MCK 2022 Annual Report
H.A.R.I. (Hotel Automated Robotic Implement)
at M Social Auckland. With the help of Keenon Robot,
H.A.R.I. is the first delivery ButlerBot of its kind in New Zealand.
Cover Image: Millennium Hotel Queenstown, Lobby Area
Annual Report Issued 31 March 2023
Annual Shareholder Meeting 23 May 2023
Half Year End 30 June 2023
Full year End 31 December 2023
Chairman’s Review 2
Managing Director’s Review 5
Developments 6
Board Of Directors 8
Hotel Ownership 9
Millennium Hotels & 10
Resorts In New Zealand
My Millennium 11
Financial Statements FIN1 – FIN26
Auditor’s Report FIN27 – FIN30
Corporate Governance CG1 – CG4
Regulatory Disclosures Reg1 - Reg5
And Statutory Information
2018
20192020*2021*2022
Revenue
$218.8m $229.7m $172.0m $164.8m$144.2m
Profit Before Tax
$85.1m$85.4m$54.4m$64.6m$44.8m
Profit After
Tax & NCI
$49.4m $49.7m $48.5m $40.0m $21.7m
Total Assets
$898.2m $1,008.2m $664.1m $680.8m $709.2m
Group Equity
$640.3m $715.3m $474.7m $514.2m $531.0m
Net Asset Backing /
Per Share (cost basis)
N/AN/A$3.00$3.25$3.35
Net Asset Backing /
Per Share (market value basis)
$4.04$4.52$4.70$5.04$4.99
Market Value of NZ
Development Properties
$337.8m $315.6m $286.4m $334.1m$342.7m
Market Value of
Australian Development
Properties
$91.0m $88.4m $68.5m $61.7m$54.9m
Market Value of NZ
Investment Properties
$ - $ - $6.4m $25.5m$62.6m
Market Value of NZ Hotel
Properties
$542.3m $585.5m $561.9m $567.6m$534.4m
FIVE YEAR TREND STATEMENT
CONTENTSCALENDAR
Colin Sim
Chairman
Stuart Harrison
Managing Director
* During 2021, the Group changed its accounting policy relating to the measurement of land and buildings from revaluation to historical cost.
The comparative figures for 2020 are restated accordingly.
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2022 | 1
CHAIRMAN’S
REVIEW
OVERVIEW
If we had to use one word to describe 2022, it would be “tough”.
The year commenced with a period of lockdowns affecting our
hotels – notably Rotorua and Bay of Islands – and transitioned
with borders re-opened but restricted staffing. Like most
businesses in the hospitality and tourism sectors, we were
affected by labour and skill shortages across the country and
the intense competition to retain and attract new employees.
This continues to be a current on-going challenge.
It was pleasing to have the transition from an Auckland MIQ
based focus (in the first half of the year) to an opening of the
international borders and the associated increases in visitor
numbers. This was certainly welcome news, particularly for
Queenstown, however the lack of employees at our hotels
across the country meant having to adjust our inventory and
service delivery to ensure that all of our guests received a
warm welcome and the best possible service you would expect
at any of our New Zealand hotels.
2022 also was a year of change as we bade farewell to long-
serving Managing Director BK Chiu and welcomed back Stuart
Harrison to MCK to take BK’s place in July. Stuart has already
made an impact with the Board and the hotel teams and we
are very much looking forward to his contribution to our future
strategic direction.
On behalf of the Board, we take this opportunity to sincerely
thank all of our employees at our hotels and our corporate
offices for their work during the past year. We sincerely
appreciate all of your efforts.
FINANCIAL PERFORMANCE & FINANCIAL POSITION
For the year ended 31 December 2022, MCK recorded a profit
attributable to owners of the parent of $21.7 million (2021:
$40.0 million).
With no one-off gains recognized during 2022, our majority-
owned subsidiary CDL Investments New Zealand Limited (“CDI”)
has been the core contributor to our profits. CDI recorded
another strong year with the year concluding a number of
section sales despite a rapid change in the residential markets
in the last few months of the year.
MCK’s New Zealand hotel operations recorded a loss before
tax of $4.0 million (2021: $2.1 million loss excl. one-off gain
from sale of land). Despite the reopening of the international
border, visitor numbers remained comparatively low and
inventory reductions due to the lack of staff also impacted on
revenue and profitability.
Our total revenue in 2022 was $144.2 million (2021: $164.8
million) and our earnings per share decreased to 13.72 cents
per share (2021: 25.31 cents per share (incl. one-off gain from
sale of land). At 31 December 2022, MCK’s shareholders’ funds
excluding non-controlling interests was $531.0 million (2021:
$514.2 million). Total assets increased to $709.2 million (2021:
$680.8 million) with net asset backing (with land and building
at cost and before distributions) also increasing to 335.4 cents
per share (2021: 324.8 cents per share).
NEW ZEALAND HOTEL OPERATIONS
2022 saw our New Zealand hotels record an operating revenue
of $65.2 million (2021: $55.2 million) for the year. The impact
of Covid lockdowns and restrictions in place around isolation
tempered revenues severely throughout the year. The initial
part of the year was supported by the utilisation of the M
Social Hotel (Auckland) as an MIQ and on the decommissioning
and re-opening of borders the recovery commenced in the
leisure locations of Bay of Islands, Queenstown and Rotorua.
Whilst there was an increase in revenue the sustained labour
shortages and associated increased costs meant delivering
a profitable result for the year was always going to be
challenging. The Board consider the result creditable given
the current circumstances but are targeting a return to overall
profit this year.
Overall, an occupancy percentage of 43.7% (2021: 36.1%),
was achieved with an average RevPAR (Revenue Per Available
Room) of $76.59 (2021: $57.91).
At the coalface, we were pleased to see the completion of
the first stage of our refurbishment at Millennium Hotel
Queenstown of 62 rooms. We are already proceeding with the
next 145 rooms which will be completed in stages between
May and December 2023.
FINANCIAL PERFORMANCE CONSOLIDATED
Actual
FY2022
$000’s
Actual
FY2021
$000’s
Hotel Revenue65,24555,247
Rental Income3,0021,942
Property Sales75,951107,583
Revenue144,198164,772
One-Off land Sale-15,870
Operating Profit43,24264,406
Net Finance Income1,539187
Profit before Income Tax 44,78164,593
Profit for the Year21,71340,049
Earnings Per Share (Cents)13.7225.31
”
2022 was a tough year for the tourism
and accommodation sectors,
our results reflected that
2 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2022
CDL INVESTMENTS NEW ZEALAND LIMITED (“CDLI”)
CDLI performed well in 2022 nearly matching its 2021 results
despite a rapid change in the property markets in late 2022
and recorded an operating profit after tax for the year of $31.2
million (2021: $31.3 million).
CDLI has maintained its dividend at 3.5 cents per share and
MCK’s Board has again resolved to take its CDLI dividend in
cash when it is paid in May.
NEW ZEALAND HOTELS
Actual
FY2022
Actual
FY2021
Occupancy (%)43.7%36.1%
Revenue Per Available Room $76.59 $57.91
Hotel Revenue65,24555,247
Rooms Available 1,679
PERSONNEL
Wages, Salaries & Benefits34,27529,077
Wages Subsidy(222)(3,990)
Personnel Expenses34,05325,087
Hotels Head Count873634
FINANCIAL PERFORMANCE - AUSTRALIA
Australia (Owned 100%)
Actual
FY2022
Actual
FY2021
Units Available (Open)4151
Number of Units Sold This Year510
Units Available (Close)3641
Currently Rented Out3236
Rental & Sales Income11,60717,389
Profit Before Income Tax5,4877,340
FINANCIAL PERFORMANCE - CDLI
Actual
FY2022
$000’s
Actual
FY2021
$000’s
Revenue67,09891,941
Operating Profit41,66142,811
Net Finance Income1,657612
Profit before Income Tax43,31843,423
AUSTRALIA UPDATE
In 2022, a total of five (2021: 10) apartments were sold at the
Zenith Residences in Sydney. We continue to own and manage
36 apartments being predominantly one bedroom units plus
some two – three bedrooms units. In 2023, MCK will continue
its plans to gradually sell down its interest in the Zenith
Residences.
DIVIDEND ANNOUNCEMENT
MCK’s Board has resolved to declare and pay all shareholders
a fully imputed dividend of 3 cents per share for 2022. The
dividend, payable to all shareholders, will be paid on 12 May
2023 with a record date of 5 May 2023. The dividend remains
at a sustainable level where shareholders are able to receive
a return commensurate with MCK’s current profitability while
still ensuring that the company retains sufficient resources to
progress refurbishment and other business critical projects
over the coming year.
”
“
Staffing remains our biggest challenge
and we asked a lot of our people
Below: Private Dining Room at M Social Auckland
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2022 | 3
H.A.R.I. can fit a wide variety of items from food and drinks to towels and amenities. It currently can run 4 errands in succession.
H.A.R.I. is interfaced with both the elevator and phone systems which allows him to take the elevator autonomously then alert
the guest upon arrival to their room.
OUTLOOK
Although worsening global economic conditions will have an
inevitable impact on our performance over the coming year,
there are grounds for optimism as well. Global demand for
travel is strong and is expected to remain so during 2023 as
people look to reconnect with family and friends across the
world or explore new locations.
We have started 2023 positively with good demand seen in our
summer season, but like a lot of New Zealand we have been
affected by recent weather events particularly in Northland
and Auckland. While our hotels have escaped any serious
physical damage from the cyclones and flooding, the impact
on our revenue and occupancy is still to be determined. We do
believe that there will be continued growth in the second half
of 2023 thanks to events such as the FIFA Women’s World Cup
to be held in New Zealand and Australia in July and August.
Conferencing and meeting business is also showing good signs
of recovery and growth and we are looking to add as much
business as we can sustain into our hotels which are geared to
host such events.
We are excited that our refurbishment programme at
Millennium Hotel Queenstown is now well underway along
with other locations being scheduled to be completed in 2024
which will see increased rate growth and clientele coming back
to our key hotels. In addition to the works at Millennium Hotel
Queenstown, rooms refurbishment is scheduled to commence
at Copthorne Hotel & Resort Bay of Islands and at Millennium
Hotel Rotorua in the second quarter of 2023 after the end of
the current high season.
Colin Sim
Chairman
16 February 2023
Our optimism is tempered slightly with some moderate caution
- we do not expect the next twelve to eighteen months to be
easy for our business but we also expect that trading conditions
will be easier now that overriding restrictions caused by the
pandemic have eased.
Our new product will create a very strong platform which will
allow us to deliver stronger returns from 2024 onwards and
the Board will be looking at additional ways to improve and
invest in our properties. We therefore expect that 2023 will
be an exciting and critical year as we continue on our recovery
journey.
4 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2022
MANAGING
DIRECTOR’S
REVIEW
As I go about writing this review it can be easily lost as to what
a ‘tough’ year 2022 was, and specifically considering that at
this time twelve months ago various locations in New Zealand
were in lock-downs under COVID response actions. We were
able to close out 2022 with the thought that things were
on the improve, with international borders re-opened and
an invigorating response to being able to travel (and stay in
hotels) again.
It is difficult therefore that some fundamental things have
changed in a short space of time as the country has had to
grapple with the effects of the Auckland weather events in
late January 2023 and more recently the effects of Cyclone
Gabrielle which is incredibly devastating and will have long
term consequences not only for the East Coast of the North
Island but for New Zealand’s key infrastructure as well. Our
thoughts and sympathies go out to everyone affected by these
events.
While MCK was not directly affected by the devastation, there is
no question that we will see indirect effects through increases
in the price of goods, resources, labour and other input costs.
Given that we are still very much in a recovery environment,
such increases across the board will have an impact on our
business. We will need to revisit how we set rates, which hotels
we look to prioritise for refurbishment and the regions where
we look to invest. We will also need to look closely at the cost
of doing business and how we can improve our operational
performance at all levels. We need to be innovative and think
outside the box.
I have the benefit of having worked for MCK some years ago.
It has been pleasing to see several familiar faces and to know
that many of the key properties still remain with some having
been upgraded or added in the period since I left. Over the
last six months, since I re-commenced with the company, I have
asked our senior teams at our corporate office and our hotel
general managers to relook at their planning and to outline
what they see as areas of key need and attention. It will not
be a surprise to anyone that the three most important issues
remain “people” and “product” and “profit”.
PEOPLE
Staffing in our sector and in hospitality remains difficult and
will stay that way for some time. While some of our hotels
have installed robots to help with some basic customer service
needs, hospitality is still very much about the human touch.
The service excellence you expect to see as a guest at our
hotels is only one side of the story. What takes place behind
the scenes in terms of preparation before and after your
stay largely goes unnoticed unless something goes wrong.
Ensuring that we provide the best possible guest experience is
always top of mind.
People are therefore at the core of our operations and keeping
them with MCK is the key focus for us post-pandemic. We are
acutely aware how difficult this is and in 2022 one of the steps
taken was to put in place an initiative to refer prospective
employees through our existing workforce and that has yielded
a number of successes across our network.
Remuneration may be the metric which everyone looks to
in order to make comparisons within the industry but one
consistent feature of our industry is that having opportunities
to upskill and take on additional challenges is something that
is of great value and therefore that is something we are looking
at with a view to improving what we have now.
We are aiming to develop a point of difference and to broaden
the key skillsets of our hotel teams over the course of 2023.
Building up a strong core knowledge base across our network
within our existing teams as we look to grow again is a key
metric for us. We also believe that as foreign visitors and
working holiday visa holders gradually return to New Zealand,
there will be a good level of enthusiasm for them to stay and
work in the tourism and accommodation sectors as travel looks
to recover around the world. New Zealand still has a solid
reputation as an attractive destination for work post-pandemic
and we are confident that as a country we have many of the
right incentives to attract talent for the short and longer term.
PRODUCT
Keeping our hotels up to date and attractive to our customers,
both international and domestic, is as important in the
current environment as retaining our people. With domestic
and overseas clients again reaching out to us and asking for
significant bookings over this year and next, it is critical that
we get refurbishment projects underway and completed within
the next two years.
We have set ourselves an ambitious workplan which will cover
key hotels in the main centres and we are confident that
despite the challenges with labour and materials, we will be
able to meet our own expectations with these improvements
and deliver the stay and experience our clients are demanding
of us. Without our refurbished product, we will not be able to
maximize our opportunities for growth and will see us losing
market share to our competitors as they expand and improve
their product offering.
PROFIT
All that said, I believe that there are reasons to remain
optimistic during 2023. I can say that I have confidence in
our people and the properties we have now and I believe that
we will be able to rebuild a strong path to growth in the near
future. This requires that we set the right strategies in place
across our network to chase opportunities that will provide
growth in revenue and cashflow to our business which we have
not been able to obtain in the last few years.
Stuart Harrison
Managing Director
8 March 2023
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2022 | 5
DEVELOPMENTS
MILLENNIUM HOTEL QUEENSTOWN
Millennium Hotel Queenstown has completed Stage 1 with 57 rooms refurbished and currently progressing through Stage 2
with 75 rooms under refurbishment. In the period to 31 December 2022: $5.0m has been spent.
Lobby Area
Deluxe Twin RoomDeluxe Room Bathroom
Deluxe Room with Archway Window
6 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2022
COPTHORNE HOTEL AND RESORT BAY OF ISLANDS - WORKING CONCEPT ROOMS
Copthorne Hotel & Resort Bay of Islands is progressing through a consenting phase which will see ~$6.0m being spent
on refurbishment.
Seaview Twin Room
Seaview Twin Room
Seaview King Room
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2022 | 7
BOARD OF DIRECTORS
COLIN SIM Chairman & Independent Director
Mr. Sim is the executive chairman of the East Quarter Group of
companies in Australia. The East Quarter Group is involved in
the development, investment and management of residential,
commercial and industrial projects across New South Wales.
Mr. Sim has strong analytical skills and extensive experience
in property development/investment and business in
Australia. He studied Mechanical Engineering in London and
has lived in Sydney, Australia for over 40 years.
Mr. Sim was appointed to the Board in July 2017 and was
re-elected to the Board at the 2021 Annual Meeting of
shareholders.
STUART HARRISON Managing Director,
Member of the Audit Committee
Stuart Harrison has nearly three decades of financial reporting
and senior management experience within the utilities,
hospitality and property industries and was appointed as
MCK’s Managing Director in July 2022. As Chief Financial
Officer for real estate investment trusts and managers with
portfolios with over $1 billion of assets, he oversaw their
financial and management reporting, treasury management
and tax compliance within both New Zealand and Australia
and has also overseen significant equity raising, debt facility
renewals and strategic acquisitions. Stuart was MCK’s Vice
President Finance between 2000 and 2008.
Stuart holds a Bachelor of Commerce and Chartered
Accountants Australia and NZ qualifications.
EIK SHENG KWEK Non-Executive Director
Mr. Kwek is currently the Group Chief Operating Officer of
City Developments Limited (“CDL”) having previously been
CDL’s Group Chief Strategy Officer. Mr. Kwek joined CDL in
2009, covering Business Development for overseas projects
before being appointed as Head of Corporate Development.
He was appointed 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.
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 2021 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 2022 annual meeting of
shareholders.
LESLIE PRESTON Independent Director,
Chair of the Audit Committee
Leslie Preston was appointed to the Board in February 2021.
Ms. Preston founded Bachcare Holiday Homes (“Bachcare”)
in 2003 and was CEO and a director until 2020. Under her
leadership Bachcare grew to become the leading full-service
holiday home rental management company in New Zealand
and was named one of The World’s Top 20 Vacation Rental
Companies in 2019.
Ms. Preston hails from New York and has worked for KPMG
Peat Marwick and Bankers Trust in the United States and for
Boston Consulting Group and BellSouth / Vodafone in New
Zealand. Her senior management experience has included
roles in marketing, customer and corporate operations as
well as business strategy. She holds an MBA from Stanford
University Graduate School of Business and a BA (Cum Laude)
from Franklin and Marshall College, Pennsylvania.
Ms. Preston was appointed in 2021 and was elected to the
Board at the 2021 annual meeting of shareholders.
8 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2022
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 Queen
-
stown Lakefront
Copthorne 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
MANAGED
Grand Millennium Auckland
Kingsgate Hotel Autolodge Paihia
HOSPITALITY SERVICES
LIMITED
View from Mount Victoria Wellington
Photo by Johnny Hendrikus
Supplied by WellingtonNZ.com
HOTEL OWNERSHIP
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2022 | 9
M COLLECTION
M Social Auckland
196 - 200 Quay Street, Auckland
Phone +64 9 377 0349
msocial.auckland@millenniumhotels.com
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 Greymouth
32 Mawhera Quay, Greymouth
P +64 3 768 5085 F +64 3 768 5844
copthorne.greymouth@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 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 New Plymouth Waterfront
1 Egmont St, New Plymouth
P +64 6 769 5301 F +64 6 769 5302
millennium.newplymouth@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 HOTELS &
RESORTS IN NEW ZEALAND
Jimmy Cook’s Kiwi Kitchen Restaurant at Copthorne Hotel Greymouth
New Zealand Ora King Salmon cured with Little Biddy Gin
Signature Southland Cheese Rolls
Jimmy Cook’s Burger
10 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2022
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In 2022, MCK’s Management Trainee Programme at Millennium
Hotels and Resorts New Zealand was successful and provided
young hoteliers with an opportunity to learn and develop skills
in various areas of the hospitality industry.
The one year programme gives our trainees the opportunity
to gain experience and training in different departments in
different MCK hotels across the country. Each of them spends
time in every department performing core duties and they also
develop their supervisory skills, including financial and people
management. Our trainees are mentored by experienced hotel
general managers and are provided with hands-on experience
at each hotel.
In addition to their day-to-day responsibilities, our trainees
also participated in various training and development activities
outside of the workplace, including leadership training,
industry events, and service in the wider community. These
activities have enabled them to enhance their knowledge and
skills and become well-rounded professionals in the hospitality
industry.
It is inspiring to witness the personal development and growth
of our trainees throughout the year. They all demonstrate
dedication, enthusiasm, and commitment to their roles.
Their involvement in projects and initiatives during 2022 has
contributed significantly to the growth and success of our
hotels and many were offered permanent positions within the
company.
We’re proud of the Class of 2022 and their accomplishments
and look forward to welcoming new Trainees to our programme
in 2023.
MANAGEMENT TRAINEE
PROGRAMME
Ken Orr (Vice President of Operations), Natalie McConnell (Learning & Capability Manager)
and Lynley Jones (Human Resources Manager) with the graduating class of 2022.
12 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2022
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2022 | 13
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 – 26
Audit Report FIN 27 – 30
Corporate Governance
Corporate Governance Statement CG 1 – 4
Regulatory Disclosures and Statutory Information – Contents
Regulatory Disclosures and Statutory Information REG 1 – 5
One80 Restaurant and Lounge Bar at Copthorne Hotel Wellington, Oriental Bay
FIN 1 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2022
The accompanying notes form part of, and should be read in conjunction with, these financial statements
FIN 1
FIN 1
FIN 1
FIN 1
FIN 1
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2022 | FIN 2
FIN 1
The accompanying notes form part of, and should be read in conjunction with, these financial statements
FIN 2
FIN 2
FIN 3 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2022
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 2022 | FIN 4
The accompanying notes form part of, and should be read in conjunction with, these financial statements
FIN 4
FIN 4
FIN 4
FIN 5 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2022
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 2022 | FIN 6
The accompanying notes form part of, and should be read in conjunction with, these financial statements
FIN 6
FIN 6
FIN 6
FIN 6
FIN 6
FIN 7 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2022
FIN 7
Notes to the Consolidated Financial Statements for the year ended 31 December 2022
•
•
•
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2022 | FIN 8
FIN 8
Notes to the Consolidated Financial Statements for the year ended 31 December 2022
FIN 9 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2022
FIN 9
Notes to the Consolidated Financial Statements for the year ended 31 December 2022
•
•
•
•
(a) Operating Segments
- 15,870 - -
- - - 15,870
FIN 9
Notes to the Consolidated Financial Statements for the year ended 31 December 2022
•
•
•
•
(a) Operating Segments
- 15,870 - -
- - - 15,870
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2022 | FIN 10
FIN 10
Notes to the Consolidated Financial Statements for the year ended 31 December 2022
•
•
Other Income – Note 1(c)
Cash & cash equivalents and short term
bank deposits
Investment property expenditure
•
•
•
FIN 11 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2022
FIN 11
Notes to the Consolidated Financial Statements for the year ended 31 December 2022
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2022 | FIN 12
FIN 12
Notes to the Consolidated Financial Statements for the year ended 31 December 2022
FIN 13 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2022
FIN 13
Notes to the Consolidated Financial Statements for the year ended 31 December 2022
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2022 | FIN 14
FIN 14
Notes to the Consolidated Financial Statements for the year ended 31 December 2022
FIN 15 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2022
FIN 15
Notes to the Consolidated Financial Statements for the year ended 31 December 2022
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2022 | FIN 16
FIN 16
Notes to the Consolidated Financial Statements for the year ended 31 December 2022
•
•
•
•
•
•
•
FIN 17 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2022
FIN 17
Notes to the Consolidated Financial Statements for the year ended 31 December 2022
•
•
•
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2022 | FIN 18
FIN 18
Notes to the Consolidated Financial Statements for the year ended 31 December 2022
FIN 19 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2022
FIN 19
Notes to the Consolidated Financial Statements for the year ended 31 December 2022
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2022 | FIN 20
FIN 20
Notes to the Consolidated Financial Statements for the year ended 31 December 2022
FIN 21 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2022
FIN 21
Notes to the Consolidated Financial Statements for the year ended 31 December 2022
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2022 | FIN 22
FIN 22
Notes to the Consolidated Financial Statements for the year ended 31 December 2022
FIN 23 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2022
FIN 23
Notes to the Consolidated Financial Statements for the year ended 31 December 2022
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2022 | FIN 24
FIN 24
Notes to the Consolidated Financial Statements for the year ended 31 December 2022
FIN 25 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2022
FIN 25
Notes to the Consolidated Financial Statements for the year ended 31 December 2022
•
•
•
•
•
•
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2022 | FIN 26
FIN 26
Notes to the Consolidated Financial Statements for the year ended 31 December 2022
FIN 27 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2022
© 2023 KPMG, a New Zealand Partnership and a member firm of the KPMG global organisation 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 FIN26:
i.present fairly in all material respects the
Group’s financial position as at 31 December
2022 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 2022;
—the consolidated income statement, statement
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 tax 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 $4.5 million determined with reference to a benchmark of group’s total
assets. We chose the benchmark because, in our view, this is a key measure of the group’s performance
© 2023 KPMG, a New Zealand Partnership and a member firm of the KPMG global organisation 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 FIN26:
i.present fairly in all material respects the
Group’s financial position as at 31 December
2022 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 2022;
—the consolidated income statement, statement
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 tax 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 $4.5 million determined with reference to a benchmark of group’s total
assets. We chose the benchmark because, in our view, this is a key measure of the group’s performance
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2022 | FIN 28
© 2023 KPMG, a New Zealand Partnership and a member firm of the KPMG global organisation 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 FIN26:
i.present fairly in all material respects the
Group’s financial position as at 31 December
2022 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 2022;
—the consolidated income statement, statement
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 tax 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 $4.5 million determined with reference to a benchmark of group’s total
assets. We chose the benchmark because, in our view, this is a key measure of the group’s performance
© 2023 KPMG, a New Zealand Partnership and a member firm of the KPMG global organisation 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 FIN26:
i.present fairly in all material respects the
Group’s financial position as at 31 December
2022 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 2022;
—the consolidated income statement, statement
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 tax 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 $4.5 million determined with reference to a benchmark of group’s total
assets. We chose the benchmark because, in our view, this is a key measure of the group’s performance
2
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 this matter and our key
audit procedures to address this matter 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
Impairment of Hotel Assets
Refer to Note 9 to the Annual Financial
Statements
Hotel assets of $229.3 million are recognised at
historical cost less accumulated depreciation
and impairment losses.
At the balance date each of the hotel assets
was assessed by management for indicators of
impairment. Four hotels with a carrying value
of $40 million were identified to have indicators
of impairment, and testing was performed to
determine if the carrying values of these assets
are recoverable based on the higher of their
value in use and fair value less disposal costs.
Management engaged an independent valuer
to assist in the determination of the value in
use of three of these hotel assets and
performed an internal valuation for the other
hotel applying the same methodology adopted
by the independent valuer.
The recoverable amount of the hotel assets
was determined by applying a discounted
cashflow approach (DCF) with a cross check
using the direct sales comparative approach
where appropriate. In one instance the
recoverable amount of a hotel asset was
determined by only applying the direct sales
comparative approach less cost of disposal.
Key assumptions in the discounted cash flow
models include projected occupancy rates,
average daily room rates (ADRs), projected
payroll costs, the discount rate and terminal
yield rate. Due to the ongoing effects of
COVID-19 on international travel, the level of
estimation uncertainty in relation to the
projected occupancy rates and ADRs is still
significant.
The procedures we performed to evaluate hotel assets for
impairment included:
- Evaluating management’s determination of the
appropriate unit of measure for impairment testing
purposes, or changes thereto, the cash-generating
unit (“CGU”). This was determined to be at the
individual hotel level.
- Assessing each hotel asset for impairment
indicators with consideration of changes in land
lease and other contractual arrangements, changes
in economic conditions and financial performance,
physical quality of the underlying asset and capital
expenditure requirements, among other factors.
- Engaging our valuation specialists to assist us in
evaluating the appropriateness of the valuation
methodologies adopted by the valuer, and
reasonableness of the discount and terminal yield
rates.
- Assessing the scope of work performed,
competency, professional qualifications,
independence and experience of the external expert
engaged by the Group.
- Performing a retrospective review of assumptions
comparing actual occupancy rates, ADRs, payroll
growth
rates, discount rates and terminal yield rates
to:
i. The assumptions projected over the forecast
period used in the prior period models; and
ii. Externally derived data including external hotel
industry reports.
- For hotel assets valued using the direct sales
comparison method we considered the
appropriateness of comparable transactions used by
the valuer.
- Performing sensitivity analyses over key
assumptions including occupancy rates, projected
ADRs, and discount rates to determine whether any
FIN 29 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2022
3
The key audit matter How the matter was addressed in our audit
We focused on the impairment of hotel assets
due to the magnitude of the balance,
judgement and estimation uncertainty related
to assessing the recoverable amounts of hotel
assets. A change in assumptions in the
impairment models could have a material
impact on the carrying value of hotel assets.
of the hotel assets tested are sensitive to
impairment.
We did not identify material exceptions from procedures
performed, and found the judgements and assumptions
used in assessing the impairment of hotel assets to be
balanced. Financial statement disclosure was
considered 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 regard 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.
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
4
—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
16 February 2023
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2022 | FIN 30
3
The key audit matter How the matter was addressed in our audit
We focused on the impairment of hotel assets
due to the magnitude of the balance,
judgement and estimation uncertainty related
to assessing the recoverable amounts of hotel
assets. A change in assumptions in the
impairment models could have a material
impact on the carrying value of hotel assets.
of the hotel assets tested are sensitive to
impairment.
We did not identify material exceptions from procedures
performed, and found the judgements and assumptions
used in assessing the impairment of hotel assets to be
balanced. Financial statement disclosure was
considered 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 regard 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.
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
4
—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
16 February 2023
CG 1 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2022
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):
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED
CORPORATE GOVERNANCE STATEMENT
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.
All Directors have access to the Company
Secretary at any time as well as independent
legal, financial or other professional advice
at the expense of the company as may be
required.
MCK revised its Share Trading Policy in 2022
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. In 2022,
the appointment of MCK’s new Managing
Director was considered by the Board as a
whole and no subcommittee was formed.
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, Graham McKenzie and Leslie Preston
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 Hangchi, Harrison, and Kwek 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 2022.
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2022 | CG 2
DirectorMeetings attended in 2022
Colin Sim (Chair)4 /4
Stuart Harrison
(Director from
1 June 2022,
Managing Director
from 2 July 2022)
2/2
BK Chiu (Managing
Director until 1 July
2022
2/2
Kevin Hangchi3 /4
Eik Sheng Kwek4 /4
Graham McKenzie4 /4
Leslie Preston4 /4
In 2022, the Board revised its Skills Matrix
to demonstrate the skills, experience and
diversity of its Board.
Skill / AttributeRelevant Director
Retail, marketing, brand
and sales experience
Preston
Governance experience
Hangchi, Harrison,
Kwek, McKenzie,
Preston, Sim
Large enterprise /
Multinational business
or leadership experience
Hangchi, Harrison,
Kwek, Preston, Sim
Accounting / Finance /
Tax experience
Hangchi, Harrison,
Kwek, Preston
Legal or Regulatory
knowledge and
experience
Hangchi, Harrison,
McKenzie
Business strategy
experience
Harrison, Kwek,
Preston, Sim
Property development /
management experience
Harrison, 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 with a
majority of Independent Directors and an
Independent Director as Chair. The current
members of the Audit Committee are Leslie
Preston (Chair), Graham McKenzie and SNB
Harrison.
The table below reports attendance of the
Audit Committee members during 2022:
DirectorMeetings attended in 2022
Leslie Preston
2/2
Graham
McKenzie
2/2
BK Chiu*
1/1
SNB Harrison**
1/1
*Mr. Chiu retired as a director and member of
the Audit Committee on 1 July 2022. **Mr.
Harrison was appointed as a director on 1
June 2022 and became Managing Director on
2 July 2022. He was appointed to the Audit
Committee on 4 August 2022.
The Board also forms subcommittees as and
when required.
MCK 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.
The objectives of the RC are to help the Board
establish coherent remuneration policies and
practices which:
• enable the Company to attract,
retain and motivate key management
personnel and Directors (executive and
nonexecutive) who will create value for
shareholders;
• fairly and reasonably reward senior
management of the Company (including
executive Directors) having regard to
the performance of the Company, the
performance of senior management and
the general pay environment; and
• comply with the provisions of any
relevant legislation, the NZX Listing
Rules and any other statutory or
regulatory requirements.
The RC met formally once during the year but
also met via telephone conference several
times during the year.
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:
¾No person may release material
information concerning MCK to any
person who is not authorised to receive
it without the approval of the Disclosure
Committee.
¾The 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.
¾The CDP includes a list of incidents
which should be disclosed to a member
of the Disclosure Committee. The
Disclosure Committee must
CG 3 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2022
¾confer, 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.
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.pp
• 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 each 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 each receive
NZ$7,000 per annum. Executive Directors do
not receive Directors’ or Committee fees.
Employee remuneration (including that of the
Managing Director and senior management)
is made up of two primary components
being a fixed component and a short term
incentive. The fixed component comprises
a base salary and other benefits such as
Kiwisaver, a contribution to health insurance
and in some cases use of a company vehicle.
The fixed component 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 based solely
on company performance. These include
meeting budget or revenue targets 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.
All 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 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’s Board has also identified the
risk of climate change on its business.
With the passing of the Financial Sector
(Climaterelated Disclosures and Other
Matters) Amendment Act 2021, MCK will
need to undertake annual reporting of climate
related disclosures such as the climate
statements required under the statutory
framework. MCK has begun assessing how
it will report against the new framework and
will publish future updates on any changes
to its risk management framework which are
associated with climate change.
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 also keeps current insurances
appropriate to its business including directors
and officers liability policies and public liability
policies with reputable global insurers.
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2022 | CG 4
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 current
audit partner is Aaron Woolsey.
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.
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 http://mckhotels.co.nz/
investors/
Shareholders also receive a discount card
for use at MCK’s hotels within New Zealand
which provides them with a discount off the
Best Available Rate (subject to availability).
REG 1 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2022
- 1 -
REGULATORY DISCLOSURES
20 LARGEST ORDINARY SHAREHOLDERS (as at 1 March 2023) (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 6,012,439 5.69
3. CITIBANK NOMINEES (NEW ZEALAND) LIMITED - NZCSD 4,870,337 4.61
4. ACCIDENT COMPENSATION CORPORATION - NZCSD 3,932,628 3.72
5. NATIONAL NOMINEES LIMITED - NZCSD 2,156,639 2.04
6. HSBC NOMINEES (NEW ZEALAND) LIMITED - NZCSD 1,651,645 1.56
7. LENG BENG KWEK 906,000 0.86
8. JPMORGAN CHASE BANK NA NZ BRANCH-SEGREGATED CLIENTS A/C - NZCSD 708,196 0.67
9. NEW ZEALAND DEPOSITORY NOMINEE LIMITED 645,882 0.61
10. KAY HONG CHIAM 475,251 0.45
11. MFL MUTUAL FUND LIMITED - NZCSD 463,297 0.44
12. CUSTODIAL SERVICES LIMITED 426,958 0.40
13. CUSTODIAL SERVICES LIMITED 338,425 0.32
14. JANINE LAUREL SMITH 278,977 0.26
15. ASB NOMINEES LIMITED 182,500 0.17
16. GEOK LOO GOH 168,002 0.16
17. WEI-YONG QIAN 165,000 0.16
18. LENNON HOLDINGS LIMITED 157,529 0.15
19. SITA SINGH 151,000 0.14
20. ASB NOMINEES LIMITED 150,000 0.14
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 2023) (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 1,693,100 3.21
4. ACCIDENT COMPENSATION CORPORATION - NZCSD 933,848 1.77
5. LENG BENG KWEK 453,000 0.86
6. NATIONAL NOMINEES LIMITED - NZCSD 233,471 0.44
7. KAY HONG CHIAM 211,324 0.40
8. CUSTODIAL SERVICES LIMITED 140,627 0.27
9. ASB NOMINEES LIMITED 130,451 0.25
10. ALAN DAVID WHITE 110,130 0.21
11. GRAEME STUART LORD & LISA ANNE LORD 77,225 0.15
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. AOTEAROA RENTAL ENTERPRISES LIMITED 30,720 0.06
16. ARIE DEKKER & LEANNE KATHERINE WALKER 30,400 0.06
17. ROGER EDWARD HAYWARD & SUSAN ELIZABETH HAYWARD 28,909 0.05
18. AIKEN & ASSOCIATES LIMITED 23,593 0.04
19. SEA AND PEAK EQUITIES LIMITED 23,400 0.04
20. RICHARD ALEXANDER COUTTS 23,000 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 2023)
Range Total Holders Number of shares Percentage of Issued Capital
1 - 499 495 157,593 0.15
500 - 999 318 223,351 0.21
1,000 - 1,999 231 324,277 0.31
2,000 - 4,999 253 786,658 0.75
5,000 - 9,999 146 985,520 0.93
10,000 - 49,999 134 2,534,339 2.40
50,000 - 99,999 17 1,202,160 1.14
100,000 - 499,999 17 3,737,549 3.54
500,000 - 999,999 3 2,260,078 2.14
1,000,000 + 6 93,366,765 88.43
Rounding
Total 1620 105,578,290 100.00
HOLDINGS SIZE – REDEEMABLE PREFERENCE SHARES (as at 1 March 2023)
Range Total Holders Number of shares Percentage of Issued Capital
1 - 499 73 16,628 0.03
500 - 999 23 15,895 0.03
1,000 - 1,999 24 33,373 0.06
2,000 - 4,999 17 58,037 0.11
5,000 - 9,999 11 68,562 0.13
10,000 - 49,999 18 394,106 0.75
50,000 - 99,999 1 77,225 0.15
100,000 - 499,999 6 1,279,003 2.43
500,000 - 999,999 1 933,848 1.77
1,000,000 + 3 49,862,866 94.55
Rounding -0.01
Total 177 52,739,543 100.00
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2022 | REG 2
- 2 -
DOMICILE OF ORDINARY SHAREHOLDERS (as at 1 March 2023)
Number Number of shares Percentage of Issued Capital
New Zealand 1,524 98,564,545 93.36
Overseas holders 96 7,013,745 6.64
Total 1620 105,578,290 100.00
DOMICILE OF REDEEMABLE PREFERENCE SHAREHOLDERS (as at 1 March 2023)
Number Number of shares Percentage of Issued Capital
New Zealand 167 52,033,800 98.66
Overseas holders 10 705,743 1.34
Total 177 52,739,543 100.00
WAIVERS FROM NZX REGULATION LIMITED (NZREGCO)
None obtained in 2022.
SUBSTANTIAL PRODUCT HOLDERS
According to notices given to the Company under the Financial Markets Conduct Act 2013, as at 1 March 2023, the substantial product holders in the Company
are noted below:
Securities Class %
CDL Hotels Holdings New Zealand Limited 74,743,077 Ordinary Shares 70.79%
abrdn plc 7,254,559 Ordinary Shares 6.88%
abrdn Asia Limited 7,254,559 Ordinary Shares 6.88%
CDL Hotels Holdings New Zealand Limited is a wholly owned subsidiary of Millennium & Copthorne Hotels Limited (formerly Millennium & Copthorne Hotels plc).
As at 1 March 2023, 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 2022, the Company’s Directors were Messrs. C Sim, SNB Harrison, K Hangchi, ES Kwek, GA McKenzie and Ms. LS Preston. Messrs.
Harrison, Hangchi and Kwek were appointed by Millennium & Copthorne Hotels Limited. Mr. Harrison was appointed as a director on 1 June 2022 and became
the Managing Director on 2 July 2022.
The gender breakdown of the Board at balance date was 5 male directors and 1 female director (2021: 5 male directors and 1 female directors). MCK currently
has 2 female and 5 male officers (2021: 2 female and 5 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 2022, 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 2022.
DIRECTORS’ AND ASSOCIATED PERSONS SHAREHOLDINGS (as at 31 December 2022)
Director 2021 2022
Colin Sim Nil Nil
B K Chiu* Nil Nil
Kevin Hangchi Nil Nil
Stuart Harrison** N/A Nil
Eik Sheng Kwek Nil Nil
Graham McKenzie Nil Nil
*Mr. Chiu retired as Managing Director on 1 July 2022. **Mr. Harrison was appointed as a director on 1 June 2022.
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 2022 was:
Director Remuneration
C Sim 42,000
B K Chiu (*) 885,520
K Hangchi 38,000
SNB Harrison (*) 261,974
ES Kwek (*) Nil
GA McKenzie 45,000
LS Preston 47,000
(*) Mr. Chiu retired as a director on 1 July 2022 and Mr. Harrison was appointed as a director on 1 June 2022. Mr. Kwek is the Executive Director of Millennium &
Copthorne Hotels Limited. Mr. Kwek does not receive remuneration as a director of the company and Messrs. Chiu and Harrison did not receive remuneration as
a director 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.
REG 3 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2022
- 3 -
GENERAL DISCLOSURES OF INTEREST (section 140(2), Companies Act 1993)
As at 31 December 2022, 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 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
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
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 Pagsan Investment Pte. Ltd
Singapore Nominees Private Ltd Sun Yuan Holdings Pte Ltd Sun Yuan Overseas Pte Ltd
SNB HARRISON
Chair of: Waitangi Resort Joint Venture Committee
Director of: All Seasons Hotels & Resorts Ltd Context Securities Ltd
Hospitality Group Ltd Hospitality Leases Ltd Hospitality Services Ltd
Kingsgate Hotels Limited Kingsgate Hotels & Resorts Ltd Kingsgate International Corporation Limited
Millennium & Copthorne NZ Ltd QINZ Holdings (New Zealand) Ltd QINZ (Anzac Avenue) Ltd
Quantum Ltd
ES KWEK
Chairman / Director / President of: Grand Plaza Hotel Corporation;
Chairman and Director of: Millennium Hotels Italy Holdings srl; Millennium Hotels Palace Management srl; Millennium Hotels Property srl
Director / President of: Five Star Assurance Inc. , The Philippine Fund Limited
Managing Director of: ATOS Holdings GmbH
Director of:
125 OBS (Nominees 1) Limited 125 OBS (Nominees 2) Limited 125 OBS GP Limited
Actas Holdings Pte. Ltd Adelais Properties Limited Adelanto Investments Pte. Limited
Adelphia Holdings Limited Allinvest Holding Pte. Ltd Allsgate Properties Limited
Alphagate Holdings Limited Androgate Properties Limited Aquarius Properties Pte. Ltd
Archyfield Limited Ascent View Holdings Pte. Ltd Aster Land Development Pte Ltd
Aston Properties Pte. Ltd Atlasgate SG Holdings Pte. Ltd Atlasgate UK Holdings Pte. Ltd
Atlasgate UK Holdings Limited Baynes Investments Pte Ltd Beaumont Properties Limited
Beijing Fortune Hotel Co. Ltd Bellevue Properties Pte. Ltd Bestro Holdings Limited
Bloomshine Holdings Limited BOP Luxembourg (125 Obs) 2 SARL Branbury Investments Ltd
Barvogate Holdings SARL Bridge North Limited Camborne Developments Pte. Ltd
Canterbury Riverside Opco Limited Canterbury Riverside Propco Limited Canvey Developments Pte. Ltd
CDL Acquisitions Pte. Ltd CDL Aquila Pte. Ltd CDL Australia Holdings Pty.. Ltd
CDL Commercial REIT Management 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 (Korea) Ltd CDL Hotels (Labuan) Ltd
CDL Hotels (Malaysia) Sdn. Bhd CDL Hotels (U.K.) Ltd CDL Hotels Japan Pte. Ltd
CDL Infinity Pte. Ltd CDL Land Pte. Ltd CDL Libra Commercial Pte. Ltd
CDL Libra 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 Pisces Commercial Pte. Ltd CDL Pro Star Development Pty Ltd CDL Properties BV
CDL Real Estate Asset Managers Pte Ltd CDL Real Estate Investment Managers Pte Ltd CDL Regulus Pte. Ltd
CDL Shanghai Holdings Pte. Ltd CDL Suzhou Investment Pte. Ltd Central Mall Pte. Ltd
Centro Investment Holding Pte Ltd Centro Property Holding Pte Ltd Chania Holdings Limited
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 Gemini 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 Resyde Pte. Ltd City Sceptre Investments Pte. Ltd City Serviced Offices Pte. Ltd
City Strategic Equity Pte. Ltd City Sunshine Holdings Pte. Ltd City Thrive Pte. Ltd
Citydev Investments Pte. Ltd Citydev Real Estate (Singapore) Pte. Ltd Citydev Venture Holdings Pte. Ltd
Cityview Place Holdings Pte. Ltd Cityzens Developments Pte Ltd Copthorne (Nominees) Limited
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 Hotels Limited Copthorne Orchid Hotel Singapore Pte Ltd Copthorne Orchid Hotel Penang Sd. Bhd.
Crescent View Developments Pte Ltd Darien Properties Investment Limited 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 Edeva Holdings Limited
Educado Company Limited Elite Hotel Management Services Pte Ltd Ellinois Management Services Pte Ltd
Euroform (S) Pte Ltd Ferguson Hotels Holdings Limited Ferguson Investment Corp.
Finite Properties Investment Limited First Platinum Holdings Pte. Ltd Freshview Developments Pte Ltd
Friars Road Manco Limited Glades Properties Pte. Ltd Grand Strategic 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 Highline Properties GP Limited Hoko Fitzroy Pty Ltd
Hoko Kenmore Pty Ltd Hoko Macaulay Pty Ltd Hoko Mina Pty Ltd
Hoko Spencer Pty Ltd Hoko Toowong Pty Ltd Hong Bee Hardware Company Sdn Berhad
Hong Leong Enterprises Pte Ltd Hong Leong Foundation Hong Leong Hotel Development Limited
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2022 | REG 4
- 4 -
Hong Leong International Hotel (Singapore) Pte Ltd Hong Leong Properties Pte Limited Hospitality Holdings Pte Ltd
Hospitality Ventures Pte Ltd Hotel Liverpool Limited Hotel Liverpool Management Limited
HSRE Crosslane (Coventry) Limited HSRE Crosslane (Leeds) Limited HSU JV Holdco Limited
HThree City Jade Pte Ltd Iconique Tokutei Mokuteki Kaisha Infinity Properties Limited
Iselin Limited Island Glades Developments Pte Ltd Jayland Properties Limited
Keygate Holdings Limited King’s Tanglin Shopping Pte Ltd Kwek Holdings Pte Ltd
Kwek Hong Png Investment Pte Ltd Landco Properties Limited Le Grove Management Pte Ltd
Legend Commercial Pte Ltd Legend Commercial Trustee Pte Ltd Legend Investment Holdings Pte Ltd
Legend Quay 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 Capital Pte Ltd
M&C Business Trust Management Limited (as trustee-manager of CDL Hospitality Business Trust) M&C Holdings (Thailand) Limited
M&C Hotel Investments Pte Limited M&C Hotels France Management SARL
M&C Hotels Holdings Japan Pte Limited M&C Hotels Holdings Limited M&C Hotels Holdings USA Limited
M&C Hotels Japan Pte Limited M&C New York Finance (UK) Limited M&C REIT Management Limited
M&C Singapore Finance (UK) Limited M&C Singapore Holdings (UK) Limited M&C Sponsorship Limited
Melvale Holdings Limited Millennium & Copthorne (Australian Holdings) Limited
Millennium & Copthorne (Jersey Holdings) Limited Millennium & Copthorne Hotels Limited
Millennium & Copthorne Hotels Management (Shanghai) 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 Bath Court (Opco) Limited New Bath Court Limited New Empire Investments Pte Ltd
New Synergy Investments Pte Ltd New Unity Holdings Ltd. New Vista Realty Pte Ltd
Newbury Investments Pte Ltd Novel Developments Pte Ltd Palmerston Holdings Sdn. Bhd.
Pavo Properties Pte Ltd Pinenorth Properties Limited
Qaiser Holdings Limited Queensway Hotel Holdings Limited Queensway Hotel Limited
Rainbow North Limited Redvale Developments Pte Ltd Redvale Investments Pte Ltd
Redvale Properties Pte Ltd Rehi Normanby Pty Limited Republic Hotels and Resorts Limited
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
Sonic Investment Pte. Limited 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 Sycamore House Manco Limited
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
General Manager of : M& C Hotels France SAS
Alternate Director of: Mount V Development Pte Ltd; South Beach Consortium Pte Ltd
G A MCKENZIE
Director of: CMO Energy NZ GMACK Consulting Ltd
McHarry Holdings Ltd Valar NZ Ltd
Independent Trustee of: Development West Coast
L S PRESTON
Director of: 3M6 Property Limited Ingenio Group Holdings Limited
Ingenio Limited Ingenio Services Limited Rose And Thorne Design Limited
Member of: Expert Advisory Panel, Innovation Programme for Tourism Recovery, Ministry of Business, Innovation and Employment
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 2022 are as follows:
Remuneration and value
of other benefits
Number of
employees
100001 - 110000 8
110001 - 120000 6
120001 - 130000 6
130001 - 140000 1
140001 - 150000 4
150001 - 160000 2
160001 - 170000 1
170001 - 180000 1
180001 - 190000 3
230001 - 240000 1
240001 - 250000 1
260001 - 270000 2
270001 - 280000 2
880001 - 890000 1
DONATIONS (section 211(1)(h) and (2)
The Company and its subsidiaries made donations to charity totaling $447 during the year.
AUDIT FEES (section 211(1)(j) and (2)
During the period under review, the following amounts were payable to the external auditors KPMG:
2021 ($’000) 2022 ($’000)
New Zealand Australia New Zealand Australia
Annual Audit
341 26 332 28
KPMG Other Services
34 Nil 34 Nil
REG 5 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2022
- 5 -
SUBSIDIARY COMPANIES AND DIRECTORS (section 211(2) of the Companies Act 1993)
The Company’s subsidiaries and their directors as at 31 December 2022 are listed below:
NAME DIRECTORS OWNERSHIP ACTIVITY
All Seasons Hotels and Resorts Ltd
SNB Harrison, JB Pua 100% Non-trading
CDL Investments New Zealand Ltd ()
C Sim, JC Adams, J Henderson, DJ
Jameson, ES Kwek, VWE Yeo
65.99% Holding Company
CDL Land New Zealand Ltd
JC Adams, T Ito, JB Pua 65.99% Property Investment & Development Company
Context Securities Ltd
SNB Harrison, JB Pua 100% Investment Holding Company
Hospitality Group Ltd
SNB Harrison, N Hood, K Orr 100% Holding Company
Hospitality Leases Ltd
SNB Harrison, JB Pua 100% Lessee Company
Hospitality Services Ltd
SNB Harrison, K Orr, JB Pua 100% Hotel Management Company
Hotelcorp New Zealand Ltd
JB Pua, JSS Tan 100%
Holding Company (Australia)
KIN Holdings Ltd
JB Pua, K Hangchi 100%
Holding company
Kingsgate Holdings Pty Ltd
JB Pua, JSS Tan 100%
Holding Company
Kingsgate Hotels And Resorts Ltd
SNB Harrison, JB Pua 100% Franchise Holder
Kingsgate Hotels Ltd
SNB Harrison, JB Pua 100%
Non-trading
Kingsgate Hotel Pty Ltd
JB Pua, JSS Tan 100%
Non-trading (Australia)
Kingsgate Investments Pty Ltd
JB Pua, JSS Tan 100%
Residential Apartment Owner (Australia)
Kingsgate International Corporation Ltd
SNB Harrison, JB Pua, 100%
Holding Company
Millennium & Copthorne NZ Ltd
SNB Harrison, JB Pua 100% Non-trading
Millennium & Copthorne Hotels Pty Ltd
JB Pua, JSS Tan 100% Non-trading (Australia)
QINZ (Anzac Avenue) Ltd
SNB Harrison JB Pua 100%
Hotel Owner
QINZ Holdings (New Zealand) Ltd
SNB Harrison JB Pua 100%
Holding Company
Quantum Ltd
SNB Harrison K Orr, JB Pua, 100%
Holding company
() Listed on the New Zealand Stock Exchange
--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 2022: C Sim ($35,000), JC Adams ($478,528), J Henderson
($30,000), DJ Jameson ($30,000), VWE Yeo ($30,000),.
CORPORATE DIRECTORY
BOARD OF DIRECTORS
Colin Sim (Independent Director / Chairman)
Stuart Harrison (Managing Director)
Kevin Hangchi (Non-Executive Director)
Eik Sheng Kwek (Non-Executive Director)
Graham McKenzie (Independent Director)
Leslie Preston (Independent Director/Chair of Audit Committee)
SENIOR MANAGEMENT
Boon Pua (Vice President Finance)
Ken Orr (Vice President Operations)
Takeshi Ito (Vice President Legal & Company Secretary)
Brendan Davies (Director, International and Corporate Sales)
Craig Fletcher (Director, Property Management)
Josie Wilson (Director, Revenue and Distribution)
Lisa Maclean (Director, Human Resources) - from 20 March 2023
Nathan Kruger (Director, Information Technology) - from 20 March 2023
Sam Horsnell (Director of Sales, Conferences and Incentives)
REGISTERED OFFICE & CONTACT DETAILS
Level 7, 23 Customs Street East, Auckland, 1010 - from 3 April 2023
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
HEAD OFFICE
Head Office Tel: (09) 353 5010
Level 7, 23 Customs Street East, Auckland 1010
– from 3 April 2023
PO Box 5640, Victoria Street West, Auckland 1142
NATIONAL CONFERENCE OFFICE
Ph: 0800 4 MEETINGS (0800 4 633 846)
Email: meetings@millenniumhotels.co.nz
www.meetingsnz.co.nz
SALES
Email: sales.marketing@millenniumhotels.co.nz
International Sales Tel: (09) 353 5085
Corporate Sales Auckland Tel: (09) 353 5010
Corporate Sales Wellington Tel: (04) 382 0770
CENTRAL RESERVATIONS
Ph: 0800 808 228
Email: central.res@millenniumhotels.co.nz
www.millenniumhotels.com
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.