MILLENNIUM & COPTHORNE HOTELS PLC

RESULTS PRESENTATION

19 FEBRUARY 2016

WELCOME TO

OUR WORLD OF

HOSPITALITY

2015 HIGHLIGHTS

£m

2015

2014

%

Change

Revenue 847 826 2.5%

- at constant rates 847 836 1.3%

Profit before tax 109 188 (42.0%)

Net Assets 2,712 2,735 (0.8%)

Basic EPS 19.9p 34.0p (41.5%)

Ordinary dividend per share 6.42p 13.59p (52.8%)

FINANCIAL REVIEW

Angela Ong, SVP Finance

Millennium Baileys Hotel London Kensington

TOTAL REVENUE

REVENUE GROWTH OF 2.5%

826 847

2 7 2

10

750

770

790

810

830

850

870

Revenue2014

Hotel REIT Property Foreximpact

Revenue2015

£m REVENUE 2014 TO 2015

• Reported revenue is up £21m or 2.5%.

• Revenue at constant currencies increased £11m or

1.3%.

• Hotel revenues have increased £2m at constant

currencies which includes acquisitions (£21m) and

closures (£6m).

• REIT revenues are up £7m including £3m from the newly

acquired Cambridge property.

• Property revenues are up £2m at constant currencies, with

gains from Ginza Japan offset by the recognition of the final

three Glyndebourne units in H1 2014 (£7m).

• The weakening of the British Pound is having a positive

translation forex impact on our overseas income streams .

HOTEL REVENUE

HOTEL REVENUE GROWTH OF 2.0%

750

765

21 2

12

(4)

(16)

700

710

720

730

740

750

760

770

780

Hotel revenue2014

Acquisitions Net roomopenings

Hannover leaseended

Underlying Foreximpact

Hotel revenue2015

£m Hotel Revenue 2014 to 2015

• Full period’s trading in 2015 for 2014 hotel acquisitions -

The Chelsea Harbour Hotel, London, Novotel New York

Times Square and Grand Hotel Palace. Hard Days Night,

Liverpool was acquired in 2015.

• Net room openings - Grand Hyatt Taipei east wing was

closed for refurbishment during H1 2014. Auckland

Harbour City was closed for refurbishment at the end of

H1 2015.

• Lease for Millennium Hotel Hannover ended in December

2014 and was not renewed.

• Underlying revenues at constant rates are down £16m

from 2014, driven primarily by Asia.

• The weaker pound sterling had a positive translation forex

impact on overseas income streams. Excluding forex

impact, hotel revenues were up £3m (0.4%).

PROFIT BEFORE TAX

PBT DOWN 42.0%

PBT EXCLUDING REVALUATIONS AND IMPAIRMENT DOWN 5.6%

188

109

2 10

6 (24) (1)

(70) (2) (2) 507090

110130150170190210

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tio

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pairm

ent

Share

of

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inance

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PB

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15

£m PBT 2014 to 2015

• PBT is down 42.0% from 2014, the main factor being

revaluation and impairment losses.

• Excluding revaluation and impairment losses, PBT is

down 5.6%.

• A net revaluations and impairments charge of £43m has

been recorded in 2015, an incremental charge of £70m at

constant rates compared to 2014.

• Hotel operating profit is down £24m, the main factor

being Asian revenue falls impacting the bottom line.

• Central costs, including provisions, have fallen £10m.

OPERATING PERFORMANCE

Aloysius Lee, CEO

Grant Hyatt Taipei

112.47

46.16

151.73

47.46

86.34

59.95

38.49

108.68

51.56

142.92

48.92

79.85

54.35 43.33

20

40

60

80

100

120

140

160

London Rest of Europe New York Regional US Singapore Rest of Asia Australasia

2014 *

2015

REGIONAL REVPAR TRENDS

* Restated at 2015 rates

GROUP REVPAR DOWN 1.3% AT CONSTANT RATES

Rest of Europe: RevPAR growth in most hotels, boosted by Rome and Liverpool acquisitions. Excluding acquisitions and closures, RevPAR grew 2.2%

New York: RevPAR fell due to increased inventory and weak Euro reducing European visitors. Excluding Novotel, RevPAR fell by 6.6%.

Singapore: RevPAR down due to reduced consumer spending and lower corporate demand against a backdrop of regional economic slowdown. Increased price competition from new and refurbished hotels and strong Singapore dollar relative to key Asian markets also a factor.

Rest of Asia: RevPAR down with the largest impacts being in Taipei and Seoul.

Australasia: Strong growth, driven by increased overseas visitors.

Regional US: RevPAR up in most hotels, with the largest gains at Chicago, Boulder and the recently refurbished Scottsdale property.

London: London RevPAR impacted by refurbishment of Baileys. Which finished in October 2015

(3.4%)

11.7%

(5.8%)

3.1%

(7.5%)

(9.3%)

12.6%

£

CAPITAL EXPENDITURE – NEW BUILDS

BUILDING FOR THE FUTURE

1

Sunnyvale, US

• Combines a new state of the art 263 room Millennium M Social brand

hotel with a 250-unit market rate apartment complex.

• The vision for the project is to create a dynamic urban style experience

for residents and guests with a curated collection of indoor and outdoor

social spaces integrated into a unique life style hotel and residential

experience as the flagship for the new M-Social brand in the United

States.

• Estimated cost is £200m, spread mainly over 2016 to 2017

Seoul, South Korea

• Based on the latest designs, the lifestyle hotel and serviced apartment has 306

and 209 keys respectively.

• The lifestyle hotel will feature a dynamic lobby atmosphere with a café / deli

style F&B outlet and bar that allows guests to relax and lounge or have a quick

“grab and go.

• The serviced apartment will feature an adjoining F&B space, in addition to other

social facilities.

• Estimated future development cost is around £90m, starting in the middle of

2016 and ending in 2018

CAPITAL EXPENDITURE - REFURBISHMENTS

CONTINUED INVESTMENT IN HOTEL REFURBISHMENT PROGRAMME

2014 and prior 2015 2016 2017 2018

Under Consideration 67 29 18

Approved 9 133

In Progress 50 2

Actual 130 42

-

20

40

60

80

100

120

140

160

180£m Project Capital Spending

Completed Major Refurbishments:

• The Lakefront Anchorage

• Millennium Bailey’s Hotel London Kensington

• Millennium Seoul Hilton

• Millennium Hotel Buffalo

• Copthorne Hotel and Resort Queenstown

Lakefront

Ongoing Major Refurbishments:

• Grand Hyatt Taipei

• Copthorne Hotel Auckland Harbour City

• ONE UN East Tower

• Millennium Hotel Durham

• Millennium Biltmore Los Angeles

Approved Major Refurbishments:

• Millennium Hotel London Mayfair

• Millennium Hotel London Knightsbridge

• Millennium Harvest House Boulder

All estimates are subject to the necessary consents.

Under consideration projects have not yet been

formally approved by the Board.

1

THE GUEST EXPERIENCE EVOLUTION

• Building a better relationship with our guests

• MyMillennium launches in Q1

THE GUEST EXPERIENCE EVOLUTION

• Guest-led brand evolution

THE GUEST EXPERIENCE EVOLUTION

• Increase Direct Sales

• Reduce Distribution Costs

• Develop a Single Brand Voice

CHINA STRATEGY

• Sales and Marketing

• Products

• China Orientation Programme

UPSELLING STRATEGY

• Room upgrades

• Club Services Package

• Staff incentive plans

This presentation contains certain statements that are or may be forward-looking with respect to the financial condition,

results or operations and business of Millennium & Copthorne Hotels plc. By their nature forward-looking statements

involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future.

There are a number of factors that could cause actual results and developments to differ materially from those

expressed or implied by such forward-looking statements. Undue reliance should not be placed on forward looking

statements which speak only as of the date of this document. The Group accepts no obligation to publicly revise or

update these forward-looking statements or adjust them to future events or developments, whether as a result of new

information, future events or otherwise, except to the extent legally required.

THANK YOU

Hard Days Night, Liverpool