In constant currency, Group RevPAR grew by 4.9% during the first six months of 2017 with increases in occupancy and average room rate of 3.0% points and 0.5% respectively. In reported currency, Group RevPAR increased by 15.9%.
In Q1 and Q2 of 2017, London RevPAR grew by 14.5% and 7.9% respectively. For the first half of 2017, London RevPAR grew by 10.7%, driven by higher tourist numbers as a result of the weaker pound.
New York RevPAR grew by 10.0% for the six-month period, mainly reflecting the increased contribution from ONE UN New York whose East Tower was closed for refurbishment during the same period last year. Excluding this property, RevPAR for New York increased by 1.0%. Despite higher revenue, the New York region was still loss making for the period due to high operating costs, in particular payroll costs and travel agent commissions.
Singapore RevPAR was down by 1.1% with a 4.1% points increase in occupancy more than offset by a 5.8% fall in average room rate.
Group revenue increased by 16.0% to £485m or by 4.3% in constant currency, with increased contributions from hotel trading and property, offset by reduced revenue from CDL Hospitality Trusts ("CDLHT").
Profit before tax increased by £7m or 12.5% for the six-month period. The result was impacted by a number of non-trading items, including impairment losses of £9m relating to a hotel in Rest of Asia and a hotel recently acquired by CDLHT in Europe (H1 2016: revaluation deficit of £4m offset by gain on insurance claim of £2m). As reported in Q1 2017, there was a one-off foreign exchange loss arising at CDLHT of £4m.
On the other hand pre-tax profit was positively impacted by a £12m gain on the reversal of impairment of the Group's shareholder loan to Fena Estate Co. Ltd ("Fena"), owner of Pullman Bangkok Grande Sukhumvit (formerly Grand Millennium Sukhumvit Bangkok). On 31 July 2017, the Group disposed of its 50% interest in Fena in exchange for a token sum and repayment of the shareholder loan, which had been impaired in earlier years. The Group has re-instated the loan on its balance sheet as at 30 June 2017 with an income of £12m recognised in the income statement.
The Board has declared an interim dividend of 2.08p per share.
