Ann: HALFYR: MCK: MCK: 2013 H1 Results (Media Rel

• Release Date: 31/07/13 13:13
• Summary: HALFYR: MCK: MCK: 2013 H1 Results (Media Release)
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MCK
31/07/2013 11:13
HALFYR

REL: 1113 HRS Millennium & Copthorne Hotels New Zealand Limited

HALFYR: MCK: MCK: 2013 H1 Results (Media Release)

31 July 2013

LOCAL PROPERTY DEVELOPMENT BOOSTS MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND'S
PROFIT

New Zealand hotel owner / operator, Millennium & Copthorne Hotels New Zealand
Limited (NZX:MCK), today announced its (unaudited) results for the six months
to 30 June 2013.
--Average hotel occupancy across the Group 69.0% (2012: 63.3%)
--Group revenue and other income $60.27 million (2012: $57.53 million).
--Profit before income tax and non-controlling interests $16.01 million
(2012: $25.67 million).
--Profit after tax and non-controlling interests $9.02 million (2012: $19.63
million).

Noting that last year's first-half profit was boosted by a significant
contribution from its investment in China held by First Sponsor Capital
Limited, MCK's Managing Director Mr. B K Chiu said that the Company's results
reflected the Group's performance in New Zealand.

"The results show that we continue to benefit from our investments in the
Asian growth markets and that we have managed our costs in our hotel
operations well.  We have also shown the increased contributions from our
majority-owned land development subsidiary CDL Investments", he said.

Mr. Chiu noted that First Sponsor had not recognised sales in the first half
of the year and was continuing with its next project, called Millennium
Waterfront, near Chengdu City in China which included further residential
units and a Millennium-branded hotel with conference facilities.  Sales from
these units were expected to be recognised from 2014 onwards.  First Sponsor
was also looking for new opportunities and was divesting non-core assets.

On MCK's Hotel Operations, Mr. Chiu noted that growth from China and other
parts of Asia had seen increased visitor numbers into New Zealand while other
markets tended to be flat.

"Increased air services to meet demand from the Chinese markets are helping
New Zealand tourism", he said.

On Christchurch, Mr. Chiu said that discussions on the future of the land at
Copthorne Hotel Christchurch Central were continuing.  He reiterated that MCK
would welcome the opportunity to rebuild a hotel on the site if that
opportunity arose.

Mr. Chiu also signalled that the Kingsgate Hotel Palmerston North would begin
the first stage of its refurbishment to a Copthorne Hotel in the second half
of this year.  A room refurbishment at Millennium Hotel Queenstown will also
take place later this year which will position the hotel for the conference
and leisure markets.

The company's hotels in Wellington had not been damaged in the earthquake in
Wellington on 21 July. Copthorne Hotel Wellington Oriental Bay, an owned
property, and Kingsgate Hotel Wellington, a franchised property, were
undamaged and have remained open.

Overall, the Company remained positive about the rest of 2013.

"We expect further improvements in the second half of the year and further
contributions from our various business units to our year-end profit", said
Mr. Chiu.

ENDS

Issued by Millennium & Copthorne Hotels New Zealand Ltd

Any inquiries please contact:
B K Chiu, Managing Director
Millennium & Copthorne Hotels New Zealand Ltd
(09) 353 5058
End CA:00239142 For:MCK    Type:HALFYR     Time:2013-07-31 11:13:12