Millennium & Copthorne Hotels New Zealand Limited Analysis

Overview

Millennium & Copthorne Hotels New Zealand Limited is currently the only hotel owner / operator listed on the NZSX. It currently has 19 hotels across New Zealand trading under the Millennium / Grand Millennium / M Social, Copthorne and Kingsgate brands.

MCK developed into its current form in 1992 when it became a subsidiary of the Millennium & Copthorne Group (then known as CDL Hotels International). Over the ensuing three decades, it has maintained its position as one of the largest hotel owner / operators in New Zealand.

MCK has a majority stake in NZX-listed CDL Investments New Zealand Limited (NZX:CDI) and also has property interests in Australia.

Performance

The following information was extracted from Millennium & Copthorne Hotels New Zealand Limited's Half year results, released 12 August 2025:

Hotel revenue grew by 15% year on year, driven by increased room availability as a result of the long term refurbishment plan and from increasing demand from international travellers. The year on year uplift was despite softer domestic and corporate travel, and further gains are expected when these market recover.

Property sales were impacted by the cool down in the property market (with sales revenue down 51% YOY), resulting in a 7% decrease in total revenue to $79.3m (FY24: 85.3m).

One sale at the Zenith Residences was also recorded in this half year. We are aiming to exit our remaining units within the next 12 months, subject to favourable market conditions.

The reduced contribution from CDL was the primary driver for MCK’s lower profit result, with profit before tax of $11.35m (FY24: 21.53m).

MCK has a robust balance sheet, providing resilience to navigate through the current cycle and optionality for growth. Bank facilities were utilised for the acquisition of the Mayfair Hotel in January 2025, with bank debt increasing to $30m as at 30 June 2025.

MCK’s Managing Director, Stuart Harrison, noted the positive performance of MCK’s recently acquired hotels.

“Both the Mayfair Hotel Christchurch and Sofitel Brisbane Central hotel continue to perform above our expectations. The Mayfair Hotel Christchurch’s contribution to our revenue and profit in this half year has been positive and Sofitel Hotel Brisbane saw an increase in their average rate and occupancy and their contribution to profit has increased. We expect that both hotels will continue to do well in the second half of the year. “

“2025 has also seen more progress with our refurbishment and upgrade works. We have completed room upgrades at Copthorne Hotel & Resort Bay of Islands and Copthorne Hotel Palmerston North this year and guest feedback has been very positive at both hotels. That has translated into improved guest satisfaction scores. We will shortly have more rooms including suites back from refurbishment at Millennium Hotel Queenstown just in time for the peak of the winter season”.

MCK’s majority owned property development subsidiary, CDL Investments New Zealand Limited (CDI), has been impacted by the subdued New Zealand housing market which affected half year revenue and profit. CDI has not yet seen the effects of recent reductions in bank lending rates being translated to increased activity in housing and other property markets within New Zealand.