Tourists boost CDL

For the six months ended June CDL Hotels has recorded a $4.78 million profit, up 41% from last year. Revenue increased to $98.69 million from $77.67 million.

Operating profit for the hotel and property group, which includes the Millennium, Copthorne and Quality Inn brands, rose 23% to $9.25 million.

Net tangible asset value at the end of June, excluding minority interest, was 60.4 cents per share.

The company says total revenue from its New Zealand hotel operations grew 7% to $52.6 million, with average occupancy up 9% and yield up 7%.

"We have capitalised on the increase in visitor arrivals to New Zealand. All three brands are performing ahead of last year," CDL says.

CDL's strategy is to spend money on the properties to improve their product value, and during the period finished a refurbishment at the Millennium in Rotorua and the Copthorne Lakefront. The Copthorne Resort Bay of Islands has also been undergoing extensive refurbishment, bringing the total spent on the three projects to around $10 million.

CDL says the links to the international group that Millennium and Copthorne hotels in other parts of the world are paying off.

"The contribution from the sales offices of M&C worldwide continue to benefit the New Zealand group's worldwide exposure.

"These sales offices are continuing to have direct influence on the New Zealand market. Much of our improvement this year can be attributable to the performance of these sales offices."

Profit at CDL Investments slumped 40% compared with last year at $1.4 million and is being blamed on lower margin section sales.

"Last year's results were influenced by 18 high value, high margin sales at Waimanu Bay," the company says.

CDI says its land portfolio now stands at 256 hectares, and land based investment and development activities continue provide most of its profits.

However while Auckland sales went well in the first half in the lower-end market, Hamilton has been sluggish, Tauranga remains slow and Christchurch is stable.

"Management remains cautiously optimistic with a forecast of a very subdued lift in residential activity in the later part of the year."

Profit at CDL's 50.74% owned subsidiary Kingsgate International was also slightly lower at the half-year, falling to $3.38 million compared with $3.46 million previously. Sales revenue was $34.67 million.

The company says the drop is due to capitalising $3.16 million in interest last year against its Birkenhead Quays residential apartments in Sydney, rather than expensing the amount.

Excluding $15.6 million attributable to the sales of the Birkenhead apartments, sales for the six months were 4% higher than last year.

Total revenue for Millennium Hotel Sydney was down 5.8% on the last year at $9 million, mainly from a shortfall in food and beverage revenues due to a softer conference and catering market. Occupancy was 82%, up from 76.5% previously.

Kingsgate Shopping Centre turnover rose 18% gross revenue at Birkenhead Point Shopping Centre climbed 11%.

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