6th May 2008 07:23
Millennium & Copthorne Hotels PLC06 May 2008 For Immediate Release 6 May 2008 MILLENNIUM & COPTHORNE HOTELS PLC INTERIM MANAGEMENT REPORT First Quarter Results to 31 March 2008 Millennium & Copthorne Hotels plc today announces first quarter results to 31March 2008 together with a trading update. The Group has a portfolio of hotelslocated in the Americas, Europe, Middle East, Asia and New Zealand. First quarter highlights • Revenue growth of 2.4%(1) to £160.7m; Hotel revenue growth of 5.0%(1) to £158.4m • Group RevPAR up by 7.4%(1) to £51.70 • Headline operating profit up 17.1% to £28.1m (2007: £24.0m) (2) • Profit before income tax up 11.1% to £22.0m • Headline profit before income tax up 19.6% to £22.0m (2007: £18.4m) (2) • Headline earnings per share up 26.3% to 4.8p (2007: 3.8p) (3). Basic earnings per share 4.8p • Opened one hotel in China and three hotels in the Middle East; Development pipeline of 5,517 rooms (19 hotels) (1) For comparability, statistics for 2007 have been translated at average exchange rates for the quarter ended 31 March 2008 (2) Adjusted to exclude other operating income of the Group, joint ventures and associates (3) Adjusted to exclude other operating income of the Group, joint ventures and associates (net of tax) Post 31 March 2008 On 10 April 2008 the Group soft-opened its fourth Grand Millennium property, the521-room Grand Millennium Beijing in China, bringing the total number ofproperties open in mainland China to three. Commenting today, Mr Kwek Leng Beng, Chairman said: "Overall results for the first quarter were broadly in line with expectations.The timing of Easter this year falling in March compared to April in 2007 had anegative impact on the Group's performance and two of our major US propertiesare in the midst of major refurbishment projects. Despite this, RevPAR growthwas still good, helped by continued encouraging market conditions in Singaporeand New York. While it is too early to assess the repercussions of the slow down in the USeconomy, the current credit-crunch and its impact on the global economy, myfellow Board members and I believe that the current environment will remainfavourable to companies with strong balance sheets and low gearing. We remain confident of making further progress and the outlook for the year as awhole remains in line with the expectations that we set at the end of last year." Enquiries: Millennium & Copthorne Hotels plc Tel: +44 (0) 20 7872 2444 Richard Hartman, Chief Executive Officer Alan Chapman, Head of Finance Buchanan Communications Tel: +44 (0) 20 7466 5000 Tim Anderson/Charles Ryland/Rebecca Skye Dietrich Analyst briefing There will be a conference call hosted by Richard Hartman, Chief ExecutiveOfficer, at 9.00am (UK time) on 6 May. For dial-in details, please contactCamilla Simpson on +44 (0) 20 7466 5000. CHAIRMAN'S STATEMENT Overall results for the first quarter were broadly in line with expectations.The timing of Easter this year falling in March compared to April in 2007 had anegative impact on the Group's performance and two of our major US propertiesare in the midst of major refurbishment projects. Despite this, RevPAR growthwas still good, helped by encouraging market conditions in Singapore and NewYork. Financial Performance Profit before income tax was £22.0m (2007: £19.8m) and basic earnings per shareincreased by 14.3% to 4.8p whilst headline earnings per share at 4.8p showed a26.3% increase on the previous year (2007: 3.8p). Headline profit before incometax rose to £22.0m, an increase of 19.6% compared to 2007. The effect oftranslating the 2007 quarter profit before income tax at 2008 exchange rates isto increase 2007 reported profit before income tax by £1.0m, mainly driven by astrengthening in the Singapore dollar, New Zealand dollar and Euro, offset by aweakening US dollar. Group RevPar increased by 7.4% based on constant currency terms. Easter had anegative impact on RevPAR. This is illustrated through the impact of RevPARwhere in the period from 1 January 2008 to 21 March 2008 (the commencement ofEaster) Group RevPAR was 9.7% ahead of the equivalent period in 2007 compared tothe 7.4% improvement for the period from 1 January 2008 to 31 March 2008 and itsequivalent period in 2007. CEO Appointment We announced the appointment of Richard Hartman as Chief Executive Officer whojoined the Company on 7 April 2008. Richard will be joining the Board ofMillennium & Copthorne immediately following the Company's annual generalmeeting which is being held on 7 May 2008. Wong Hong Ren has reverted to hisprevious role as an Executive Director with responsibilities that includeoverseeing the Group's finance function. Richard, aged 62 has over 30 years experience in the hotel and restaurantindustry and has held senior positions at InterContinental Hotels Group where hewas main Board Director from 2003 to 2007. He was also President of ITT SheratonNorth America between 1992 and 1998. Review of Management Structure and Systems Following the review of the management structure and systems for the Group, aframework outlining actions to be taken has been considered and agreed by theBoard and the Chief Executive Officer. Richard Hartman will take control of thenecessary implementation plans with input from Wong Hong Ren where hisparticular skills, expertise and experience are required. Key Operational Highlights Expansion in Asia continues. In China the Millennium Harbourview Hotel Xiamen, a352-room property, was opened under a franchise contract in January 2008. Thehotel was formerly the Crowne Plaza Harbourview Hotel Xiamen. On 10 April 2008the Group soft-opened its fourth Grand Millennium property, the 521-room GrandMillennium Beijing in China, bringing the total number of properties open inmainland China to three. In May 2008 the Copthorne Hotel Qingdao, a 453-room property, will open under afranchise contract. The hotel was formerly Hotel Equatorial Qingdao. A furthertwo hotels operating under management contracts will open in China later thisyear in Chengdu and Wuxi. In the Middle East the Group opened three new properties under managementcontract in the first quarter under two brands which are both new to the MiddleEast. The Grand Millennium Dubai is the third property in the Group to belaunched under the Grand Millennium brand. With 352 rooms, the Grand MillenniumDubai combines world class business and leisure facilities, offering guests anunprecedented level of service. The second property is the Copthorne Hotel Dubaiwhich has 163 rooms offering views over Dubai Creek and surrounding parks fromprivate balconies. The third hotel is the Copthorne Al Jahrah Kuwait and is theGroup's first property in Kuwait. The Group also announced the signing of a further eight management contracts,with seven in the United Arab Emirates and one in Kuwait. These properties aredue to open between 2009 and 2011 and account for almost 2,300 additional rooms.This brings the number of rooms in the Group's worldwide pipeline to 5,517 rooms(19 hotels). In January, the Group commenced a combined US$50.0m (£25.1m) renovation projectat the Millennium Bostonian in Boston and the Millennium Knickerbocker inChicago to completely transform both hotels to bring a stylish, high qualityupscale look to both properties. Completion of both projects is expected byAugust 2008. Outlook While it is too early to assess the repercussions of the slow down in the USeconomy, the current credit-crunch and its impact on the global economy, myfellow Board members and I believe that the current environment will remainfavourable to companies with strong balance sheets and low gearing. The current economic environment may provide opportunities for expansion. Thebusiness strategy adopted over the past few years has delivered a robust balancesheet, low debt and impressive cash generation capability. We remain ideallypositioned to take advantage of any attractive opportunities that may arise andwe have sufficient operational flexibility to react to changing marketconditions as necessary. We remain confident of making further progress and the outlook for the year as awhole remains in line with the expectations that we set at the end of last year. DEVELOPMENT PIPELINE Post 31 March 2008 On 10 April 2008 the Group opened its fourth Grand Millennium property, the521-room Grand Millennium Beijing in China bringing the total number ofproperties open in mainland China to three. The Group has also opened the 108room Kingsgate Abu Dhabi Hotel marking the first property trading under theKingsgate brand outside of New Zealand. M&C Rakindo Hospitality, in which the Group owns 60% and Rakindo Developers Pvt.Ltd own 40%, announced plans to develop two new hotels in Chennai and Bangalorein India of 120 and 300 rooms respectively. The two new hotels will be managedunder a new urban brand aimed at offering affordable contemporary businesshotels to this rapidly expanding market. The hotel in Chennai is expected to becompleted in 2009 while completion of the Bangalore hotel is expected in 2010. FINANCIAL AND OPERATING HIGHLIGHTS Three months Three months Full year ended ended ended 31 March 31 March 31 December 2008 2007 2007 £m £m £mFinancial information Revenue 160.7 153.1 669.6Operating profit 25.7 23.5 171.5Profit before income tax 22.0 19.8 157.4Profit for the period 16.3 14.8 159.5Basic earnings per share (pence) 4.8p 4.2p 50.7p Performance reportingHotel operating profit 27.2 21.8 140.5Headline operating profit 28.1 24.0 140.2Headline profit before income tax 22.0 18.4 118.3Headline earnings per share (pence) 4.8p 3.8p 32.2pNet debt 258.1 253.1 262.1Gearing (%) 17.7% 19.8% 18.4% OperationalRevPAR growth at constant rates of exchange* 7.4% 8.5% 9.7%Occupancy movement (percentage points) (1.9%) 0.2% (0.3%)Average room rate growth at constant rates of exchange* 10.3% 8.2% 10.1%Hotel revenue growth at constant rates of exchange* 5.0% 10.8% 9.0%Hotel operating profit growth at constant rates of exchange* 21.4% 25.3% 22.1% * For comparability, statistics for 2007 have been translated at averageexchange rates for the quarter ended 31 March 2008 Summary results Profit before income tax increased by 11.1% to £22.0m as compared with £19.8mfor 2007. Headline profit before income tax, the Group's measure of underlyingprofit before income tax, increased by 19.6% from £18.4m to £22.0m. Basicearnings per share were 4.8p, up 14.3% (2007: 4.2p) with headline earnings pershare at 4.8p showing a 26.3% increase on the prior year (2007: 3.8p). Revenue Group reported revenue was £160.7m or 5.0% higher than the 2007 revenue of£153.1m. The effect of translating the 2007 quarter revenue at 2008 averageexchange rates is to increase 2007 reported revenue by £3.9m, mainly driven by astrengthening in the Singapore dollar, New Zealand dollar and Euro, offset by aweakening US dollar. Organic business revenue grew by £3.7m or 2.4%, with the impact of strong demandin New York and Singapore being offset by: (i) the negative effect of Easterthat fell in March this year as opposed to April in 2007; (ii) refurbishinghotels in Boston and Chicago and; (iii) reduced level of sales in both Zenithapartments in Sydney and land sales in New Zealand. Group RevPAR for the first quarter increased by 7.4% to £51.70 at constant ratesof exchange. Group occupancies fell by 1.9 percentage points and average roomrate grew by 10.3% to £73.44 and at constant rates of exchange, total hotelrevenues increased by £7.5m and hotel operating profit by £4.8m to £27.2m. Headline operating profit Headline operating profit is the Group's measure of the underlying profit beforeinterest and income tax. It includes the operating results of joint ventures andassociates but excludes other operating income (of Group and share of jointventures and associates) and impairment. Headline operating profit for theperiod grew by 17.1% from £24.0m to £28.1m. Consistent with the impact on revenue, currency movements had a £0.9m (3.8%)positive impact on headline operating profit. Headline operating profit fororganic business grew by £1.7m (6.4%) with strong performances across the Asiaregion and credible improved performance in the US offset by reduced reportedprofits from sales of Zenith apartments and land sales in New Zealand of £2.0m.Consistent with the impact on revenue, Easter had a negative impact onprofitability. Share of profit in joint ventures and associates In 2008 the Group's share of operating profit of joint ventures and associatesincreased by £0.6m (13.0%) compared with 2007. This reflected increased profitsfrom CDLHT, New Unity, and the first trading results of First Sponsor CapitalLimited (formed in September 2007). These were offset by start up costs at theGrand Millennium Beijing in which the Group has a 30% effective interest, andwhich opened in April 2008. Other operating income There was no other operating income of the Group for 2008 (2007: £1.4m) which in2007 consisted of a £1.0m release of property tax provision set aside on theacquisition of Regal Hotels in 1999 and a £0.4m profit on the disposal ofstapled securities in CDLHT. Taxation The total Group income tax expense excluding the income tax relating to jointventures and associates is £5.7m (2007: £5.0m), giving rise to an effective rateof 29.7% (2007: 29.2%). A tax charge of £0.7m (2007: £0.3m) relating to joint ventures and associates isincluded in the reported profit before income tax. Net finance expense The net finance expense of £3.7m remained unchanged from 2007 reflecting bothlower cost of debt and reduced level of debt offset by reduced income on lowercash balances. Earnings per share Basic earnings per share were 4.8p up 14.3% (2007: 4.2p) with headline earningsper share at 4.8p showing a 26.3% increase on the prior year (2007: 3.8p). PERFORMANCE BY REGION For comparability, the following regional review is based on calculations inconstant currency whereby 31 March 2007 average room rate, RevPAR, revenue,gross operating profit and headline operating profit have been translated ataverage exchange rates for the quarter ended 31 March 2008. As mentioned above, the timing of Easter has had an adverse impact on thequarter on quarter performance, particularly in Europe and Regional US. For theperiod to 21 March, the period on period performance by region was between 1.5to 3.0 percentage points higher than the figures quoted below. UNITED STATES New York RevPAR increased by 8.0% to £109.26 (2007: £101.16 at constant rates ofexchange). As was the case in 2007, rate remained the primary driver of thisincrease, with all three hotels posting a combined average rate of £138.83, a7.2% increase (2007: £129.52). Overall occupancy showed a small increase of 0.6percentage points, although two of the properties showed a decrease inoccupancy. The benefits of this rate driven strategy was to drive grossoperating profit margins up 0.9 percentage points to 29.9% (2007: 29.0%). Regional US RevPAR fell by 3.2% to £26.66 (2007: £27.55). This was primarily due to twomajor renovation projects at the Millennium Bostonian Hotel Boston and theMillennium Knickerbocker Hotel Chicago, with a combined room count loss of justover 31,000 room nights. Excluding both these properties from 2007 and 2008statistics would have increased RevPAR by 4.5% to £27.19 (2007: £26.03), drivenby a 6.4% increase in rate to £46.17 (2007: £43.38) and a small fall inoccupancy of 1.1 percentage points to 58.9%. EUROPE London RevPAR increased by 1.7% to £73.35 (2007: £72.14). This was driven by a 7.7%increase in average rate to £94.40 (2007: £87.66) but at the expense of a 4.6percentage point fall in occupancy to 77.7% (2007: 82.3%). Average rateincreased in all five properties although this was at the expense of occupancyat four of these properties. Rest of Europe RevPAR fell by 0.3% to £52.78 (2007: £52.95). Occupancy fell by 3.9 percentagepoints, but average rate increased by 5.5% to £78.78 (2007: £74.68) Regional UK Demand was weak throughout the region and nine out of the eleven propertiesexperienced lower occupancy levels resulting in an overall decrease in occupancyof 7.5 percentage points. Average rate still remained buoyant and increased by5.0% to £74.43 (2007: £70.87). The resultant RevPAR fell by 5.3% to £50.98(2007: £53.86). France & Germany RevPAR increased by 8.0% to £55.72 (2007: £51.60) driven by both increasedaverage rate and occupancy. Occupancy increased by 1.8 percentage points to64.7% (2007: 62.9%) while rate increased by 5.0% to £86.12 (2007: £82.03). ASIA RevPAR increased by 21.0% to £55.52 (2007: £45.90) driven by an 18.7% increasein average rate to £72.38 (2007: £60.96) and modest occupancy growth of 1.4percentage points to 76.7%. Singapore The strong growth experienced in 2007 has continued through into 2008 whichbodes well for the rest of the year. The resultant buoyancy resulted in a 36.7%increase in RevPAR to £69.49 (2007: £50.84) driven by a 38.3% increase inaverage rate to £82.63 (2007: £59.74), offset by a small fall in occupancy from85.1% to 84.1% Rest of Asia RevPAR increased by 6.7% to £45.08 (2007: £42.23). This was driven by occupancyincreasing by 3.2 percentage points to 71.2% and average rate increasing by 1.9%to £63.31 (2007: £62.10) and the benefits of refurbishment works at the GrandMillennium Kuala Lumpur which if excluded would result in a RevPAR increase of4.7%. CDLHT At 31 March 2008, the Group had a 38.6% interest in CDLHT, a Singapore-listedREIT and it also acts as manager of the REIT. Both our REIT management fee andshare of profits increased year on year by a combined 42.1% (before last year's£0.4m gain on disposal of stapled securities). AUSTRALASIA Hotels RevPAR increased by 7.5% to £41.00 (2007: £38.14). This was achieved through an8.7% increase in average rate to £51.06 (2007: £46.97) but with a small 0.9percentage point fall in occupancy to 80.3%. Much of this was due to theCopthorne Hotel Wellington Oriental Bay, which underwent an extensiverefurbishment last year. The overall RevPAR improvement with this hotel excludedwas 3.3%. Property Operations In constant currency, profits from the Group's New Zealand landbank and sale ofZenith apartments in Sydney fell by £2.0m to £2.1m. This reflected reduced salesin their respective property markets. Kwek Leng Beng Chairman 6 May 2008 Consolidated income statement (unaudited)for the first quarter ended 31 March 2008 Three months Three months Full year ended ended ended Notes 31 March 31 March 31 December 2008 2007 2007 £m £m £m Revenue 1 160.7 153.1 669.6Cost of sales (68.2) (67.4) (284.8)Gross profit 92.5 85.7 384.8Administrative expenses (69.6) (66.3) (271.7)Other operating income 4 - 1.4 13.8 22.9 20.8 126.9Share of profit of joint ventures and associates 2.8 2.7 44.6 Analysed between: 5.2 4.6 20.1 Operating profit before other incomeOther operating income - - 32.3Interest, tax and minority interests 5 (2.4) (1.9) (7.8) Operating profit 25.7 23.5 171.5 Analysed between: 1 140.2 Headline operating profit 28.1 24.0Other operating income - Group 4 - 1.4 13.8Other operating income - Share of joint ventures and 32.3associates - -Impairment (included within administrative expenses) - - (7.0)Share of interest, tax and minority interests of (7.8)joint ventures and associates (2.4) (1.9)Finance income 4.3 2.2 12.3Finance expense (8.0) (5.9) (26.4)Net finance expense (3.7) (3.7) (14.1)Profit before income tax 22.0 19.8 157.4Income tax (expense)/credit 6 (5.7) (5.0) 2.1Profit for the period 16.3 14.8 159.5 Attributable to: Equity holders of the parent 14.1 12.2 149.4Minority interests 2.2 2.6 10.1 16.3 14.8 159.5 Basic earnings per share (pence) 7 4.8p 4.2p 50.7pDiluted earnings per share (pence) 7 4.8p 4.2p 50.6p The financial results above all derive from continuing activities. Consolidated statement of recognised income and expense (unaudited)for the first quarter ended 31 March 2008 Three months Three months Full year ended ended ended 31 March 31 March 31 December 2008 2007 2007 Notes £m £m £m Foreign exchange translation differences 27.9 - 17.4Actuarial (losses)/gains arising in respect of - (1.0) 0.7defined benefit pension plansIncome tax on income and expense recognised directly 6 - 0.2 2.6in equityIncome and expense recognised directly in equity 27.9 (0.8) 20.7Profit for the period 16.3 14.8 159.5Total recognised income and expense for the period 44.2 14.0 180.2 Attributable to:Equity holders of the parent 37.4 8.1 162.7Minority interests 6.8 5.9 17.5Total recognised income and expense for the period 44.2 14.0 180.2 Consolidated balance sheet (unaudited)as at 31 March 2008 As at As at As at 31 March 31 March 31 December 2008 2007 2007 Notes £m £m £mNon-current assetsProperty, plant and equipment 1,720.8 1,708.6 1,709.0Lease premium prepayment 90.3 74.3 90.0Investment properties 59.7 49.7 58.2Investments in joint ventures and associates 259.6 115.4 247.6Loans due from joint ventures and associates 6.1 26.6 5.4Other financial assets 4.8 2.9 4.8 2,141.3 1,977.5 2,115.0Current assetsInventories 4.8 4.4 4.9Development properties 73.2 67.9 69.6Lease premium prepayment 1.3 1.3 1.1Trade and other receivables 61.6 62.9 58.2Other financial assets 8.8 7.9 9.1Cash and cash equivalents 169.1 158.9 156.3 318.8 303.3 299.2Total assets 2,460.1 2,280.8 2,414.2Non-current liabilitiesInterest-bearing loans, bonds and borrowings (313.9) (327.6) (304.1)Employee benefits (13.1) (16.3) (12.9)Provisions (0.9) (1.2) (1.0)Other non-current liabilities (93.4) (89.8) (90.9)Deferred tax liabilities (200.9) (225.0) (205.8) (622.2) (659.9) (614.7)Current liabilitiesInterest-bearing loans, bonds and borrowings (113.3) (84.4) (114.3)Trade and other payables (108.7) (110.7) (113.7)Provisions (0.4) (0.4) (0.4)Income taxes payable (17.3) (19.8) (17.4) (239.7) (215.3) (245.8)Total liabilities (861.9) (875.2) (860.5)Net assets 1,598.2 1,405.6 1,553.7EquityTotal equity attributable to equity holders of the 1,461.2 1,278.3 1,423.5parentMinority interests 137.0 127.3 130.2Total equity 8 1,598.2 1,405.6 1,553.7 Consolidated statement of cash flows (unaudited)for the first quarter ended 31 March 2008 Three months Three months Full year ended ended ended 31 March 31 March 31 December 2008 2007 2007 £m £m £mCash flows from operating activitiesProfit for the year 16.3 14.8 159.5Adjustments for:Depreciation and amortisation 7.2 7.3 28.7Share of profit of joint ventures and associates (2.8) (2.7) (44.6)Impairment losses on property, plant and equipment - - 7.0Profit on sale of property, plant and equipment - - (1.4)Release of property tax provision - - (1.0)Gain on dilution of investment in associates - - (2.0)Profit on sale of stapled securities in associates - (0.4) (0.7)Change in fair value of investment properties - - (8.7)Write down of a development property - - 9.6Equity settled share-based payment transactions 0.2 0.2 0.8Finance income (4.3) (2.2) (12.3)Finance expense 8.0 5.9 26.4Income tax expense/(credit) 5.7 5.0 (2.1) 30.3 27.9 159.2Increase in inventories and trade and other receivables (4.1) (4.3) (2.3)(Increase)/decrease in development properties (1.9) 0.8 (1.9)(Decrease)/increase in trade and other payables (6.7) 6.4 7.6Increase/(decrease) in provisions and employee benefits 0.1 1.2 (2.4)Cash generated from operations 17.7 32.0 160.2Interest paid (3.2) (4.1) (22.8)Interest received 1.7 2.1 8.5Income tax paid (3.9) (2.1) (17.7)Net cash generated from operating activities 12.3 27.9 128.2 Cash flows from investing activitiesProceeds from sale of property, plant and equipment - - 0.3Proceeds from sale of/ (investment in) other financial assets 0.9 (3.8) (5.0)Proceeds from the sale of stapled securities in associates - 1.1 1.6Dividends received from associates 5.2 2.7 6.6Increase in loan to joint venture (0.4) - (0.6)(Increase)/decrease in investment in joint ventures and associates (7.5) 0.6 (59.6)Acquisition of property, plant & equipment, and lease premium (8.2) (22.4) (56.8)prepaymentNet cash used in investing activities (10.0) (21.8) (113.5) Cash flows from financing activitiesProceeds from the issue of share capital 0.1 0.9 1.4Repayment of borrowings (3.5) (67.1) (241.4)Drawdown of borrowings 10.3 57.8 235.8Payment of finance lease obligations - (1.0) (2.1)Loan arrangement fees - (0.1) (0.5)Share buy back of minority interests - - (10.0)Dividends paid to minority interests - (1.6) (2.2)Capital contribution from minority interests - - 1.9Dividends paid to equity holders of the parent - - (10.5)Net cash from/(used) in financing activities 6.9 (11.1) (27.6) Net increase/(decrease) in cash and cash equivalents 9.2 (5.0) (12.9)Cash and cash equivalents at beginning of period 155.9 161.5 161.5Effect of exchange rate fluctuations on cash held 3.7 1.5 7.3Cash and cash equivalents at end of the period 168.8 158.0 155.9 Reconciliation of cash and cash equivalents 169.1 158.9 156.3 Cash and cash equivalents shown on the balance sheetOverdraft bank accounts included in borrowings (0.3) (0.9) (0.4)Cash and cash equivalents for cash flow statement purposes 168.8 158.0 155.9 Notes to the first quarter results announcement 1. General information Basis of preparation The first quarter results for Millennium & Copthorne Hotels plc ('the Company')to 31 March 2008 comprise the Company and its subsidiaries (together referred toas 'the Group') and the Group's interests in jointly controlled and associateentities. These primary statements and selected notes comprise the unaudited interimconsolidated financial results of the Group for the quarters ended 31 March,2008 and 2007, together with the audited results for the year ended 31 December2007. The comparative figures for the financial year ended 31 December 2007 have beenextracted from the Group's statutory Annual Report and Accounts for thatfinancial year but do not constitute those accounts, which have been filed withthe Registrar of Companies. Those accounts have been reported on by the auditorsand the audit opinion was (i) unqualified, (ii) did not include a reference toany matters to which the auditors drew attention by way of emphasis withoutqualifying their report, and (iii) did not contain a statement under section 237(2) or (3) of the Companies Act 1985. The consolidated financial statements ofthe Group for the financial year ended 31 December 2007 are available from theCompany's website www.millenniumhotels.com. In preparing the first quarter results to 31 March 2008, the Board of Directorshave used the principal accounting policies as set out in the Group's AnnualReport and Accounts for the year ended 31 December 2007. The first quarterresults have been prepared in accordance with the Disclosure and TransparencyRules of the United Kingdom's Financial Services Authority. The first quarterresults should be read in conjunction with the Group's Annual Report andAccounts for the year ended 31 December 2007. These first quarter results do not comprise statutory accounts within themeaning of Section 240 of the Companies Act 1985. The first quarter results were approved by the Board of Directors on 2 May 2008. The financial statements are presented in the Group's functional currency ofsterling, rounded to nearest hundred thousand. The accounting for the disposal to CDLHT in 2006 has been adjusted in respect ofthe land lease element of the transaction on the 75-year leases of the OrchardHotel and M Hotel. In the unaudited interim consolidated financial results ofthe Group for the quarter ended 31 March 2007 the proportion of theconsideration received as prepayment by CDLHT of the operating lease of the landwas effectively netted off against the freehold land value for these two hotels.Freehold land has been restated to the value before the transaction and thedeferred income arising from the land prepayment has been recognised on thebalance sheet at the value at the date of the transaction of £84.5m (convertedat 31 March 2007 exchange rate). Non-GAAP information Headline profit before income tax, headline operating profit, net debt andgearing percentage Reconciliation of headline profit before income tax and headline operatingprofit to the closest equivalent GAAP measure, profit before income tax isprovided in note 9 along with an analysis of net debt and calculated gearingpercentage. Like-for like growth The Group believes that like-for-like growth which is not intended to be asubstitute, or superior to, reported growth, provides useful and necessaryinformation to investors and interested parties for the following reasons: • it provides additional information on the underlying growth of the businesswithout the effect of factors unrelated to the operating performance of thebusiness; and • it is used by the Group for internal performance analysis. 2. Accounting policies The accounting policies and methods of calculation adopted are consistent withthose of the annual financial statements for the year ended 31 December 2007, asdescribed in those financial statements. 3. Segmental analysis Segmental information is presented in respect of the Group's business andgeographical segments. The primary format is business segments and is based onthe Group's management and internal reporting structure. Segment results, assets and liabilities include items directly attributable to asegment as well as those that can be allocated on a reasonable basis.Unallocated items principally comprise: interest-bearing loans, borrowings andnet finance expense, taxation balances and corporate expenses. Business segments The Group comprises the following main business segments: • Hotel operations, comprising income from the ownership and management ofhotels • Property operations, comprising the development and sale of land anddevelopment properties and investment property rental income Notes to the first quarter results announcement 3. Segmental analysis (continued) Geographical segments The hotel and operations are managed on a worldwide basis and operate in sixprincipal geographical areas: • New York • Regional US • London • Rest of Europe • Asia • Australasia In presenting information on the basis of geographical segments, segment revenueand assets are based on the geographical location of the assets. Business segments (primary) Three months ended 31 March 2008 Hotel Property Central Total operations costs Group 2008 2008 2008 2008 £m £m £m £m Revenue 158.4 2.3 - 160.7Gross operating profit 56.0 0.4 - 56.4Depreciation (6.9) - - (6.9)Amortisation of lease premium prepayments (0.3) - - (0.3)Other hotel fixed charges (21.6) - - (21.6)Central costs - - (4.7) (4.7)Share of joint ventures and associates operating profit 5.2 - - 5.2Headline operating profit/(loss) 32.4 0.4 (4.7) 28.1Share of interest, tax and minority interests of joint ventures and (2.4) - - (2.4)associatesOperating profit/(loss) 30.0 0.4 (4.7) 25.7Net finance expense (3.7)Profit before income tax 22.0 Three months ended 31 March 2007 Hotel Property Central Total operations costs Group 2007 2007 2007 2007 £m £m £m £m Revenue 147.5 5.6 - 153.1Gross operating profit 50.0 2.3 - 52.3Depreciation (7.0) - - (7.0)Amortisation of lease premium prepayments (0.3) - - (0.3)Other hotel fixed charges (20.9) - - (20.9)Central costs - - (4.7) (4.7)Share of joint ventures and associates operating profit 4.6 - - 4.6Headline operating profit/(loss) 26.4 2.3 (4.7) 24.0Other operating income - Group 0.4 - 1.0 1.4Share of interest, tax and minority interests of joint ventures and (1.9) - - (1.9)associatesOperating profit/(loss) 24.9 2.3 (3.7) 23.5Net finance expense (3.7)Profit before income tax 19.8 Notes to the first quarter results announcement 3. Segmental analysis (continued) Business segments (primary - continued) Full year ended 31 December 2007 Hotel Property Central Total operations costs Group 2007 2007 2007 2007 £m £m £m £m Revenue 649.7 19.9 - 669.6Gross operating profit 248.7 (1.0) - 247.7Depreciation (27.4) - - (27.4)Amortisation of lease premium prepayments (1.3) - - (1.3)Other hotel fixed charges (79.5) - - (79.5)Central costs - - (19.4) (19.4)Share of joint ventures and associates operating profit 20.1 - - 20.1Headline operating profit/(loss) 160.6 (1.0) (19.4) 140.2Other operating income - Group 5.1 8.7 - 13.8Other operating income - Share of joint ventures and associates 32.3 - - 32.3Impairment (7.0) - - (7.0)Share of interest, tax and minority interests of joint ventures and (7.8) - - (7.8)associatesOperating profit/(loss) 183.2 7.7 (19.4) 171.5Net finance expense (14.1)Profit before income tax 157.4 Geographical segments (secondary) Three months ended 31 March 2008 New York Regional London Rest of Asia Australasia Central Total Group US Europe costs £m £m £m £m £m £m £m £mRevenueHotel 22.4 22.4 20.4 24.5 54.1 14.6 - 158.4Property operations - 0.4 - - 0.9 1.0 - 2.3Total 22.4 22.8 20.4 24.5 55.0 15.6 - 160.7Hotel gross operating profit 6.7 2.3 9.0 7.2 23.9 6.9 - 56.0Hotel fixed charges* (3.7) (4.2) (3.1) (4.2) (11.1) (2.5) - (28.8)Hotel operating profit/(loss) 3.0 (1.9) 5.9 3.0 12.8 4.4 - 27.2Property operations operating - (0.1) - - 0.2 0.3 - 0.4profit/(loss)Central costs - - - - - - (4.7) (4.7)Share of joint ventures and - - - - 5.2 - - 5.2associates operating profitHeadline operating profit/(loss) 3.0 (2.0) 5.9 3.0 18.2 4.7 (4.7) 28.1Share of interest, tax and - - - - (2.4) - - (2.4)minority interests of jointventures and associatesOperating profit/(loss) 3.0 (2.0) 5.9 3.0 15.8 4.7 (4.7) 25.7Net finance expense (3.7)Profit before income tax 22.0 Notes to the first quarter results announcement 3. Segmental analysis (continued) Business segments (secondary - continued) Three months ended 31 March 2007 New Regional London Rest of Asia Australasia Central Total Group York US Europe costs £m £m £m £m £m £m £m £mRevenueHotel 21.4 23.5 20.5 23.4 45.3 13.4 - 147.5Property operations - 0.5 - - 0.3 4.8 - 5.6Total 21.4 24.0 20.5 23.4 45.6 18.2 - 153.1Hotel gross operating profit 6.2 3.2 9.6 7.1 17.4 6.5 - 50.0Hotel fixed charges* (3.5) (4.3) (4.9) (4.1) (9.0) (2.4) - (28.2)Hotel operating profit/(loss) 2.7 (1.1) 4.7 3.0 8.4 4.1 - 21.8Property operations operating - - - - 0.2 2.1 - 2.3profitCentral costs - - - - - - (4.7) (4.7)Share of joint ventures and - - - - 4.6 - - 4.6associates operating profitHeadline operating profit/(loss) 2.7 (1.1) 4.7 3.0 13.2 6.2 (4.7) 24.0Other operating income - Group - - - - 0.4 - 1.0 1.4Share of interest, tax and - - - - (1.9) - - (1.9)minority interests of jointventures and associatesOperating profit/(loss) 2.7 (1.1) 4.7 3.0 11.7 6.2 (3.7) 23.5Net financing expense (3.7)Profit before income tax 19.8 Full year ended 31 December 2007 New Regional London Rest of Asia Australasia Central Total Group York US Europe costs £m £m £m £m £m £m £m £mRevenueHotel 106.5 112.0 92.0 98.0 196.0 45.2 - 649.7Property operations - 1.6 - - 1.5 16.8 - 19.9Total 106.5 113.6 92.0 98.0 197.5 62.0 - 669.6Hotel gross operating profit 43.2 26.8 46.4 30.7 83.2 18.4 - 248.7Hotel fixed charges* (15.6) (17.4) (12.7) (15.7) (36.5) (10.3) - (108.2)Hotel operating profit 27.6 9.4 33.7 15.0 46.7 8.1 - 140.5Property operations operating - (9.8) - - 0.9 7.9 - (1.0)profit/(loss)Central costs - - - - - - (19.4) (19.4)Share of joint ventures and - - - - 20.1 - - 20.1associates operating profitHeadline operating profit/(loss) 27.6 (0.4) 33.7 15.0 67.7 16.0 (19.4) 140.2Other operating income - Group 1.0 - - - 12.8 - - 13.8Other operating income - share - - - - 32.3 - - 32.3of joint ventures and associatesImpairment - (6.1) - (0.9) - - - (7.0)Share of interest, tax and - - - - (7.8) - - (7.8)minority interests of jointventures and associatesOperating profit/(loss) 28.6 (6.5) 33.7 14.1 105.0 16.0 (19.4) 171.5Net financing expense (14.1)Profit before income tax 157.4 *'Hotel fixed charges' include depreciation, amortisation of lease premiumprepayments, property rent, taxes and insurance, operating lease rentals andmanagement fees. Notes to the first quarter results announcement 3. Segmental analysis (continued) Segmental assets and liabilities Three months ended 31 March 2008 New Regional London Rest of Asia Australasia Total York US Europe Group £m £m £m £m £m £m £m Hotel operating assets 280.8 233.8 446.7 227.2 581.7 119.9 1,890.1Hotel operating liabilities (7.8) (26.6) (19.3) (19.9) (133.0) (8.6) (215.2)Investments in joint ventures and - - - - 235.5 24.1 259.6associatesLoans due from joint ventures - - - - 6.1 - 6.1Total hotel operating net assets 273.0 207.2 427.4 207.3 690.3 135.4 1,940.6Property operations assets - 34.6 - - 45.3 55.3 135.2Property operations liabilities - (0.1) - - (0.6) (0.6) (1.3)Total property operations net - 34.5 - - 44.7 54.7 133.9assetsDeferred tax liabilities (200.9)Income taxes payable (17.3)Net debt (258.1)Net assets 1,598.2 Three months ended 31 March 2007 New York Regional London Rest of Asia Australasia Total US Europe Group £m £m £m £m £m £m £m Hotel operating assets 287.1 242.5 453.1 218.1 562.5 99.3 1,862.6Hotel operating liabilities (7.4) (21.1) (24.6) (23.6) (133.4) (7.0) (217.1)Investments in joint ventures and - - - - 115.4 - 115.4associatesLoans due from joint ventures - - - - 26.6 - 26.6Total hotel operating net assets 279.7 221.4 428.5 194.5 571.1 92.3 1,787.5Property operations assets - 43.7 - - 34.1 39.5 117.3Property operations liabilities - (0.2) - - (0.4) (0.7) (1.3)Total property operations net - 43.5 - - 33.7 38.8 116.0assetsDeferred tax liabilities (225.0)Income taxes payable (19.8)Net debt (253.1)Net assets 1,405.6 Full year ended 31 December 2007 New York Regional London Rest of Asia Australasia Total US Europe Group £m £m £m £m £m £m £m Hotel operating assets 284.4 254.2 447.6 220.5 554.9 112.9 1,874.5Hotel operating liabilities (9.6) (26.9) (20.5) (15.8) (137.4) (7.5) (217.7)Investments in joint ventures and - - - - 231.1 16.5 247.6associatesLoans due from joint ventures - - - - 5.4 - 5.4Total hotel operating net assets 274.8 227.3 427.1 204.7 654.0 121.9 1,909.8Property operations assets - 34.5 - - 43.1 52.8 130.4Property operations liabilities - (0.1) - - (0.4) (0.7) (1.2)Total property operations net - 34.4 - - 42.7 52.1 129.2assetsDeferred tax liabilities (205.8)Income taxes payable (17.4)Net debt (262.1)Net assets 1,553.7 Notes to the first quarter results announcement 4. Other operating income Three months Three months Full year ended ended ended 31 March 31 March 31 December 2008 2007 2007 £m £m £m Release of property tax provision set aside on acquisition of - 1.0 1.0Regal Hotels in 1999Profit on disposal of stapled securities in CDLHT - 0.4 0.7Gain on dilution of investment in CDLHT - - 2.0Fair value adjustments of investment property - - 8.7Profit on sale and leaseback of three Singapore hotels - - 1.4 - 1.4 13.8 For full year 2007 the £2.0m dilution gain arising on the investment in CDLHTfollowed the Group's subscription to a rights issue at a discount together withthe non-participation in a S$32.8m (£10.6m) private placement issue, the effectof which marginally diluted the Group's interest in CDLHT which at 31 December2007 was 38.5% (31 March 2008: 38.6%). 5. Share of joint ventures and associates interest, tax and minority interests Three months Three months Full year ended ended ended 31 March 31 March 31 December 2008 2007 2007 £m £m £m Interest (0.6) (0.8) (3.2)Tax (0.7) (0.3) (1.4)Minority interests (1.1) (0.8) (3.2) (2.4) (1.9) (7.8) 6. Income tax expense The £5.7m total income tax expense for the first quarter ended 31 March 2008(first quarter ended 2007: £5.0m) comprises a UK tax charge of £0.7m and anoverseas tax charge of £5.0m (first quarter ended 31 March 2007 a UK charge of£0.6m and overseas tax charge of £4.4m). For the full year 2007 the £2.1m totalincome tax credit comprises a UK tax credit of £13.5m and an overseas tax chargeof £11.4m. Income tax expense for the period presented is the expected income tax payableon the taxable income for the period, calculated at the estimated average annualeffective income tax rate applied to the pre-tax income of the period. Taxation for the period comprises both the Group income tax charge and the jointventures and associates income tax charge which is included separately withinthe Group's share of joint venture profits (but disclosed on the face of theincome statement). The estimated annual effective rate applied to profit before income taxexcluding the Group's share of joint ventures and associates profits is 29.7%.For the comparative periods, the Group's effective tax rate was 29.2% (firstquarter ended 31 March 2007) and 1.9% credit (full year ended 31 December 2007). The full year 2007 Group tax credit excluding the tax relating to joint venturesand associates was £2.1m, giving an effective rate of (1.9%). Major creditadjustments affecting the tax charge were: (i) impact of change of UK taxlegislation of £12.9m; (ii) effect of change in tax rates on opening deferredtax £3.9m and; (iii) adjustments in respect of prior periods of £13.5m. Income tax recognised directly in equity Three months Three months Full year ended ended ended 31 March 31 March 31 December 2008 2007 2007 £m £m £m Taxation credit/(expense) arising on defined benefit pension - 0.2 (1.2)schemesTaxation credit arsing in respect of previously revalued - - 3.2propertyTaxation credit arising on share-based incentive schemes - - 0.6 - 0.2 2.6 Notes to the first quarter results announcement 7. Earnings per share Earnings per share are calculated using the following information: Three months Three months Full year ended ended ended 31 March 31 March 31 December 2008 2007 2007(a) Basic Profit for period attributable to holders of the parent (£m) 14.1 12.2 149.4Weighted average number of shares in issue (m) 296.4 291.9 294.4 Basic earnings per share 4.8p 4.2p 50.7p (b) Diluted Profit for period attributable to holders of the parent (£m) 14.1 12.2 149.4Weighted average number of shares in issue (m) 296.4 291.9 294.4Potentially dilutive share options under Group's share option 0.2 0.8 0.7schemes (m)Weighted average number of shares in issue (diluted) (m) 296.6 292.7 295.1 Diluted earnings per share 4.8p 4.2p 50.6p (c) Headline earnings per share Profit for the period attributable to holders of the parent (£m) 14.1 12.2 149.4Adjustments for:- Other operating income (net of tax) (£m) - (1.0) (13.8)- Impairment (net of tax) (£m) - - 4.5- Share of other operating income of joint ventures and - - (32.3)associates (nil tax) (£m)- Change in UK tax legislation on hotel tax allowances (£m) - - (12.9)Adjusted profit for the period attributable to holders of the 14.1 11.2 94.9parent (£m)Weighted average number of shares in issue (m) 296.4 291.9 294.4Headline earnings per share 4.8p 3.8p 32.2p (d) Diluted headline earnings per share Adjusted profit for the period attributable to holders of the 14.1 11.2 94.9parent (£m)Weighted average number of shares in issue (diluted) (m) 296.6 292.7 295.1 Diluted headline earnings per share 4.8p 3.8p 32.2p 8. Reconciliation of movements in total equity Three months Three months Full year ended ended ended 31 March 31 March 31 December 2008 2007 2007 £m £m £m Total recognised income and expense for the period 44.2 14.0 180.2Dividends paid to equity holders of the parent - - (36.6)Issue of shares in lieu of dividends - - 26.1Dividends paid to minority interests - (1.6) (2.2)Share options exercised 0.1 0.9 1.4 Share buy back of minority interests - - (10.0) Capital contribution from minority interests - - 1.9 Equity settled transactions 0.2 0.2 0.8Net increase in total equity 44.5 13.5 161.6Opening total equity 1,553.7 1,392.1 1,392.1Closing total equity 1,598.2 1,405.6 1,553.7 Notes to the first quarter results announcement 9. Non-GAAP measures Headline operating profit The Group presents headline operating profit, this excludes other operatingincome and impairment of the Group, and share of the other operating income ofjoint ventures and associates. The Group believes that it is both useful and necessary to report these measuresfor the following reasons: • they are measures used by the Group for internal performanceanalysis; and • it is useful in connection with discussion with the investmentanalyst community. Reconciliation of these measures to the closest equivalent GAAP measure, profitbefore income tax is provided below. Three months Three months Full year ended ended ended 31 March 31 March 31 December 2008 2007 2007 £m £m £m Profit before income tax 22.0 19.8 157.4 Adjusted to exclude: Other operating income - (1.4) (13.8)Fair value adjustments of investment property - - (8.7)Business interruption insurance proceeds - - -Net gain on sale and leaseback of three Singapore hotels - - (1.4)Gain on dilution of investment in CDLHT - - (2.0)Profit on disposal of stapled securities in CDLHT - (0.4) (0.7)Release of property tax provision set aside on acquisition of Regal - (1.0) (1.0)Hotels in 1999Share of associate's (CDLHT) fair value adjustments to investment - - (32.3)propertyImpairment - - 7.0Headline profit before income tax 22.0 18.4 118.3Add back:Share of results of joint ventures and associates - interest 0.6 0.8 3.2 - taxation 0.7 0.3 1.4 - minority interests 1.1 0.8 3.2 Net finance expense 3.7 3.7 14.1Headline operating profit 28.1 24.0 140.2 Net debt In presenting and discussing the Group's indebtedness and liquidity position,net debt is calculated. Net debt is not defined under IFRS. The Group believesthat it is both useful and necessary to communicate net debt to investors andother interested parties, for the following reasons: • net debt allows the Company and external parties to evaluate theGroup's overall indebtedness and liquidity position; • net debt facilitates comparability of indebtedness and liquidity withother companies, although the Group's measure of net debt may not be directlycomparable to similarly titled measures used by other companies; and • it is used in discussions with the investment analyst community. Analysis of net debt and calculated gearing percentage is provided below.Gearing is defined as net debt as a percentage of total equity attributable toequity holders of the parent. As at As at As at 31 March 31 March 31 December 2008 2007 2007 £m £m £m Cash and cash equivalents shown in the cash flow statement 168.8 158.0 155.9Bank overdrafts (included in borrowings) 0.3 0.9 0.4Cash and cash equivalents on the balance sheet 169.1 158.9 156.3Interest-bearing loans, bonds and borrowings - Non-current (313.9) (327.6) (304.1) - Current (113.3) (84.4) (114.3)Net debt (258.1) (253.1) (262.1)Gearing (%) 17.7% 19.8% 18.4% APPENDIX 1: KEY OPERATING STATISTICS for the first quarter ended 31 March 2008 Three months Three months Three months Full year ended ended ended ended 31 March 31 March 31 March 31 December 2008 2007 2007 2007 Reported Constant Reported Reported currency currency* currency currencyOccupancy % New York 78.7 78.1 86.6Regional US 56.2 60.2 66.5Total US 61.4 64.4 71.2London 77.7 82.3 84.5Rest of Europe 67.0 70.9 72.4Total Europe 71.7 76.0 77.8Asia 76.7 75.3 77.1Australasia 80.3 81.2 69.3Total Group 70.4 72.3 74.1 Average Room Rate (£)New York 138.83 129.52 131.43 150.20Regional US 47.44 45.77 46.45 50.59Total US 74.52 69.26 70.28 78.62London 94.40 87.66 87.66 97.31Rest of Europe 78.78 74.68 71.54 73.99Total Europe 86.25 80.92 79.29 85.22Asia 72.38 60.96 58.95 63.08Australasia 51.06 46.97 42.57 42.67Total Group 73.44 66.58 65.29 71.74 RevPAR (£)New York 109.26 101.16 102.65 130.07Regional US 26.66 27.55 27.96 33.64Total US 45.76 44.60 45.26 55.98London 73.35 72.14 72.14 82.23Rest of Europe 52.78 52.95 50.72 53.57Total Europe 61.84 61.50 60.26 66.30Asia 55.52 45.90 44.39 48.63Australasia 41.00 38.14 34.57 29.57Total Group 51.70 48.14 47.20 53.16 Gross Operating Profit Margin (%)New York 29.9 29.0 40.6Regional US 10.3 13.6 23.9Total US 20.1 20.9 32.0London 44.1 46.8 50.4Rest of Europe 29.4 30.3 31.3Total Europe 36.1 38.0 40.6Asia 44.2 38.4 42.4Australasia 47.3 48.5 40.7Total Group 35.4 33.9 38.3 * For comparability the 31 March 2007 Average Room Rate and RevPAR have beentranslated at average exchange rates for the quarter ended 31 March 2008. APPENDIX 2: HOTEL ROOM COUNT AND PIPELINE for the first quarter ended 31 March 2008 Hotels Rooms Hotel and room countas at 31 March 2008 31 March 31 December Change 31 March 31 December Change 2008 2007 2008 2007 Analysed by region:New York 3 3 - 1,746 1,746 -Regional US 17 17 - 6,025 6,025 -London 7 7 - 2,487 2,487 -Rest of Europe 17 17 - 3,073 3,073 - -Middle East 8 5 3 2,581 1,528 1,053Asia 17 16 1 8,061 7,713 348Australasia 32 32 - 3,618 3,618 -Total 101 =SUM(ABOVE) 97 4 27,591 26,190 1,401 Analysed by ownership type:Owned and leased 68 68 - 20,680 20,684 (4)Managed 16 13 3 3,903 2,850 1,053Franchised 13 12 1 1,399 1,047 352Investment 4 4 - 1,609 1,609 -Total 101 97 4 27,591 26,190 1,401 Analysed by brand:Grand Millennium 3 2 1 1,145 793 352Millennium 40 39 1 14,222 13,598 624Copthorne 34 32 2 6,565 6,140 425Kingsgate 14 14 - 1,314 1,314 -Other 10 10 - 4,345 4,345 -Total 101 =SUM(ABOVE) 97 4 27,591 26,190 1,401 Hotels Rooms Pipelineas at 31 March 2008 31 March 31 December Change 31 March 31 December Change 2008 2007 2008 2007 Analysed by region:Regional US 1 1 - 250 250 -Rest of Europe 2 2 - 340 340 -Middle East 11 6 5 2,913 1,424 1,489Asia 5 6 (1) 2,014 2,366 (352)Total 19 15 4 5,517 4,380 1,137 Analysed by ownership type:Owned or leased 3 3 - 1,141 1,141 -Managed 15 10 5 3,923 2,434 1,489Franchised 1 2 (1) 453 805 (352)Total 19 =SUM(ABOVE) 15 4 5,517 4,380 1,137 Analysed by brand:Grand Millennium 1 1 1 521 521 -Millennium 10 7 1 2,942 2,113 829Copthorne 2 4 2 593 1,018 (425)Kingsgate 3 1 - 586 108 478Other 3 2 - 875 620 255Total 19 15 =SUM(ABOVE) 4 5,517 4,380 1,137 At 31 March 2008, the number of rooms in the pipeline (contracts signed buthotels/rooms yet to open under one of the Group's brands) was 5,517; 1,137 morethan at 31 December 2007. Four new hotels were opened in the first quarter, one franchise contract inChina and three management contracts in the Middle East. There are two properties in the above pipeline that opened shortly after periodend. On 10 April 2008 the Group opened its fourth Grand Millennium property, the521-room Grand Millennium Beijing in China bringing the total number ofproperties open in mainland China to three. The Group has also opened the 108room Kingsgate Abu Dhabi Hotel marking the first property trading under theKingsgate brand outside of New Zealand. The lease of the Copthorne HotelWellington Plimmer Towers expired in April 2008. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Millennium & Copthorne Hotels