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 Full year results, released 24 February 2025

Millennium & Copthorne Hotels New Zealand Limited (the Company, MCK) (NZX: MCK) has announced its results for the 12 months to 31 December 2025 (FY25), with continued positivity in the Hotels business driving revenue to a 5-year high, helping to balance out a softer result from property subsidiary, CDL Investments New Zealand Limited (CDI).

• Revenue $186.7m, up 6% yoy, driven by continuing momentum in the Hotels business
• Operating profit $30.6m, down 28% yoy, as cyclical property headwinds continue to impact on CDI, MCK’s 65% owned subsidiary

-Profit after tax $24.8m, up 182% yoy (2024 included a $25.8m one off, non-cash deferred tax adjustment)

• Profit after tax of $20.2m attributable to MCK shareholders
• Strong balance sheet with cash and short terms deposits of $24.2m. Total Assets increased 5% to $800.5m
• Fair market value of hotel and properties assessed at $1.1b. Net asset backing per share on market value basis assessed as $5.24 per share
• Fully imputed dividend declared of 3 cents per share, payable on 15 May 2026

Financial Performance

For the FY25 year, MCK delivered its highest revenue result in five years, with a 6% yoy increase to $186.7m.

Operating profit decreased 28% yoy to $30.6m, as a result of the lower contribution being made from CDI, offset in part by increased Hotel revenue and a disciplined focus on cost management.

Profit before tax was down 30% yoy to $33.0m. Profit after tax attributable to MCK shareholders was $20.2m (2024: $2.8m). The 2024 figure included a $25.8m one off, non-cash deferred tax adjustment.

The company continues to maintain a strong balance sheet. MCK’s cash position as at 31 December 2025 was $24.2m (2024: $41.3m). Bank debt was $20m (2024: $3m) at year end, reflecting drawdowns to settle the Mayfair Hotel and to fund refurbishment and other property projects. Total book value of assets increased to $800.5m (2024: $762.3m), with the fair market value of hotel and properties assessed at $1.1b as at 31 December 2025, implying a net market asset value of $5.24 per share. An impairment loss relating to Copthorne Hotel Palmerston North of $3.8 million was recognised during the year. There was no impairment loss recognised in respect of Copthorne Hotel Wellington Oriental Bay

MCK has declared a fully imputed dividend of 3 cents per share payable on 15 May 2026.