1 1,377.8 Consolidated statement of cash flowsfor the year ended 31 December 2006 2006 2005 £m £mCash flows from operating activitiesProfit for the year 108.1 69.8Adjustments for:Depreciation and amortisation 34.5 36.4Share of profit of joint ventures and associates (25.2) (3.5)Impairment losses for property, plant and equipment 3.5 6.5Profit on sale of property, plant and equipment (11.2) (9.6)Revaluation of investment properties (4.9) (5.9)Employee stock options 0.6 0.7Finance income (5.8) (6.7)Finance expense 29.8 35.8Income tax expense 22.1 26.0 Operating profit before changes in working capital and provisions 151.5 149.5Increase in inventories, trade and other receivables (5.1) (19.3)Increase in development properties (2.5) (17.6)Increase in trade and other payables 0.9 3.9Decrease in provisions and employee benefits (0.3) (0.4) Cash generated from operations 144.5 116.1Interest paid (28.9) (35.4)Interest received 7.8 6.1Income taxes paid (16.3) (13.1) Net cash from operating activities 107.1 73.7 Cash flows from investing activitiesProceeds from sale of property, plant and equipment, investment properties 210.8 34.5and assets held for saleInvestment in other financial assets (3.1) (1.8)Proceeds from disposal of joint venture 4.0 6.5Increase in investment in joint ventures and associates (81.3) - Acquisition of property, plant and equipment (34.6) (39.2) Net cash from investing activities 95.8 - Balance carried forward 202.9 73.7 Consolidated statement of cash flows (continued)for the year ended 31 December 2006 2006 2005 £m £m Balance brought forward 202.9 73.7Cash flows from financing activitiesProceeds from the issue of share capital 2.2 2.1Repayment of borrowings (205.0) (419.0)Drawdown of borrowings 79.7 387.0Payment of finance lease obligations (2.0) (1.8)Loan arrangement fees (0.6) (1.4)Dividends paid to minorities (2.2) (2.3)Dividends paid to equity holders of the parent (9.1) (31.5) Net cash from financing activities (137.0) (66.9) Net increase in cash and cash equivalents 65.9 6.8Cash and cash equivalents at beginning of period 103.7 89.8Effect of exchange rate fluctuations on cash held (8.1) 7.1 Cash and cash equivalents at end of the period 161.5 103.7 Reconciliation of cash and cash equivalentsCash and cash equivalents shown in the balance sheet 162.3 104.6Overdraft bank accounts included in borrowings (0.8) (0.9) Cash and cash equivalents for cash flow statement purposes 161.5 103.7 Notes to the fourth quarter and full year results announcement 1. General information Basis of preparation The fourth quarter and full year financial statements for Millennium & CopthorneHotels plc ('the Company') to 31 December 2006 comprise the Company and itssubsidiaries (together referred to as 'the Group') and the Group's interests injointly controlled and associate entities. The financial information set out in this preliminary announcement does notconstitute the Company's statutory accounts for the years ended 31 December 2006or 2005. Statutory accounts for 2005 have been delivered to the registrar ofcompanies, and those for 2006, prepared under accounting standards adopted bythe EU, will be delivered in due course. The auditors have reported on thoseaccounts; their reports were (i) unqualified, (ii) did not include references toany matters to which the auditors drew attention by way of emphasis withoutqualifying their reports and (iii) did not contain statements under section 237(2) or (3) of the Companies Act 1985. The consolidated financial statements of the Group for the financial year ended31 December 2005 are available from the Company's websitewww.millenniumhotels.com Use of adjusted measures A number of measures quoted in this preliminary announcement are 'non-GAAP'measures. The directors believe these measures provide a more meaningfulanalysis of trading results of the Group and are consistent with the wayfinancial performance is measured by management. These include hotel operatingprofit, headline operating profit, headline profit before tax, headline earningsper share, net debt and free cash flow. These measures are used for internalperformance analysis and are useful in connection with discussion with theinvestment analyst community. They are not defined by IFRS and therefore may notbe directly comparable with other companies' adjusted performance measures. Itis not intended to be a substitute for, or superior to IFRS performancemeasures. The adjustments made to reported profit before tax are: • Fair value adjustments of investment property • Business interruption insurance proceeds • Gains/losses on disposal of property • Impairment • Share of other operating income, impairment, interest, tax and minority interests of joint ventures and associates Notes to the fourth quarter and full year results announcement 2. Segmental analysis The following segmental analysis is not intended to be a full statutorydisclosure. Geographical segments Fourth Fourth Fourth Fourth Fourth Fourth Fourth Fourth quarter quarter quarter quarter quarter quarter 2006 quarter quarter 2006 2006 2006 2006 2006 2006 2006 New York Regional London Rest of Asia Australasia Central Total US Europe costs Group £m £m £m £m £m £m £m £mRevenueHotel 30.1 28.1 23.4 26.0 50.2 12.2 - 170.0Property operations - 0.4 - - 0.4 6.7 - 7.5 Total 30.1 28.5 23.4 26.0 50.6 18.9 - 177.5 Hotel gross operating profit 14.2 6.3 11.9 7.9 22.8 5.4 - 68.5Hotel fixed charges* (1.5) (4.5) (4.0) (4.7) (10.0) (1.7) - (26.4) Hotel operating profit 12.7 1.8 7.9 3.2 12.8 3.7 - 42.1 Property operations operating profit - (0.1) - - - 3.1 - 3.0Central costs - - - - - - (7.1) (7.1) Share of joint ventures and associates operating profit - - - - 5.4 - - 5.4Headline operating profit 12.7 1.7 7.9 3.2 18.2 6.8 (7.1) 43.4Other operating income - Group 5.5 3.1 - - 2.6 - - 11.2Other operating income - share of joint ventures andassociates - - - - 17.7 - - 17.7Impairment - (0.6) - (2.9) - - - (3.5)Share of interest, tax and minority interests of jointventures and associates - - - - (2.6) - - (2.6) Operating profit 18.2 4.2 7.9 0.3 35.9 6.8 (7.1) 66.2Net financing costs (5.4) Profit before tax 60.8 Notes to the fourth quarter and full year results announcement 2. Segmental analysis (continued) Geographical segments Fourth Fourth Fourth Fourth Fourth Fourth Fourth Fourth quarter quarter quarter quarter quarter quarter 2005 quarter quarter 2005 2005 2005 2005 2005 2005 2005 New York Regional London Rest of Asia Australasia Central Total US Europe costs Group £m £m £m £m £m £m £m £m Revenue Hotel 28.7 29.1 21.2 27.3 42.5 13.2 - 162.0 Property operations - 0.7 - - 0.3 4.6 - 5.6 Total 28.7 29.8 21.2 27.3 42.8 17.8 - 167.6 Hotel gross operating profit 12.1 5.7 10.8 9.8 17.0 6.1 - 61.5 Hotel fixed charges* (4.7) (5.4) (3.4) (4.4) (4.7) (2.3) - (24.9) Hotel operating profit 7.4 0.3 7.4 5.4 12.3 3.8 - 36.6 Property operations operating profit - 0.1 - - 0.2 2.7 - 3.0 Central costs - - - - - - (4.5) (4.5) Share of joint ventures and associates operating profit - - - - 3.2 - - 3.2 Headline operating profit 7.4 0.4 7.4 5.4 15.7 6.5 (4.5) 38.3 Other operating income - Group - 5.9 - - - 6.3 - 12.2Other operating income - share of joint ventures andassociates - - - - - - - - Impairment - - - (6.5) - - - (6.5)Share of interest, tax and minority interests of jointventures and associates - - - - (1.9) - - (1.9) Operating profit 7.4 6.3 7.4 (1.1) 13.8 12.8 (4.5) 42.1Net financing costs (5.4) Profit before tax 36.7 Notes to the fourth quarter and full year results announcement 2. Segmental analysis (continued) Geographical segments Full year Full year Full year Full year Full year Full year Full year Full year 2006 2006 2006 2006 2006 2006 2006 2006 New York Regional London Rest of Asia Australasia Central Total US Europe costs Group £m £m £m £m £m £m £m £mRevenueHotel 103.1 117.0 84.2 96.8 175.1 44.9 - 621.1Property operations - 2.3 - - 1.4 21.5 - 25.2 Total 103.1 119.3 84.2 96.8 176.5 66.4 - 646.3 Hotel gross operating profit 38.9 27.7 40.1 28.9 69.4 18.8 - 223.8Hotel fixed charges* (16.3) (18.5) (13.8) (16.6) (29.8) (8.5) - (103.5)Hotel operating profit 22.6 9.2 26.3 12.3 39.6 10.3 - 120.3Property operations operating profit - 0.2 - - 0.6 8.0 - 8.8Central costs - - - - - - (18.2) (18.2)Share of joint ventures and associates operating profit - - - - 13.8 - - 13.8Headline operating profit 22.6 9.4 26.3 12.3 54.0 18.3 (18.2) 124.7 Other operating income - Group 5.5 3.1 - - 13.0 - - 21.6Other operating income - share of joint ventures andassociates - - - - 17.7 - - 17.7Impairment - (0.6) - (2.9) - - - (3.5)Share of interest, tax and minority interests of jointventures and associates - - - - (6.3) - - (6.3) Operating profit 28.1 11.9 26.3 9.4 78.4 18.3 (18.2) 154.2 Net financing costs (24.0) Profit before tax 130.2 Notes to the fourth quarter and full year results announcement 2. Segmental analysis (continued) Geographical segments Full year Full year Full year Full year Full year Full year Full year Full year 2005 2005 2005 2005 2005 2005 2005 2005 New York Regional London Rest of Asia Australasia Central Total US Europe costs Group £m £m £m £m £m £m £m £m Revenue Hotel 91.2 112.8 78.7 97.7 151.7 48.6 - 580.7 Property operations - 2.6 - - 1.4 10.5 - 14.5 Total 91.2 115.4 78.7 97.7 153.1 59.1 - 595.2 Hotel gross operating profit 31.2 23.5 38.1 31.1 55.7 20.4 - 200.0 Hotel fixed charges* (14.2) (18.5) (13.5) (17.0) (20.7) (9.4) - (93.3) Hotel operating profit 17.0 5.0 24.6 14.1 35.0 11.0 - 106.7 Property operations operating profit - 0.6 - - 0.8 5.3 - 6.7 Central costs - - - - - - (13.8) (13.8) Share of joint ventures and associates operating profit - - - - 8.5 - - 8.5 Headline operating profit 17.0 5.6 24.6 14.1 44.3 16.3 (13.8) 108.1 Other operating income - Group 12.8 5.9 - - - 9.6 - 28.3 Other operating income - share of joint ventures andassociates - - - - - - - - Impairment - - - (6.5) - - - (6.5) Share of interest, tax and minority interests of jointventures and associates - - - - (5.0) - - (5.0) Operating profit 29.8 11.5 24.6 7.6 39.3 25.9 (13.8) 124.9 Net financing costs (29.1)Profit before tax 95.8 *'Hotel fixed charges' include depreciation, amortisation of lease prepayments,property rent, taxes and insurance, operating lease rentals and management fees. Notes to the fourth quarter and full year results announcement 2. Segmental analysis (continued) Segmental assets and liabilities New York Regional US London Rest of Asia Australasia Total Group Europe 2006 2006 2006 2006 2006 2006 2006 £m £m £m £m £m £m £m Hotel operating assets 292.3 235.9 452.0 216.1 468.8 97.4 1,762.5Hotel operating liabilities (60.1) (64.7) (67.0) (36.1) (126.8) (11.6) (366.3)Investments in joint ventures and associates - - - - 115.5 - 115.5Loans to joint ventures - - - - 26.5 - 26.5Total hotel operating net assets 232.2 171.2 385.0 180.0 484.0 85.8 1,538.2Property operations assets - 43.3 - - 33.9 42.0 119.2Property operations liabilities - (3.7) - - (0.4) (0.8) (4.9)Total property operations net assets - 39.6 - - 33.5 41.2 114.3Net debt (260.4) 1,392.1 Net assets New York Regional US London Rest of Asia Australasia Total Group Europe 2005 2005 2005 2005 2005 2005 2005 £m £m £m £m £m £m £m Hotel operating assets 328.5 291.8 449.7 227.1 694.3 106.1 2,097.5Hotel operating liabilities (72.5) (61.7) (65.7) (41.6) (129.4) (14.6) (385.5)Investments in joint ventures and associates - - - - 29.0 - 29.0Loans to joint ventures - - - - 26.3 - 26.3 Total hotel operating net assets 256.0 230.1 384.0 185.5 620.2 91.5 1,767.3 Property operations assets - 19.8 - - 29.2 48.5 97.5Property operations liabilities - (4.7) - - (0.5) (1.4) (6.6) Total property operations net assets - 15.1 - - 28.7 47.1 90.9 Net debt (480.4) 1,377.8 Net assets Notes to the fourth quarter and full year results announcement 3. Other operating income Fourth quarter Fourth quarter Full year Full year 2006 2005 2006 2005 £m £m £m £m Profit on sale and leaseback of 3 Singapore hotels - Orchard Hotel, Copthorne Kings Hotel and M Hotel - - 10.1 -Changes in fair value upon revaluation of investment property 4.9 5.9 4.9 5.9Business interruption insurance proceeds 5.5 - 5.5 12.8Other 0.8 6.3 1.1 9.6 11.2 12.2 21.6 28.3 4. Income tax expense The £22.1m total income tax charge for 2006 comprises a UK tax charge of £1.1mand an overseas tax charge of £21.0m (2005: a UK credit of £4.2m and overseastax charge of £30.2m). Taxation for the period comprises both the Group tax charge and the jointventure taxation charge which is included separately within the Group's share ofjoint venture profits (but disclosed on the face of the income statement). The total Group tax charge excluding the tax relating to joint ventures is£22.1m (2005: £26.0m), giving rise to an effective rate of 21.1% (2005:28.2%).The lower rate in 2006 is primarily due to a tax credit arising on thedisposal of three of our Singapore hotels. 5. Earnings per share Fourth Fourth Full year Full year quarter quarter 2006 2005 2006 2005 £m £m £m £mBasic Profit for period attributable to holders of the parent (£m) 50.5 25.3 100.1 61.1 Weighted average number of shares outstanding (m) 290.5 287.5 289.9 287.0Basic earnings per share (pence) 17.4 8.8 34.5 21.3 DilutedWeighted average number of shares outstanding (m) 291.9 287.5 290.6 287.9Diluted earnings per share (pence) 17.3 8.8 34.4 21.2 Headline earnings per shareProfit for the period attributable to holders of the parent (£m) 50.5 25.3 100.1 61.1 Adjustment to exclude: (8.8) (5.8) (22.4) (13.8) - Other operating income (net of tax and minorities)- Impairment (net of tax) 3.3 6.5 3.3 6.5- Share of associates other operating income (nil tax) (17.7) - (17.7) - Adjusted profit for the period attributable to holders of the parent (£m) 27.3 26.0 63.3 53.8 Weighted average number of shares outstanding (m) 290.5 287.5 289.9 287.0 Headline earnings per share (pence) 9.4 9.0 21.8 18.7 Notes to the fourth quarter and full year results announcement 6. Dividends Dividends have been recognised within equity as follows: Fourth Fourth Full year Full year quarter quarter 2006 2005 2006 2005 £m £m £m £m Final ordinary dividend paid for 2005 of 5.62p (for 2004: 4.17p) - - 16.2 11.9 Interim ordinary dividend approved for 2006 of 2.08p (for2005: 2.08p) 6.1 5.9 6.1 5.9 Total ordinary dividend paid/approved 6.1 5.9 22.3 17.8 Final special dividend paid for 2004 of 6.25p - - - 17.9 6.1 5.9 22.3 35.7 7. Reconciliation of movements in total equity Full year Full year 2006 2005 £m £m Total recognised income and expense for the period 22.8 152.7 First time adoption of IAS 39 - (5.4) Dividends paid/payable to equity holders of the parent (22.3) (35.7) Issue of shares in lieu of dividends 13.2 4.2 Dividends paid to minority interests (2.2) (2.3) Transfer from share of associates - 0.6 Share options exercised 2.2 2.1 Equity settled transactions 0.6 0.6 Net increase in total equity 14.3 116.8 Opening total equity 1,377.8 1,261.0 Closing total equity 1,392.1 1,377.8 APPENDIX 1: Key operating statisticsfor the fourth quarter ended 31 December 2006 Fourth quarter Fourth quarter Fourth quarter 2006 2005 2005 Reported Constant Reported Currency Currency currencyOccupancy %New York 87.3 87.0Regional US 62.7 60.1 Total US 68.4 66.2 London 85.4 84.7Rest of Europe 72.3 72.7 Total Europe 78.1 78.0 Asia 78.4 74.9Australasia 73.9 73.9 Total Group 74.1 72.3 Average Room Rate (£)New York 164.48 146.16 156.74Regional US 50.36 46.23 51.13 Total US 84.04 76.21 82.82 London 92.61 82.89 82.89Rest of Europe 71.76 69.60 69.98 Total Europe 81.86 75.99 76.19 Asia 58.36 54.07 55.63Australasia 40.15 39.59 44.56 Total Group 70.48 65.43 68.83 RevPAR (£)New York 143.59 127.16 136.36Regional US 31.58 27.78 30.73 Total US 57.48 50.45 54.83London 79.09 70.21 70.21Rest of Europe 51.88 50.60 50.88 Total Europe 63.93 59.27 59.43Asia 45.75 40.50 41.67Australasia 29.67 29.26 32.93 Total Group 52.23 47.31 49.76 Gross Operating Profit Margin (%)New York 47.2 42.2Regional US 22.4 19.6 Total US 35.2 30.8 London 50.9 50.9Rest of Europe 30.4 35.9 Total Europe 40.1 42.5 Asia 45.4 40.0Australasia 44.3 46.2 Total Group 40.3 38.0 For comparability the 31 December 2005 Average Room Rate and RevPAR have beentranslated at 31 December 2006 exchange rates. APPENDIX 2: Key operating statisticsfor the full year ended 31 December 2006 Full year Full year Full year 2006 2005 2005 Reported Constant Reported Currency Currency currencyOccupancy %New York 86.5 84.5Regional US 67.3 66.2 Total US 71.7 70.4 London 87.0 84.8Rest of Europe 73.3 72.8Total Europe 79.4 78.1Asia 76.1 73.7Australasia 69.6 69.6 Total Group 74.4 73.0 Average Room Rate (£)New York 143.34 128.28 129.42Regional US 51.33 49.19 49.63 Total US 76.98 70.90 71.53 London 85.63 80.20 80.20Rest of Europe 71.05 69.67 69.83 Total Europe 78.14 74.74 74.82 Asia 59.07 53.58 52.40Australasia 39.72 39.81 43.43Total Group 67.92 63.59 64.01 RevPAR (£)New York 123.99 108.40 109.36Regional US 34.55 32.56 32.86 Total US 55.19 49.91 50.36 London 74.50 68.01 68.01Rest of Europe 52.08 50.72 50.84 Total Europe 62.04 58.37 58.43 Asia 44.95 39.49 38.62Australasia 27.65 27.71 30.23 Total Group 50.53 46.42 46.73 Gross Operating Profit Margin (%)New York 37.7 34.2Regional US 23.7 20.8 Total US 30.3 26.8 London 47.6 48.4Rest of Europe 29.9 31.8 Total Europe 38.1 39.2 Asia 39.6 36.7Australasia 41.9 42.0 Total Group 36.0 34.4 For comparability the 31 December 2005 Average Room Rate and RevPAR have beentranslated at 31 December 2006 exchange rates. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Millennium & Copthorne Hotels