Millennium & Copthorne Hotels New Zealand (MCK) H1 2026 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2026 rose to $88.8 million, up from $79.3 million year-over-year, driven by strong hotel performance and strategic execution.

• Net profit after tax increased to $13.4 million from $8.5 million, and total comprehensive income reached $19.0 million, up from $6.2 million.

• Strategic hotel improvement programs and the Revive to Thrive strategy enhanced asset value and positioned for sector rebound.

• South Island hotels, especially Queenstown, were standout performers, with North Island properties also showing strong demand.

• Residential property development experienced subdued sales due to softer trading conditions.

Financial highlights

• Total revenue for HY26 was $88.8m, up 12.0% year-over-year from $79.3m.

• NZ hotel revenue rose 15.3% to $73.9m, and profit before tax increased 58.2% to $17.9m.

• Earnings per share grew to 7.32 cents from 4.20 cents year-over-year.

• Gross profit improved to $50.3 million from $42.7 million, and gross margin rose to 56.6% from 53.8%.

• Shareholders' funds increased to $579.6m, and net assets rose by $13m to $697.9m.

Outlook and guidance

• Management aims to sustain positive momentum into Q3 and Q4, focusing on maximizing hotel performance as cost pressures ease.

• Progression towards Thrive ambitions continues, though moderated by global uncertainty and softer economic conditions.

• Monitoring tourism policy developments, particularly regarding a potential nationwide bed tax and its implications.

• Focus remains on increasing hotel room utilisation, guest experience, loyalty program growth, and disciplined investment in refurbishments and infrastructure.

• A new $20 million flexible credit facility was established in August 2026 for property development activities.