Millennium & Copthorne Hotels New Zealand (MCK) H2 2025 earnings summary

Executive summary

• Achieved a five-year high in total revenue at $186.7m, up 6% year-over-year, driven by strong hotel momentum and strategic execution, including The Mayfair Hotel acquisition.

• Operating profit declined 28% year-over-year to $30.6m due to cyclical property headwinds impacting CDI.

• Profit after tax rose 182% year-over-year to $24.8m, with $20.2m attributable to shareholders, reflecting the absence of a prior year tax adjustment.

• Celebrated 40 years of continuous operations in New Zealand and 30 years of the MHR brand.

• Positioned to capitalize on the rebound in tourism and property sectors.

Financial highlights

• Total revenue reached $186.7m, up 6.0% year-over-year, the highest in five years.

• NZ hotel revenue grew 19.5% to $130.9m, with average occupancy up 3% to 70%.

• Group profit before tax declined 29.8% to $33.0m.

• Dividend maintained at 3c per share, fully imputed and payable 15 May 2026.

• Book value of property assets at $752.2m; market value estimated at $1.1b as of 31 December 2025.

Outlook and guidance

• Hotels business expected to maintain upward trajectory with near-full inventory availability post-refurbishments.

• Expect continued global and domestic economic recovery to drive hotel demand in 2026.

• Priorities include increasing room utilization, ongoing refurbishments, growing loyalty program, and advancing development pipeline.

• Property market recovery anticipated to be gradual but optimistic.

• Management remains cautiously optimistic amid ongoing global and domestic uncertainties.