MILLENNIUM & COPTHORNE has blamed political tensions in South Korea, harsh weather conditions in the US and Europe and its ongoing refurbishment programme for a slump in profits in the first quarter of the year.
The hotel chain, which runs the hotels at Chelsea football club’s Stamford Bridge, yesterday posted a 34.7 per cent fall in pre-tax profit to £16.9m in the three months to 31 March.
Revenue fell 3.6 per cent to £169m, hit by “a number of factors”, which the hotelier said “are unlikely to abate in the foreseeable future”.
The company removed more than 100,000 room nights to revamp its hotels also hitting sales.
In a bearish outlook on the sector, chairman Kwek Leng Beng said Asia, which made up 40 per cent of revenues last year, is facing “a number of political and economic challenges” while austerity measures in Europe are also impacting the business.
But he said the group was in a “strong financial position” to overcome economic headwinds.