MCK 2020 Annual Report
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020 | 2
Annual Report Issued 19 Mar 2021
Annual Shareholder Meeting 25 May 2021
Half Year End 30 Jun 2021
Financial Year End 31 Dec 2021
B K Chiu
Managing Director
Colin Sim
Chairman
03 - 04 Chairman’s Review
05 - 06 Managing Director’s
Review
07 - 08 2020: An Unforgettable Year
09 Directors’ Profiles
10 Hotel Ownership
FIN 01 - 31 Financial Statements
CG 01 - 04 Corporate Governance
REG 01 - 05 Regulatory
Disclosures and
Statutory Information
20162017201820192020
Revenue
$172.0m$187.3m$218.8m$229.7m$172.0m
Profit After
Tax & NCI
$40.4m$43.1m$49.4m$49.7m$46.0m
Total Assets
$713.9m$828.2m$898.2m$1,008m$987.9m
Group Equity
$489.1m$588.9m$640.3m$715.3m$743.6m
Net Asset Backing /
Per Share
$3.09$3.72$4.04$4.52$4.70
Brad Watts (General
Manager of Copthorne Hotel
and Resort Bay of Islands)
helping out at the reception.
Copthorne Hotel & Apartments
Queenstown Lakeview.
Jessica Marychurch (Front
Office/Reservations Manager
at Copthorne Hotel & Resort
Solway Park Wairarapa)
wearing a reusable mask made
by her fellow Team member
Wendy Heaps (Housekeeper.)
Front cover - Wind blown Akeake tree
(Oleria traversiorium), New Zealand
“Bend...... don’t break”
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020 | 2
Annual Report Issued 19 Mar 2021
Annual Shareholder Meeting 25 May 2021
Half Year End 30 Jun 2021
Financial Year End 31 Dec 2021
B K Chiu
Managing Director
Colin Sim
Chairman
03 - 04 Chairman’s Review
05 - 06 Managing Director’s
Review
07 - 08 2020: An Unforgettable Year
09 Directors’ Profiles
10 Hotel Ownership
FIN 01 - 31 Financial Statements
CG 01 - 04 Corporate Governance
REG 01 - 05 Regulatory
Disclosures and
Statutory Information
20162017201820192020
Revenue
$172.0m$187.3m$218.8m$229.7m$172.0m
Profit After
Tax & NCI
$40.4m$43.1m$49.4m$49.7m$46.0m
Total Assets
$713.9m$828.2m$898.2m$1,008m$987.9m
Group Equity
$489.1m$588.9m$640.3m$715.3m$743.6m
Net Asset Backing /
Per Share
$3.09$3.72$4.04$4.52$4.70
Brad Watts (General
Manager of Copthorne Hotel
and Resort Bay of Islands)
helping out at the reception.
Copthorne Hotel & Apartments
Queenstown Lakeview.
Jessica Marychurch (Front
Office/Reservations Manager
at Copthorne Hotel & Resort
Solway Park Wairarapa)
wearing a reusable mask made
by her fellow Team member
Wendy Heaps (Housekeeper.)
Front cover - Wind blown Akeake tree
(Oleria traversiorium), New Zealand
“Bend...... don’t break”
3 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020 | 4
MCK is still committed to selling down its interest in the Zenith
Residences but in a way that will ensure best possible returns and margins.
Dividend Announcement
While the company has made a profit, MCK’s Board has resolved
not to declare a dividend for the 2020 year and will instead deploy
the funds for refurbishment and reinvestment in its hotels. This will
also allow the company to ensure it has sufficient capital reserves
to continue to trade as well as optimize its financial resources in its
recovery runway objectives.
Outlook
This summer, some of our hotels are seeing significantly less
occupancy compared to this time a year ago. That difference will
be very significant to our 2021 results as the trading results in the
first three months of 2020 were similar to 2019 and was reflected in
the small profit that we announced in our 2020 interim results. Our
property development activities are expected to perform positively
and will again be the main driver for group profit this year.
MCK continues to have the benefit of a strong balance sheet and
capital reserves which it will look to use and manage carefully to
preserve and improve its assets. During 2021, the Board will work
with Management to review our core operations to see how our
business units and our operations generally can scale up when we
need to and ensure our product remains attractive and competitive to
Kiwis and future international visitors alike.
As I said earlier, having survived 2020, our thoughts now turn to
how best to position the business to ensure that we are well-placed
for the post-COVID recovery when it comes. Much depends on
circumstances outside of our control. International travel to New
Zealand will not be returning to volumes which will allow significant
overseas tourism until COVID-19 is well under control globally.
While New Zealanders will hopefully continue to enjoy a level
of freedom of movement which is better than other parts of the
world, we do not expect to see a sustained domestic travel market
developing over the short to medium term which will replace or
eclipse what international visitors have brought in the past. Until
such time as we can welcome international visitors back to New
Zealand, our revenue and our results will reflect this.
Colin Sim Chairman
17 February 2021
been audited by the Ministry of Social Development on our use of
the wage subsidy and they have found no issues.
Our two hotels in the Managed Isolation programme, Grand
Millennium Auckland and M Social Auckland, will continue to assist
the Government with returning New Zealanders for much of 2021.
Both hotels recorded positive performance metrics given the required
length of stay for those returning to New Zealand but like the rest of
the accommodation industry, we are conscious that with significant
sporting events scheduled for 2022 and 2023, we are keen to ensure
that we are able to position ourselves to be able to assist with the
hosting of visiting teams, officials, media and possibly spectators
should these events proceed as planned and border controls allow.
Kingsgate Hotel Greymouth will undergo major refurbishment works
over 2021 which will see the demolition of part of the existing hotel
with operations being shifted to the main tower block. Kingsgate
Hotel Te Anau will be open over Summer 2021 after which time we
will review whether there is sufficient demand for it to remain open
over the winter season.
Refurbishment work was completed at Copthorne Hotel & Resort
Queenstown Lakefront and the hotel reopened in Q4 2020. This
has allowed us to proceed on planned room refurbishment works
at Millennium Hotel Queenstown which closed on 31 January
ahead of those works commencing in the next few weeks. A similar
refurbishment project is also being scoped for Millennium Hotel
Rotorua and is planned to commence in the second half of this year.
CDL Investments New Zealand Limited (“CDLI”)
2020 has seen CDLI trade remarkably well in market conditions
that we could not have foreseen. Reflecting that positivity, CDLI
has announced an operating profit after tax for the year ended 31
December 2020 of $30.1 million (2019: $34.1 million). MCK is
encouraged by CDLI’s confidence in its recent land purchases and
development plan for the next few years.
CDLI will continue to be a critical element in bolstering MCK’s
profitability for the foreseeable future and MCK is committed to
providing CDLI with support as required to ensure that it is able to
continue to acquire and develop land over the medium term.
CDLI maintained its ordinary dividend to 3.5 cents per share. MCK
will take CDI shares instead of cash for this dividend to allow CDLI
to optimize its cash resources to progress its development plans.
Australia Update
In 2020, a total of four apartments including the penthouse floor at
the Zenith Residences were sold. The market dynamics in Sydney
have been different to New Zealand and our sales strategy is being
reviewed. Leasing of the remaining units is ongoing.
Our 2020 results are almost entirely due to the performance of
our property development operations through our majority-owned
subsidiary CDL Investments New Zealand Limited which had a very
positive year despite the difficulties caused by COVID-19 and sales
of our apartment units in Sydney, Australia. Our hotel operations did
perform better than anticipated and recorded a small profit before tax
of $1.9 million (2019: $33.5 million). All of this was reflected in our
earnings per share which decreased to 29.05 cents per share (2019:
31.39 cents per share).
Our 2020 revenue totaled $172.00 million (2019: $229.7 million)
which was driven by CDL Investments and our Australian
subsidiaries. As detailed in the 2020 Interim Report, we also
recognized a one-off, non-cash tax credit of $20.06 million from
the Government’s COVID-19 Business Continuity Package. Our
shareholders’ funds excluding non-controlling interests was $743.6
million (2019: $715.3 million). We saw a decrease in our total assets of
$987.9 million (2019: $1,008.2 million) with net asset backing (with
land and building revaluations and before distributions) increasing
slightly to 469.70 cents per share (2019: 451.78 cents per share).
New Zealand Hotel Operations
Typically, we would report on the total revenue, RevPAR (Revenue
Per Available Room) and occupancy statistics as well as Gross
Operating Performance and provide comparatives to the previous
year. Given the lockdowns and ongoing border closure during
the past 12 months and the resulting impact on business, direct
comparisons between 2020 and 2019 are not helpful for shareholders
as it was clear and obvious that the impact of COVID-19 on our
business was severe.
In 2020, we were able to achieve an average occupancy of 39.2 %
which was not unexpected given the lack of international visitors
alone. To achieve even this level of occupancy required carefully
targeted marketing and promotions and this targeting will continue
into 2021. With only the New Zealand domestic market to rely on,
the average RevPAR (Revenue Per Available Room) achieved across
all of MCK’s hotels was $66.17 which we consider to be a positive
achievement given the inability to hold conferences, meetings and
other large gatherings for a substantial part of the year as well as the
difference in what the domestic market is prepared to pay over what
we lost from the international markets. Unsurprisingly, our hotels’
revenue in 2020 was less than half of what we earned in 2019 and
included what we received for the Auckland managed isolation hotels.
Only the hotel operations applied for and received the Government’s
Wage Subsidy from March through to June as well as the June
extension and a final resurgence payment in September. In all, a
total of $9.5 million was received and all of it was paid out to our
employees. We met the criteria to receive the subsidy and we have
A few words on the year just past
As we embark on the next twelve months ahead of us, we are taking
this opportunity to reflect on the year just past.
When we reported our 2019 results, we knew that the effects of
COVID-19 would be severe on tourism and our business. The fact
that MCK as a group, has been able to record a positive set of results
for its hotel and property development operations during 2020 is a
testament to the extraordinary efforts of its staff during what can only
be described as an abominable year.
The MCK Board sincerely thanks each and every one of our team
whether they work at our hotels or corporate offices for their
diligence and can-do attitude at all times.
We would also like to thank our shareholders, suppliers and business
partners once again for their continuing support and loyalty for MCK
and our hotels during the year. Many of you have provided our staff
with some wonderfully heartfelt and positive comments and we
greatly appreciate this.
The devastating impact of COVID-19 on the tourism and
accommodation sectors in 2020 has been well documented and will
continue during this year. With the international borders to New
Zealand likely to be closed for the majority of, if not all of, 2021 to
limit the spread of COVID-19 coming in from overseas, all of us will
need to accept the major impact that continued closure will have on
our business and our employees.
Most of our hotels across New Zealand were able to resume trading
by the end of last year but not all. Copthorne Hotel Rotorua,
Kingsgate Hotel Greymouth and Kingsgate Hotel Te Anau were
closed for the majority of 2020 and these hotels will likely
remain closed for a further period of time. During 2020, we were
continuously reviewing how we can optimize our operations at all
of our properties. This may mean that some of our hotels will be
partially or entirely closed during periods where we do not have any
bookings during 2021.
If we had to take any positives out of 2020, it was that the crisis made
us think hard about our entire business, our customer and marketing
strategies, how we manage our people and what the overall future
will look like. All of us have learned a lot over the past year. Putting
those learnings into practice to rebuild and reshape MCK’s future will
determine how successful we will be in 2021 and beyond.
Financial Performance & Financial Position
MCK reports that, for the year ended 31 December 2020, the
company recorded a profit attributable to owners of the parent of
$46.0 million (2019: $49.7 million).
Copthorne Hotel Wellington Oriental Bay.
3 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020 | 4
MCK is still committed to selling down its interest in the Zenith
Residences but in a way that will ensure best possible returns and margins.
Dividend Announcement
While the company has made a profit, MCK’s Board has resolved
not to declare a dividend for the 2020 year and will instead deploy
the funds for refurbishment and reinvestment in its hotels. This will
also allow the company to ensure it has sufficient capital reserves
to continue to trade as well as optimize its financial resources in its
recovery runway objectives.
Outlook
This summer, some of our hotels are seeing significantly less
occupancy compared to this time a year ago. That difference will
be very significant to our 2021 results as the trading results in the
first three months of 2020 were similar to 2019 and was reflected in
the small profit that we announced in our 2020 interim results. Our
property development activities are expected to perform positively
and will again be the main driver for group profit this year.
MCK continues to have the benefit of a strong balance sheet and
capital reserves which it will look to use and manage carefully to
preserve and improve its assets. During 2021, the Board will work
with Management to review our core operations to see how our
business units and our operations generally can scale up when we
need to and ensure our product remains attractive and competitive to
Kiwis and future international visitors alike.
As I said earlier, having survived 2020, our thoughts now turn to
how best to position the business to ensure that we are well-placed
for the post-COVID recovery when it comes. Much depends on
circumstances outside of our control. International travel to New
Zealand will not be returning to volumes which will allow significant
overseas tourism until COVID-19 is well under control globally.
While New Zealanders will hopefully continue to enjoy a level
of freedom of movement which is better than other parts of the
world, we do not expect to see a sustained domestic travel market
developing over the short to medium term which will replace or
eclipse what international visitors have brought in the past. Until
such time as we can welcome international visitors back to New
Zealand, our revenue and our results will reflect this.
Colin Sim Chairman
17 February 2021
been audited by the Ministry of Social Development on our use of
the wage subsidy and they have found no issues.
Our two hotels in the Managed Isolation programme, Grand
Millennium Auckland and M Social Auckland, will continue to assist
the Government with returning New Zealanders for much of 2021.
Both hotels recorded positive performance metrics given the required
length of stay for those returning to New Zealand but like the rest of
the accommodation industry, we are conscious that with significant
sporting events scheduled for 2022 and 2023, we are keen to ensure
that we are able to position ourselves to be able to assist with the
hosting of visiting teams, officials, media and possibly spectators
should these events proceed as planned and border controls allow.
Kingsgate Hotel Greymouth will undergo major refurbishment works
over 2021 which will see the demolition of part of the existing hotel
with operations being shifted to the main tower block. Kingsgate
Hotel Te Anau will be open over Summer 2021 after which time we
will review whether there is sufficient demand for it to remain open
over the winter season.
Refurbishment work was completed at Copthorne Hotel & Resort
Queenstown Lakefront and the hotel reopened in Q4 2020. This
has allowed us to proceed on planned room refurbishment works
at Millennium Hotel Queenstown which closed on 31 January
ahead of those works commencing in the next few weeks. A similar
refurbishment project is also being scoped for Millennium Hotel
Rotorua and is planned to commence in the second half of this year.
CDL Investments New Zealand Limited (“CDLI”)
2020 has seen CDLI trade remarkably well in market conditions
that we could not have foreseen. Reflecting that positivity, CDLI
has announced an operating profit after tax for the year ended 31
December 2020 of $30.1 million (2019: $34.1 million). MCK is
encouraged by CDLI’s confidence in its recent land purchases and
development plan for the next few years.
CDLI will continue to be a critical element in bolstering MCK’s
profitability for the foreseeable future and MCK is committed to
providing CDLI with support as required to ensure that it is able to
continue to acquire and develop land over the medium term.
CDLI maintained its ordinary dividend to 3.5 cents per share. MCK
will take CDI shares instead of cash for this dividend to allow CDLI
to optimize its cash resources to progress its development plans.
Australia Update
In 2020, a total of four apartments including the penthouse floor at
the Zenith Residences were sold. The market dynamics in Sydney
have been different to New Zealand and our sales strategy is being
reviewed. Leasing of the remaining units is ongoing.
Our 2020 results are almost entirely due to the performance of
our property development operations through our majority-owned
subsidiary CDL Investments New Zealand Limited which had a very
positive year despite the difficulties caused by COVID-19 and sales
of our apartment units in Sydney, Australia. Our hotel operations did
perform better than anticipated and recorded a small profit before tax
of $1.9 million (2019: $33.5 million). All of this was reflected in our
earnings per share which decreased to 29.05 cents per share (2019:
31.39 cents per share).
Our 2020 revenue totaled $172.00 million (2019: $229.7 million)
which was driven by CDL Investments and our Australian
subsidiaries. As detailed in the 2020 Interim Report, we also
recognized a one-off, non-cash tax credit of $20.06 million from
the Government’s COVID-19 Business Continuity Package. Our
shareholders’ funds excluding non-controlling interests was $743.6
million (2019: $715.3 million). We saw a decrease in our total assets of
$987.9 million (2019: $1,008.2 million) with net asset backing (with
land and building revaluations and before distributions) increasing
slightly to 469.70 cents per share (2019: 451.78 cents per share).
New Zealand Hotel Operations
Typically, we would report on the total revenue, RevPAR (Revenue
Per Available Room) and occupancy statistics as well as Gross
Operating Performance and provide comparatives to the previous
year. Given the lockdowns and ongoing border closure during
the past 12 months and the resulting impact on business, direct
comparisons between 2020 and 2019 are not helpful for shareholders
as it was clear and obvious that the impact of COVID-19 on our
business was severe.
In 2020, we were able to achieve an average occupancy of 39.2 %
which was not unexpected given the lack of international visitors
alone. To achieve even this level of occupancy required carefully
targeted marketing and promotions and this targeting will continue
into 2021. With only the New Zealand domestic market to rely on,
the average RevPAR (Revenue Per Available Room) achieved across
all of MCK’s hotels was $66.17 which we consider to be a positive
achievement given the inability to hold conferences, meetings and
other large gatherings for a substantial part of the year as well as the
difference in what the domestic market is prepared to pay over what
we lost from the international markets. Unsurprisingly, our hotels’
revenue in 2020 was less than half of what we earned in 2019 and
included what we received for the Auckland managed isolation hotels.
Only the hotel operations applied for and received the Government’s
Wage Subsidy from March through to June as well as the June
extension and a final resurgence payment in September. In all, a
total of $9.5 million was received and all of it was paid out to our
employees. We met the criteria to receive the subsidy and we have
A few words on the year just past
As we embark on the next twelve months ahead of us, we are taking
this opportunity to reflect on the year just past.
When we reported our 2019 results, we knew that the effects of
COVID-19 would be severe on tourism and our business. The fact
that MCK as a group, has been able to record a positive set of results
for its hotel and property development operations during 2020 is a
testament to the extraordinary efforts of its staff during what can only
be described as an abominable year.
The MCK Board sincerely thanks each and every one of our team
whether they work at our hotels or corporate offices for their
diligence and can-do attitude at all times.
We would also like to thank our shareholders, suppliers and business
partners once again for their continuing support and loyalty for MCK
and our hotels during the year. Many of you have provided our staff
with some wonderfully heartfelt and positive comments and we
greatly appreciate this.
The devastating impact of COVID-19 on the tourism and
accommodation sectors in 2020 has been well documented and will
continue during this year. With the international borders to New
Zealand likely to be closed for the majority of, if not all of, 2021 to
limit the spread of COVID-19 coming in from overseas, all of us will
need to accept the major impact that continued closure will have on
our business and our employees.
Most of our hotels across New Zealand were able to resume trading
by the end of last year but not all. Copthorne Hotel Rotorua,
Kingsgate Hotel Greymouth and Kingsgate Hotel Te Anau were
closed for the majority of 2020 and these hotels will likely
remain closed for a further period of time. During 2020, we were
continuously reviewing how we can optimize our operations at all
of our properties. This may mean that some of our hotels will be
partially or entirely closed during periods where we do not have any
bookings during 2021.
If we had to take any positives out of 2020, it was that the crisis made
us think hard about our entire business, our customer and marketing
strategies, how we manage our people and what the overall future
will look like. All of us have learned a lot over the past year. Putting
those learnings into practice to rebuild and reshape MCK’s future will
determine how successful we will be in 2021 and beyond.
Financial Performance & Financial Position
MCK reports that, for the year ended 31 December 2020, the
company recorded a profit attributable to owners of the parent of
$46.0 million (2019: $49.7 million).
Copthorne Hotel Wellington Oriental Bay.
5 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020 | 6
opportunity but in terms of the reset, we would urge some caution
about adopting blanket exclusionary policies which may result in
unintended consequences. Of course we should all be conscious of
our environmental impact and seek to mitigate our footprint where
possible, but at the same time, given our remoteness from the rest of
the world, we should not deny ourselves appropriate opportunities to
create jobs and economic growth from international visitors which will
benefit New Zealand and assist with our post-pandemic recovery.
In the same way that our people have become “multi-dextrous”, our
group property portfolio, which includes our majority interest in
CDL Investments New Zealand Limited, has been able to respond
strongly during the last year. CDI’s geographically diverse land
holdings will be key to enhancing MCK’s future results over the
next few years as it looks to develop residential sections in growth
cells across New Zealand in response to strong housing demand and
we continue to market our Zenith Residences in Sydney for sale as
buyers look for high quality apartment units once again. As CDI
further diversifies into commercial property, MCK is also exploring
ways to increase the cross-functionality between itself and CDI
where appropriate opportunities exist and we believe that this will be
beneficial to both companies over the long term.
Despite the immediate and difficult challenges
we are facing, I do believe that there are reasons
to be optimistic and to look forward to a strong
future for New Zealand tourism.
The speed and strength of that recovery depend on the key steps
we take now. Everyone, our guests, suppliers, stakeholders,
shareholders, government and others can do something that will
help secure our future for the better. We will, of course, be looking
to make our hotels and destinations “must see” places and we will
work alongside our strategic partners to rebuild travel confidence.
We know that New Zealand will remain an attractive destination for
global tourism and investment and this interest will remain very high
for some time. We must therefore be ready to welcome the world
back to our country when the time is right.
B K Chiu
Managing Director
2020 was a year which saw some of the best qualities of New
Zealand and New Zealanders as we tackled a global crisis the likes
of which we have never experienced before. Unfortunately, the crisis
has not gone away to the extent that we have been able to resume our
business to previous levels and, like other businesses in our sector,
our recovery will be a long and slow process. The latest lockdowns
in February / March 2021 are further frustrating disruptions that
complicate and postpone our recovery.
In our 2020 results media release I made the comment that the
past year has been like owning a shop where over 70 percent of
our customers were stopped from entering it. That has continued
into 2021 and what we have seen already in the past two months
of this year is significantly less occupancy particularly at key
tourist destinations. While we are developing new and imaginative
marketing for Kiwis to look at their backyards for their next holiday
or short break once again, an inability or (understandable) reluctance
to travel will dilute the effectiveness of any campaign. Confidence to
resume travelling, locally and globally, is therefore key to recovery.
Talk of new taxes or charges on hotels therefore seems
counterproductive and inappropriate when we as an industry are
still picking ourselves off the floor, so to speak. We have publicly
made the argument that such charges need to be fair and show a
tangible benefit to those who are being made to pay. That is a basic
principle of fairness. In the same way that the Reserve Bank is
now being asked by the Government to consider the effect on the
housing market when making decisions, our polite request to central
and local government is to be fair and be mindful of the impact of
these decisions on the hotel, accommodation and tourism industries.
This is the time to actively support these industries back to health,
not to maim or cripple them. Or at least stand back, let us manage
and get back on our feet while councils stick to their knitting of
providing basic ratepayer services, developing and implementing
plans to maintain and improve infrastructure versus taxing the
accommodation sector to fund the next shiny objects in the name of
public futuristic goodness. What you put in a sausage and how you
cook it matters.
Tourism in New Zealand will undergo a
reset over the next few years. That said, it is
somewhat premature to speak of what sort of
international visitor we will see in future years
when international travel resumes to pre-COVID
levels. The fact is that right now we do not know.
There has been recent debate as to whether a high-value tourism
model should be pursued as this would alleviate pressure on the
environment and allow tourism to be truly sustainable. This mantra
is neither new nor is it compelling. It does not require deep dives to
figure out the actual size and relevance of this “high value” market
to New Zealand. The question needs to be asked: ‘is the grass really
greener on the other side’? The answer is clear if you examine all
of the linkages and benefits of New Zealand’s current broad range
of accommodation – it includes motels, bed & breakfasts, the SMEs
who are tourist attractions, the rural and township employment
opportunities derived from enterprises allied to tourism, all
contributing to the social fabric of small communities across the
country. New Zealand’s export and tourism strategies have never
been exclusionary. We have always looked at how we as a country
can tap into the vast global middle- class markets who will buy our
produce for its high quality and who choose to visit us because of
our natural environment and sustainability aspirations. High value
and middle value markets are not mutually exclusive. Both are worth
pursuing. What we have and what resources are needed must be in
line with a well-thought recovery strategy. It is not simply enough to
spout unstructured ideas.
Rather than dwell on negative issues, I do want to focus on much more
positive things. We are therefore fortunate in New Zealand that, recent
lockdowns aside, we are able to look to the future in a meaningful way
rather than focusing on getting the pandemic under control.
At our hotels, we were talking about “cross-functionality” and
“multi-dextrous” working prior to the pandemic and during 2020
this was put to the test immediately. We have therefore all become
accustomed to working across our business and our General
Managers, for example, have on occasion been doing laundry and
cooking breakfasts, mowing lawns in addition to running the day-to-
day operations over the past twelve months.
Everyone’s mantra has been “do what it takes
and do it humbly”
.
In this annual report, we want to show you a snapshot of what this
looked like during the year.
The resilience and commitment shown by our
employees across the country has been the most
memorable aspect of the last year. To all of our
employees, my sincerest thanks for all of your
efforts over the past year.
Our focus for 2021 is therefore on our recovery runway. In 2021 we
will be primarily focused on the New Zealand domestic market but
we have also restarted our work on international promotions. As the
University of Auckland’s Koi Tū: The Centre for Informed Futures
said in its paper ‘New Zealand’s place in the world: the implications
of COVID-19’, New Zealand is in a relatively advantageous position
with high international standing, demonstration of cohesiveness, trust
and values and that this perception will be enhanced if New Zealand
can remain virtually COVID-free. They also highlight the fact that
in a post-COVID world, partnerships between countries and regions
are likely to be “plurilateral” and will form between countries with
joint interests. We see this happening already with regard to potential
travel corridors between New Zealand, the Pacific Islands, Australia
and Singapore. We are optimistic that quarantine-free travel corridors
will happen at some stage but we are cautious in estimating when
these will actually occur.
We also announced that we are committed to refurbishment of our
hotels in Rotorua, Queenstown and Greymouth and this is very
important to our future success. We are pacing our projects in
line with our demand forecasts and have the ability to accelerate
additional works should these be justified. We are looking forward to
showing our new product when it is ready to Kiwis and, hopefully, to
international visitors when the borders reopen.
We strive to make improvements to our hotels and the guest
experience more environmentally friendly and sustainable at every
This page: Team at M
Social Auckland.
Opposite page: Major
renovations including a
new roof completed at
Copthorne Hotel and
Resort Queenstown
Lakefront, all ready for the
ski season and summer.
5 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020 | 6
opportunity but in terms of the reset, we would urge some caution
about adopting blanket exclusionary policies which may result in
unintended consequences. Of course we should all be conscious of
our environmental impact and seek to mitigate our footprint where
possible, but at the same time, given our remoteness from the rest of
the world, we should not deny ourselves appropriate opportunities to
create jobs and economic growth from international visitors which will
benefit New Zealand and assist with our post-pandemic recovery.
In the same way that our people have become “multi-dextrous”, our
group property portfolio, which includes our majority interest in
CDL Investments New Zealand Limited, has been able to respond
strongly during the last year. CDI’s geographically diverse land
holdings will be key to enhancing MCK’s future results over the
next few years as it looks to develop residential sections in growth
cells across New Zealand in response to strong housing demand and
we continue to market our Zenith Residences in Sydney for sale as
buyers look for high quality apartment units once again. As CDI
further diversifies into commercial property, MCK is also exploring
ways to increase the cross-functionality between itself and CDI
where appropriate opportunities exist and we believe that this will be
beneficial to both companies over the long term.
Despite the immediate and difficult challenges
we are facing, I do believe that there are reasons
to be optimistic and to look forward to a strong
future for New Zealand tourism.
The speed and strength of that recovery depend on the key steps
we take now. Everyone, our guests, suppliers, stakeholders,
shareholders, government and others can do something that will
help secure our future for the better. We will, of course, be looking
to make our hotels and destinations “must see” places and we will
work alongside our strategic partners to rebuild travel confidence.
We know that New Zealand will remain an attractive destination for
global tourism and investment and this interest will remain very high
for some time. We must therefore be ready to welcome the world
back to our country when the time is right.
B K Chiu
Managing Director
2020 was a year which saw some of the best qualities of New
Zealand and New Zealanders as we tackled a global crisis the likes
of which we have never experienced before. Unfortunately, the crisis
has not gone away to the extent that we have been able to resume our
business to previous levels and, like other businesses in our sector,
our recovery will be a long and slow process. The latest lockdowns
in February / March 2021 are further frustrating disruptions that
complicate and postpone our recovery.
In our 2020 results media release I made the comment that the
past year has been like owning a shop where over 70 percent of
our customers were stopped from entering it. That has continued
into 2021 and what we have seen already in the past two months
of this year is significantly less occupancy particularly at key
tourist destinations. While we are developing new and imaginative
marketing for Kiwis to look at their backyards for their next holiday
or short break once again, an inability or (understandable) reluctance
to travel will dilute the effectiveness of any campaign. Confidence to
resume travelling, locally and globally, is therefore key to recovery.
Talk of new taxes or charges on hotels therefore seems
counterproductive and inappropriate when we as an industry are
still picking ourselves off the floor, so to speak. We have publicly
made the argument that such charges need to be fair and show a
tangible benefit to those who are being made to pay. That is a basic
principle of fairness. In the same way that the Reserve Bank is
now being asked by the Government to consider the effect on the
housing market when making decisions, our polite request to central
and local government is to be fair and be mindful of the impact of
these decisions on the hotel, accommodation and tourism industries.
This is the time to actively support these industries back to health,
not to maim or cripple them. Or at least stand back, let us manage
and get back on our feet while councils stick to their knitting of
providing basic ratepayer services, developing and implementing
plans to maintain and improve infrastructure versus taxing the
accommodation sector to fund the next shiny objects in the name of
public futuristic goodness. What you put in a sausage and how you
cook it matters.
Tourism in New Zealand will undergo a
reset over the next few years. That said, it is
somewhat premature to speak of what sort of
international visitor we will see in future years
when international travel resumes to pre-COVID
levels. The fact is that right now we do not know.
There has been recent debate as to whether a high-value tourism
model should be pursued as this would alleviate pressure on the
environment and allow tourism to be truly sustainable. This mantra
is neither new nor is it compelling. It does not require deep dives to
figure out the actual size and relevance of this “high value” market
to New Zealand. The question needs to be asked: ‘is the grass really
greener on the other side’? The answer is clear if you examine all
of the linkages and benefits of New Zealand’s current broad range
of accommodation – it includes motels, bed & breakfasts, the SMEs
who are tourist attractions, the rural and township employment
opportunities derived from enterprises allied to tourism, all
contributing to the social fabric of small communities across the
country. New Zealand’s export and tourism strategies have never
been exclusionary. We have always looked at how we as a country
can tap into the vast global middle- class markets who will buy our
produce for its high quality and who choose to visit us because of
our natural environment and sustainability aspirations. High value
and middle value markets are not mutually exclusive. Both are worth
pursuing. What we have and what resources are needed must be in
line with a well-thought recovery strategy. It is not simply enough to
spout unstructured ideas.
Rather than dwell on negative issues, I do want to focus on much more
positive things. We are therefore fortunate in New Zealand that, recent
lockdowns aside, we are able to look to the future in a meaningful way
rather than focusing on getting the pandemic under control.
At our hotels, we were talking about “cross-functionality” and
“multi-dextrous” working prior to the pandemic and during 2020
this was put to the test immediately. We have therefore all become
accustomed to working across our business and our General
Managers, for example, have on occasion been doing laundry and
cooking breakfasts, mowing lawns in addition to running the day-to-
day operations over the past twelve months.
Everyone’s mantra has been “do what it takes
and do it humbly”
.
In this annual report, we want to show you a snapshot of what this
looked like during the year.
The resilience and commitment shown by our
employees across the country has been the most
memorable aspect of the last year. To all of our
employees, my sincerest thanks for all of your
efforts over the past year.
Our focus for 2021 is therefore on our recovery runway. In 2021 we
will be primarily focused on the New Zealand domestic market but
we have also restarted our work on international promotions. As the
University of Auckland’s Koi Tū: The Centre for Informed Futures
said in its paper ‘New Zealand’s place in the world: the implications
of COVID-19’, New Zealand is in a relatively advantageous position
with high international standing, demonstration of cohesiveness, trust
and values and that this perception will be enhanced if New Zealand
can remain virtually COVID-free. They also highlight the fact that
in a post-COVID world, partnerships between countries and regions
are likely to be “plurilateral” and will form between countries with
joint interests. We see this happening already with regard to potential
travel corridors between New Zealand, the Pacific Islands, Australia
and Singapore. We are optimistic that quarantine-free travel corridors
will happen at some stage but we are cautious in estimating when
these will actually occur.
We also announced that we are committed to refurbishment of our
hotels in Rotorua, Queenstown and Greymouth and this is very
important to our future success. We are pacing our projects in
line with our demand forecasts and have the ability to accelerate
additional works should these be justified. We are looking forward to
showing our new product when it is ready to Kiwis and, hopefully, to
international visitors when the borders reopen.
We strive to make improvements to our hotels and the guest
experience more environmentally friendly and sustainable at every
This page: Team at M
Social Auckland.
Opposite page: Major
renovations including a
new roof completed at
Copthorne Hotel and
Resort Queenstown
Lakefront, all ready for the
ski season and summer.
7 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020 | 8
COVID-19 affected every part of the globe during 2020 including New Zealand. With the country’s
international borders shut and tourism coming to a literal standstill during the year, Millennium &
Copthorne Hotels New Zealand’s employees found themselves having to tackle to multiple operational
challenges. With typical Kiwi “can do” attitude, MCK’s staff have risen to the task and found new ways
to run the company’s hotels, upskill employees and still provide the warmth and professionalism of
service our guests expect from us. Here are a few of our stories from a truly unforgettable year.
Our General Managers know how important
a great coffee is to our guests at all times.
Tobias Daniels, General Manager at
Millennium Hotel New Plymouth Waterfront
was regularly doing a barista shift in addition
to his daily responsibilities as the General
Manager. “It’s all about the Outstanding
Service Experience. No matter how bad a
day it is, our guests expect us to deliver to the
highest standards and during 2020 we did our
best to meet their expectations no matter what
the circumstances.
At Millennium Hotel Rotorua, employees have
been focused on how to improve day-to-day
efficiency in ways not necessarily front and centre
to the public. Operations Manager Michele Weston
(left) and Hotel Administrator Jolene Gray (right)
were busy repairing some of the hotel’s curtains
while the hotel was temporarily closed during
lockdown. Maintenance Manager Shane James
also converted a back office area into an extension
of the hotel’s kitchen and by doing so, allowed
the hotel to temporarily close restaurant and bar
areas which reduced the hotel’s overall energy and
operational costs during this time.
The ability to adapt swiftly and nimbly to changing
circumstances has become one of the most valued
attributes to employees in the hospitality industry
today. Even in winter, the grass continues to grow
on the lawns of Copthorne Hotel Rotorua. Blair
Chalmers, the hotel’s General Manager, very much a
farmer at heart does a tidy job of the hotel lawns as he
extolls the virtues of grass-based farming and the new
varieties of export grade New Zealand apples.
Besides abrupt rostering changes, Brad Watts, General
Manager of Copthorne Hotel and Resort Bay of Islands
and Johnny Coulter, Executive Chef had to respond
quickly when a three day event was cancelled due to
a lockdown. Here Johnny is seen helping out with the
dishes after ensuring food ordered did not go to waste.
“There’s always something or
someone to celebrate”, says M Social
Auckland General Manager Nigel
Edwards. “Because we have operated
as a managed isolation hotel, it is
essential to keep the spirits of our
guests and also of our staff high every
day. So why not celebrate Elvis’
(Nigel’s dog featured on the banner)
birthday? It got a laugh and a smile
from everyone and they got a great
coffee as well. That’s what we do”.
7 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020 | 8
COVID-19 affected every part of the globe during 2020 including New Zealand. With the country’s
international borders shut and tourism coming to a literal standstill during the year, Millennium &
Copthorne Hotels New Zealand’s employees found themselves having to tackle to multiple operational
challenges. With typical Kiwi “can do” attitude, MCK’s staff have risen to the task and found new ways
to run the company’s hotels, upskill employees and still provide the warmth and professionalism of
service our guests expect from us. Here are a few of our stories from a truly unforgettable year.
Our General Managers know how important
a great coffee is to our guests at all times.
Tobias Daniels, General Manager at
Millennium Hotel New Plymouth Waterfront
was regularly doing a barista shift in addition
to his daily responsibilities as the General
Manager. “It’s all about the Outstanding
Service Experience. No matter how bad a
day it is, our guests expect us to deliver to the
highest standards and during 2020 we did our
best to meet their expectations no matter what
the circumstances.
At Millennium Hotel Rotorua, employees have
been focused on how to improve day-to-day
efficiency in ways not necessarily front and centre
to the public. Operations Manager Michele Weston
(left) and Hotel Administrator Jolene Gray (right)
were busy repairing some of the hotel’s curtains
while the hotel was temporarily closed during
lockdown. Maintenance Manager Shane James
also converted a back office area into an extension
of the hotel’s kitchen and by doing so, allowed
the hotel to temporarily close restaurant and bar
areas which reduced the hotel’s overall energy and
operational costs during this time.
The ability to adapt swiftly and nimbly to changing
circumstances has become one of the most valued
attributes to employees in the hospitality industry
today. Even in winter, the grass continues to grow
on the lawns of Copthorne Hotel Rotorua. Blair
Chalmers, the hotel’s General Manager, very much a
farmer at heart does a tidy job of the hotel lawns as he
extolls the virtues of grass-based farming and the new
varieties of export grade New Zealand apples.
Besides abrupt rostering changes, Brad Watts, General
Manager of Copthorne Hotel and Resort Bay of Islands
and Johnny Coulter, Executive Chef had to respond
quickly when a three day event was cancelled due to
a lockdown. Here Johnny is seen helping out with the
dishes after ensuring food ordered did not go to waste.
“There’s always something or
someone to celebrate”, says M Social
Auckland General Manager Nigel
Edwards. “Because we have operated
as a managed isolation hotel, it is
essential to keep the spirits of our
guests and also of our staff high every
day. So why not celebrate Elvis’
(Nigel’s dog featured on the banner)
birthday? It got a laugh and a smile
from everyone and they got a great
coffee as well. That’s what we do”.
9 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020 | 10
B K CHIU Managing Director
Mr. Chiu is also the Managing Director of CDL Investments
New Zealand Limited. Prior to joining the company, Mr. Chiu
was Regional Vice - President and Managing Director, Asia of
Merisant Company. He holds a Masters degree in agricultural
economics and marketing from Massey University,
Palmerston North. Mr. Chiu was appointed as Managing
Director in 2005 and was last re-elected to the Board at the
2020 annual meeting of shareholders.
COLIN SIM Chairman & Independent Director
Mr. Sim is the executive chairman of the East Quarter Group
of companies (East Quarter Hurstville, EQ Projects and EQ
Constructions) (EQ) in Australia. EQ is currently involved in the
development and construction of residential units across New
South Wales. Mr. Sim is also an executive director of Waterbrook
Lifestyle Resorts (Waterbrook); an award-winning creator,
developer and operator or luxury resort lifestyles for retirees.
Mr Sim has strong analytical skills and extensive experience in
construction and property development/investment in Australia.
He studied Mechanical Engineering in London and has lived in
Sydney, Australia for the last 40 years. Mr. Sim was appointed to
the Board in July 2017 and was elected to the Board at the 2018
Annual Meeting of shareholders.
EIK SHENG KWEK Non-Executive Director
Mr. Kwek is currently the Group Chief Strategy Officer of City
Developments Limited (“CDL”) and has been in that role since 2018.
Mr. Kwek joined CDL in 2009, covering Business Development for
overseas projects before being appointed as Head of Corporate
Development. He assumed his role as Chief Strategy Officer in
2014 and was additionally appointed Head, Asset Management
in April 2016. Prior to joining CDL, he was with the Hong Leong
Group of companies in Singapore specialising in corporate finance
roles since 2006. He is also Executive Director of Millennium &
Copthorne Hotels Limited, previously listed on the London Stock
Exchange as Millennium & Copthorne Hotels plc. He holds a
Bachelor of Engineering in Electrical and Electronics Engineering
from Imperial College of Science, Technology and Medicine and
a Master of Philosophy in Finance from Judge Business School,
Cambridge University. Mr. Kwek was appointed to the Board on
1 January 2020 and was elected by shareholders at the 2020
annual meeting of shareholders.
GRAHAM MCKENZIE Independent Director,
Member of the Audit Committee
Mr. McKenzie is a Barrister and Solicitor with over thirty years
experience in corporate and commercial law and is a former
Partner and Consultant to Bell Gully, a leading New Zealand
law firm. He is currently a member of the New Zealand Law
Society Disciplinary Tribunal. Mr. McKenzie is a member
of the New Zealand Law Society and the Queensland Law
Society, Australia and holds a Bachelor of Laws degree from
Victoria University, Wellington and a Master of Laws degree
from Warwick University, England. Mr. McKenzie was a
Director of CDL Investments New Zealand Limited from
2005 to 2006. Mr. McKenzie was appointed to the Board in
2006 and was last re-elected to the Board at the 2019 annual
meeting of shareholders.
KEVIN HANGCHI Non-Executive Director
Mr. Hangchi is currently Senior Vice President, Hong Leong
Management Services Pte. Limited. He has global transactional
experience across many of the Hong Leong Group’s entities
including listings and public offerings, mergers and acquisitions
as well as capital markets issuances and banking facilities. Mr.
Hangchi has been called to the English and Singaporean bars
and holds an honours degree in Accountancy and Law from the
University of Southampton. Mr. Hangchi was appointed to the
Board in 2016 and was last re-elected to the Board at the 2018
annual meeting of shareholders.
RICHARD BOBB Independent Director, Chair of
the Audit Committee
Mr. Bobb is a Chartered Accountant with over thirty
five years experience. He is currently a member of the
Professional Conduct Tribunal of the Institute of Chartered
Accountants in Australia and was a member of New South
Wales Joint State Taxes Committee of the Institute of
Chartered Accountants in Australia and the CPA Australia.
He was also a member and past Chairman of the Joint
Legislation Review Committee and a member and past
Chairman the Legislation Review Board of the Institute of
Chartered Accountants in Australia and the CPA Australia.
He is admitted as a Barrister in New South Wales. Mr. Bobb
was appointed in 2004 and was last re-elected to the Board
at the 2018 annual meeting of shareholders.
MILLENNIUM &
COPTHORNE HOTELS
NEW ZEALAND LIMITED
OWNED
Millennium Hotel New Plymouth
Waterfront
Millennium Hotel Rotorua
M Social Auckland
Copthorne Hotel & Resort Bay of Islands
(49%)
Copthorne Hotel & Resort Queenstown
Lakefront
Kingsgate Hotel Greymouth
Kingsgate Hotel Te Anau
QUANTUM LIMITED
OWNED
Millennium Hotel Queenstown
Copthorne Hotel Auckland City
Copthorne Hotel Rotorua
Copthorne Hotel Palmerston North
Copthorne Hotel Wellington Oriental Bay
Copthorne Hotel & Apartments
Queenstown Lakeview
Kingsgate Hotel Dunedin
FRANCHISED
Millennium Hotel & Resort
Manuels Taupo
Copthorne Hotel & Resort Solway
Park Wairarapa
Kingsgate Hotel The Avenue
Wanganui
MANAGED
Grand Millennium Auckland
Kingsgate Hotel Autolodge Paihia
HOSPITALITY
SERVICES LIMITED
Kingsgate Hotel Autolodge Paihia.
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020 | 9
9 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020 | 10
B K CHIU Managing Director
Mr. Chiu is also the Managing Director of CDL Investments
New Zealand Limited. Prior to joining the company, Mr. Chiu
was Regional Vice - President and Managing Director, Asia of
Merisant Company. He holds a Masters degree in agricultural
economics and marketing from Massey University,
Palmerston North. Mr. Chiu was appointed as Managing
Director in 2005 and was last re-elected to the Board at the
2020 annual meeting of shareholders.
COLIN SIM Chairman & Independent Director
Mr. Sim is the executive chairman of the East Quarter Group
of companies (East Quarter Hurstville, EQ Projects and EQ
Constructions) (EQ) in Australia. EQ is currently involved in the
development and construction of residential units across New
South Wales. Mr. Sim is also an executive director of Waterbrook
Lifestyle Resorts (Waterbrook); an award-winning creator,
developer and operator or luxury resort lifestyles for retirees.
Mr Sim has strong analytical skills and extensive experience in
construction and property development/investment in Australia.
He studied Mechanical Engineering in London and has lived in
Sydney, Australia for the last 40 years. Mr. Sim was appointed to
the Board in July 2017 and was elected to the Board at the 2018
Annual Meeting of shareholders.
EIK SHENG KWEK Non-Executive Director
Mr. Kwek is currently the Group Chief Strategy Officer of City
Developments Limited (“CDL”) and has been in that role since 2018.
Mr. Kwek joined CDL in 2009, covering Business Development for
overseas projects before being appointed as Head of Corporate
Development. He assumed his role as Chief Strategy Officer in
2014 and was additionally appointed Head, Asset Management
in April 2016. Prior to joining CDL, he was with the Hong Leong
Group of companies in Singapore specialising in corporate finance
roles since 2006. He is also Executive Director of Millennium &
Copthorne Hotels Limited, previously listed on the London Stock
Exchange as Millennium & Copthorne Hotels plc. He holds a
Bachelor of Engineering in Electrical and Electronics Engineering
from Imperial College of Science, Technology and Medicine and
a Master of Philosophy in Finance from Judge Business School,
Cambridge University. Mr. Kwek was appointed to the Board on
1 January 2020 and was elected by shareholders at the 2020
annual meeting of shareholders.
GRAHAM MCKENZIE Independent Director,
Member of the Audit Committee
Mr. McKenzie is a Barrister and Solicitor with over thirty years
experience in corporate and commercial law and is a former
Partner and Consultant to Bell Gully, a leading New Zealand
law firm. He is currently a member of the New Zealand Law
Society Disciplinary Tribunal. Mr. McKenzie is a member
of the New Zealand Law Society and the Queensland Law
Society, Australia and holds a Bachelor of Laws degree from
Victoria University, Wellington and a Master of Laws degree
from Warwick University, England. Mr. McKenzie was a
Director of CDL Investments New Zealand Limited from
2005 to 2006. Mr. McKenzie was appointed to the Board in
2006 and was last re-elected to the Board at the 2019 annual
meeting of shareholders.
KEVIN HANGCHI Non-Executive Director
Mr. Hangchi is currently Senior Vice President, Hong Leong
Management Services Pte. Limited. He has global transactional
experience across many of the Hong Leong Group’s entities
including listings and public offerings, mergers and acquisitions
as well as capital markets issuances and banking facilities. Mr.
Hangchi has been called to the English and Singaporean bars
and holds an honours degree in Accountancy and Law from the
University of Southampton. Mr. Hangchi was appointed to the
Board in 2016 and was last re-elected to the Board at the 2018
annual meeting of shareholders.
RICHARD BOBB Independent Director, Chair of
the Audit Committee
Mr. Bobb is a Chartered Accountant with over thirty
five years experience. He is currently a member of the
Professional Conduct Tribunal of the Institute of Chartered
Accountants in Australia and was a member of New South
Wales Joint State Taxes Committee of the Institute of
Chartered Accountants in Australia and the CPA Australia.
He was also a member and past Chairman of the Joint
Legislation Review Committee and a member and past
Chairman the Legislation Review Board of the Institute of
Chartered Accountants in Australia and the CPA Australia.
He is admitted as a Barrister in New South Wales. Mr. Bobb
was appointed in 2004 and was last re-elected to the Board
at the 2018 annual meeting of shareholders.
MILLENNIUM &
COPTHORNE HOTELS
NEW ZEALAND LIMITED
OWNED
Millennium Hotel New Plymouth
Waterfront
Millennium Hotel Rotorua
M Social Auckland
Copthorne Hotel & Resort Bay of Islands
(49%)
Copthorne Hotel & Resort Queenstown
Lakefront
Kingsgate Hotel Greymouth
Kingsgate Hotel Te Anau
QUANTUM LIMITED
OWNED
Millennium Hotel Queenstown
Copthorne Hotel Auckland City
Copthorne Hotel Rotorua
Copthorne Hotel Palmerston North
Copthorne Hotel Wellington Oriental Bay
Copthorne Hotel & Apartments
Queenstown Lakeview
Kingsgate Hotel Dunedin
FRANCHISED
Millennium Hotel & Resort
Manuels Taupo
Copthorne Hotel & Resort Solway
Park Wairarapa
Kingsgate Hotel The Avenue
Wanganui
MANAGED
Grand Millennium Auckland
Kingsgate Hotel Autolodge Paihia
HOSPITALITY
SERVICES LIMITED
Kingsgate Hotel Autolodge Paihia.
11 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020 | 12
M COLLECTION
M Social Auckland
196 - 200 Quay Street, Auckland
Phone +64 9 377 0349
msocial.auckland@millenniumhotels.com
Financial Statements – Contents
Consolidated Income Statement FIN 1
Consolidated Statement of Comprehensive Income FIN 1
Consolidated Statement of Changes in Equity FIN 2 - 3
Consolidated Statement of Financial Position FIN 4
Consolidated Statement of Cash Flows FIN 5 - 6
Notes to the Financial Statements FIN 7 - 27
Audit Report FIN 28 - 31
Corporate Governance
Corporate Governance Statement CG 1 - 4
Regulatory Disclosures and Statutory Information – Contents
Shareholder Information REG 1 - 2
Statutory Information REG 3 - 5
Copthorne Hotel & Resort Bay of Islands
Tau Henare Drive, Paihia
P +64 9 402 7411 F +64 9 402 8200
copthorne.bayofislands@millenniumhotels.co.nz
Copthorne Hotel Auckland City
150 Anzac Avenue, Auckland
P +64 9 379 8509 F +64 9 379 8582
copthorne.aucklandcity@millenniumhotels.co.nz
Copthorne Hotel Rotorua
Fenton Street, Rotorua
P +64 7 348 0199 F +64 7 346 1973
copthorne.rotorua@millenniumhotels.co.nz
Copthorne Hotel Palmerston North
110 Fitzherbert Avenue, Palmerston North
P +64 6 356 8059 F +64 6 356 8604
copthorne.palmerston@millenniumhotels.co.nz
Copthorne Hotel & Resort
Solway Park Wairarapa
High Street, South Masterton
P +64 6 370 0500 F +64 6 370 0501
reservations@solway.co.nz
Copthorne Hotel Wellington Oriental Bay
100 Oriental Parade, Wellington
P +64 4 385 0279 F +64 4 384 5324
copthorne.orientalbay@millenniumhotels.co.nz
Copthorne Hotel & Resort
Queenstown Lakefront
Cnr Adelaide Street and Frankton Road, Queenstown
P +64 3 450 0260 F +64 3 442 7472
copthorne.lakefront@millenniumhotels.co.nz
Copthorne Hotel & Apartments
Queenstown Lakeview
88 Frankton Road, Queenstown
P +64 3 442 7950 F +64 3 442 8066
copthorne.lakeview@millenniumhotels.co.nz
Kingsgate Hotel Autolodge Paihia
Marsden Road, Paihia
P +64 9 402 7416 F +64 9 402 8348
kingsgate.paihia@millenniumhotels.co.nz
Kingsgate Hotel The Avenue Wanganui
379 Victoria Avenue, Wanganui
P +64 6 349 0044 F +64 6 345 3250
kingsgate.wanganui@millenniumhotels.co.nz
Kingsgate Hotel Greymouth
32 Mawhera Quay, Greymouth
P +64 3 768 5085 F +64 3 768 5844
kingsgate.greymouth@millenniumhotels.co.nz
Kingsgate Hotel Te Anau
20 Lakefront Drive, Te Anau
P +64 3 249 7421 F +64 3 249 8037
kingsgate.teanau@millenniumhotels.co.nz
Kingsgate Hotel Dunedin
10 Smith Street, Dunedin
P +64 3 477 6784 F +64 3 474 0115
kingsgate.dunedin@millenniumhotels.co.nz
Grand Millennium Auckland
71 Mayoral Drive, Auckland
P +64 9 366 3000
grandmillennium.auckland@millenniumhotels.co.nz
Millennium Hotel Rotorua
Cnr Eruera & Hinemaru Streets, Rotorua
P +64 7 347 1234 F +64 7 348 1234
millennium.rotorua@millenniumhotels.co.nz
Millennium Hotel & Resort Manuels Taupo
243 Lake Terrace, Taupo
P +64 7 378 5110 F +64 7 378 5341
millennium.taupo@millenniumhotels.co.nz
Millennium Hotel Queenstown
Cnr Frankton Road & Stanley Street, Queenstown
P +64 3 450 0150 F +64 3 441 8889
millennium.queenstown@millenniumhotels.co.nz
Millennium Hotel New Plymouth Waterfront
1 Egmont St, New Plymouth
P +64 6 769 5301 F +64 6 769 5302
millennium.newplymouth@millenniumhotels.co.nz
Clockwise starting from top left:
Millennium Hotel & Resort
Manuels Taupo, Copthorne Hotel
Wellington Oriental Bay, M Social
Auckland and Millennium Hotel
New Plymouth Waterfront. All
these hotels were winners of
Tripadvisor’s Travellers’ Choice
2020 Best of the Best Award. An
award given to hotels placed in
the Top 10% worldwide based on
reviews on Tripadvisor.
William Luxon (Front Office Agent) participating in SPCA Cupcake Day at M Social Auckland.
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020 | 11
11 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020 | 12
M COLLECTION
M Social Auckland
196 - 200 Quay Street, Auckland
Phone +64 9 377 0349
msocial.auckland@millenniumhotels.com
Financial Statements – Contents
Consolidated Income Statement FIN 1
Consolidated Statement of Comprehensive Income FIN 1
Consolidated Statement of Changes in Equity FIN 2 - 3
Consolidated Statement of Financial Position FIN 4
Consolidated Statement of Cash Flows FIN 5 - 6
Notes to the Financial Statements FIN 7 - 27
Audit Report FIN 28 - 31
Corporate Governance
Corporate Governance Statement CG 1 - 4
Regulatory Disclosures and Statutory Information – Contents
Shareholder Information REG 1 - 2
Statutory Information REG 3 - 5
Copthorne Hotel & Resort Bay of Islands
Tau Henare Drive, Paihia
P +64 9 402 7411 F +64 9 402 8200
copthorne.bayofislands@millenniumhotels.co.nz
Copthorne Hotel Auckland City
150 Anzac Avenue, Auckland
P +64 9 379 8509 F +64 9 379 8582
copthorne.aucklandcity@millenniumhotels.co.nz
Copthorne Hotel Rotorua
Fenton Street, Rotorua
P +64 7 348 0199 F +64 7 346 1973
copthorne.rotorua@millenniumhotels.co.nz
Copthorne Hotel Palmerston North
110 Fitzherbert Avenue, Palmerston North
P +64 6 356 8059 F +64 6 356 8604
copthorne.palmerston@millenniumhotels.co.nz
Copthorne Hotel & Resort
Solway Park Wairarapa
High Street, South Masterton
P +64 6 370 0500 F +64 6 370 0501
reservations@solway.co.nz
Copthorne Hotel Wellington Oriental Bay
100 Oriental Parade, Wellington
P +64 4 385 0279 F +64 4 384 5324
copthorne.orientalbay@millenniumhotels.co.nz
Copthorne Hotel & Resort
Queenstown Lakefront
Cnr Adelaide Street and Frankton Road, Queenstown
P +64 3 450 0260 F +64 3 442 7472
copthorne.lakefront@millenniumhotels.co.nz
Copthorne Hotel & Apartments
Queenstown Lakeview
88 Frankton Road, Queenstown
P +64 3 442 7950 F +64 3 442 8066
copthorne.lakeview@millenniumhotels.co.nz
Kingsgate Hotel Autolodge Paihia
Marsden Road, Paihia
P +64 9 402 7416 F +64 9 402 8348
kingsgate.paihia@millenniumhotels.co.nz
Kingsgate Hotel The Avenue Wanganui
379 Victoria Avenue, Wanganui
P +64 6 349 0044 F +64 6 345 3250
kingsgate.wanganui@millenniumhotels.co.nz
Kingsgate Hotel Greymouth
32 Mawhera Quay, Greymouth
P +64 3 768 5085 F +64 3 768 5844
kingsgate.greymouth@millenniumhotels.co.nz
Kingsgate Hotel Te Anau
20 Lakefront Drive, Te Anau
P +64 3 249 7421 F +64 3 249 8037
kingsgate.teanau@millenniumhotels.co.nz
Kingsgate Hotel Dunedin
10 Smith Street, Dunedin
P +64 3 477 6784 F +64 3 474 0115
kingsgate.dunedin@millenniumhotels.co.nz
Grand Millennium Auckland
71 Mayoral Drive, Auckland
P +64 9 366 3000
grandmillennium.auckland@millenniumhotels.co.nz
Millennium Hotel Rotorua
Cnr Eruera & Hinemaru Streets, Rotorua
P +64 7 347 1234 F +64 7 348 1234
millennium.rotorua@millenniumhotels.co.nz
Millennium Hotel & Resort Manuels Taupo
243 Lake Terrace, Taupo
P +64 7 378 5110 F +64 7 378 5341
millennium.taupo@millenniumhotels.co.nz
Millennium Hotel Queenstown
Cnr Frankton Road & Stanley Street, Queenstown
P +64 3 450 0150 F +64 3 441 8889
millennium.queenstown@millenniumhotels.co.nz
Millennium Hotel New Plymouth Waterfront
1 Egmont St, New Plymouth
P +64 6 769 5301 F +64 6 769 5302
millennium.newplymouth@millenniumhotels.co.nz
Clockwise starting from top left:
Millennium Hotel & Resort
Manuels Taupo, Copthorne Hotel
Wellington Oriental Bay, M Social
Auckland and Millennium Hotel
New Plymouth Waterfront. All
these hotels were winners of
Tripadvisor’s Travellers’ Choice
2020 Best of the Best Award. An
award given to hotels placed in
the Top 10% worldwide based on
reviews on Tripadvisor.
William Luxon (Front Office Agent) participating in SPCA Cupcake Day at M Social Auckland.
FIN 1 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020
FIN 1
The accompanying notes form part of, and should be read in conjunction with, these financial statements
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020 | FIN 2
FIN 2
The accompanying notes form part of, and should be read in conjunction with, these financial statements
FIN 3 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020
FIN 3
The accompanying notes form part of, and should be read in conjunction with, these financial statements
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020 | FIN 4
FIN 4
FIN 4
The accompanying notes form part of, and should be read in conjunction with, these financial statements
FIN 5 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020
FIN 5
The accompanying notes form part of, and should be read in conjunction with, these financial statements
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020 | FIN 6
FIN 6
The accompanying notes form part of, and should be read in conjunction with, these financial statements
FIN 7 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020
FIN 7
Notes to the Consolidated Financial Statements for the year ended 31 December 2020
•
•
•
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020 | FIN 8
FIN 8
Notes to the Consolidated Financial Statements for the year ended 31 December 2020
FIN 9 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020
FIN 9
Notes to the Consolidated Financial Statements for the year ended 31 December 2020
•
•
•
FIN 9
Notes to the Consolidated Financial Statements for the year ended 31 December 2020
•
•
•
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020 | FIN 10
FIN 10
Notes to the Consolidated Financial Statements for the year ended 31 December 2020
•
•
•
•
•
FIN 11 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020
FIN 11
Notes to the Consolidated Financial Statements for the year ended 31 December 2020
.
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020 | FIN 12
FIN 12
Notes to the Consolidated Financial Statements for the year ended 31 December 2020
FIN 13 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020
FIN 13
Notes to the Consolidated Financial Statements for the year ended 31 December 2020
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020 | FIN 14
FIN 14
Notes to the Consolidated Financial Statements for the year ended 31 December 2020
FIN 15 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020
FIN 15
Notes to the Consolidated Financial Statements for the year ended 31 December 2020
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020 | FIN 16
FIN 16
Notes to the Consolidated Financial Statements for the year ended 31 December 2020
•
•
•
•
•
•
•
FIN 17 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020
FIN 17
Notes to the Consolidated Financial Statements for the year ended 31 December 2020
FIN 17
Notes to the Consolidated Financial Statements for the year ended 31 December 2020
FIN 17
Notes to the Consolidated Financial Statements for the year ended 31 December 2020
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020 | FIN 18
FIN 18
Notes to the Consolidated Financial Statements for the year ended 31 December 2020
FIN 19 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020
FIN 19
Notes to the Consolidated Financial Statements for the year ended 31 December 2020
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020 | FIN 20
FIN 20
Notes to the Consolidated Financial Statements for the year ended 31 December 2020
FIN 20
Notes to the Consolidated Financial Statements for the year ended 31 December 2020
FIN 20
Notes to the Consolidated Financial Statements for the year ended 31 December 2020
FIN 21 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020
FIN 21
Notes to the Consolidated Financial Statements for the year ended 31 December 2020
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020 | FIN 22
FIN 22
Notes to the Consolidated Financial Statements for the year ended 31 December 2020
FIN 23 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020
FIN 23
Notes to the Consolidated Financial Statements for the year ended 31 December 2020
FIN 23
Notes to the Consolidated Financial Statements for the year ended 31 December 2020
FIN 23
Notes to the Consolidated Financial Statements for the year ended 31 December 2020
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020 | FIN 24
FIN 24
Notes to the Consolidated Financial Statements for the year ended 31 December 2020
FIN 24
Notes to the Consolidated Financial Statements for the year ended 31 December 2020
FIN 25 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020
FIN 25
Notes to the Consolidated Financial Statements for the year ended 31 December 2020
¶
¶
¶¶
¶
¶
9
¶
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020 | FIN 26
FIN 26
Notes to the Consolidated Financial Statements for the year ended 31 December 2020
FIN 26
Notes to the Consolidated Financial Statements for the year ended 31 December 2020
FIN 27 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020
FIN 27
Notes to the Consolidated Financial Statements for the year ended 31 December 2020
•
•
•
•
•
•
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020 | FIN 28
© 2021 KPMG, a New Zealand Partnership and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company
limited by guarantee. All rights reserved.
Independent Auditor’s Report
To the shareholders of Millennium & Copthorne Hotels New Zealand Limited
Report on the audit of the consolidated financial statements
Opinion
In our opinion, the accompanying consolidated
financial statements of Millennium & Copthorne
Hotels New Zealand Limited (the ’company’) and its
subsidiaries (the 'group') on pages FIN1 to FIN27:
i.present fairly in all material respects the
Group’s financial position as at 31 December
2020 and its financial performance and cash
flows for the year ended on that date; and
ii.comply with New Zealand Equivalents to
International Financial Reporting Standards and
International Financial Reporting Standards.
We have audited the accompanying consolidated
financial statements which comprise:
—the consolidated statement of financial position
as at 31 December 2020;
—the consolidated income statement,
statements of comprehensive income, changes
in equity and cash flows for the year then
ended; and
—notes, including a summary of significant
accounting policies and other explanatory
information.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (‘ISAs (NZ)’). We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
We are independent of the group in accordance with Professional and Ethical Standard 1 International Code of
Ethics for Assurance Practitioners (Including International Independence Standards) (New Zealand) issued by the
New Zealand Auditing and Assurance Standards Board and the International Ethics Standards Board for
Accountants’ International Code of Ethics for Professional Accountants (including International Independence
Standards) (‘IESBA Code’), and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the IESBA Code.
Our responsibilities under ISAs (NZ) are further described in the auditor’s responsibilities for the audit of the
consolidated financial statements section of our report.
Our firm has also provided other services to the group in relation to taxation compliance and taxation advisory.
Subject to certain restrictions, partners and employees of our firm may also deal with the group on normal terms
within the ordinary course of trading activities of the business of the group. These matters have not impaired our
independence as auditor of the group. The firm has no other relationship with, or interest in, the group.
Materiality
The scope of our audit was influenced by our application of materiality. Materiality helped us to determine the
nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both individually
and on the consolidated financial statements as a whole. The materiality for the consolidated financial
statements as a whole was set at $3.8m determined with reference to a benchmark of group’s total assets. We
© 2021 KPMG, a New Zealand Partnership and a member firm of the KPMG global organization of
independent member firms affiliated with KPMG International Limited, a private English company
limited by guarantee. All rights reserved.
Independent Auditor’s Report
To the shareholders of Millennium & Copthorne Hotels New Zealand Limited
Report on the audit of the consolidated financial statements
Opinion
In our opinion, the accompanying consolidated
financial statements of Millennium & Copthorne
Hotels New Zealand Limited (the ’company’) and its
subsidiaries (the 'group') on pages FIN1 to FIN27:
i.present fairly in all material respects the
Group’s financial position as at 31 December
2020 and its financial performance and cash
flows for the year ended on that date; and
ii.comply with New Zealand Equivalents to
International Financial Reporting Standards and
International Financial Reporting Standards.
We have audited the accompanying consolidated
financial statements which comprise:
—the consolidated statement of financial position
as at 31 December 2020;
—the consolidated income statement,
statements of comprehensive income, changes
in equity and cash flows for the year then
ended; and
—notes, including a summary of significant
accounting policies and other explanatory
information.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (‘ISAs (NZ)’). We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
We are independent of the group in accordance with Professional and Ethical Standard 1 International Code of
Ethics for Assurance Practitioners (Including International Independence Standards) (New Zealand) issued by the
New Zealand Auditing and Assurance Standards Board and the International Ethics Standards Board for
Accountants’ International Code of Ethics for Professional Accountants (including International Independence
Standards) (‘IESBA Code’), and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the IESBA Code.
Our responsibilities under ISAs (NZ) are further described in the auditor’s responsibilities for the audit of the
consolidated financial statements section of our report.
Our firm has also provided other services to the group in relation to taxation compliance and taxation advisory.
Subject to certain restrictions, partners and employees of our firm may also deal with the group on normal terms
within the ordinary course of trading activities of the business of the group. These matters have not impaired our
independence as auditor of the group. The firm has no other relationship with, or interest in, the group.
Materiality
The scope of our audit was influenced by our application of materiality. Materiality helped us to determine the
nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both individually
and on the consolidated financial statements as a whole. The materiality for the consolidated financial
statements as a whole was set at $3.8m determined with reference to a benchmark of group’s total assets. We
FIN 29 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020
29
chose the benchmark because we consider this to be the key metric for the users of the financial statements in
the current COVID- 19 environment.
Key audit matter
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit
of the consolidated financial statements in the current period. We summarise below those matters and our key
audit procedures to address those matters in order that the shareholders as a body may better understand the
process by which we arrived at our audit opinion. Our procedures were undertaken in the context of and solely
for the purpose of our statutory audit opinion on the consolidated financial statements as a whole and we do not
express discrete opinions on separate elements of the consolidated financial statements
The key audit matter How the matter was addressed in our audit
Valuation of Hotel Land and Building assets
Refer to note 9 of the consolidated financial
statements.
Hotel land and buildings of $521 million (representing
62% of net assets) are recognised at fair value in the
financial statements. To establish fair value, each
hotel is required to undergo an independent
valuation on a tri-annual basis. In the intervening
years, management complete an internal valuation
assessment, and assess whether the carrying value
of each hotel continues to reflect fair value.
The ability of the Group’s hotel assets to generate
revenue has been impacted materially by COVID-19.
As a result, the Group has engaged an independent
valuer to determine the fair value for all its hotel
assets at as 31 December 2020.
Fair value for the six largest hotels of the Group
(representing 83% of total hotel asset value) was
determined by applying a discounted cashflow
approach (DCF) with a cross check using the direct
sales comparative approach. The fair value of the
remaining hotels was determined applying the direct
sales comparative approach only.
The key assumptions in the discounted cash flow
models include projected occupancy rates, average
daily room rates (ADR), projected payroll costs, the
discount rate and terminal yield rate. Due to the
impact of COVID-19 the level of estimation
uncertainty in relation to the projected occupancy
rates and ADRs has increased significantly. The
Group has made assumptions with respect to the re-
opening of borders and introduction of travel
bubbles, and the timing and manner in which
international travel to New Zealand will resume. This
uncertainty has also been considered in determining
Our procedures over the hotel valuations involved the
following:
−We engaged our valuation specialists to assist us in
evaluating the appropriateness of the valuation
methodologies adopted by the valuer, including
compliance with relevant accounting standards and
alignment to market practice. Our valuation specialists
evaluated the reasonableness of the hotel assets
valued using the direct sales comparative approach
with reference to the full scope valuations using the
DCF method cross checked against the comparative
approach.
−We assessed the scope of work performed,
competency, professional qualifications and
experience of the external expert engaged by the
group.
−We performed a retrospective review and compared
actual occupancy rates, average daily rates and payroll
costs to the prior year valuation assumptions and
external industry reports.
−We challenged the key assumptions used within each
DCF model in determin
ing the fair value of these hotel
assets. This included a comparison of projected
occupancy rates, average daily rates, payroll growth
rates, discount rates and terminal yield rates to:
i.The assumptions projected over the forecast
period used in the prior period valuation report
for
each hotel asset.
ii.Externally derived data including external hotel
industry reports.
−
Our valuation specialists assessed the reasonableness
of the discount rate and the terminal yield rates with
reference to rates used in the prior year valuations and
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020 | FIN 30
29
chose the benchmark because we consider this to be the key metric for the users of the financial statements in
the current COVID-19 environment.
Key audit matter
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit
of the consolidated financial statements in the current period. We summarise below those matters and our key
audit procedures to address those matters in order that the shareholders as a body may better understand the
process by which we arrived at our audit opinion. Our procedures were undertaken in the context of and solely
for the purpose of our statutory audit opinion on the consolidated financial statements as a whole and we do not
express discrete opinions on separate elements of the consolidated financial statements
The key audit matter How the matter was addressed in our audit
Valuation of Hotel Land and Building assets
Refer to note 9 of the consolidated financial
statements.
Hotel land and buildings of $521 million (representing
62% of net assets) are recognised at fair value in the
financial statements. To establish fair value, each
hotel is required to undergo an independent
valuation on a tri-annual basis. In the intervening
years, management complete an internal valuation
assessment, and assess whether the carrying value
of each hotel continues to reflect fair value.
The ability of the Group’s hotel assets to generate
revenue has been impacted materially by COVID-19.
As a result, the Group has engaged an independent
valuer to determine the fair value for all its hotel
assets at as 31 December 2020.
Fair value for the six largest hotels of the Group
(representing 83% of total hotel asset value) was
determined by applying a discounted cashflow
approach (DCF) with a cross check using the direct
sales comparative approach. The fair value of the
remaining hotels was determined applying the direct
sales comparative approach only.
The key assumptions in the discounted cash flow
models include projected occupancy rates, average
daily room rates (ADR), projected payroll costs, the
discount rate and terminal yield rate. Due to the
impact of COVID-19 the level of estimation
uncertainty in relation to the projected occupancy
rates and ADRs has increased significantly. The
Group has made assumptions with respect to the re-
opening of borders and introduction of travel
bubbles, and the timing and manner in which
international travel to New Zealand will resume. This
uncertainty has also been considered in determining
Our procedures over the hotel valuations involved the
following:
−We engaged our valuation specialists to assist us in
evaluating the appropriateness of the valuation
methodologies adopted by the valuer, including
compliance with relevant accounting standards and
alignment to market practice. Our valuation specialists
evaluated the reasonableness of the hotel assets
valued using the direct sales comparative approach
with reference to the full scope valuations using the
DCF method cross checked against the comparative
approach.
−We assessed the scope of work performed,
competency, professional qualifications and
experience of the external expert engaged by the
group.
−We performed a retrospective review and compared
actual occupancy rates, average daily rates and payroll
costs to the prior year valuation assumptions and
external industry reports.
−We challenged the key assumptions used within each
DCF model in determin
ing the fair value of these hotel
assets. This included a comparison of projected
occupancy rates, average daily rates, payroll growth
rates, discount rates and terminal yield rates to:
i.The assumptions projected over the forecast
period used in the prior period valuation report
for
each hotel asset.
ii.Externally derived data including external hotel
industry reports.
−
Our valuation specialists assessed the reasonableness
of the discount rate and the terminal yield rates with
reference to rates used in the prior year valuations and
30
The key audit matter How the matter was addressed in our audit
discount rates and terminal yield rates together with
recent transactions.
Hotel valuations determined by reference to
comparative transactions have been adjusted to
reflect location, quality, and exposure to international
tourists. There are few comparable transactions post
COVID-19 which has increased the level of
estimation uncertainty in determining fair value.
We focused on the valuation of hotel land and
buildings due to the magnitude of the balance,
judgement and estimation uncertainty related to
assessing fair value. A change in the assumptions
could have a material impact on the valuations and
the carrying value of the hotel land and buildings.
market evidence of movement in asset yields post
COVID-19.
−For hotels assets valued using the direct sale
comparison method we compared price per room
determined in the current year valuation to the same
metric in the prior year valuation, considered the
appropriateness of comparable transactions used by
the valuer, and considered recent transactions post
the date of the valuation report.
−Where valuation assumptions appeared optimistic we
sensitised the assumptons, in particular projected
ADRs and discount rates used, applying more
conservative assumptions that we considered
appropriate.
As described in note 22, there exists material valuation
uncertainty in determining the fair value of hotel land and
buildings due to the impact of COVID-19. Our opinion is not
modified in respect of this matter.
Our testing concluded the carrying value of hotel land and
buildings at 31 December 2020 is appropriate.
Other information
The Directors, on behalf of the group, are responsible for the other information included in the entity’s Annual
Report. Other information includes the Chairman’s Review, Managing Director’s Review, disclosures relating to
corporate governance, the financial summary and the other information included in the Annual Report. Our
opinion on the consolidated financial statements does not cover any other information and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the
consolidated financial statements or our knowledge obtained in the audit or otherwise appears materially
misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have received the Chairman's Review and have
nothing to report in regards to it. The Annual Report is expected to be made available to us after the date of this
Independent Auditor's Report and we will report the matters identified, if any, to those charged with
governance.
Use of this independent auditor’s report
This independent auditor’s report is made solely to the shareholders as a body. Our audit work has been
undertaken so that we might state to the shareholders those matters we are required to state to them in the
independent auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept
or assume responsibility to anyone other than the shareholders as a body for our audit work, this independent
auditor’s report, or any of the opinions we have formed.
FIN 31 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020
31
Responsibilities of the Directors for the consolidated financial
statements
The Directors, on behalf of the company, are responsible for:
—the preparation and fair presentation of the consolidated financial statements in accordance with generally
accepted accounting practice in New Zealand (being New Zealand Equivalents to International Financial
Reporting Standards) and International Financial Reporting Standards;
—implementing necessary internal control to enable the preparation of a consolidated set of financial
statements that is fairly presented and free from material misstatement, whether due to fraud or error; and
—assessing the ability to continue as a going concern. This includes disclosing, as applicable, matters related
to going concern and using the going concern basis of accounting unless they either intend to liquidate or to
cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the consolidated financial
statements
Our objective is:
—to obtain reasonable assurance about whether the consolidated financial statements as a whole are free
from material misstatement, whether due to fraud or error; and
—to issue an independent auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with ISAs NZ will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these
consolidated financial statements.
A further description of our responsibilities for the audit of these consolidated financial statements is located at
the External Reporting Board (XRB) website at:
http://www.xrb.govt.nz/standards-for-assurance-practitioners/auditors-responsibilities/audit-report-1/
This description forms part of our independent auditor’s report.
The engagement partner on the audit resulting in this independent auditor's report is Aaron Woolsey.
For and on behalf of
KPMG
Auckland
17 February 2021
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020 | CG 1
CG 1 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020 | CG 2
Millennium & Copthorne Hotels New Zealand Limited (“MCK”) is committed to maintaining strong corporate
governance in line with best practice at all times. Our corporate governance framework and objectives complies
materially with the NZX Corporate Governance Code (the “NZX Code”) as well as the Financial Markets Authority
Corporate Governance Principles and Guidelines (the FMA Principles):
PRINCIPLE 1 – ETHICAL BEHAVIOUR
Directors should set high standards of ethical
behaviour, model this behaviour and hold
Management accountable for these standards
being followed throughout the organisation.
All of MCK’s directors are bound by the
Board’s Code of Ethics which states:
• Directors shall undertake their duties
with due care and diligence at all times
and will conduct themselves honestly
and with integrity. Directors shall not do
anything, or cause anything to be done,
which may or does bring MCK or the
Board into disrepute.
• All Directors must act in the best
interests of the company and exercise
unfettered and independent judgement.
All Directors must carry out their duties
with integrity and honesty and participate
in open and constructive discussions.
• To the best of their ability, Directors will
use reasonable endeavours to ensure
that MCK’s records and documents
(including its financial reports) are true
and complete and comply with the
requisite reporting standards and controls.
• So that the Board may determine a
Director’s independence and to ensure
that there are no conflicts of interest,
all Directors shall promptly disclose
all relevant business and / or personal
interests they may have to the Board
forthwith as well as any relationships
they may have with MCK.
• All Directors shall ensure that they do
not support any organisation other than
in a personal capacity without the prior
written approval of the Chairman.
• Directors shall not accept any gifts or
personal benefits from external parties
if it could be perceived that this could
compromise or influence any decision by
the Board or by MCK.
• All Directors shall maintain and protect
the confidentiality of all information
about MCK at all times except where
disclosure is permitted or required by law.
• All Directors shall ensure that they do
not use company information and / or
property for personal gain or profit. All
Directors shall use and / or retain company
information and property only for business
purposes in their capacity as Directors of
MCK or to meet legal obligations.
• All Directors shall comply with the laws
and regulations that apply to MCK.
• All Directors shall immediately report
any illegal or unethical behaviour
of which they become aware to the
Chairman of the Board and to the
Chairman of the Audit Committee.
All of MCK’s employees are expected to act
in the best interests of MCK and to enhance
the reputation of the company. MCK also has
a number of operational policies which must
be followed by employees and the MCK Code
of Conduct forms part of each employee’s
employment agreement.
MCK also believes in fair dealing with its
customers and suppliers, shareholders,
employees and other stakeholders and
external third parties.
MCK revised its Share Trading Policy in 2018
which applies to Directors and Officers. It
also has a global Whistleblowing Policy which
extends to all management and employees.
The Whistleblowing Policy facilitates the
disclosure and impartial investigation of any
serious wrongdoing. This policy advises
employees of their right to disclose serious
wrongdoing, and sets out the Company’s
internal procedures for receiving and dealing
with such disclosures. The policy is consistent
with, and facilitates, the Protected Disclosures
Act 2000 and is supported by the Board.
PRINCIPLE 2 – BOARD COMPOSITION AND
PERFORMANCE
To ensure an effective Board, there should be
a balance of independence, skills, knowledge,
experience and perspectives.
MCK’s Board has responsibility, control and
oversight of the business activities, strategic
direction and the governance of MCK and
its subsidiary companies. It looks at how
the company is operating, how risk and
compliance are managed, approving financial
and other reports and capital expenditure
and reporting to MCK’s shareholders. The
Board approves MCK’s budgets and business
plans as well as significant projects and has
statutory obligations for other matters such
as the payments of dividends and the issue of
shares. The Board is accountable to MCK’s
shareholders for the company’s performance.
Certain powers are delegated to Board
Committees and Subcommittees. The role of
the Committees is detailed under Principle 3.
Day-to-day management is delegated to the
Managing Director and senior management.
The levels of authority are approved by way
of a Delegated Authorities Manual which
is reviewed by the Audit Committee and
ultimately approved by the Board.
Appointments to the Board are considered by
the Board and the Board takes into account
the skills required to allow it to carry out its
functions and governance role. The Board
does not impose a restriction on the tenure
of any Director as it considers that such a
restriction may lead to the loss of experience
and expertise from the Board.
MCK’s Constitution specifies a minimum
number of three directors and a maximum
number of nine directors at any one time.
Two directors must ordinarily be living in New
Zealand. In line with the NZX Main Board
Listing Rules, MCK is required to have at
least two Independent Directors. Currently,
MCK has determined that its Chair Colin
Sim and Messrs. Bobb and McKenzie are
Independent Directors as none of them have
a Disqualifying Relationship (as that term is
defined in the NZX Main Board Listing Rules)
or Substantial Product Holders. Messrs Chiu,
Hangchi and Tan are not considered by the
Board to be Independent Directors.
Board meetings are generally held quarterly
with additional meetings convened when
required. The table below details directors’
attendances during 2020.
DirectorMeetings attended in 2020
Colin Sim (Chair)5/5
B K Chiu
(Managing
Director)
5/5
Graham McKenzie5/5
Kevin Hangchi5/5
Kian Seng Tan 5/5
Richard Bobb5/5
In 2020, the Board updated its Skills Matrix
to demonstrate the skills, experience and
diversity of its Board.
Skill / AttributeRelevant Director
Retail, marketing, brand
and sales experience
Chiu
Governance experience
Chiu, Hangchi, Kwek,
McKenzie, Sim
Large enterprise /
Multinational business
or leadership experience
Chiu, Hangchi, Kwek,
Sim
Accounting / Finance /
Tax experience
Bobb, Hangchi, Kwek
Legal or Regulatory
knowledge and
experience
Hangchi, McKenzie
Business strategy
experience
Chiu, Kwek, Sim
Property development /
management experience
Chiu, Kwek, Sim
The Board encourages all directors to
undertake their own continuous education so
that they can perform their duties as directors
and provide maximum benefit to the Board
and to shareholders.
In 2018, MCK also adopted its own Diversity
and Inclusion Policy which is a separate
stand-alone document.
PRINCIPLE 3 – BOARD COMMITTEES
The Board should use committees where this
will enhance its effectiveness in key areas
while still retaining board responsibility.
Committees help the Board in carrying out
its responsibilities and MCK currently has
one standing committee being its Audit
Committee which is comprised solely of
Independent Directors. The current members
of the Audit Committee are Richard Bobb
(Chair) and Graham McKenzie. The Managing
Director and senior management attend only
by invitation.
The table below reports attendance of the
Audit Committee members during 2020:
DirectorMeetings attended in 2020
Richard Bobb2/2
Graham McKenzie2/2
B K Chiu2/2
The Board also forms subcommittees as and
when required.
In 2020, MCK formed a Nominations
Committee (NC) comprising Messrs.
McKenzie and Chiu. The NC was tasked
with assessing potential candidates for a
new appointment to the Board and making
recommendations to the Board. The NC met
twice in 2020.
MCK has formed a Remuneration Committee
(RC) in 2021 and terms of reference have been
approved by the Board. The current members
of the RC are Messrs. McKenzie and Kwek.
MCK has in the past formed a Due Diligence
Committee (DDC) to oversee, review and
report on material or complex transactions
and will do so when required. The DDC will
comprise only of Independent Directors,
members of senior management and external
advisors directly involved in the transaction.
The Board has not established a protocol
which sets out procedures to be followed in
the event of a takeover offer being received
by the Company. This is because the Board
considers that receipt of a takeover offer to
be a very unlikely event in light of CDL Hotels
Holdings New Zealand Limited’s long-term
majority shareholding in the Company.
MCK is also the owner of property assets
including “sensitive land” (as defined under
the Overseas Investment Act 2015) which,
if the subject of an overseas takeover offer,
would require regulatory and / or government
approvals for their acquisition.
MCK’s Board believes that the Company
would have sufficient time to adopt protocols
and procedures necessary to respond to any
such offer when received and to communicate
those to shareholders. MCK’s Board
therefore believes that it is reasonable and
appropriate for the Company not to follow
Recommendation 3.6 of the new Code at this
time but agrees with the principles behind
Recommendation 3.6.
PRINCIPLE 4 – REPORTING & DISCLOSURE
The Board should demand integrity in
financial and non-financial reporting and
in the timeliness and balance of corporate
disclosures.
As an NZX-listed entity, MCK recognises
the need to ensure that it is fully compliant
in terms of reporting and disclosure and
has in place a Continuous Disclosure Policy
(CDP) which applies to MCK, its subsidiaries
(“Group”), and all their respective directors
and employees. The Board has appointed
the Chairman, the Chairman of the Audit
Committee, the Managing Director, the
Company Secretary and the Vice President
Finance to act as MCK’s Continuous
Disclosure Committee (the Disclosure
Committee). A quorum of the Disclosure
Committee shall consist of no less than three
(3) of these persons.
The Disclosure Committee is responsible for:
• Determining what information amounts
to material information and must be
disclosed;
• Determining the timing of disclosure of
any information in accordance with the
CDP;
• Approving the content of any disclosure
to NZX (including matters not directly
covered by the CDP);
• Ensuring that all employees and
directors within the Group whom the
Committee considers appropriate
receive a copy of the CDP and
appropriate training with respect to it;
• Developing mechanisms designed to
identify potential material information
(e.g. agenda item on management
meetings); and
• Liaising with legal advisers in respect of
MCK’s compliance with its continuous
disclosure obligations.
The key points from the CDP are:
Ø No person may release material
information concerning MCK to any
person who is not authorised to receive
it without the approval of the
Disclosure Committee.
Ø The Board will consider at each Board
meeting whether there is any
information that may require disclosure
in accordance with the CDP, and will
note any disclosures made subsequent
to the prior meeting. Any employee or
director of MCK must inform a member
of the Disclosure Committee as soon as
practicable after that person becomes
aware of any material information.
Ø The CDP includes a list of incidents
which should be disclosed to a member
of the Disclosure Committee. The
Disclosure Committee must confer,
decide whether disclosure is required,
and coordinate disclosure of any
material information in a form specified
by the Listing Rules as soon as
practicable after it becomes aware of
the existence of material information,
unless it determines:
a. a reasonable person would
not expect the information to
be disclosed; and
b. the information is confidential
and its confidentiality is
maintained; and
c. one or more of the
following applies:
i. it would breach the law
to disclose the
information; or
ii. the information
concerns an incomplete
proposal or negotiation; or
iii. the information
comprises matters of
supposition or is
insufficiently definite to
warrant disclosure; or
iv. the information is
generated for internal
management purposes
of MCK or its
subsidiaries; or
v. the information is a
trade secret.
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED
CORPORATE GOVERNANCE STATEMENT (FEBRUARY 2021)
CG 2 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020
CG 1 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020 | CG 2
Millennium & Copthorne Hotels New Zealand Limited (“MCK”) is committed to maintaining strong corporate
governance in line with best practice at all times. Our corporate governance framework and objectives complies
materially with the NZX Corporate Governance Code (the “NZX Code”) as well as the Financial Markets Authority
Corporate Governance Principles and Guidelines (the FMA Principles):
PRINCIPLE 1 – ETHICAL BEHAVIOUR
Directors should set high standards of ethical
behaviour, model this behaviour and hold
Management accountable for these standards
being followed throughout the organisation.
All of MCK’s directors are bound by the
Board’s Code of Ethics which states:
• Directors shall undertake their duties
with due care and diligence at all times
and will conduct themselves honestly
and with integrity. Directors shall not do
anything, or cause anything to be done,
which may or does bring MCK or the
Board into disrepute.
• All Directors must act in the best
interests of the company and exercise
unfettered and independent judgement.
All Directors must carry out their duties
with integrity and honesty and participate
in open and constructive discussions.
• To the best of their ability, Directors will
use reasonable endeavours to ensure
that MCK’s records and documents
(including its financial reports) are true
and complete and comply with the
requisite reporting standards and controls.
• So that the Board may determine a
Director’s independence and to ensure
that there are no conflicts of interest,
all Directors shall promptly disclose
all relevant business and / or personal
interests they may have to the Board
forthwith as well as any relationships
they may have with MCK.
• All Directors shall ensure that they do
not support any organisation other than
in a personal capacity without the prior
written approval of the Chairman.
• Directors shall not accept any gifts or
personal benefits from external parties
if it could be perceived that this could
compromise or influence any decision by
the Board or by MCK.
• All Directors shall maintain and protect
the confidentiality of all information
about MCK at all times except where
disclosure is permitted or required by law.
• All Directors shall ensure that they do
not use company information and / or
property for personal gain or profit. All
Directors shall use and / or retain company
information and property only for business
purposes in their capacity as Directors of
MCK or to meet legal obligations.
• All Directors shall comply with the laws
and regulations that apply to MCK.
• All Directors shall immediately report
any illegal or unethical behaviour
of which they become aware to the
Chairman of the Board and to the
Chairman of the Audit Committee.
All of MCK’s employees are expected to act
in the best interests of MCK and to enhance
the reputation of the company. MCK also has
a number of operational policies which must
be followed by employees and the MCK Code
of Conduct forms part of each employee’s
employment agreement.
MCK also believes in fair dealing with its
customers and suppliers, shareholders,
employees and other stakeholders and
external third parties.
MCK revised its Share Trading Policy in 2018
which applies to Directors and Officers. It
also has a global Whistleblowing Policy which
extends to all management and employees.
The Whistleblowing Policy facilitates the
disclosure and impartial investigation of any
serious wrongdoing. This policy advises
employees of their right to disclose serious
wrongdoing, and sets out the Company’s
internal procedures for receiving and dealing
with such disclosures. The policy is consistent
with, and facilitates, the Protected Disclosures
Act 2000 and is supported by the Board.
PRINCIPLE 2 – BOARD COMPOSITION AND
PERFORMANCE
To ensure an effective Board, there should be
a balance of independence, skills, knowledge,
experience and perspectives.
MCK’s Board has responsibility, control and
oversight of the business activities, strategic
direction and the governance of MCK and
its subsidiary companies. It looks at how
the company is operating, how risk and
compliance are managed, approving financial
and other reports and capital expenditure
and reporting to MCK’s shareholders. The
Board approves MCK’s budgets and business
plans as well as significant projects and has
statutory obligations for other matters such
as the payments of dividends and the issue of
shares. The Board is accountable to MCK’s
shareholders for the company’s performance.
Certain powers are delegated to Board
Committees and Subcommittees. The role of
the Committees is detailed under Principle 3.
Day-to-day management is delegated to the
Managing Director and senior management.
The levels of authority are approved by way
of a Delegated Authorities Manual which
is reviewed by the Audit Committee and
ultimately approved by the Board.
Appointments to the Board are considered by
the Board and the Board takes into account
the skills required to allow it to carry out its
functions and governance role. The Board
does not impose a restriction on the tenure
of any Director as it considers that such a
restriction may lead to the loss of experience
and expertise from the Board.
MCK’s Constitution specifies a minimum
number of three directors and a maximum
number of nine directors at any one time.
Two directors must ordinarily be living in New
Zealand. In line with the NZX Main Board
Listing Rules, MCK is required to have at
least two Independent Directors. Currently,
MCK has determined that its Chair Colin
Sim and Messrs. Bobb and McKenzie are
Independent Directors as none of them have
a Disqualifying Relationship (as that term is
defined in the NZX Main Board Listing Rules)
or Substantial Product Holders. Messrs Chiu,
Hangchi and Tan are not considered by the
Board to be Independent Directors.
Board meetings are generally held quarterly
with additional meetings convened when
required. The table below details directors’
attendances during 2020.
DirectorMeetings attended in 2020
Colin Sim (Chair)5/5
B K Chiu
(Managing
Director)
5/5
Graham McKenzie5/5
Kevin Hangchi5/5
Kian Seng Tan 5/5
Richard Bobb5/5
In 2020, the Board updated its Skills Matrix
to demonstrate the skills, experience and
diversity of its Board.
Skill / AttributeRelevant Director
Retail, marketing, brand
and sales experience
Chiu
Governance experience
Chiu, Hangchi, Kwek,
McKenzie, Sim
Large enterprise /
Multinational business
or leadership experience
Chiu, Hangchi, Kwek,
Sim
Accounting / Finance /
Tax experience
Bobb, Hangchi, Kwek
Legal or Regulatory
knowledge and
experience
Hangchi, McKenzie
Business strategy
experience
Chiu, Kwek, Sim
Property development /
management experience
Chiu, Kwek, Sim
The Board encourages all directors to
undertake their own continuous education so
that they can perform their duties as directors
and provide maximum benefit to the Board
and to shareholders.
In 2018, MCK also adopted its own Diversity
and Inclusion Policy which is a separate
stand-alone document.
PRINCIPLE 3 – BOARD COMMITTEES
The Board should use committees where this
will enhance its effectiveness in key areas
while still retaining board responsibility.
Committees help the Board in carrying out
its responsibilities and MCK currently has
one standing committee being its Audit
Committee which is comprised solely of
Independent Directors. The current members
of the Audit Committee are Richard Bobb
(Chair) and Graham McKenzie. The Managing
Director and senior management attend only
by invitation.
The table below reports attendance of the
Audit Committee members during 2020:
DirectorMeetings attended in 2020
Richard Bobb2/2
Graham McKenzie2/2
B K Chiu2/2
The Board also forms subcommittees as and
when required.
In 2020, MCK formed a Nominations
Committee (NC) comprising Messrs.
McKenzie and Chiu. The NC was tasked
with assessing potential candidates for a
new appointment to the Board and making
recommendations to the Board. The NC met
twice in 2020.
MCK has formed a Remuneration Committee
(RC) in 2021 and terms of reference have been
approved by the Board. The current members
of the RC are Messrs. McKenzie and Kwek.
MCK has in the past formed a Due Diligence
Committee (DDC) to oversee, review and
report on material or complex transactions
and will do so when required. The DDC will
comprise only of Independent Directors,
members of senior management and external
advisors directly involved in the transaction.
The Board has not established a protocol
which sets out procedures to be followed in
the event of a takeover offer being received
by the Company. This is because the Board
considers that receipt of a takeover offer to
be a very unlikely event in light of CDL Hotels
Holdings New Zealand Limited’s long-term
majority shareholding in the Company.
MCK is also the owner of property assets
including “sensitive land” (as defined under
the Overseas Investment Act 2015) which,
if the subject of an overseas takeover offer,
would require regulatory and / or government
approvals for their acquisition.
MCK’s Board believes that the Company
would have sufficient time to adopt protocols
and procedures necessary to respond to any
such offer when received and to communicate
those to shareholders. MCK’s Board
therefore believes that it is reasonable and
appropriate for the Company not to follow
Recommendation 3.6 of the new Code at this
time but agrees with the principles behind
Recommendation 3.6.
PRINCIPLE 4 – REPORTING & DISCLOSURE
The Board should demand integrity in
financial and non-financial reporting and
in the timeliness and balance of corporate
disclosures.
As an NZX-listed entity, MCK recognises
the need to ensure that it is fully compliant
in terms of reporting and disclosure and
has in place a Continuous Disclosure Policy
(CDP) which applies to MCK, its subsidiaries
(“Group”), and all their respective directors
and employees. The Board has appointed
the Chairman, the Chairman of the Audit
Committee, the Managing Director, the
Company Secretary and the Vice President
Finance to act as MCK’s Continuous
Disclosure Committee (the Disclosure
Committee). A quorum of the Disclosure
Committee shall consist of no less than three
(3) of these persons.
The Disclosure Committee is responsible for:
• Determining what information amounts
to material information and must be
disclosed;
• Determining the timing of disclosure of
any information in accordance with the
CDP;
• Approving the content of any disclosure
to NZX (including matters not directly
covered by the CDP);
• Ensuring that all employees and
directors within the Group whom the
Committee considers appropriate
receive a copy of the CDP and
appropriate training with respect to it;
• Developing mechanisms designed to
identify potential material information
(e.g. agenda item on management
meetings); and
• Liaising with legal advisers in respect of
MCK’s compliance with its continuous
disclosure obligations.
The key points from the CDP are:
Ø No person may release material
information concerning MCK to any
person who is not authorised to receive
it without the approval of the
Disclosure Committee.
Ø The Board will consider at each Board
meeting whether there is any
information that may require disclosure
in accordance with the CDP, and will
note any disclosures made subsequent
to the prior meeting. Any employee or
director of MCK must inform a member
of the Disclosure Committee as soon as
practicable after that person becomes
aware of any material information.
Ø The CDP includes a list of incidents
which should be disclosed to a member
of the Disclosure Committee. The
Disclosure Committee must confer,
decide whether disclosure is required,
and coordinate disclosure of any
material information in a form specified
by the Listing Rules as soon as
practicable after it becomes aware of
the existence of material information,
unless it determines:
a. a reasonable person would
not expect the information to
be disclosed; and
b. the information is confidential
and its confidentiality is
maintained; and
c. one or more of the
following applies:
i. it would breach the law
to disclose the
information; or
ii. the information
concerns an incomplete
proposal or negotiation; or
iii. the information
comprises matters of
supposition or is
insufficiently definite to
warrant disclosure; or
iv. the information is
generated for internal
management purposes
of MCK or its
subsidiaries; or
v. the information is a
trade secret.
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED
CORPORATE GOVERNANCE STATEMENT (FEBRUARY 2021)
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020 | CG 3
The Disclosure Committee will ensure that
all Board members, not already aware of the
information, are promptly provided with it.
• The Disclosure Committee is responsible
for MCK’s obligations under the Listing
Rules to release material information to
NZX to the extent necessary to prevent
development or subsistence of a market
for its listed securities which is materially
influenced by false or misleading
information emanating from the issuer
or any associated person of the issuer; or
other persons in circumstances in each
case which would give such information
substantial credibility.
• All employees of MCK, as soon as
practicable after becoming aware
of a rumour or speculation that is
“generally available to the market”, must
disclose the existence of that rumour
or speculation to a member of the
Disclosure Committee.
• The Disclosure Committee is also
responsible for co-ordinating MCK’s
responses to leaks and inadvertent
disclosures. Even in the event that leaked
or inadvertently disclosed information
is not price sensitive, the Disclosure
Committee should consider whether the
information should be released to NZX via
its market announcement platform in order
to provide investors with equal access.
• All external communications by MCK
must comply with the CDP, any media
policy and the Company’s rules with
respect to confidential information. No
material information is to be disclosed to
such persons before it is released to NZX.
• Slides and presentations used in
briefings should be released to NZX for
immediate release to the market.
Prior to approval and release of MCK’s half
year and full year results, the Vice President
Finance and Company Secretary are required
to provide a letter of representation to the
Board (or its nominated subcommittee) that
the financial statements have been prepared
in accordance with generally accepted
accounting practice and are correct in all
material respects.
The Continuous Disclosure Policy was
reviewed in 2019.
PRINCIPLE 5 – REMUNERATION
The remuneration of directors and executives
should be transparent, fair and reasonable.
The total pool for Directors’ Fees is capped
at $200,000 and was last approved by
shareholders in 1996. The level of fees was
last reviewed by the Board as a whole in 2019.
Non-executive directors are entitled to receive
a base fee of NZ$38,000 per annum. The
Board Chair is entitled to receive an annual
fee of NZ $42,000 per annum. The Chair
of the Audit Committee receives a further
NZ$9,000 per annum and member(s) of
the Audit Committee receive NZ$7,000 per
annum. Executive Directors do not receive
Directors’ or Committee fees.
In response to the COVID-19, all directors
agreed to take a voluntary reduction of 20
percent of their annual fees from April 2020
until December 2020.
Employee (including the Managing Director
and senior management) remuneration
is made up of two primary components
being a fixed component and a short term
incentive. Remuneration is determined with
reference to market information as well as the
responsibilities of the position, experience and
overall performance. Short term incentives
are designed to reward high performing
employees with appropriate incentives which
are measured on key performance indicators
which are reviewed and monitored regularly
and company performance. The Company
reserves the right to suspend or adjust
incentives if targets are not met. MCK does
not currently have an employee share plan or a
long term incentive scheme.
In response to the COVID-19, senior
management also agreed to reductions in
salary (of up to 20 percent) as well as other
entitlements for the majority of 2020.
Employees are eligible for a range of benefits
including discounted accommodation at
MCK’s hotels in New Zealand and Millennium
& Copthorne Hotels around the world
(subject to availability).
PRINCIPLE 6 – RISK MANAGEMENT
Directors should have a sound understanding
of the material risks faced by the issuer and
how to manage them. The Board should
regularly verify that the issuer has appropriate
processes that identify and manage potential
and material risks.
While risks are a part of doing business, it
does need to be monitored and addressed.
MCK’s Board, Audit Committee and
Management Team all have a role in
identifying areas of risk and understanding
their impact on the Company as well as how
these areas are to be managed and mitigated.
MCK’s Management Team is responsible for
the day-to-day identification, assessment
and management of risks applicable to the
Company as well as the implementation of
appropriate controls, processes and policies
to manage such risks. Management also
ensures that there are training programmes
in place to identify, manage, mitigate or
eliminate hazards and risks in the workplace.
The Audit Committee’s role is to review
and report to the Board on the adequacy of
Management’s oversight and implementation
of risks with particular regard to financial and
operational risks. The Audit Committee also
has oversight of the Company’s Internal Audit
function and reviews internal audit reports as
part of its duties.
The Board is ultimately responsible for
the oversight and implementation of the
Company’s responses to risk management.
MCK’s Board has identified three main risks
areas being Reputational, Operational and
Financial Risks. Reputational Risks may
arise through errors or omissions by staff or
Management, failed procedures, an incident
that affects guests or staff or external events.
Operational Risks may arise from change in
the competitive or regulatory environment,
customer demand changes or even failing to
keep properties competitive. Financial risks may
arise where earnings or cashflow change or are
affected in some way due to market conditions
or events within or outside MCK’s control.
MCK has a series of internal controls in place
covering such areas as financial monitoring
and reporting, human resources and risk
management. The primary responsibility for
monitoring and reporting against internal
controls and remedying any deficiencies lies
with Management.
MCK has resumed its internal audit function to
conduct audits and reviews of the Company’s
operations. Details appears under Principle 7.
MCK also keeps current insurances
appropriate to its business with reputable
global insurers.
PRINCIPLE 7 – AUDITORS
The Board should ensure the quality and
independence of the external audit process.
External Audit plays a critical role in ensuring
the integrity of financial reporting. The role of
the external auditor is to plan and carry out
an audit of MCK’s annual financial reports
and review the half-yearly reports. The Audit
Committee reviews the performance and
independence of the external auditors.
MCK has in place an External Auditor
Independence Policy which deals with
the provision of services by the MCK’s
external auditors, auditor rotation and the
relationships between the external auditor
and the Company. The policy states that:
The Audit Committee shall only recommend
to the Board a firm to be external auditor if
that firm:
• would be regarded by a reasonable
investor, with full knowledge of all
relevant facts and circumstances,
as capable of exercising objective
and impartial judgment on all issues
encompassed within the auditor’s
engagement;
• audit partners are members of
Chartered Accountants Australia New
Zealand (CAANZ);
• has not, within two years prior to the
commencement of the audit, had as
a member of its audit engagement
team MCK’s Managing Director, Vice
President Finance, Group Accounting
Manager, or any member of the
Company’s Management who acts in a
financial oversight role.
• does not allow the direct compensation
of its audit partners for selling non-audit
services to MCK.
The general principles to be applied in
assessing non-audit services are as follows:
a) the external auditor should not
have any involvement in the
production of financial information
or preparation of financial
statements such that they might
be perceived as auditing their
own work. This includes the
provision of bookkeeping and
payroll services as well as valuation
services where such valuation forms
an input into audited
financial information;
b) the external auditor should not
perform any function of
management, or be responsible for
making management decisions;
c) the external auditor should not be
responsible for the design or
implementation of financial
information systems; and
d) the separation between internal
audit and external audit should
be maintained.
MCK’s Audit Committee shall pre-approve all
audit and related services that are to be provided
by the auditor. Aside from core external audit
services, it is appropriate for the MCK’s auditors
to provide the following services:
• due diligence (except valuations) on
proposed transactions;
• review of financial information where
third party verification is required or
deemed necessary (outside the normal
audit process);
• completion audits / reviews;
• financial model preparation or review;
• accounting policy advice;
• listing advice;
• accounting/technical training; and
• taxation services of an assurance nature.
It is not considered appropriate for MCK’s
external auditors to provide:
• book keeping services related to
accounting records or financial
statements;
• tax planning and strategy services
unless specifically approved by the
Audit Committee;
• appraisal / valuation services including
opinions as to fairness;
• provision of payroll services;
• the design or implementation of
financial information systems;
• outsourced internal audit and risk
management services;
• legal services;
• management functions;
• broker / dealer / investment adviser /
investment banking services;
• advocacy for the Company;
• actuarial services; and
• assistance in the recruitment of
senior management.
These prohibitions apply to all offices of the audit
firm, including overseas offices and affiliates.
The billing arrangements for services
provided by MCK’s external auditors should
not include any contingent fees.
MCK’s expects that its external auditors will
rigorously comply with their own internal
policies on independence and all relevant
professional guidance, including independence
rules and guidance issued by CAANZ.
The nature of services provided by MCK’s
auditors and the level of fees incurred
should be reported to the Audit Committee
Chairman semi-annually (or sooner where
requested) to enable the Committee to
perform its oversight role and report back to
the Board. This policy does not prescribe any
particular ratio of non-audit service fees to
audit fees but the Committee shall monitored
the fees and ratio.
The continued appointment of MCK’s external
auditors is confirmed annually by the Board on
recommendation from the Audit Committee.
Rotation of the lead audit partner or firm
will be required every five years. Lead audit
partners who are rotated will be subject
to a 2 year cooling off period (i.e. 2 years
must expire between the rotation of an audit
partner and that partner’s next engagement
with the Company).
The hiring by MCK of any former lead
audit partner or audit manager must first
be approved by the Chairman of the Audit
Committee. There are no other restrictions on
the hiring of other staff from the audit firm.
KPMG are currently MCK’s external auditor
and the lead external audit engagement
partner was rotated in 2018.
The Audit Committee monitors local and
overseas practice on auditor independence
regularly to ensure that this policy remains
consistent with best practice and meets
MCK’s requirements.
MCK’s external auditors also attend the
Company’s Annual Meeting to answer any
questions from shareholders as to the audit
and the content of the Annual Report.
MCK has an internal audit function to
conduct audits and reviews of the Company’s
operations which is independent of the
External Auditors. A programme of work is
developed annually and submitted to the
Audit Committee for approval. The areas
covered by internal audit are those which pose
an operational business risk for MCK’s hotels
and corporate office functions. In this way,
the internal audit function strengthens MCK’s
internal controls and provides the Audit
Committee and the Board with an assessment
of the functioning and overall adequacy of
MCK’s processes.
PRINCIPLE 8 – SHAREHOLDER RIGHTS &
COMMUNICATION
The Board should respect the rights of
shareholders and foster constructive
relationships with shareholders that
encourage them to engage with the issuer.
MCK is committed to providing shareholders
and stakeholders with timely information on
its activities and performance. MCK does this
through a number of channels including:
• announcements in accordance with
continuous disclosure as required under
the Listing Rules;
• publication of the company’s annual
and interim reports which are sent to all
shareholders; and
• encouraging shareholders to attend the
Annual Meeting in May of each year to
hear the Chairman and the Managing
Director provide updates on the
company’s performance, ask questions of
the Board and vote on the resolutions to
be determined at the meeting. Resolutions
at shareholder meetings are usually
determined by poll where each ordinary
shareholder has one vote per share.
Relevant communications, copies of annual
reports and key corporate governance
documents and policies are now available
on a dedicated webpage
www.mckhotels.co.nz/investors
Shareholders also receive a discount card
for use at MCK’s hotels within New Zealand
which provides them with a twenty percent off
Best Available Rate (subject to availability).
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020 | CG 4
CG 3 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020
CG 4 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020
The Disclosure Committee will ensure that
all Board members, not already aware of the
information, are promptly provided with it.
• The Disclosure Committee is responsible
for MCK’s obligations under the Listing
Rules to release material information to
NZX to the extent necessary to prevent
development or subsistence of a market
for its listed securities which is materially
influenced by false or misleading
information emanating from the issuer
or any associated person of the issuer; or
other persons in circumstances in each
case which would give such information
substantial credibility.
• All employees of MCK, as soon as
practicable after becoming aware
of a rumour or speculation that is
“generally available to the market”, must
disclose the existence of that rumour
or speculation to a member of the
Disclosure Committee.
• The Disclosure Committee is also
responsible for co-ordinating MCK’s
responses to leaks and inadvertent
disclosures. Even in the event that leaked
or inadvertently disclosed information
is not price sensitive, the Disclosure
Committee should consider whether the
information should be released to NZX via
its market announcement platform in order
to provide investors with equal access.
• All external communications by MCK
must comply with the CDP, any media
policy and the Company’s rules with
respect to confidential information. No
material information is to be disclosed to
such persons before it is released to NZX.
• Slides and presentations used in
briefings should be released to NZX for
immediate release to the market.
Prior to approval and release of MCK’s half
year and full year results, the Vice President
Finance and Company Secretary are required
to provide a letter of representation to the
Board (or its nominated subcommittee) that
the financial statements have been prepared
in accordance with generally accepted
accounting practice and are correct in all
material respects.
The Continuous Disclosure Policy was
reviewed in 2019.
PRINCIPLE 5 – REMUNERATION
The remuneration of directors and executives
should be transparent, fair and reasonable.
The total pool for Directors’ Fees is capped
at $200,000 and was last approved by
shareholders in 1996. The level of fees was
last reviewed by the Board as a whole in 2019.
Non-executive directors are entitled to receive
a base fee of NZ$38,000 per annum. The
Board Chair is entitled to receive an annual
fee of NZ $42,000 per annum. The Chair
of the Audit Committee receives a further
NZ$9,000 per annum and member(s) of
the Audit Committee receive NZ$7,000 per
annum. Executive Directors do not receive
Directors’ or Committee fees.
In response to the COVID-19, all directors
agreed to take a voluntary reduction of 20
percent of their annual fees from April 2020
until December 2020.
Employee (including the Managing Director
and senior management) remuneration
is made up of two primary components
being a fixed component and a short term
incentive. Remuneration is determined with
reference to market information as well as the
responsibilities of the position, experience and
overall performance. Short term incentives
are designed to reward high performing
employees with appropriate incentives which
are measured on key performance indicators
which are reviewed and monitored regularly
and company performance. The Company
reserves the right to suspend or adjust
incentives if targets are not met. MCK does
not currently have an employee share plan or a
long term incentive scheme.
In response to the COVID-19, senior
management also agreed to reductions in
salary (of up to 20 percent) as well as other
entitlements for the majority of 2020.
Employees are eligible for a range of benefits
including discounted accommodation at
MCK’s hotels in New Zealand and Millennium
& Copthorne Hotels around the world
(subject to availability).
PRINCIPLE 6 – RISK MANAGEMENT
Directors should have a sound understanding
of the material risks faced by the issuer and
how to manage them. The Board should
regularly verify that the issuer has appropriate
processes that identify and manage potential
and material risks.
While risks are a part of doing business, it
does need to be monitored and addressed.
MCK’s Board, Audit Committee and
Management Team all have a role in
identifying areas of risk and understanding
their impact on the Company as well as how
these areas are to be managed and mitigated.
MCK’s Management Team is responsible for
the day-to-day identification, assessment
and management of risks applicable to the
Company as well as the implementation of
appropriate controls, processes and policies
to manage such risks. Management also
ensures that there are training programmes
in place to identify, manage, mitigate or
eliminate hazards and risks in the workplace.
The Audit Committee’s role is to review
and report to the Board on the adequacy of
Management’s oversight and implementation
of risks with particular regard to financial and
operational risks. The Audit Committee also
has oversight of the Company’s Internal Audit
function and reviews internal audit reports as
part of its duties.
The Board is ultimately responsible for
the oversight and implementation of the
Company’s responses to risk management.
MCK’s Board has identified three main risks
areas being Reputational, Operational and
Financial Risks. Reputational Risks may
arise through errors or omissions by staff or
Management, failed procedures, an incident
that affects guests or staff or external events.
Operational Risks may arise from change in
the competitive or regulatory environment,
customer demand changes or even failing to
keep properties competitive. Financial risks may
arise where earnings or cashflow change or are
affected in some way due to market conditions
or events within or outside MCK’s control.
MCK has a series of internal controls in place
covering such areas as financial monitoring
and reporting, human resources and risk
management. The primary responsibility for
monitoring and reporting against internal
controls and remedying any deficiencies lies
with Management.
MCK has resumed its internal audit function to
conduct audits and reviews of the Company’s
operations. Details appears under Principle 7.
MCK also keeps current insurances
appropriate to its business with reputable
global insurers.
PRINCIPLE 7 – AUDITORS
The Board should ensure the quality and
independence of the external audit process.
External Audit plays a critical role in ensuring
the integrity of financial reporting. The role of
the external auditor is to plan and carry out
an audit of MCK’s annual financial reports
and review the half-yearly reports. The Audit
Committee reviews the performance and
independence of the external auditors.
MCK has in place an External Auditor
Independence Policy which deals with
the provision of services by the MCK’s
external auditors, auditor rotation and the
relationships between the external auditor
and the Company. The policy states that:
The Audit Committee shall only recommend
to the Board a firm to be external auditor if
that firm:
• would be regarded by a reasonable
investor, with full knowledge of all
relevant facts and circumstances,
as capable of exercising objective
and impartial judgment on all issues
encompassed within the auditor’s
engagement;
• audit partners are members of
Chartered Accountants Australia New
Zealand (CAANZ);
• has not, within two years prior to the
commencement of the audit, had as
a member of its audit engagement
team MCK’s Managing Director, Vice
President Finance, Group Accounting
Manager, or any member of the
Company’s Management who acts in a
financial oversight role.
• does not allow the direct compensation
of its audit partners for selling non-audit
services to MCK.
The general principles to be applied in
assessing non-audit services are as follows:
a) the external auditor should not
have any involvement in the
production of financial information
or preparation of financial
statements such that they might
be perceived as auditing their
own work. This includes the
provision of bookkeeping and
payroll services as well as valuation
services where such valuation forms
an input into audited
financial information;
b) the external auditor should not
perform any function of
management, or be responsible for
making management decisions;
c) the external auditor should not be
responsible for the design or
implementation of financial
information systems; and
d) the separation between internal
audit and external audit should
be maintained.
MCK’s Audit Committee shall pre-approve all
audit and related services that are to be provided
by the auditor. Aside from core external audit
services, it is appropriate for the MCK’s auditors
to provide the following services:
• due diligence (except valuations) on
proposed transactions;
• review of financial information where
third party verification is required or
deemed necessary (outside the normal
audit process);
• completion audits / reviews;
• financial model preparation or review;
• accounting policy advice;
• listing advice;
• accounting/technical training; and
• taxation services of an assurance nature.
It is not considered appropriate for MCK’s
external auditors to provide:
• book keeping services related to
accounting records or financial
statements;
• tax planning and strategy services
unless specifically approved by the
Audit Committee;
• appraisal / valuation services including
opinions as to fairness;
• provision of payroll services;
• the design or implementation of
financial information systems;
• outsourced internal audit and risk
management services;
• legal services;
• management functions;
• broker / dealer / investment adviser /
investment banking services;
• advocacy for the Company;
• actuarial services; and
• assistance in the recruitment of
senior management.
These prohibitions apply to all offices of the audit
firm, including overseas offices and affiliates.
The billing arrangements for services
provided by MCK’s external auditors should
not include any contingent fees.
MCK’s expects that its external auditors will
rigorously comply with their own internal
policies on independence and all relevant
professional guidance, including independence
rules and guidance issued by CAANZ.
The nature of services provided by MCK’s
auditors and the level of fees incurred
should be reported to the Audit Committee
Chairman semi-annually (or sooner where
requested) to enable the Committee to
perform its oversight role and report back to
the Board. This policy does not prescribe any
particular ratio of non-audit service fees to
audit fees but the Committee shall monitored
the fees and ratio.
The continued appointment of MCK’s external
auditors is confirmed annually by the Board on
recommendation from the Audit Committee.
Rotation of the lead audit partner or firm
will be required every five years. Lead audit
partners who are rotated will be subject
to a 2 year cooling off period (i.e. 2 years
must expire between the rotation of an audit
partner and that partner’s next engagement
with the Company).
The hiring by MCK of any former lead
audit partner or audit manager must first
be approved by the Chairman of the Audit
Committee. There are no other restrictions on
the hiring of other staff from the audit firm.
KPMG are currently MCK’s external auditor
and the lead external audit engagement
partner was rotated in 2018.
The Audit Committee monitors local and
overseas practice on auditor independence
regularly to ensure that this policy remains
consistent with best practice and meets
MCK’s requirements.
MCK’s external auditors also attend the
Company’s Annual Meeting to answer any
questions from shareholders as to the audit
and the content of the Annual Report.
MCK has an internal audit function to
conduct audits and reviews of the Company’s
operations which is independent of the
External Auditors. A programme of work is
developed annually and submitted to the
Audit Committee for approval. The areas
covered by internal audit are those which pose
an operational business risk for MCK’s hotels
and corporate office functions. In this way,
the internal audit function strengthens MCK’s
internal controls and provides the Audit
Committee and the Board with an assessment
of the functioning and overall adequacy of
MCK’s processes.
PRINCIPLE 8 – SHAREHOLDER RIGHTS &
COMMUNICATION
The Board should respect the rights of
shareholders and foster constructive
relationships with shareholders that
encourage them to engage with the issuer.
MCK is committed to providing shareholders
and stakeholders with timely information on
its activities and performance. MCK does this
through a number of channels including:
• announcements in accordance with
continuous disclosure as required under
the Listing Rules;
• publication of the company’s annual
and interim reports which are sent to all
shareholders; and
• encouraging shareholders to attend the
Annual Meeting in May of each year to
hear the Chairman and the Managing
Director provide updates on the
company’s performance, ask questions of
the Board and vote on the resolutions to
be determined at the meeting. Resolutions
at shareholder meetings are usually
determined by poll where each ordinary
shareholder has one vote per share.
Relevant communications, copies of annual
reports and key corporate governance
documents and policies are now available
on a dedicated webpage
www.mckhotels.co.nz/investors
Shareholders also receive a discount card
for use at MCK’s hotels within New Zealand
which provides them with a twenty percent off
Best Available Rate (subject to availability).
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020 | CG 4
CG 3 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020 | REG 1
- 1 -
REGULATORY DISCLOSURES
20 LARGEST ORDINARY SHAREHOLDERS (as at 1 March 2021) (Listing Rule 3.7.1 c)
Rank Shareholder No. of Securities %
1. CDL HOTELS HOLDINGS NEW ZEALAND LIMITED 74,743,077 70.79
2. BNP PARIBAS NOMINEES (NZ) LIMITED - NZCSD 6,004,224 5.69
3. ACCIDENT COMPENSATION CORPORATION - NZCSD 3,936,434 3.73
4. CITIBANK NOMINEES (NEW ZEALAND) LIMITED - NZCSD 2,594,084 2.46
5. NATIONAL NOMINEES LIMITED - NZCSD 2,459,389 2.33
6. HSBC NOMINEES (NEW ZEALAND) LIMITED - NZCSD 1,791,060 1.70
7. HSBC NOMINEES (NEW ZEALAND) LIMITED A/C STATE STREET -NZCSD 1,296,193 1.23
8. JPMORGAN CHASE BANK NA NZ BRANCH-SEGREGATED CLIENTS A/C - NZCSD 924,306 0.88
9. LENG BENG KWEK 906,000 0.86
10. AMALGAMATED DAIRIES LIMITED 684,980 0.65
11. NEW ZEALAND DEPOSITORY NOMINEE LIMITED 605,565 0.57
12. KAY HONG CHIAM 475,251 0.45
13. MFL MUTUAL FUND LIMITED - NZCSD 463,297 0.44
14. CUSTODIAL SERVICES LIMITED 355,500 0.34
15. JALAER INVESTMENTS LIMITED 278,977 0.26
16. GEOK LOO GOH 168,002 0.16
17. SITA SINGH 151,000 0.14
18. ASB NOMINEES LIMITED 150,000 0.14
19. HOWARD CEDRIC ZINGEL 139,915 0.13
20. BRUCE JOHN MCCULLAGH 138,000 0.13
NZCSD is the New Zealand Central Securities Depositary and provides a custodial depositary service to its clients and does not have
a beneficial interest in the shares held in its name.
20 LARGEST REDEEMABLE PREFERENCE SHAREHOLDERS (as at 1 March 2021) (Listing Rule 3.7.1 c))
Rank Shareholder No. of Securities %
1. CDL HOTELS HOLDINGS NEW ZEALAND LIMITED 45,224,095 85.75
2. BNP PARIBAS NOMINEES (NZ) LIMITED - NZCSD 2,945,671 5.59
3. HSBC NOMINEES (NEW ZEALAND) LIMITED - NZCSD 1,683,950 3.19
4. ACCIDENT COMPENSATION CORPORATION - NZCSD 935,848 1.77
5. LENG BENG KWEK 453,000 0.86
6. NATIONAL NOMINEES LIMITED - NZCSD 363,021 0.69
7. KAY HONG CHIAM 211,324 0.40
8. ASB NOMINEES LIMITED 130,451 0.25
9. ALAN DAVID WHITE 110,130 0.21
10. CUSTODIAL SERVICES LIMITED 68,355 0.13
11. GRAEME STUART LORD + LISA ANNE LORD 59,000 0.11
12. JENNIFER GAYE SIMPSON 43,000 0.08
13. THEODORE JOHN VAN GELDERMALSEN + MARGARET GAY FREEMANTLE 38,000 0.07
14. HOWARD CEDRIC ZINGEL 31,592 0.06
15. JOAN LESLEY THOMPSON 30,200 0.06
16. ROGER EDWARD HAYWARD + SUSAN ELIZABETH HAYWARD 28,909 0.05
17. CUSTODIAL SERVICES LIMITED 23,900 0.05
18. SEA AND PEAK EQUITIES LIMITED 23,400 0.04
19. AIKEN & ASSOCIATES LIMITED 21,593 0.04
20. CUSTODIAL SERVICES LIMITED 21,200 0.04
NZCSD is the New Zealand Central Securities Depositary and provides a custodial depositary service to its clients and does not have
a beneficial interest in the shares held in its name.
HOLDINGS SIZE – ORDINARY SHARES (as at 1 March 2021)
Range Total Holders Number of shares Percentage of Issued Capital
1 - 99 11 437 0.00
100 - 199 37 5,430 0.01
200 - 499 466 160,964 0.15
500 - 999 338 234,758 0.22
1,000 - 1,999 248 351,006 0.33
2,000 - 4,999 279 859,980 0.81
5,000 - 9,999 152 1,036,266 0.98
10,000 - 49,999 134 2,483,236 2.35
50,000 - 99,999 20 1,398,163 1.32
100,000 - 499,999 13 2,433,106 2.30
500,000 - 999,999 3 2,196,545 2.08
1,000,000 + 2 94,418,399 89.43
Rounding 0.02
Total 1703 105,578,290 100.00
HOLDINGS SIZE – REDEEMABLE PREFERENCE SHARES (as at 1 March 2021)
Range Total Holders Number of shares Percentage of Issued Capital
1 - 99 4 253 0.00
100 - 199 34 5,238 0.01
200 - 499 39 12,067 0.02
500 - 999 25 17,092 0.03
1,000 - 1,999 25 35,392 0.07
2,000 - 4,999 17 61,450 0.12
5,000 - 9,999 12 72,862 0.14
10,000 - 49,999 17 350,344 0.66
50,000 - 99,999 2 127,355 0.24
100,000 - 499,999 4 904,905 1.72
1,000,000 + 2 51,152,585 96.99
Rounding 0.00
Total 181 52,739,543 100.00
REG 2 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020
- 2 -
DOMICILE OF ORDINARY SHAREHOLDERS (as at 1 March 2021)
Number Number of shares Percentage of Issued Capital
New Zealand 1611 103,416,515 97.95
Overseas holders 92 2,161,775 2.05
Total 1703 105,578,290 100.00
DOMICILE OF REDEEMABLE PREFERENCE SHAREHOLDERS (as at 1 Maprch 2021)
Number Number of shares Percentage of Issued Capital
New Zealand 170 51,993,010 98.58
Overseas holders 11 746,533 1.42
Total 181 52,739,543 100.00
WAIVERS FROM NZX LIMITED
No waivers were sought from NZX in 2020.
SUBSTANTIAL PRODUCT HOLDERS
According to notices given to the Company under the Financial Markets Conduct Act 2013, as at 28 February 2021, the substantial product holders in the
Company are noted below:
Securities Class %
CDL Hotels Holdings New Zealand Limited 74,139,077 Ordinary Shares 70.79%
Standard Life Aberdeen plc 8,500,941 Ordinary Shares 8.06%
Aberdeen Standard Investments (Asia) Limited 8,500,941 Ordinary Shares 8.06%
CDL Hotels Holdings New Zealand Limited is a wholly owned subsidiary of Millennium & Copthorne Hotels Limited (formerly Millennium & Copthorne Hotels plc).
As at 28 February 2021, the total number of issued voting securities of Millennium & Copthorne Hotels New Zealand Limited (all of which are ordinary shares) was
105,578,290. The Company holds 99,547 repurchased ordinary shares as treasury stock.
The total number of non-voting redeemable preference shares was 52,739,543. As these securities are non-voting securities, there is no requirement to provide
substantial product holder notices.
STATUTORY INFORMATION
DIRECTORS (section 211 (1)(i) Companies Act 1993)
As at 31 December 2020, the Company’s Directors were Messrs. C Sim, BK Chiu, R Bobb, K Hangchi, ES Kwek and GA McKenzie. Messrs. Chiu, Hangchi and
Kwek were appointed by Millennium & Copthorne Hotels Limited. Mr. ES Kwek was appointed with effect from 1 January 2020. Ms. L Preston was appointed with
effect from 1 March 2021.
The gender breakdown of the Board at balance date was 6 male directors and 0 female directors (2019: 6 male directors and 0 female directors). MCK currently
has 3 female and 6 male officers (2019: 3 female and 6 male officers).
INTERESTS REGISTER (sections 189 (1) (c) and 211(1)(e) Companies Act 1993)
The Company maintains an Interests Register as required under the Companies Act 1993. For the period under review, the following entries were recorded:
USE OF COMPANY INFORMATION (section 145 Companies Act 1993)
During 2020, the Board did not receive any notices from any Directors of the Company requesting the use of company information which they would have received
in their capacity as Directors which would not otherwise have been available to them.
SHARE DEALING (section 148, Companies Act 1993)
No share dealings by Directors occurred during 2020.
DIRECTORS’ AND ASSOCIATED PERSONS SHAREHOLDINGS (as at 31 December 2020)
Director 2019 2020
C Sim Nil Nil
B K Chiu Nil Nil
R Bobb Nil Nil
K Hangchi Nil Nil
ES Kwek Nil Nil
GA McKenzie Nil Nil
REMUNERATION (section 161 and 211(1)(f), Companies Act 1993)
The total remuneration and value of other benefits earned by each of the Directors of the Company for the year ending 31 December 2020 was:
Director Remuneration
C Sim 35,700
B K Chiu (*) 396,210
R Bobb 39,900
K Hangchi 32,300
ES Kwek (*) Nil
GA McKenzie 38,250
In response to the COVID-19, all directors agreed to take a voluntary reduction of 20 percent of their annual fees from April 2020 until December 2020.
(*) Mr. Kwek is the Executive Director of Millennium & Copthorne Hotels Limited. Mr. B K Chiu is the Managing Director of MCK. Neither Mr. Kwek nor Mr. Chiu
received remuneration as a director of the Company or of any of the Company’s subsidiaries.
INDEMNITY AND INSURANCE (section 162, Companies Act 1993)
In accordance with the Company’s constitution, the Company has insured all its Directors and the Directors of its subsidiaries against liabilities to other parties
(except the Company or a related party of the Company) that may arise from their positions as Directors. The insurance does not cover liabilities arising from
criminal actions.
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020 | REG 3
- 3 -
GENERAL DISCLOSURES OF INTEREST (section 140(2), Companies Act 1993)
As at 31 December 2020, the Directors of the Company have made general disclosures of interest in the following companies:
C SIM
Chairman / Director of:
CDL Investments New Zealand Limited
Director of: Autocaps (Aust) Pty Ltd Autocaps Pastoral Division Pty Limited
Autocaps Vogue Pty Limited Bathurst Range Investments Pty Limited Builders Recycling Properties Pty Ltd
Builders Recycling Operations Pty Ltd CS Investments No. 1 Pty Ltd Desert Rose Group Pty Limited
Desert Rose Holdings Pty Limited DMM Investments (NSW) Pty Ltd East Quarter Group Pty Ltd
East Quarter Hurstville Pty Limited EQ Constructions Pty Ltd EQ Equity Pty Ltd
EQ Finance Services Pty Limited EQ Gosford Pty Ltd EQ Projects Pty Ltd
EQ Projects Holdings Pty Ltd EQ Property Holdings Pty Ltd EQ Revesby Pty Ltd
EQ Riverside Pty Ltd EQ Zetland Pty Ltd EQ Zetland Finance Pty Ltd
Hurstville NSW Pty Limited Llenruk Pty Ltd Naxta Pty Ltd
New Dale Sim Pty Ltd PBD Phoenix Pty Limited PCC Devco 1 Pty Limited
Phoenix Palm Developments Pty Limited Preslite Drive Technologies Pty Limited SSK Investments Pty Ltd
SSK Investments No 2 Pty Ltd SSK Investments O/S Pty Ltd TECH5 Australia Pty Ltd
Waterbrook Bayview Pty Ltd Waterbrook Bayview Investment Pty Ltd
Waterbrook Bayview Village Management Pty Ltd Waterbrook Bowral Pty Ltd Waterbrook Bowral Investment Pty Ltd
Waterbrook Brand Pty Ltd West Quarter Hurstville Pty Limited
R BOBB
Director of: Bobb Management Pty Ltd Continental Investments Pty Ltd
Hotelcorp New Zealand Pty Ltd Kingsgate Hotel Pty Ltd Kingsgate Holdings Pty Ltd
Kingsgate Investments Pty Ltd Melmark Securities Pty Ltd. Millennium & Copthorne Hotels Pty Ltd.
RAB Capital Pty Ltd Star Securities Australia Pty Ltd Trans National Properties Ltd
BK CHIU
Chairman / Director of: Quantum Ltd Waitangi Resort Joint Venture Committee
Director of: All Seasons Hotels & Resorts Ltd CATG Limited
CDL Investments New Zealand Ltd CDL Land New Zealand Ltd Context Securities Ltd
Hospitality Group Ltd Hospitality Leases Ltd Hospitality Services Ltd
Kingsgate Hotels & Resorts Ltd Millennium & Copthorne NZ Ltd QINZ Holdings (New Zealand) Ltd
QINZ (Anzac Avenue) Ltd
K HANGCHI
Director of: CDL Hotels Holdings New Zealand Limited KIN Holdings Limited
Hong Leong Finance Limited Hong Leong Finance Nominees Pte Ltd Hong Leong Nominees (Private) Limited
Millennium Securities Nominees Pte Ltd Millennium Securities Pte Ltd Singapore Nominees Private Ltd
Sun Yuan Holdings Pte Ltd Sun Yuan Overseas Pte Ltd
ES KWEK
Chairman / Director / President of: Grand Plaza Hotel Corporation
Director / President of: The Philippine Fund Limited
Director of:
125 OBS (Nominees 1) Limited 125 OBS (Nominees 2) Limited 125 OBS GP Limited
Actas Holdigns Pte. Ltd Adelais Properties Limited Adelanto Investments Pte. Limited
Adella Properties Pte. Ltd Adelphia Holdings Limited Adisa Holdings Pte. Ltd.
Allinvest Holding Pte. Ltd Allsgate Properties Limited Alphagate Holdings Limited
Androgate Properties Limited Aquarius Properties Pte. Ltd Archyfield Limited
Asbury Holdings Pte. Ltd Ascent View Holdings Pte. Ltd Aster Land Development Pte Ltd
Aston Properties Pte. Ltd Baynes Investments Pte Ltd Beaumont Properties Limited
Beijing Fortune Hotel Co. Ltd Bellevue Properties Pte. Ltd Bestro Holdings Limited
Bloomshine Holdings Limited Bloomsville Investments Pte Ltd Bop Luxembourg (125 Obs) 2 SARL
Branbury Investments Ltd Barvogate Holdings SARL Busy Bee Ventures Limited
Camborne Developments Pte. Ltd Canvey Developments Pte. Ltd CDL Acquisitions Pte. Ltd
CDL Aquila Pte. Ltd CDL Australia Pte. Ltd CDL Constellation Pte. Ltd
CDL Crestview Holdings Pte. Ltd CDL Crown REIT Management Pte. Ltd CDL Entertainment & Leisure Pte. Ltd
CDL Evergreen Pte. Ltd CDL Hotels (Chelsea) Ltd CDL Hotels (Labuan) Ltd
CDL Hotels (Malaysia) Ltd CDL Hotels (U.K.) Ltd CDL Infinity Pte. Ltd
CDL Hotels Japan Pte. Ltd CDL Land Pte. Ltd CDL Management Services Pte. Ltd
CDL Netherlands Investments BV CDL Orion Investment Holdings Pte. Ltd CDL Pegasus Pte. Ltd
CDL Perseus Pte. Ltd CDL Pro Star Development Pty Ltd CDL Properties BV
CDL Real Estate Managers Pte Ltd CDL Regulus Pte. Ltd CDL Suzhou Investment Pte. Ltd
Central Mall Pte. Ltd Centro Investment Holding Pte Ltd Centro Property Holding Pte Ltd
Chania Holdings Limited Chester Properties Pte Ltd (in voluntary liquidation) Chestnut Avenue Developments Pte Ltd
Cideco Pte Ltd City Boost Pte. Ltd City Century Pte. Ltd
City Condominiums Pte. Ltd City Connected Communities Pte. Ltd City Delta Pte. Ltd
City Developments Investments Pte. Ltd City Elite Pte. Ltd City Hotels Pte. Ltd
City Ikonik Pte. Ltd City Lux Pte. Ltd City Montage Pte. Ltd
City Platinum Holdings Pte. Ltd City REIT Management Pte. Ltd City Ridgeview Pte. Ltd
City Sceptre Holdings Pte. Ltd City Sceptre Investments Pte. Ltd City Services Offices Pte. Ltd
City Strategic Equity Pte. Ltd City Sunshine Holdings Pte. Ltd Citydev Investments Pte. Ltd
Citydev Properties Pte. Ltd Citydev Real Estate (Singapore) Pte. Ltd Citydev Venture Holdings Pte. Ltd
Cityzens Developments Pte Ltd Cliffmont Pte Ltd (in voluntary liquidation) Copthorne Aberdeen Limited
Copthorne Hotel (Birmingham) Limited Copthorne Hotel (Cardiff) Limited Copthorne Hotel (Effingham Park) Limited
Copthorne Hotel (Gatwick) Limited Copthorne Hotel (Manchester) Limited
Copthorne Hotel (Merry Hill) Construction Limited Copthorne Hotel (Merry Hill) Limited Copthorne Hotel (Newcastle) Limited
Copthorne Hotel (Plymouth) Limited Copthorne Hotel (Slough) Limited Copthorne Hotel Holdings Limited
Copthorne Nominees Limited Copthorne Orchid Hotel Singapore Pte Ltd Crescent View Developments Pte Ltd
Darien Properties Investment Limited Dathan Holdings Pte Ltd Delfi One Investments Pte Ltd
Delfi Three Investments Pte Ltd Delfi Two Investments Pte Ltd Diplomat Hotel Holding Company Limited
Eastwest Portfolio Pte Ltd Easy Thrive Ventures Limited Eccott Pte Ltd
Edeva Holdings Limited Educado Company Limited Elishan Investments Pte Ltd
Elite Holdings Private Limited Elite Hotel Management Services Pte Ltd Ellinois Management Services Pte Ltd
Eton Properties Pte. Ltd Euroform (S) Pte Ltd Faber-Rhine Properties Pte Ltd
Fairsteps Properties Pte. Ltd Finite Properties Investment Limited First Platinum Holdings Pte. Ltd
Freshview Developments Pte Ltd Glades Properties Pte. Ltd Glengary Pte. Ltd
Golden Crest Holdings Pte Ltd Grand Isle Holdings Pte Ltd Grand Strategic Pte. Ltd
Grand Terre Properties Pte Ltd Grange 100 Pte Ltd Granmill Holdings Pte Ltd
Greystand Holdings Limited Guan Realty (Private) Limited Harbour Land Corporation
Harbour View Hotel Pte Ltd Harrow Entertainment Pte Ltd Heritage Pro International Limited
Highline Holdings Limited Highline Investments GP Limited Hong Leong Enterprises Pte Ltd
Hong Leong Hotel Development Limited Hong Leong International Hotel (Singapore) Pte Ltd Hong Leong Properties Pte Limited
REG 4 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020
- 4 -
Hospitality Holdings Pte Ltd Hospitality Ventures Pte Ltd Hotel Liverpool Limited
Hotel Liverpool Management Limited Iconique Tokutei Mokuteki Kaisha Impac Holdings Pte Ltd
Iselin Limited Island City Garden Development Pte Ltd Island Glades Developments Pte Ltd
Jayland Properties Limited Keygate Holdings Limited King’s Tanglin Shopping Pte Ltd
Landco Properties Limited Le Grove Management Pte Ltd Lightspark Holdings Limited
Lingo Enterprises Limited London Britannia Hotel Limited London Tara Hotel Limited
Lukestone Properties Limited M&C (CB) Limited M&C (CD) Limited
M&C Finance (1) Limited M&C Management Holdings Limited M&C NZ Limited
M&C Reservations Services Limited M&C Asia Finance (UK) Limited M&C Asia Holdings (UK) Limited
M&C Holdings (Thailand) Limited M&C Hotel Investments Pte Limited M&C Hotels Holdings Japan Pte Limited
M&C Hotels Holdings Limited M&C Hotels Japan Pte Limited M&C New York Finance (UK) Limited
M&C Singapore Finance (UK) Limited M&C Sponsorship Limited Melvale Holdings Limited
Merivale JV Pty Limited Millennium & Copthorne (Australian Holdings) Limited
Millennium & Copthorne (Jersey Holdings) Limited Millennium & Copthorne Hotels Limited
Millennium & Copthorne Hotels Management (Shanghai) Limited
Millennium & Copthorne Hotels New Zealand Limited Millennium & Copthorne International Limited
Millennium & Copthorne Share Trustees Limited Millennium Hotel Holdings EMEA Limited Millennium Hotels & Resorts Services Limited
Millennium Hotels (West London) Limited Millennium Hotels (West London) Management Limited
Millennium Hotels Europe Holdings Limited Millennium Hotels Limited Millennium Hotels London Limited
New Empire Investments Pte Ltd New Synergy Investments Pte Ltd New Vista Realty Pte Ltd
Newbury Investments Pte Ltd Nin Investment Holdings Pte Ltd Novel Developments Pte Ltd
Palmerston Holdings Sdn. Bhd. Pavo Properties Pte Ltd Pinenorth Properties Limited
Qaiser Holdings Limited Redvale Developments Pte Ltd Redvale Investments Pte Ltd
Redvale Properties Pte Ltd Republic Iconic Hotel Pte Ltd Republic Plaza City Club (Singapore) Pte Ltd
Reselton Properties Limited Richmond Hotel Pte Ltd Richview Holdings Pte Ltd
Rogo Investments Pte Ltd Rogo Realty Corporation Scentview Holding Limited
Scottsdale Properties Pte Ltd Serangoon Green Pte Ltd Siena Commercial Development Pte Ltd
Siena Residential Development Pte Ltd Siena Trustee Pte Ltd Silkpark Holdings Limited
Singapura Developments (Private) Limited South Beach Consortium Pte Ltd
South Beach International Hotel Management Pte Ltd Southwaters Investment Pte Ltd Sparkland Holdings Pte Ltd
Summit Vistas Pte Ltd Sunmaster Holdings Pte Ltd Sunny Vista Developments Pte Ltd
Sunshine Plaza Pte Ltd TC Development Pte Ltd
Tempus Platinum Investments Tokutei Mokuteki Kaisha TOSCAP Limited Treasure Realm Limited
Trentwell Management Pte Ltd Trentworth Properties Limited Tucana Commercial Pte Ltd
Tucana Properties Pte Ltd Tucana Residential Pte Ltd U-Paragon Holdings Limited
Ventagrand Holdings Limited Verspring Properties Pte Ltd Verwood Holdings Pte Ltd
Vinemont Investments Pte Ltd Welland Investments Limited White Haven Properties Pte Ltd
Whitehall Holdings Limited Zatrio Pte Ltd
Representative Director of:
CDL Hotels (Korea) Ltd
Alternate Director of:
Mount V Development Pte Ltd
G A MCKENZIE
Director of: CMO Energy NZ GMACK Consulting Ltd
Luxottica Retail New Zealand Ltd McHarry Holdings Ltd Saw 2015 Ltd
Value NZ Ltd
EMPLOYEE REMUNERATION (section 211(1) (g) Companies Act 1993)
The number of employees or former employees of the Company and its subsidiaries (excluding publicly listed subsidiaries) who received remuneration and any
other benefits in their capacity as employees, the value of which was or exceeded $100,000 per annum in 2020 are as follows:
Remuneration and value
of other benefits
Number. of
employees
100,001 – 110,000 7
110,001 – 120,000 3
120,001 – 130,000 4
140,001 – 140,000 2
150,001 – 160,000 3
170,001 – 170,000 2
180,001 – 190,000 2
190,001 – 200,000 2
200,001 – 210,000 2
210,001 – 220,000 2
330,001 – 340,000 1
390,001 – 400,000 1
DONATIONS (section 211(1)(h) and (2)
The Company and its subsidiaries made donations to charity totaling $445 during the year.
AUDIT FEES (section 211(1)(j) and (2)
During the period under review, the following amounts were payable to the external auditors KPMG:
2019 ($’000) 2020 ($’000)
New Zealand Australia New Zealand Australia
Annual Audit
302 25 291 28
KPMG Other Services
52 Nil 34 Nil
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020 | REG 5
- 5 -
SUBSIDIARY COMPANIES AND DIRECTORS (section 211(2) of the Companies Act 1993)
The Company’s subsidiaries and their directors as at 31 December 2020 are listed below:
NAME DIRECTORS OWNERSHIP ACTIVITY
All Seasons Hotels and Resorts Ltd
BK Chiu, JB Pua 100% Non-trading
CDL Investments New Zealand Ltd ()
C Sim, RJ Austin, BK Chiu,
J Henderson, ES Kwek, VWE Yeo
66.26% Holding Company
CDL Land New Zealand Ltd
JC Adams, BK Chiu, JB Pua 66.26% Property Investment & Development Company
Context Securities Ltd
BK Chiu, JB Pua 100% Investment Holding Company
Hospitality Group Ltd
BK Chiu, N Hood, KF Luxon 100% Holding Company
Hospitality Leases Ltd
BK Chiu 100% Lessee Company
Hospitality Services Ltd
BK Chiu, KF Luxon, JB Pua 100% Hotel Management Company
Hotelcorp New Zealand Ltd
R Bobb, JB Pua 100%
Holding Company (Australia)
KIN Holdings Ltd
JB Pua, K Hangchi 100%
Holding company
Kingsgate Holdings Pty Ltd
R Bobb, JB Pua 100%
Holding Company
Kingsgate Hotels And Resorts Ltd
BK Chiu, JB Pua 100% Franchise Holder
Kingsgate Hotels Ltd
JB Pua 100%
Non-trading
Kingsgate Hotel Pty Ltd
R Bobb, JB Pua 100%
Non-trading (Australia)
Kingsgate Investments Pty Ltd
R Bobb, JB Pua 100%
Residential Apartment Owner (Australia)
Kingsgate International Corporation Ltd
JB Pua, 100%
Holding Company
Millennium & Copthorne NZ Ltd
BK Chiu, JB Pua 100% Non-trading
Millennium & Copthorne Hotels Pty Ltd
R Bobb, JB Pua 100% Non-trading (Australia)
QINZ (Anzac Avenue) Ltd
BK Chiu, JB Pua 100%
Hotel Owner
QINZ Holdings (New Zealand) Ltd
BK Chiu, JB Pua 100%
Holding Company
Quantum Ltd
BK Chiu, KF Luxon, JB Pua, 100%
Holding company
() Listed on the New Zealand Stock Exchange
--Birkenhead Holdings Pty. Ltd and Birkenhead Investments Pty. Limited were deregistered during 2020.
--Where the directors of the Company’s subsidiaries are employees of the Company, they do not receive any remuneration or other benefits as a director. Their
remuneration and other benefits are received as employees and are included in the relevant banding under Employee Remuneration.
--The following persons received remuneration as Directors of the Company’s subsidiaries during 2020: C Sim ($35,500), VWE Yeo ($30,000), RJ Austin
($35,000), J Henderson ($30,000).
6 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2020
THIS PAGE HAS BEEN LEFT INTENTIONALLY BLANK
CORPORATE DIRECTORY
BOARD OF DIRECTORS
Colin Sim (Independent Director / Chairman)
B K Chiu (Managing Director)
Richard Bobb (Independent Director)
Kevin Hangchi (Non-Executive Director)
Eik Sheng Kwek (Non-Executive Director)
Graham McKenzie (Independent Director)
Leslie Preston (Independent Director (from March 2020))
SENIOR MANAGEMENT
Brendan Davies (Director, International and Corporate Sales)
Craig Fletcher (Director, Property Management)
Takeshi Ito (Vice President Legal & Company Secretary)
Karl Luxon (Vice President Operations [to 26 February 2021])
Ken Orr (Vice President Operations [from 1 April 2021])
Boon Pua (Vice President Finance)
Kim-Marie Rixson (Vice President Human Resources)
Alison Smith (National Director of Sales, Conferences and Incentives)
Josie Wilson (Director, Revenue and Distribution)
REGISTERED OFFICE & CONTACT DETAILS
Level 13, 280 Queen Street, Auckland, New Zealand
PO Box 5640, Victoria Street West, Auckland 1142
Telephone: (09) 353 5010
Facsimile: (09) 309 3244
Email: sales.marketing@millenniumhotels.co.nz
Global Website: www.millenniumhotels.com
Investor Website: www.mckhotels.co.nz/investors
AUDITORS
KPMG, Auckland
BANKERS
ANZ Banking Group (New Zealand) Limited
Hong Kong & Shanghai Banking Corporation Limited
SOLICITORS
Bell Gully
SHARE REGISTRAR
Computershare Investor Services Limited,
Level 2, 159 Hurstmere Road, Takapuna, Auckland, New Zealand
Private Bag 92119, Auckland 1020, New Zealand
Telephone: +64 9 488 8700
Facsimile: +64 9 488 8787
Email: enquiry@computershare.co.nz
STOCK EXCHANGE LISTING:
New Zealand Exchange (NZX)
Company Code: MCK
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.
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