New York City – 30 October 2017 –
Millennium & Copthorne Hotels, which has received a buyout offer that values it at 1.8 billion pounds (US$2.4 billion) from shareholder City Developments, reported higher nine-month room revenue due to strong growth in New York.
RevPAR rose 11.5 percent to 82.41 million pounds for the nine months to September 30, the operator of the Millennium, Grand Millennium, Copthorne and Kingsgate hotels said.
Excluding deals, closures and currency movements, like-for-like RevPAR was up 1.4 percent.
M&C’s nine-month pretax profit grew 16 percent to 118 million pounds, while revenue rose 13 percent to 748 million pounds, Reuters reported.
At least four minority shareholders, including International Value Advisers, MSD Partners, Aberdeen Standard and Fidelity, have criticised Singapore-based City Development’s 552.5 pence per share proposed cash offer to buy the 34.8 percent stake it does not own, saying it undervalues M&C’s property holdings.
But M&C’s board has recommended the proposed offer, which needs approval from minority investors holding a collective 50 percent stake in the company to go through. Any deal would see M&C return to the fold of Singaporean billionaire Kwek Leng Beng’s property empire.
M&C, which operates 130 hotels around the world, has focused on building its footprint in major cities including London, New York and Singapore.