MCK FY2024 Annual Report
ANNUAL REPORT
MILLENNIUM & COPTHORNE
HOTELS NEW ZEALAND LTD
2024
Cover Image: Copthorne Hotel & Resort Bay of Islands,
Inside Cover Image: Grounds at Copthorne Hotel & Resort Bay of Islands
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024 | 3
2020*2021*202220232024
Revenue
$172.0m $164.8m$144.2m$145.7m$176.2m
Profit Before Tax
$54.4m$64.6m$44.8m$37.5m $47.1m
Profit After Tax & NCI
$48.5m $40.0m $21.7m$21.6m$2.8m
Total Assets
$664.1m $680.8m $709.2m$746.8m$762.3m
Group Equity
$474.7m $514.2m $531.0m$547.9m$547.9m
Net Asset Backing Per Share
($ per share) on cost basis
$3.00$3.25$3.35$3.46$3.46
Net Asset Backing Per Share
($ per share) on market value basis
$4.70$5.04$4.99$5.84$5.39
Market Value of NZ
Development Properties
$286.4m $334.1m$342.7m$349.9m$357.8m
Market Value of Australian
Development and Hotel
Properties
$68.5m $61.7m$54.9m$146.6mª$134.9mª
Market Value of NZ
Investment Properties
$6.4m $25.5m$62.6m$62.7m$65.1m
Market Value of NZ
Hotel Properties
$561.9m $567.6m$534.4m$574.4m$512.2m
FIVE YEAR TREND STATEMENT
CONTENTSCALENDAR
Colin Sim
Chairman
Stuart Harrison
Managing Director
Market Values are based on unaudited external valuations and internal management valuations.
“a” = Restated to reflect MCK’s 50% ownership of Sofitel Brisbane Central.
*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. Refer to Note 25 of the Financial Statements for further information.
Annual Report Issued 28 March 2025
Annual Shareholder Meeting 30 May 2025
Half Year End 30 June 2025
Full year End 31 December 2025
FY24 At A Glance 4
From the Chairman and Managing Director 5
New Zealand Leadership Team 6-7
People 8
Grand Millennium Auckland 9
Hotel Developments 10 – 11
The Mayfair Hotel Christchurch 12 – 13
Board Of Directors 14 – 15
Hotel Ownership 16
Millennium Hotels and Resorts 17
in New Zealand
My Millennium 18
Save The Kiwi Partnership 19
Sustainability Reporting 20 – 24
Financial Statements FIN1 – FIN31
Auditor’s Report FIN32 – FIN36
Corporate Governance CG1 – CG5
Outline of Material Risks CG7 – CG8
Regulatory Disclosures REG1 – REG5
And Statutory Information
4 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024
FY24 AT A GLANCE
Significant uplift in results; material growth
in revenue and earnings over past two years
• Revenue $176.2m, up 21.0%
• Operating profit $42.5m, up 32.1%
• Profit before tax $47.1m, up 25.6%
• Profit after tax of $2.8m attributable to MCK shareholders
includes a one off, non-cash deferred tax adjustment
1
.
Excluding this, profit after tax would be $27.2m.
• Total Assets $762.3m (2023: $746.8m) which includes
property assets at a book value of $694.1m. Fair market
value of property assets assessed as $1.1b as at 31
December 2024
2
• Net asset backing per share on market value basis assessed
as $5.39 per share
3
.
1 Includes one-off deferred tax adjustment of $25.8m, made as a result of government legislation change.
2 Unaudited, assessed market valuation based on analysis by independent property experts as at 31 December 2024.Includes 100% of: NZ hotels, Zenith Apartments, and CDI
property assets; and 50% Sofitel Brisbane Hotel.
3 Adjusted for MCK proportion of shareholding being 100% NZ hotels and Zenith Apartments, 65% of CDI and 50% Sofitel Brisbane and including an allowance for tax on the
revaluation of property assets.
Chef Chetan Pangam from One80 Restaurant and Lounge Bar at Copthorne Hotel Wellington Oriental Bay won Visa’s
Wellington on a Plate 2024 for the second year in a row with his winning creation; Nawabi Galouti Lamb Burger.
Copthorne Hotel and Resort Queenstown Lakefront.
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024 | 5
FROM THE CHAIR AND
THE MANAGING DIRECTOR
Millennium & Copthorne Hotels New Zealand Limited (the
Company, MCK) (NZX: MCK) has announced its results for the
12 months to 31 December (FY24), reporting a significant
uplift in revenue and a continued improvement in profit before
tax despite the weaker tourism and property markets in 2024.
The improvement was driven by continued positive growth in
the NZ Hotel business, with CDL Investments delivering a solid
result as the cooldown in the property market has started to
stabilise.
The company has continued to build the value of its hotel and
property portfolio, which grew to $1.1b as at 31 December
2024
2
. Significant milestones have been achieved as MCK
continues to progress its long term refurbishment and upgrade
of hotel properties. The full benefits from these initiatives will
be seen in future years. Land was acquired in Whangarei for a
future hotel and, following financial year-end, MCK settled the
acquisition of The Mayfair Hotel in Christchurch for $31.9m,
further expanding its network.
FY24 was the first year of ownership in the 50% joint venture
which acquired the Sofitel Brisbane Hotel in December 2023.
The hotel has seen consistent and strong demand across all
major segments following a soft Q1, and an increased profit
contribution is expected in FY25.
Sales of the Zenith Apartments in Sydney are continuing, with
nine apartments sold during the year and the remaining 22
apartments either held for sale or rented. The company will
continue to progress further sales during 2025.
MCK’s chairman, Colin Sim, said: “The strong results
demonstrate the resilience of our business and the value of the
Revive and Thrive strategy. We are now nearing the end of the
Revive stage and expect to move to Thrive in late 2025.
“We continue to invest into targeted growth opportunities that
will add value for our shareholders. Over the past few years, we
have invested significantly in refurbishing and upgrading our
hotels and have expanded our network through acquisition.
We have also identified surplus land adjacent to our hotels
(including at Rotorua, Queenstown and Palmerston North),
which provide optionality for further development or sale.
“The long-term macro drivers for our business are positive –
the tourism and property markets are both expected to start
to recover in the coming year; New Zealand is a top tourist
destination and tourism is New Zealand’s second highest
export earner. We are well positioned to benefit as visitor
numbers build up again over the coming year, with a national
network of quality hotels in attractive locations, many of which
have been recently refurbished.”
FINANCIAL PERFORMANCE
For the FY24 year, MCK delivered its highest revenue result in
five years, with a 21.0% yoy increase to $176.2m.
Operating profit increased 32.1% yoy to $42.5m, as a result
of increased revenue and a focus on cost management. Profit
before tax was up 25.6% yoy to $47.1m. Income Tax expense
included a $25.8m one off, non-cash deferred tax adjustment
(as noted in the 1H24 results release). Profit after tax
attributable to MCK shareholders of $2.8m would have been
$27.2m excluding the one-off tax adjustment impact.
CDL Investments New Zealand Limited (CDI), MCK’s 65% owned
subsidiary, improved its pre-tax performance in 2024 against
the previous year. CDI reported revenue of $49.1m and profit
before tax of $26.8m. Profit after tax was $15.4m, including
a one-off non-cash tax liability adjustment of approximately
$3.9m. These results confirm that property markets in New
Zealand are showing signs of improvement and there is now a
positive momentum shift.
The company has a robust balance sheet, with a net cash
position of $41.3m as at 31 December 2024. Bank debt was
$3.0m at year end, with a further drawdown in January 2025
for the $31.9m settlement of The Mayfair Hotel. The book
value of property assets was $694.1m, with the fair market
value assessed as $1.1b
2
, contributing to a market value NTA
per share attributable to MCK shareholders of $5.39 per share
3
.
A final dividend was not declared for FY24 due to the conditions
of the CDLHH NZ takeover offer currently in process, which
prevents a dividend from being paid.
2025 OUTLOOK
The expected improvement in the tourism and property
markets will directly benefit both MCK and CDI.
MCK Managing Director, Stuart Harrison, said: “Our strong
FY24 demonstrates the progress we are making on our
strategy and we are poised to Thrive from late 2025 onwards.
We are focused on the ongoing control over the controllables
with strong staffing levels and increasing room capacity.
Our refurbishment and upgrades of key hotel properties are
substantially complete, delivering an increased number of
rooms available for sale in 2025. Our teams are highly focused
on securing business across all market segments and in all
regions as we grow the My Millennium loyalty scheme and
encourage customer bookings. We will also be identifying
and assessing opportunities for surplus land at several of our
hotels.”
CDI are looking to advance development works across key sites,
particularly the two projects in Hamilton and the Hawkes Bay,
which were included in the Fast-track approvals legislation.
With a number of pre-titled residential section sales from the
Iona and Prestons Park developments in-hand and work already
underway developing additional stages, these developments
will be critical to their results and success in 2025.
Stuart said: “There is no question that MCK has a positive
future ahead of it and will continue to be a leading hotel owner
and operator in New Zealand for many years to come. 2025
represents MCK’s 30th year of continuous operations in New
Zealand and we intend to continue delivering quality customer
experiences for another thirty years and more.”
Colin Sim
Chairman
Stuart Harrison
Managing Director
6 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024
NEW ZEALAND
LEADERSHIP TEAM
STUART HARRISON
Managing Director
Stuart Harrison has nearly three decades of financial reporting
and senior management experience within the utilities,
hospitality and property industries and was appointed as
Millennium Hotels and Resorts’ Managing Director in July
2022. Stuart was previously Millennium Hotels and Resorts’
Vice President Finance between 2000 and 2008.
In a range of Chief Financial Officer roles for real estate
investment trusts and managers with portfolios with over
$1 billion of assets, he oversaw 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 holds a Bachelor of Commerce and Chartered
Accountants Australia and NZ qualifications. He was elected to
the Board at the 2023 Annual Meeting of shareholders.
MELANIE BEATTIE
Vice President Sales & Partnerships
Melanie Beattie joined Millennium Hotels and Resorts as Vice
President of Sales and Partnerships in January 2025. Her role
is focused, on leading the company’s sales, partnerships, and
revenue strategies, working alongside colleagues and industry
leaders to drive impactful outcomes in this dynamic sector.
Before joining Millennium Hotels and Resorts, Melanie was
Head of Distribution at Fidelity Life Assurance Company
Limited.
Melanie holds a Bachelor of Commerce at Auckland University
majoring in Commercial Law.
LOUISE BORTON
Director of Property
Louise joined Millennium Hotels and Resorts as Director of
Property in December 2023. Her role’s purpose is to ensure the
company’s property portfolio is best positioned to maximise
customer experience and financial returns.
With over 25 years’ experience in the commercial property
industry she has a wealth of experience in managing nationwide
property portfolios, lease negotiations, buying and selling
properties and developing new premises. Having started her
career in London and qualifying initially as a commercial valuer,
after relocating to New Zealand she focused on commercial
property asset management for a range of listed entities,
syndicated and private owners. In more recent years she has
held in-house property roles for major occupiers including
Fletcher Building and Carters Building Supplies.
Left To Right: Louise Borton, Ken Orr, Josie Wilson, Brendan Davies, Melanie Beattie, Stuart Harrison, Lisa Maclean,
Nathan Kruger, Anand Rambhai, Takeshi Ito
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024 | 7
BRENDAN DAVIES
Director of International Sales
Since joining Millennium Hotels and Resorts as Director of
International Sales in 2006 Brendan has been instrumental
in leading the international sales team to drive domestic and
global sales strategies and foster key corporate partnerships.
With over 35 years of experience in the hospitality industry,
he has a proven track record of delivering revenue growth and
enhancing brand presence in competitive markets.
Brendan and his team have successfully expanded market
share and developed innovative sales initiatives through
strategic planning and market analysis. Strong relationship
management has been instrumental in securing high-profile
clients and long-term contracts.
TAKESHI ITO
Vice President Legal & Company Secretary
Takeshi rejoined Millennium Hotels and Resorts in 2018 after a
short time away, having also worked for the company between
2004 and 2016.
Takeshi began his legal career in private practice in family,
criminal and insolvency law and over the past twenty five years
has accumulated wide-ranging experience in commercial law,
dispute resolution, intellectual property, employment law, and
corporate governance.
He graduated from the University of Auckland with Arts and
Law degrees and is admitted to practice in New Zealand as
a Barrister and Solicitor. He is also a Fellow of the Chartered
Governance Institute and Governance New Zealand and a
current Member of the Institute of Directors.
NATHAN KRUGER
Director of Digital & Technology and Communications
Nathan joined Millennium Hotels & Resorts in March 2023 to
lead the optimisation of the company’s digital and technology
infrastructure to deliver secure, agile systems and processes to
support excellence and growth.
Having always been in IT, the first half of his career was in very
technical roles in engineering, project management and IT
architecture which gave him a solid foundation before moving
into leading enterprise technology and risk environments
in large organisations such as Downer. Nathan has a strong
commitment to collaboration and communication, which has
been key to the successful delivery of digital and technology
improvements for the company.
LISA MACLEAN
Director of Human Resources
Lisa joined Millennium Hotels and Resorts in March 2023 as
Director of Human Resources, with a focus on rebuilding and
growing the people practices and processes in the business
to position Millennium Hotels and Resorts as a great place to
work and employer of choice.
With than 20 years of Human Resources experience
predominantly within the wider building and construction
industry. Lisa has a proven track record in leading people,
payroll, health, safety and wellbeing functions which support
growth and transformation whilst enabling achievement of
business profitability and results. Her service oriented and
highly collaborative style, has enabled Lisa and her team to
deliver a number of significant projects which are improving
the quality and engagement of employees.
KEN ORR
Vice President Hotel Operations
Ken took on the role of Vice President Hotel Operations in
April 2021 and is responsible for supporting and developing
the company’s hotels across the country to deliver consistent
quality guest experiences and hotel profitability.
Ken has a long history with Millennium Hotels and Resorts
starting in 1996. He has developed significant operational
experience having run hotels across the country including
Copthorne Lakefront, Millennium Queenstown, Copthorne
Central, Copthorne Harbourcity, Copthorne Plimmer Towers,
Copthorne Oriental Bay and Grand Millennium Auckland. Prior
to joining the company he worked in the UK with MacDonald
Hotels and Thistle Hotels.
Ken has an Honours degree from Stirling University in
Economics.
ANAND RAMBHAI
Vice President Finance
Anand started in the role of Vice President Finance for
Millennium Hotels and Resorts in June 2024.
He is an experienced finance leader having held senior financial
roles across a broad range of well-known businesses in New
Zealand and the UK including Macquarrie Bank, Sony, Crane
Group and British Telecom. Skilled in strategy, capital markets,
investor relations, treasury, and financial management, Anand
has proven ability to engage stakeholders, optimise capital
management, and enhance long-term shareholder value.
Anand holds a Bachelor of Commerce degree and is a chartered
accountant with Chartered Accountants Australia and NZ.
JOSIE WILSON
Director of Revenue & Distribution
Josie has been with Millennium Hotels and Resorts for 21 years
in a range of roles, including Director of Revenue & Distribution
for the past 15. Her team’s current focus is ensuring the
company maximises the expected growth of international and
domestic travellers to and within New Zealand to increase
revenue to levels that have not been seen for many years.
With a background in project management, systems analysis
she also has a strong understanding of how to enhance systems
and procedures to improve user experience, whilst reducing
costs and profitability.
Originally from the UK, she is passionate about being able to
showcase New Zealand and the kiwi hospitality that Millennium
Hotels and Resorts offers.
8 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024
The quality and engagement of our employees is an ongoing
focus for us as a business powered by people. The centralisation
of our recruitment function and investment in supporting
systems to standardise processes and improve candidate care
has delivered a significant improvement in employee retention.
We have also undertaken the groundwork for further
investment in technology to support Learning and Capability
ensuring our people have the tools and opportunities to
grow. At the end of the year, we launched a new set of vibrant
company values with input and collaboration from right across
the business. We are delighted with how our new values; Energy
On, Truly Connected, Go Further and Genuinely Care captured
the heart of the business and how we interact with each other
and our guests.
The coming year will focus on leveraging our improved
technology and processes to further increase retention,
embed our values and build out our learning and development
pathways to ensure we are delivering on our purpose, ‘Your
best time and place - right here, right now’, for our people and
our guests.
Our values are the behaviours and
actions that are brought to life by our
people. They help us build a strong
foundation about what we expect from
ourselves and others, to make this your
best time and place – right here, right
now.
GENUINELY CARE
We show genuine care and create delight
for our guests and each other, every day.
GO FURTHER
We aim high, taking pride in everything we
do and creating success for everyone.
TRULY CONNECTED
We’re a diverse team, we keep it honest
and open, and when we’re meaningfully
connected, we’re simply unbeatable.
ENERGY ON
It’s about good energy, the sort that
inspires everyone around us and
pushes us to be better and better.
TENUREAGE
20232024
--
Veterans (78+ years)
7% 7% Baby Boomers (60-78 years)
18% 22%Generation X (44-59 years)
31%29%Generation Z (<28 years)
44%42%Millennials (28-43 years)
2023
2024
GENDER BREAKDOWN
20232024
0.2%0.2%Non Gender Specific
45%45%Male
55%55%Female
2023
2024
PEOPLE
20232024
9%9%>10 Years
6%6%5-10 Years
17% 32% 2-5 Years
36%26%1-2 Years
32%27%<1 Year
2024
2023
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024 | 9
A FRESH LOOK AT GRAND
MILLENNIUM AUCKLAND
The Millennium Ballroom
The Aviary inside the LobbyEmber Restaurant
Premiere Deluxe RoomPremiere Deluxe - Twin Room Entrance
2024 was a very good year for Grand Millennium Auckland, our hotel under management lease, with several of its key features
given a stunning new look and feel. The centrepiece of the hotel is the Ballroom which now features the remarkable custom-
designed lighting sculpture The Sky Garden designed by James Russ Studio which has over a million meticulously hand-assembled
LED lights which transform the space into a realm of enchantment. We were delighted to also introduce Ember and The Aviary
cocktail bar. With esteemed Kiwi chef James Kenny at the helm, Ember offers a rich tapestry of flavours and textures from multiple
cuisine styles which will appeal to all travellers and The Aviary cocktail bar is the perfect place for elegant and memorable drinks.
10 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024
HOTEL DEVELOPMENTS
Suite with Seaview - King Room
Suite with Seaview - LoungeSuperior Harbourview Room - Bathroom
Superior Harbourview Room
At Copthorne Hotel & Resort Bay of Islands in 2024, 90 rooms were refurbished giving the hotel a more modern look and feel.
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024 | 11
At Millennium Hotel Rotorua our newly refurbished Deluxe Rooms were completed in 2024 as part of an ongoing
refurbishment project. An additional 127 rooms and suites will be refurbished in 2025.
Deluxe Room
Deluxe Room
Deluxe Room - Hot TubDeluxe Room - Bathroom
12 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024
THE MAYFAIR
MCK MARKS RETURN TO CHRISTCHURCH WITH PURCHASE
OF LUXURY HOTEL
In October 2024, MCK announced that it had reached agreement
with Mayfair Luxury Hotels Limited and the Stapley family
interests for the purchase of the Mayfair Hotel Christchurch.
“After over a decade, we are very happy to have a hotel presence
in Christchurch once again”, said MCK Managing Director
Stuart Harrison. “Christchurch has always been a strategically
important market for us and the acquisition of this hotel comes
at the right time as visitor numbers and interest in Christchurch
are both increasing”.
Located in Victoria Street and a short walk from the Canterbury
Museum and Hagley Park, the hotel was completed and opened
in 2022 and has already garnered a reputation for its high-
quality spacious rooms and suites which have views of the city
and are designed to let in as much natural light as possible, An
art nouveau-style café and cocktail bar complete the boutique
nature of this hotel.
The transaction settled in January 2025 and MCK used its
existing cash resources and bank facilities to complete the
acquisition. A transition to a Millennium & Copthorne brand
will be carried out in 2025 and will be announced in due course.
THE MAYFAIR AT A GLANCE
Property Interest Freehold (opened in mid-2022), 155 Victoria St, Christchurch
Number of Rooms 67 guest rooms and suites
Purchase Price $31,900,000 (plus GST)
Other Facilities Cocktail Bar, Conference/ Meeting facilities , Café & kitchen.
Lobby
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024 | 13
Exterior
Top of House Suite - Lounge The Dorset Conference Room - U Shape Set Up
Mayfair King Room
14 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024
BOARD OF DIRECTORS
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 2024 Annual Meeting of shareholders.
COLIN SIM
Chairman & Independent Director
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. He was elected to the Board at the 2023 Annual
Meeting of shareholders.
STUART HARRISON Managing Director,
Member of the Audit Committee
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.
EIK SHENG KWEK
Non-Executive Director
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024 | 15
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 2024 annual meeting of shareholders.
KEVIN HANGCHI
Non-Executive Director
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.
GRAHAM MCKENZIE Independent Director,
Member 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 re-elected to the Board at the
2024 annual meeting of shareholders.
LESLIE PRESTON Independent Director,
Chair of the Audit Committee
MILLENNIUM &
COPTHORNE HOTELS
NEW ZEALAND LIMITED
OWNED
Millennium Hotel New Plymouth
Waterfront
Millennium Hotel Rotorua
M Social Auckland
Copthorne Hotel & Resort Bay
of Islands (49%)
Copthorne Hotel & Resort
Queenstown Lakefront
Copthorne Hotel Greymouth
Kingsgate Hotel Te Anau
The Mayfair
Sofitel Brisbane Central (50%)
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
Millennium Hotel Queenstown
HOTEL OWNERSHIP
16 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024 | 17
MILLENNIUM HOTELS AND
RESORTS IN NEW ZEALAND
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
COMFORTABLEPREMIUM
M Social Auckland
196 - 200 Quay Street, Auckland
P +64 9 377 0349
msocial.auckland@millenniumhotels.com
LIFESTYLE
The Mayfair
155 Victoria Street, Christchurch
P +64 3 595 6335
info@themayfair.co.nz
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REWARDS
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MyMillennium opens up a world
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The more you stay, the better it gets
EXTRAORDINARY
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UNLOCK A
WORLD OF
REWARDS
Explore with MyMillennium and
be rewarded wherever you travel.
From the moment you join,
MyMillennium opens up a world
of exclusive benefits.
The more you stay, the better it gets
EXTRAORDINARY
EXPERIENCES AWAIT,
JOIN FOR FREE
SAVE
Member-exclusive
rates & oers
EARN
Double Points
every 10 nights
SHOP
Redeem Points in
My Millennium Mall
UPGRADE
Experience Prestige status for
enhanced perks
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024 | 19
UNLOCK A
WORLD OF
REWARDS
Explore with MyMillennium and
be rewarded wherever you travel.
From the moment you join,
MyMillennium opens up a world
of exclusive benefits.
The more you stay, the better it gets
EXTRAORDINARY
EXPERIENCES AWAIT,
JOIN FOR FREE
SAVE
Member-exclusive
rates & oers
EARN
Double Points
every 10 nights
SHOP
Redeem Points in
My Millennium Mall
UPGRADE
Experience Prestige status for
enhanced perks
MANAAKI
Protect & Care
2024 Calendar Year
32,500 Meals Donated
Donations now available
in the
mall
In 2024 Millennium Hotels and Resorts New Zealand entered
the second year of the partnership with Save the Kiwi, after
donating 29,500 ‘kiwi meals’ to our charity of choice in the
first year.
Opting out of having your room serviced on a multi-night
stay helps the hotels conserve water and energy, the funds
from these resources can then be redirected towards Save
the Kiwi in the form of a ‘kiwi meal‘.
This innovative approach sees a guest simply reducing their
own room servicing needs and ensures a kiwi gets fed and a
safe environment to grow. Every time a guest chooses the
daily ‘no room servicing’ option on a multi-night stay by using
their Save the Kiwi door hanger at any Grand Millennium,
Millennium, Copthorne, Kingsgate or M Social hotels in New
Zealand, Millennium Hotel and Resorts will donate funds
towards Save the Kiwi’s kiwi crèche in Napier.
SAVE THE KIWI PARTNERSHIP
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024 | 19
20 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024
SUSTAINABILITY REPORTING
The following summary provides an overview of Millennium
and Copthorne Hotels New Zealand Limited’s (MCK) strategic
direction in relation to sustainability principles and practices,
including FY24 Greenhouse gas inventory results.
Sustainability at MCK encompasses environmental, social,
economic and cultural sustainability. 2024 has seen a focus on
environmental sustainability.
MCK appointed our first dedicated Sustainability Manager in
late 2024, in recognition of the importance of taking action
to be more sustainable, reducing climate risk and emissions;
driving transparent reporting and complying with regulations
across our hotel portfolio.
MCKs broad approach to assessing and acting on climate-
related impacts across operations is to identify and manage
climate risk by addressing both:
• the impact on MCK from the physical and transitional
impacts caused by climate change, and
• the impact by MCK our GHG emissions and other actions
we take that contribute to climate change and other
environmental issues
CLIMATE–RELATED GOVERNANCE:
MCK’s board has oversight of Sustainability encompassing
environment, social and governance aspects. This includes
responsibility for assessing climate-related risks and
opportunities, current climate impacts and climate-related
financial impacts; and transition planning, distinct from
Management’s role in assessing, managing and reporting
these.
In 2024, we did not receive any fines or penalties associated
with non-compliance with any laws relating to the environment,
human rights violations, labour standards, anti-bribery or
taxation.
In addition to regulatory compliance, good governance
encompasses a strong sense of values and a desire to do what
is right for our stakeholders including our guests, suppliers,
colleagues, regulators and the communities in which we
operate. We strive to conduct our business in an ethical and
responsible manner.
• MCK’s Board has ultimate responsibility for overseeing the
management of risks, including risks related to climate
change. The Board of MCK is committed to introducing and
integrating sustainability across key aspects of its business
and advancing sustainability efforts overall.
MCK Board of Directors
Approve Climate Statement, ESG framework,
Sustainability Strategy and Transition Plan
Sustainability Steering Group
Sustainability Strategy ownership
Climate related targets & reporting
Regular updates to the AC & Board
Provide strategic & operational guidance
on ESG & climate-related initiatives
Sustainability Manager & Hotel
General Manager
Operationalise strategy
Monitoring and reporting
Projects and initiatives
Staff engagement
MCK Audit Committee
Endorse annual Climate Statement
Review climate risks & opportunities annually
Monitor progress of ESG and climate-related targets
Board Level
Management Level
Executive & Senior Management
Oversee ESG framework, Sustainability
Strategy implementation & transition
planning
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024 | 21
1. More information on climate risks and opportunities can be found in MCK’s FY24 Climate Statement
2. Save the Kiwi is a nation-wide leading conservation charity dedicated to preserving New Zealand’s endangered national bird, including rearing chicks which are later
released into the wild to boost declining numbers.
• The Board has oversight of the developing sustainability
strategy and identifying ESG issues and in time will set
sustainability targets and will oversee sustainability
reporting.
• The Board, in particular the Audit Committee also oversees
progress against MCK climate-related goals and ensure that
targets and metrics are tracked and progressed (MCK aims
to set and publish targets in 2025). MCK’s Audit Committee
assists the Board by considering climate-related risks and
will approve the transition plan.
• MCK’s senior management team has day-to-day oversight of
climate-related risks, opportunities and initiatives that drive
climate mitigation and adaptation strategies. Management
also review and advise the Board on ESG opportunities,
strategic sustainability and climate issues and MCK’s
emissions reduction strategy and initiatives.
• MCK’s Operations (including Hotel General Managers),
Sustainability Manager, Property, Legal and Finance teams
provide the senior management team with support for
monitoring and assessing MCK’s activities which contribute
to our impact on the climate. A Sustainability Steering group
conduct assessments, prepare reports and put in place plans
to initiate action, mitigate emissions and reduce climate risks.
Hotel teams are responsible for overall performance of MCK’s
hotel operations - day-to-day management, maintenance
and operability of MCK’s assets; and property management,
refurbishment and maintenance plans.
STRATEGIC DIRECTION AND SUSTAINABILITY INITIATIVES
MCK has had a high-level environmental policy in place since
2008 and work is underway to develop a Sustainability strategy
and ESG framework.
MCK is part of a global company and network of hotels that
places an emphasis on supporting positive local environmental
outcomes. In 2024 MCK the New Zealand region joined the
global Sustainability Team to advance the group’s action on
decarbonisation and sustainable practices.
This includes activating the
Millennium Green Path
framework, which we will look to
further embed in NZ operations
in 2025. This focuses on the
areas of:
• Minimising the environmental
impact of our operations;
• Responsible sourcing;
• Guest education and
engagement; and
• Supporting our communities.
NZ’s owned hotel assets were also included in parent company
CDL’s voluntary Nature-related disclosures for the first time
this year.
This year we commenced work on a portfolio-wide assessment
of our hotel assets (including and managed hotels) exposure
to physical climate risk, as well as further assessing and rating
our business transitional climate risks and opportunities. This
will support us in continuing our transition planning over the
next year.
We assessed our current climate-related impacts in FY24
against risk and opportunities criteria across seven key
aspects of the business including business model; supply/value
chain; products and services; access to capital; adaptation
and mitigation activities; acquisitions or divestments; and
investment in research and development. No material physical
or transitional climate impacts as a result of environmental,
operational, social, legal, regulatory, reputational activities
were identified, therefore MCK has not been subject to any
climate-related financial impacts in FY24
1
.
Currently 12 hotels within
the NZ group hold Qualmark
silver status meeting their
Sustainable Tourism Business
criteria. Qualmark are officially
recognised by the Global
Sustainable Tourism Council,
so our NZ hotels with Qualmark
rating are recognised as meeting
their global sustainability
standards.
SAVE THE KIWI
Millennium Hotels and Resorts New Zealand has completed the
first calendar year with its official charity of choice, Save the
Kiwi. In 2024 Millennium Hotels and Resorts donated 32,500
kiwi ‘meals’ towards Save the Kiwi charity’s Kiwi Creche in
Napier, New Zealand
2
.
Donations towards the charity are obtained when a guest opts
out of having their hotel room serviced during a multi-night
stay. This creates a unique opportunity for guests to donate
a ‘meal’ to feed kiwi as part Save the Kiwi programme, while
also contributing to our hotels water and energy conservation
efforts.
MANAAKI
Protect & Care
22 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024
Focus AreasCurrent Initiatives
Promote sustained, inclusive and sustainable
economic growth, full and productive employment and
decent work for all
• Sustainable tourism that creates jobs and promotes
local culture and products.
• Implement plans to reduce the negative impacts of
tourism
Our MCK values create a safe, inclusive and productive
workplace.
We foster a diverse workforce consisting of a range of
nationalities, ethnicities and ages across our hotels.
Make cities inclusive safe resilient and sustainable
• Inclusive and sustainable urbanization
• Reduce the environmental impact of cities
• Protect and safeguard cultural and natural heritage
Planning for future hotel development, responsible
investment, site accessibility, supporting local cultural
and community projects, and protecting local environ-
ments.
Ensure sustainable consumption and production
patterns - reduce waste, promote resource efficiency,
and encourage sustainable practices
• Efficient use of natural resources
• Substantially reduce waste generation through
prevention, reduction, recycling, and reuse
• Responsible supply chain and sourcing
• Reducing food losses along production and supply
chains,
• Sustainable procurement practices
• Universal understanding of sustainable lifestyles
All our hotels have recycling systems for paper/
cardboard, glass, cans and plastics and some are
trialing soft plastic packaging collections. A focus on
single-use plastics led to the removal of individual wet
amenities and bottled water from most of our hotels in
2024. While there is room for improvement, our hotels
are currently diverting food waste in places where
commercial food waste collections are available.
Hotels provide options for guests to reduce the impact
of their stay.
Take urgent action to combat climate change and its
impacts.
• Strengthen resilience and adaptive capacity to
climate-related hazards and natural disasters.
Recent work to assess our hotel portfolio identify
climate risks and commence transition planning will
lead to more resilient hotel assets.
PRIORITISING ACTION
To help identify our sustainability priorities MCK has adopted
the United Nations Sustainable Development Goals (SGDs)
3
.
These will be further explored, along with hotel industry ESG
material issues
4
for inclusion in our Sustainability strategy.
There are specific SDG targets and indicators relating to
sustainable tourism such as policies and tools to promote and
monitor jobs, local culture and products including 8.9 and 12.B.
While tourism has the potential to contribute, directly
or indirectly to all of the goals. Targets in Goals 8, 12 and 14
are particularly relevant. Tourism can contribute to Target
12.8 by encouraging awareness and education for sustainable
development through tourism practices and activities.
The SDGs that our business can contribute to the most
5
have been identified as:
3. https://sdgs.un.org/goals
4. Sustainability Accounting Standards Board https://sasb.ifrs.org/standards/materiality-finder/find/?industry%5B0%5D=SV-HL
5. Hotel operations can also contribute to SDGs 6: Clean water and sanitation and 7: Affordable and clean energy, through reducing water and energy consumption / increasing
renewable electricity use.
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024 | 23
MEASURING AND REDUCING EMISSIONS:
We are committed to measuring and looking at ways to reduce
our carbon footprint.
Millennium & Copthorne Hotels New Zealand Limited (MCK)
and its subsidiaries (either wholly or majority owned) are
included in our organisational Greenhouse gas reporting
boundary (unless deemed de minimis). This includes direct
operational emissions from 16 owned and managed hotels
within MCK’s portfolio, CDL Investments New Zealand Limited
6
and MCK’s support offices (excluding hotel franchises).
In the 2024 reporting period an operational control approach
was applied to the organisational boundary and GHG inventory.
Our previous base year (2023) inventory reported used an
equity share approach
7
. This change was made in keeping
with the GHG Protocol reporting standards to better reflect
the nature of the hotel operations; direct control over sources
of emissions; industry practice; and alignment with parent
company methodology and reporting
In FY24 an update was made to our 2023 base year to account
for changes to the organisational boundary, calculation
methodologies and correction of errors. This ensures MCK’s
GHG Inventory remains relevant, complete, consistent,
transparent and accurate in line with the GHG Protocol.
There was an increase in emissions between 2023 and 2024, as
a result of operational activities. The main emissions sources
in 2024 and increases since the previous years were hotel
consumption of natural gas, LPG and electricity for heating,
cooling and cooking; as well as waste generation and air travel.
This increase in emissions is in part due to an increase in owned
and managed hotel occupancy rates over this period.
Currently MCK is not purchasing carbon credits or off-setting
our emissions in other ways, but will explore options in the
future. In 2024 we commenced measuring our indirect scope 3
sources of emissions. We conducted our first staff travel survey,
started working with franchisees to source data, and started
capturing spend-data for a range of products and services used
by the business.
For the reporting period 1 January 2024 to 31 December 2024
our emissions have been measured and the greenhouse gas
emission inventory (GHG inventory) prepared in accordance
with the GHG Protocol Standards
8
and ISO 14064-1:2018
standard. The results are shown in comparison to FY23 in the
following table.
GHG Sub
Category
ISO CategoryEmissions SourceDescriptionFY23
tCO2e
FY24
tCO2e
Scope 1- Direct emissions3,3453,686
1Mobile combustion Fuel used in company leased vehicles79123
1Fugitive emissionsLosses including from refrigeration and
air-conditioning units
242240
1Stationary combustion Hotel natural gas combustion 1,8641,979
Hotel LPG consumption1,1601,344
Scope 2: Indirect emissions from purchased electricity1,3591,370
2Imported electricity
(location-based)
10
Electricity consumption from hotels and
support office
1,3591,370
Scope 3: Indirect emissions from value chain
11
1,026 1,059
C14Purchased goods and
services
Potable water supply (only)710
C34Fuel and energy-relat-
ed activities
Transmission and distribution (T&D) losses
from purchased electricity & natural gas
210173
C5
4Waste generated in
operations
Disposal of office and hotel solid waste -
landfilled
528582
Disposal of solid waste – not landfilled:
Recycling processed: cardboard, mixed
plastics, glass and comingled materials
122 114
Disposal of solid waste – not landfilled:
composted food scraps and garden waste
89
C63Business travel Transport (non-company owned vehicles) -
air travel, rental vehicles and taxi
151171
Total5,730
12
6,115
13
Emissions Intensity:
By operating revenue (gross tCO2e/$millions)43.46
14
38.56
Per room
15
(gross tCO2e/room)2.742.84
MILLENNIUM AND COPTHORNE NEW ZEALAND LTD GREENHOUSE GAS EMISSIONS
9
6. CDL Investments New Zealand Ltd is majority owned by Millennium & Copthorne Hotels New Zealand Ltd.
7. The consolidation approach was retrospectively applied to reflect an operation control approach as part of a 2023 base year recalculation.
8. https://ghgprotocol.org/sites/default/files/standards/ghg-protocol-revised.pdf This includes: The Greenhouse Gas Protocol: A Corporate Accounting and Reporting
Standard (revised edition); the Greenhouse Gas Protocol: GHG Protocol Scope 2 Guidance: An amendment to the GHG Protocol Corporate Standard; and the Greenhouse
Gas Protocol: Corporate Value Chain (Scope 3) Accounting and Reporting Standard.
9. These figures should not be read in isolation from MCK’s climate-related disclosures (published by end of April 2025).
10. Market-based emissions from imported energy are calculated as 1,388tCO2e (compared with 1,353tCO2e in 2023), nominally the same as location-based as no
Renewable Energy Certificates have been purchased.
11. MCK has elected to disclose FY24 scope 3 emissions in some categories, as required by the Toitu programme, where quantifiable data is available. Where data is not yet
available, Adoption Provision 4: Scope 3 GHG emissions in the NZ Climate Standard 2 is applied for the remaining material Scope 3 items in our value chain.
12. Recalculated from the original FY23 inventory (4146.19tCO2e), as certified by Toitu.
13. FY24 figures once finalised are subject to independent assurance and will be published in our FY24 Climate Statement.
14. Updated for FY23 based on the 2023 base year recalculation undertaken in 2024.
15. Uses available hotel rooms per year, includes emissions from hotel portfolio only and excludes CDL Investments New Zealand Ltd.
24 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024
16. Global hotel company which owns, manages and operates over 130 properties across 80 destinations.
17. Toitu Envirocare is a wholly-owned subsidiary of Manaaki Whenua – Landcare Research, a Government-owned Crown Research Institute. Developed for New Zealand
business needs, they comprise of a team of scientists and business experts who have come together to protect the ecological and economic future, with over 800 clients
worldwide.
18. Excluding emissions from Millennium Hotel & Resort Manuels Taupo and Copthorne Hotel & Resort Solway Park Wairarapa under operational control approach.
19. Financial Markets Conduct (Requirement to Include Climate Statements in Annual Report) Exemption Notice 2023: https://www.fma.govt.nz/business/legislation/
exemptions/financial-markets-conduct-act-exemptions/financial-markets-conduct-requirement-to-include-climate-statements-in-annual-report-exemption-
notice-2023/
20. https://crd-app.companiesoffice.govt.nz/dashboard/
Emissions from NZ hotels contribute to the group emissions
footprint. In 2019, Millennium & Copthorne Hotels Limited
16
set
a Science-Based Target to reduce the Group’s carbon emission
by 27% by 2030, from a 2017 base year. Emission reduction
targets for New Zealand are currently under development and
it is anticipated that these will be formally set and published
next year.
Targets for energy use (electricity and gas), waste reduction /
recycling and water consumption at hotels and office premises
are also being explored.
Millennium & Copthorne Hotels New Zealand Limited’s FY24
GHG inventory (scope 1 and 2 emissions) will be subject
to independent limited assurance. The limited assurance
conclusion, once finalised, will be included in the FY24 Climate
Statement, in accordance with the Aotearoa New Zealand
Climate Standards.
In 2023, MCK achieved Toitu Envirocare Carbon Reduce
certification
17
for the first time for our greenhouse gas
inventory, which was a critical step in meeting our climate-
related disclosure obligations. In 2024 we recertified our base
year GHG inventory and received certification for our FY24 GHG
inventory.
Toitu carbonreduce certified organisation: Millennium &
Copthorne Hotels New Zealand Limited
18
. Toitu carbonreduce
certified means measuring emissions to ISO 14064-1:2018 and
Toitu requirements; and managing and reducing against Toitu
requirements.
CLIMATE-RELATED FINANCIAL DISCLOSURES
Millennium and Copthorne Hotels New Zealand Ltd is a climate
reporting entity under the Financial Sector (Climate-related
Disclosures and Other Matters) Amendment Act 2021. MCK
reported under the Aotearoa New Zealand Climate Standards,
for the first time in our FY23 Annual Report.
MCK will publish mandatory climate-related disclosures for
FY24 separately to this Annual Report (using an FMA exemption
available for this financial year)
19
. This will be in the form
of a Climate Statement outlining business practices across
governance, strategy, risk management, targets and metrics.
This statement will contain the MCK FY2024 greenhouse gas
inventory, climate-related risks and opportunities, current
climate-related financial impacts and other requirements,
published prior to April 30th.
Our FY24 Climate Statement can be found on the MCK Investor
Centre website: https://mckhotels.co.nz/investors/climate-
statements/ and on the disclosures register on the Companies
Office website
20
.
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024 | 25
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 – 31
Auditor’s Report FIN 32 – 36
Corporate Governance
Corporate Governance Statement CG 1 – 5
Outline of Material Risks CG 7 – 8
Regulatory Disclosures and Statutory Information – Contents
Regulatory Disclosures and Statutory Information REG 1 – 5
Staff member at Copthorne Hotel and Resort Bay of Islands
FIN 1 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 1
Consolidated Income Statement
FFoorr tthhee yyeeaarr eennddeedd 3311 DDe ecceemmbbeerr 22002244
GGrroouupp GGrroouupp
DDOOLLLLAARRSS IINN TTHHOOUUSSAANNDDSS NNo ot tee 22002244 22002233
Hotel revenue 109,486 101,072
Rental income 4,028 3,944
Property sales 62,670 40,643
RRe evveennuuee 117766,,118844 114455,,665599
Cost of sales 3,10 (78,328) (67,879)
GGrroossss pprrooffiitt 9977,,885566 7777,,778800
Other income - 397
Administration expenses 2,3 (29,795) (25,532)
Other operating expenses 2,3 (25,600) (20,501)
OOppeerraattiinngg pprrooffiitt 4422,,446611 3322,,114444
Finance income 4 5,347 7,700
Finance costs 4 (2,235) (2,444)
NNe et t ffiinnaannccee iinnccoommee 33,,111122 55,,225566
Share of profit of joint venture, net of tax 24 1,508 73
PPr rooffiitt bbeeffoorree iinnccoommee ttaaxx 4477,,008811 3377,,447733
Income tax expense 5 (38,293) (10,556)
PPr rooffiitt ffoorr tthhee yyeeaarr 88,,778888 2266,,991177
AAt tttrri ibbuuttaabbllee ttoo::
Owners of the parent 2,762 21,602
Non-controlling interests 6,026 5,315
PPr rooffiitt ffoorr tthhee yyeeaarr 88,,778888 2266,,991177
Basic and diluted earnings per share (cents) 8 1.75 13.65
Consolidated Statement of Comprehensive Income
FFoorr tthhee yyeeaarr eennddeedd 3311 DDe ecceemmbbeerr 22002244
GGrroouupp GGrroouupp
DDOOLLLLAARRSS IINN TTHHOOUUSSAANNDDSS 22002244 22002233
PPr rooffiitt ffoorr tthhee yyeeaarr 88,,778888 2266,,991177
OOtthheerr ccoommpprreehheennssiivvee iinnccoommee
IItteemmss tthhaatt aarree oorr mmaayy bbee rreeccllaassssiiffiieedd ttoo pprrooffiitt oorr lloossss
Foreign exchange translation movements 2,226 416
TToottaall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr 1111,,001144 2277,,333333
TToottaall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr aattttrri ibbuuttaabbllee ttoo ::
Owners of the parent 4,988 22,018
Non-controlling interests 6,026 5,315
TToottaall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr 1111,,001144 2277,,333333
MMi
illl
leennnni iu
um
m
&& C
Co
oppt th
ho
or rnnee HHo ot teel lss
N
Ne
ew
w
ZZe
eaal laanndd LLi im
mi
it
te
edd
The
accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN
2
Consolidated
S
tatement of Changes in Equity
FFoor
r tth
he
e
y
ye
ea
ar
r een
nd
de
ed
d
3
31
1
D
De ecceem
mb
be
er
r
220
02
2
44
GGr
ro
ouup
p
AAt
tttrri ib
bu
ut taab
bl lee t
to
o eeq
quui
ittyy
h
hool
ld
deer
rs
s
oof f
tthhe
e GGr ro
ouup
p
DDO
OL
LL
LA
AR
RSS
IIN
N TTH
HO
OU
US
SAAN
ND
DSS
SSh
ha
ar
ree
CCa
ap
pi
ittaal
l
EEx xc
ch
ha
an
ng
ge
e
RRe
es
se
er
rvve
e
RRe
et
taai
inneed
d
EEa
ar
rnni
innggs
s
TTr
reea
as
su
ur
ryy
SSt
tooc
ck
k
TToot
taal
l
NNo
on
n
--
cco
on
nt
trrool
llli
inngg
IInnt
teer
re
es
st
tss
TToot
taal
l
EEq
qu
ui
it
tyy
Balance at 1 January 202
4
338
83
3,
,226
66
6
((
998
80
0
))
11
665
5
,,
665
56
6
((2
26
6)
)
55
447
7
,,
99
116
6
111
1
44
,,
553
36
6
66
662
2
,,
445
52
2
Movement in exchange translation reserve
-
2,226
-
-
2,22
6
-
2,226
Total other comprehensive income
-
2,22
6
-
-
2,22
6
-
2,22
6
Profit for the year
-
-
2,
762
-
2,
762
6
,
026
8
,
788
Total comprehensive income for the year
-
2,22
6
2,
76
2
-
4
,
988
6
,
026
11
,
014
Transactions with owners, recorded directly in equity:
Dividends paid to:
Owners of the parent
-
-
(
4
,
747
)
-
(4,747)
-
(4,747)
Non
-
controlling interests
-
-
-
-
-
(
4
,
537
)
(
4
,
537
)
Supplementary dividends
-
-
(
9
4
)
-
(9
4
)
-
(
9
4
)
Foreign investment tax credits
-
-
9
4
-
9
4
-
9
4
Movement in non
-
controlling interests
without a change in control
-
-
(
242
)
-
(
242
)
965
723
BBa
al
laan
nc
ce
e
aat
t 331
1
DDe ecce
em
mb
be
er
r
220
02
2
44
338
83
3,
,226
66
6
11,
,2
24
46
6
11
66
33
,,
442
29
9
((2
26
6)
)
55
447
7
,,
991
1
55
111
1
66
,,
999
90
0
66
66
44
,,
990
05
5
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 1
Consolidated Income Statement
FFoorr tthhee yyeeaarr eennddeedd 3311 DDe ecceemmbbeerr 22002244
GGrroouupp GGrroouupp
DDOOLLLLAARRSS IINN TTHHOOUUSSAANNDDSS NNo ot tee 22002244 22002233
Hotel revenue 109,486 101,072
Rental income 4,028 3,944
Property sales 62,670 40,643
RRe evveennuuee 117766,,118844 114455,,665599
Cost of sales 3,10 (78,328) (67,879)
GGrroossss pprrooffiitt 9977,,885566 7777,,778800
Other income - 397
Administration expenses 2,3 (29,795) (25,532)
Other operating expenses 2,3 (25,600) (20,501)
OOppeerraattiinngg pprrooffiitt 4422,,446611 3322,,114444
Finance income 4 5,347 7,700
Finance costs 4 (2,235) (2,444)
NNe et t ffiinnaannccee iinnccoommee 33,,111122 55,,225566
Share of profit of joint venture, net of tax 24 1,508 73
PPr rooffiitt bbeeffoorree iinnccoommee ttaaxx 4477,,008811 3377,,447733
Income tax expense 5 (38,293) (10,556)
PPr rooffiitt ffoorr tthhee yyeeaarr 88,,778888 2266,,991177
AAt tttrri ibbuuttaabbllee ttoo::
Owners of the parent 2,762 21,602
Non-controlling interests 6,026 5,315
PPr rooffiitt ffoorr tthhee yyeeaarr 88,,778888 2266,,991177
Basic and diluted earnings per share (cents) 8 1.75 13.65
Consolidated Statement of Comprehensive Income
FFoorr tthhee yyeeaarr eennddeedd 3311 DDe ecceemmbbeerr 22002244
GGrroouupp GGrroouupp
DDOOLLLLAARRSS IINN TTHHOOUUSSAANNDDSS 22002244 22002233
PPr rooffiitt ffoorr tthhee yyeeaarr 88,,778888 2266,,991177
OOtthheerr ccoommpprreehheennssiivvee iinnccoommee
IItteemmss tthhaatt aarree oorr mmaayy bbee rreeccllaassssiiffiieedd ttoo pprrooffiitt oorr lloossss
Foreign exchange translation movements 2,226 416
TToottaall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr 1111,,001144 2277,,333333
TToottaall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr aattttrri ibbuuttaabbllee ttoo ::
Owners of the parent 4,988 22,018
Non-controlling interests 6,026 5,315
TToottaall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr 1111,,001144 2277,,333333
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 1
Consolidated Income Statement
FFoorr tthhee yyeeaarr eennddeedd 3311 DDe ecceemmbbeerr 22002244
GGrroouupp GGrroouupp
DDOOLLLLAARRSS IINN TTHHOOUUSSAANNDDSS NNo ot tee 22002244 22002233
Hotel revenue 109,486 101,072
Rental income 4,028 3,944
Property sales 62,670 40,643
RRe evveennuuee 117766,,118844 114455,,665599
Cost of sales 3,10 (78,328) (67,879)
GGrroossss pprrooffiitt 9977,,885566 7777,,778800
Other income - 397
Administration expenses 2,3 (29,795) (25,532)
Other operating expenses 2,3 (25,600) (20,501)
OOppeerraattiinngg pprrooffiitt 4422,,446611 3322,,114444
Finance income 4 5,347 7,700
Finance costs 4 (2,235) (2,444)
NNe et t ffiinnaannccee iinnccoommee 33,,111122 55,,225566
Share of profit of joint venture, net of tax 24 1,508 73
PPr rooffiitt bbeeffoorree iinnccoommee ttaaxx 4477,,008811 3377,,447733
Income tax expense 5 (38,293) (10,556)
PPr rooffiitt ffoorr tthhee yyeeaarr 88,,778888 2266,,991177
AAt tttrri ibbuuttaabbllee ttoo::
Owners of the parent 2,762 21,602
Non-controlling interests 6,026 5,315
PPr rooffiitt ffoorr tthhee yyeeaarr 88,,778888 2266,,991177
Basic and diluted earnings per share (cents) 8 1.75 13.65
Consolidated Statement of Comprehensive Income
FFoorr tthhee yyeeaarr eennddeedd 3311 DDe ecceemmbbeerr 22002244
GGrroouupp GGrroouupp
DDOOLLLLAARRSS IINN TTHHOOUUSSAANNDDSS 22002244 22002233
PPr rooffiitt ffoorr tthhee yyeeaarr 88,,778888 2266,,991177
OOtthheerr ccoommpprreehheennssiivvee iinnccoommee
IItteemmss tthhaatt aarree oorr mmaayy bbee rreeccllaassssiiffiieedd ttoo pprrooffiitt oorr lloossss
Foreign exchange translation movements 2,226 416
TToottaall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr 1111,,001144 2277,,333333
TToottaall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr aattttrri ibbuuttaabbllee ttoo ::
Owners of the parent 4,988 22,018
Non-controlling interests 6,026 5,315
TToottaall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr 1111,,001144 2277,,333333
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 1
Consolidated Income Statement
FFoorr tthhee yyeeaarr eennddeedd 3311 DDe ecceemmbbeerr 22002244
GGrroouupp GGrroouupp
DDOOLLLLAARRSS IINN TTHHOOUUSSAANNDDSS NNo ot tee 22002244 22002233
Hotel revenue 109,486 101,072
Rental income 4,028 3,944
Property sales 62,670 40,643
RRe evveennuuee 117766,,118844 114455,,665599
Cost of sales 3,10 (78,328) (67,879)
GGrroossss pprrooffiitt 9977,,885566 7777,,778800
Other income - 397
Administration expenses 2,3 (29,795) (25,532)
Other operating expenses 2,3 (25,600) (20,501)
OOppeerraattiinngg pprrooffiitt 4422,,446611 3322,,114444
Finance income 4 5,347 7,700
Finance costs 4 (2,235) (2,444)
NNe et t ffiinnaannccee iinnccoommee 33,,111122 55,,225566
Share of profit of joint venture, net of tax 24 1,508 73
PPr rooffiitt bbeeffoorree iinnccoommee ttaaxx 4477,,008811 3377,,447733
Income tax expense 5 (38,293) (10,556)
PPr rooffiitt ffoorr tthhee yyeeaarr 88,,778888 2266,,991177
AAt tttrri ibbuuttaabbllee ttoo::
Owners of the parent 2,762 21,602
Non-controlling interests 6,026 5,315
PPr rooffiitt ffoorr tthhee yyeeaarr 88,,778888 2266,,991177
Basic and diluted earnings per share (cents) 8 1.75 13.65
Consolidated Statement of Comprehensive Income
FFoorr tthhee yyeeaarr eennddeedd 3311 DDe ecceemmbbeerr 22002244
GGrroouupp GGrroouupp
DDOOLLLLAARRSS IINN TTHHOOUUSSAANNDDSS 22002244 22002233
PPr rooffiitt ffoorr tthhee yyeeaarr 88,,778888 2266,,991177
OOtthheerr ccoommpprreehheennssiivvee iinnccoommee
IItteemmss tthhaatt aarree oorr mmaayy bbee rreeccllaassssiiffiieedd ttoo pprrooffiitt oorr lloossss
Foreign exchange translation movements 2,226 416
TToottaall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr 1111,,001144 2277,,333333
TToottaall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr aattttrri ibbuuttaabbllee ttoo ::
Owners of the parent 4,988 22,018
Non-controlling interests 6,026 5,315
TToottaall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr 1111,,001144 2277,,333333
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 1
Consolidated Income Statement
FFoorr tthhee yyeeaarr eennddeedd 3311 DDe ecceemmbbeerr 22002244
GGrroouupp GGrroouupp
DDOOLLLLAARRSS IINN TTHHOOUUSSAANNDDSS NNo ot tee 22002244 22002233
Hotel revenue 109,486 101,072
Rental income 4,028 3,944
Property sales 62,670 40,643
RRe evveennuuee 117766,,118844 114455,,665599
Cost of sales 3,10 (78,328) (67,879)
GGrroossss pprrooffiitt 9977,,885566 7777,,778800
Other income - 397
Administration expenses 2,3 (29,795) (25,532)
Other operating expenses 2,3 (25,600) (20,501)
OOppeerraattiinngg pprrooffiitt 4422,,446611 3322,,114444
Finance income 4 5,347 7,700
Finance costs 4 (2,235) (2,444)
NNe et t ffiinnaannccee iinnccoommee 33,,111122 55,,225566
Share of profit of joint venture, net of tax 24 1,508 73
PPr rooffiitt bbeeffoorree iinnccoommee ttaaxx 4477,,008811 3377,,447733
Income tax expense 5 (38,293) (10,556)
PPr rooffiitt ffoorr tthhee yyeeaarr 88,,778888 2266,,991177
AAt tttrri ibbuuttaabbllee ttoo::
Owners of the parent 2,762 21,602
Non-controlling interests 6,026 5,315
PPr rooffiitt ffoorr tthhee yyeeaarr 88,,778888 2266,,991177
Basic and diluted earnings per share (cents) 8 1.75 13.65
Consolidated Statement of Comprehensive Income
FFoorr tthhee yyeeaarr eennddeedd 3311 DDe ecceemmbbeerr 22002244
GGrroouupp GGrroouupp
DDOOLLLLAARRSS IINN TTHHOOUUSSAANNDDSS 22002244 22002233
PPr rooffiitt ffoorr tthhee yyeeaarr 88,,778888 2266,,991177
OOtthheerr ccoommpprreehheennssiivvee iinnccoommee
IItteemmss tthhaatt aarree oorr mmaayy bbee rreeccllaassssiiffiieedd ttoo pprrooffiitt oorr lloossss
Foreign exchange translation movements 2,226 416
TToottaall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr 1111,,001144 2277,,333333
TToottaall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr aattttrri ibbuuttaabbllee ttoo ::
Owners of the parent 4,988 22,018
Non-controlling interests 6,026 5,315
TToottaall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr 1111,,001144 2277,,333333
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 1
Consolidated Income Statement
FFoorr tthhee yyeeaarr eennddeedd 3311 DDe ecceemmbbeerr 22002244
GGrroouupp GGrroouupp
DDOOLLLLAARRSS IINN TTHHOOUUSSAANNDDSS NNo ot tee 22002244 22002233
Hotel revenue 109,486 101,072
Rental income 4,028 3,944
Property sales 62,670 40,643
RRe evveennuuee 117766,,118844 114455,,665599
Cost of sales 3,10 (78,328) (67,879)
GGrroossss pprrooffiitt 9977,,885566 7777,,778800
Other income - 397
Administration expenses 2,3 (29,795) (25,532)
Other operating expenses 2,3 (25,600) (20,501)
OOppeerraattiinngg pprrooffiitt 4422,,446611 3322,,114444
Finance income 4 5,347 7,700
Finance costs 4 (2,235) (2,444)
NNe et t ffiinnaannccee iinnccoommee 33,,111122 55,,225566
Share of profit of joint venture, net of tax 24 1,508 73
PPr rooffiitt bbeeffoorree iinnccoommee ttaaxx 4477,,008811 3377,,447733
Income tax expense 5 (38,293) (10,556)
PPr rooffiitt ffoorr tthhee yyeeaarr 88,,778888 2266,,991177
AAt tttrri ibbuuttaabbllee ttoo::
Owners of the parent 2,762 21,602
Non-controlling interests 6,026 5,315
PPr rooffiitt ffoorr tthhee yyeeaarr 88,,778888 2266,,991177
Basic and diluted earnings per share (cents) 8 1.75 13.65
Consolidated Statement of Comprehensive Income
FFoorr tthhee yyeeaarr eennddeedd 3311 DDe ecceemmbbeerr 22002244
GGrroouupp GGrroouupp
DDOOLLLLAARRSS IINN TTHHOOUUSSAANNDDSS 22002244 22002233
PPr rooffiitt ffoorr tthhee yyeeaarr 88,,778888 2266,,991177
OOtthheerr ccoommpprreehheennssiivvee iinnccoommee
IItteemmss tthhaatt aarree oorr mmaayy bbee rreeccllaassssiiffiieedd ttoo pprrooffiitt oorr lloossss
Foreign exchange translation movements 2,226 416
TToottaall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr 1111,,001144 2277,,333333
TToottaall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr aattttrri ibbuuttaabbllee ttoo ::
Owners of the parent 4,988 22,018
Non-controlling interests 6,026 5,315
TToottaall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr 1111,,001144 2277,,333333
MMiilllleennnniiuumm && CCoopptthhoorrnnee HHootteellss NNeeww ZZeeaallaanndd LLiimmiitteedd
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 1
Consolidated Income Statement
FFoorr tthhee yyeeaarr eennddeedd 3311 DDe ecceemmbbeerr 22002244
GGrroouupp GGrroouupp
DDOOLLLLAARRSS IINN TTHHOOUUSSAANNDDSS NNo ot tee 22002244 22002233
Hotel revenue 109,486 101,072
Rental income 4,028 3,944
Property sales 62,670 40,643
RRe evveennuuee 117766,,118844 114455,,665599
Cost of sales 3,10 (78,328) (67,879)
GGrroossss pprrooffiitt 9977,,885566 7777,,778800
Other income - 397
Administration expenses 2,3 (29,795) (25,532)
Other operating expenses 2,3 (25,600) (20,501)
OOppeerraattiinngg pprrooffiitt 4422,,446611 3322,,114444
Finance income 4 5,347 7,700
Finance costs 4 (2,235) (2,444)
NNe et t ffiinnaannccee iinnccoommee 33,,111122 55,,225566
Share of profit of joint venture, net of tax 24 1,508 73
PPr rooffiitt bbeeffoorree iinnccoommee ttaaxx 4477,,008811 3377,,447733
Income tax expense 5 (38,293) (10,556)
PPr rooffiitt ffoorr tthhee yyeeaarr 88,,778888 2266,,991177
AAt tttrri ibbuuttaabbllee ttoo::
Owners of the parent 2,762 21,602
Non-controlling interests 6,026 5,315
PPr rooffiitt ffoorr tthhee yyeeaarr 88,,778888 2266,,991177
Basic and diluted earnings per share (cents) 8 1.75 13.65
Consolidated Statement of Comprehensive Income
FFoorr tthhee yyeeaarr eennddeedd 3311 DDe ecceemmbbeerr 22002244
GGrroouupp GGrroouupp
DDOOLLLLAARRSS IINN TTHHOOUUSSAANNDDSS 22002244 22002233
PPr rooffiitt ffoorr tthhee yyeeaarr 88,,778888 2266,,991177
OOtthheerr ccoommpprreehheennssiivvee iinnccoommee
IItteemmss tthhaatt aarree oorr mmaayy bbee rreeccllaassssiiffiieedd ttoo pprrooffiitt oorr lloossss
Foreign exchange translation movements 2,226 416
TToottaall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr 1111,,001144 2277,,333333
TToottaall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr aattttrri ibbuuttaabbllee ttoo ::
Owners of the parent 4,988 22,018
Non-controlling interests 6,026 5,315
TToottaall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr 1111,,001144 2277,,333333
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 1
Consolidated Income Statement
FFoorr tthhee yyeeaarr eennddeedd 3311 DDe ecceemmbbeerr 22002244
GGrroouupp GGrroouupp
DDOOLLLLAARRSS IINN TTHHOOUUSSAANNDDSS NNo ot tee 22002244 22002233
Hotel revenue 109,486 101,072
Rental income 4,028 3,944
Property sales 62,670 40,643
RRe evveennuuee 117766,,118844 114455,,665599
Cost of sales 3,10 (78,328) (67,879)
GGrroossss pprrooffiitt 9977,,885566 7777,,778800
Other income - 397
Administration expenses 2,3 (29,795) (25,532)
Other operating expenses 2,3 (25,600) (20,501)
OOppeerraattiinngg pprrooffiitt 4422,,446611 3322,,114444
Finance income 4 5,347 7,700
Finance costs 4 (2,235) (2,444)
NNe et t ffiinnaannccee iinnccoommee 33,,111122 55,,225566
Share of profit of joint venture, net of tax 24 1,508 73
PPr rooffiitt bbeeffoorree iinnccoommee ttaaxx 4477,,008811 3377,,447733
Income tax expense 5 (38,293) (10,556)
PPr rooffiitt ffoorr tthhee yyeeaarr 88,,778888 2266,,991177
AAt tttrri ibbuuttaabbllee ttoo::
Owners of the parent 2,762 21,602
Non-controlling interests 6,026 5,315
PPr rooffiitt ffoorr tthhee yyeeaarr 88,,778888 2266,,991177
Basic and diluted earnings per share (cents) 8 1.75 13.65
Consolidated Statement of Comprehensive Income
FFoorr tthhee yyeeaarr eennddeedd 3311 DDe ecceemmbbeerr 22002244
GGrroouupp GGrroouupp
DDOOLLLLAARRSS IINN TTHHOOUUSSAANNDDSS 22002244 22002233
PPr rooffiitt ffoorr tthhee yyeeaarr 88,,778888 2266,,991177
OOtthheerr ccoommpprreehheennssiivvee iinnccoommee
IItteemmss tthhaatt aarree oorr mmaayy bbee rreeccllaassssiiffiieedd ttoo pprrooffiitt oorr lloossss
Foreign exchange translation movements 2,226 416
TToottaall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr 1111,,001144 2277,,333333
TToottaall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr aattttrri ibbuuttaabbllee ttoo ::
Owners of the parent 4,988 22,018
Non-controlling interests 6,026 5,315
TToottaall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr 1111,,001144 2277,,333333
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024 | FIN 2
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 1
Consolidated Income Statement
FFoorr tthhee yyeeaarr eennddeedd 3311 DDe ecceemmbbeerr 22002244
GGrroouupp GGrroouupp
DDOOLLLLAARRSS IINN TTHHOOUUSSAANNDDSS NNo ot tee 22002244 22002233
Hotel revenue 109,486 101,072
Rental income 4,028 3,944
Property sales 62,670 40,643
RRe evveennuuee 117766,,118844 114455,,665599
Cost of sales 3,10 (78,328) (67,879)
GGrroossss pprrooffiitt 9977,,885566 7777,,778800
Other income - 397
Administration expenses 2,3 (29,795) (25,532)
Other operating expenses 2,3 (25,600) (20,501)
OOppeerraattiinngg pprrooffiitt 4422,,446611 3322,,114444
Finance income 4 5,347 7,700
Finance costs 4 (2,235) (2,444)
NNe et t ffiinnaannccee iinnccoommee 33,,111122 55,,225566
Share of profit of joint venture, net of tax 24 1,508 73
PPr rooffiitt bbeeffoorree iinnccoommee ttaaxx 4477,,008811 3377,,447733
Income tax expense 5 (38,293) (10,556)
PPr rooffiitt ffoorr tthhee yyeeaarr 88,,778888 2266,,991177
AAt tttrri ibbuuttaabbllee ttoo::
Owners of the parent 2,762 21,602
Non-controlling interests 6,026 5,315
PPr rooffiitt ffoorr tthhee yyeeaarr 88,,778888 2266,,991177
Basic and diluted earnings per share (cents) 8 1.75 13.65
Consolidated Statement of Comprehensive Income
FFoorr tthhee yyeeaarr eennddeedd 3311 DDe ecceemmbbeerr 22002244
GGrroouupp GGrroouupp
DDOOLLLLAARRSS IINN TTHHOOUUSSAANNDDSS 22002244 22002233
PPr rooffiitt ffoorr tthhee yyeeaarr 88,,778888 2266,,991177
OOtthheerr ccoommpprreehheennssiivvee iinnccoommee
IItteemmss tthhaatt aarree oorr mmaayy bbee rreeccllaassssiiffiieedd ttoo pprrooffiitt oorr lloossss
Foreign exchange translation movements 2,226 416
TToottaall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr 1111,,001144 2277,,333333
TToottaall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr aattttrri ibbuuttaabbllee ttoo ::
Owners of the parent 4,988 22,018
Non-controlling interests 6,026 5,315
TToottaall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr 1111,,001144 2277,,333333
MM
ii
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&&
CC
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ll
ss
NN
ee
ww
ZZ
ee
aa
ll
aa
nn
dd
LL
ii
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ii
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The
accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN
2
Consolidated
Statement of Changes in Equity
FF
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aa
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nn
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33
11
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22
00
22
44
GG
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US
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vv
ee
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ee
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dd
EE
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ss
TT
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uu
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teer
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Balance at 1 January 202
4
338
83
3,
,226
66
6
((
998
80
0
))
11
665
5
,,
665
56
6
((2
26
6)
)
55
447
7
,,
99
116
6
111
1
44
,,
553
36
6
66
662
2
,,
445
52
2
Movement in exchange translation reserve
-
2,226
-
-
2,22
6
-
2,226
Total other comprehensive income
-
2,22
6
-
-
2,22
6
-
2,22
6
Profit for the year
-
-
2,
762
-
2,
762
6
,
026
8
,
788
Total comprehensive income for the year
-
2,22
6
2,
76
2
-
4
,
988
6
,
026
11
,
014
Transactions with owners, recorded directly in equity:
Dividends paid to:
Owners of the parent
-
-
(
4
,
747
)
-
(4,747)
-
(4,747)
Non
-
controlling interests
-
-
-
-
-
(
4
,
537
)
(
4
,
537
)
Supplementary dividends
-
-
(
9
4
)
-
(9
4
)
-
(
9
4
)
Foreign investment tax credits
-
-
9
4
-
9
4
-
9
4
Movement in non
-controlling interests
without a change in control
-
-
(
242
)
-
(
242
)
965
723
BBa
al
laan
nc
ce
e
aat
t 331
1
DDe ecce
em
mb
be
er
r
220
02
2
44
338
83
3,
,226
66
6
11,
,2
24
46
6
11
66
33
,,
442
29
9
((2
26
6)
)
55
447
7
,,
991
1
55
111
1
66
,,
999
90
0
66
66
44
,,
990
05
5
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 1
Consolidated Income Statement
FFoorr tthhee yyeeaarr eennddeedd 3311 DDe ecceemmbbeerr 22002244
GGrroouupp GGrroouupp
DDOOLLLLAARRSS IINN TTHHOOUUSSAANNDDSS NNo ot tee 22002244 22002233
Hotel revenue 109,486 101,072
Rental income 4,028 3,944
Property sales 62,670 40,643
RRe evveennuuee 117766,,118844 114455,,665599
Cost of sales 3,10 (78,328) (67,879)
GGrroossss pprrooffiitt 9977,,885566 7777,,778800
Other income - 397
Administration expenses 2,3 (29,795) (25,532)
Other operating expenses 2,3 (25,600) (20,501)
OOppeerraattiinngg pprrooffiitt 4422,,446611 3322,,114444
Finance income 4 5,347 7,700
Finance costs 4 (2,235) (2,444)
NNe et t ffiinnaannccee iinnccoommee 33,,111122 55,,225566
Share of profit of joint venture, net of tax 24 1,508 73
PPr rooffiitt bbeeffoorree iinnccoommee ttaaxx 4477,,008811 3377,,447733
Income tax expense 5 (38,293) (10,556)
PPr rooffiitt ffoorr tthhee yyeeaarr 88,,778888 2266,,991177
AAt tttrri ibbuuttaabbllee ttoo::
Owners of the parent 2,762 21,602
Non-controlling interests 6,026 5,315
PPr rooffiitt ffoorr tthhee yyeeaarr 88,,778888 2266,,991177
Basic and diluted earnings per share (cents) 8 1.75 13.65
Consolidated Statement of Comprehensive Income
FFoorr tthhee yyeeaarr eennddeedd 3311 DDe ecceemmbbeerr 22002244
GGrroouupp GGrroouupp
DDOOLLLLAARRSS IINN TTHHOOUUSSAANNDDSS 22002244 22002233
PPr rooffiitt ffoorr tthhee yyeeaarr 88,,778888 2266,,991177
OOtthheerr ccoommpprreehheennssiivvee iinnccoommee
IItteemmss tthhaatt aarree oorr mmaayy bbee rreeccllaassssiiffiieedd ttoo pprrooffiitt oorr lloossss
Foreign exchange translation movements 2,226 416
TToottaall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr 1111,,001144 2277,,333333
TToottaall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr aattttrri ibbuuttaabbllee ttoo ::
Owners of the parent 4,988 22,018
Non-controlling interests 6,026 5,315
TToottaall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr 1111,,001144 2277,,333333
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 1
Consolidated Income Statement
FFoorr tthhee yyeeaarr eennddeedd 3311 DDe ecceemmbbeerr 22002244
GGrroouupp GGrroouupp
DDOOLLLLAARRSS IINN TTHHOOUUSSAANNDDSS NNo ot tee 22002244 22002233
Hotel revenue 109,486 101,072
Rental income 4,028 3,944
Property sales 62,670 40,643
RRe evveennuuee 117766,,118844 114455,,665599
Cost of sales 3,10 (78,328) (67,879)
GGrroossss pprrooffiitt 9977,,885566 7777,,778800
Other income - 397
Administration expenses 2,3 (29,795) (25,532)
Other operating expenses 2,3 (25,600) (20,501)
OOppeerraattiinngg pprrooffiitt 4422,,446611 3322,,114444
Finance income 4 5,347 7,700
Finance costs 4 (2,235) (2,444)
NNe et t ffiinnaannccee iinnccoommee 33,,111122 55,,225566
Share of profit of joint venture, net of tax 24 1,508 73
PPr rooffiitt bbeeffoorree iinnccoommee ttaaxx 4477,,008811 3377,,447733
Income tax expense 5 (38,293) (10,556)
PPr rooffiitt ffoorr tthhee yyeeaarr 88,,778888 2266,,991177
AAt tttrri ibbuuttaabbllee ttoo::
Owners of the parent 2,762 21,602
Non-controlling interests 6,026 5,315
PPr rooffiitt ffoorr tthhee yyeeaarr 88,,778888 2266,,991177
Basic and diluted earnings per share (cents) 8 1.75 13.65
Consolidated Statement of Comprehensive Income
FFoorr tthhee yyeeaarr eennddeedd 3311 DDe ecceemmbbeerr 22002244
GGrroouupp GGrroouupp
DDOOLLLLAARRSS IINN TTHHOOUUSSAANNDDSS 22002244 22002233
PPr rooffiitt ffoorr tthhee yyeeaarr 88,,778888 2266,,991177
OOtthheerr ccoommpprreehheennssiivvee iinnccoommee
IItteemmss tthhaatt aarree oorr mmaayy bbee rreeccllaassssiiffiieedd ttoo pprrooffiitt oorr lloossss
Foreign exchange translation movements 2,226 416
TToottaall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr 1111,,001144 2277,,333333
TToottaall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr aattttrri ibbuuttaabbllee ttoo ::
Owners of the parent 4,988 22,018
Non-controlling interests 6,026 5,315
TToottaall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr 1111,,001144 2277,,333333
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 1
Consolidated Income Statement
FFoorr tthhee yyeeaarr eennddeedd 3311 DDe ecceemmbbeerr 22002244
GGrroouupp GGrroouupp
DDOOLLLLAARRSS IINN TTHHOOUUSSAANNDDSS NNo ot tee 22002244 22002233
Hotel revenue 109,486 101,072
Rental income 4,028 3,944
Property sales 62,670 40,643
RRe evveennuuee 117766,,118844 114455,,665599
Cost of sales 3,10 (78,328) (67,879)
GGrroossss pprrooffiitt 9977,,885566 7777,,778800
Other income - 397
Administration expenses 2,3 (29,795) (25,532)
Other operating expenses 2,3 (25,600) (20,501)
OOppeerraattiinngg pprrooffiitt 4422,,446611 3322,,114444
Finance income 4 5,347 7,700
Finance costs 4 (2,235) (2,444)
NNe et t ffiinnaannccee iinnccoommee 33,,111122 55,,225566
Share of profit of joint venture, net of tax 24 1,508 73
PPr rooffiitt bbeeffoorree iinnccoommee ttaaxx 4477,,008811 3377,,447733
Income tax expense 5 (38,293) (10,556)
PPr rooffiitt ffoorr tthhee yyeeaarr 88,,778888 2266,,991177
AAt tttrri ibbuuttaabbllee ttoo::
Owners of the parent 2,762 21,602
Non-controlling interests 6,026 5,315
PPr rooffiitt ffoorr tthhee yyeeaarr 88,,778888 2266,,991177
Basic and diluted earnings per share (cents) 8 1.75 13.65
Consolidated Statement of Comprehensive Income
FFoorr tthhee yyeeaarr eennddeedd 3311 DDe ecceemmbbeerr 22002244
GGrroouupp GGrroouupp
DDOOLLLLAARRSS IINN TTHHOOUUSSAANNDDSS 22002244 22002233
PPr rooffiitt ffoorr tthhee yyeeaarr 88,,778888 2266,,991177
OOtthheerr ccoommpprreehheennssiivvee iinnccoommee
IItteemmss tthhaatt aarree oorr mmaayy bbee rreeccllaassssiiffiieedd ttoo pprrooffiitt oorr lloossss
Foreign exchange translation movements 2,226 416
TToottaall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr 1111,,001144 2277,,333333
TToottaall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr aattttrri ibbuuttaabbllee ttoo ::
Owners of the parent 4,988 22,018
Non-controlling interests 6,026 5,315
TToottaall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr 1111,,001144 2277,,333333
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 1
Consolidated Income Statement
FFoorr tthhee yyeeaarr eennddeedd 3311 DDe ecceemmbbeerr 22002244
GGrroouupp GGrroouupp
DDOOLLLLAARRSS IINN TTHHOOUUSSAANNDDSS NNo ot tee 22002244 22002233
Hotel revenue 109,486 101,072
Rental income 4,028 3,944
Property sales 62,670 40,643
RRe evveennuuee 117766,,118844 114455,,665599
Cost of sales 3,10 (78,328) (67,879)
GGrroossss pprrooffiitt 9977,,885566 7777,,778800
Other income - 397
Administration expenses 2,3 (29,795) (25,532)
Other operating expenses 2,3 (25,600) (20,501)
OOppeerraattiinngg pprrooffiitt 4422,,446611 3322,,114444
Finance income 4 5,347 7,700
Finance costs 4 (2,235) (2,444)
NNe et t ffiinnaannccee iinnccoommee 33,,111122 55,,225566
Share of profit of joint venture, net of tax 24 1,508 73
PPr rooffiitt bbeeffoorree iinnccoommee ttaaxx 4477,,008811 3377,,447733
Income tax expense 5 (38,293) (10,556)
PPr rooffiitt ffoorr tthhee yyeeaarr 88,,778888 2266,,991177
AAt tttrri ibbuuttaabbllee ttoo::
Owners of the parent 2,762 21,602
Non-controlling interests 6,026 5,315
PPr rooffiitt ffoorr tthhee yyeeaarr 88,,778888 2266,,991177
Basic and diluted earnings per share (cents) 8 1.75 13.65
Consolidated Statement of Comprehensive Income
FFoorr tthhee yyeeaarr eennddeedd 3311 DDe ecceemmbbeerr 22002244
GGrroouupp GGrroouupp
DDOOLLLLAARRSS IINN TTHHOOUUSSAANNDDSS 22002244 22002233
PPr rooffiitt ffoorr tthhee yyeeaarr 88,,778888 2266,,991177
OOtthheerr ccoommpprreehheennssiivvee iinnccoommee
IItteemmss tthhaatt aarree oorr mmaayy bbee rreeccllaassssiiffiieedd ttoo pprrooffiitt oorr lloossss
Foreign exchange translation movements 2,226 416
TToottaall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr 1111,,001144 2277,,333333
TToottaall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr aattttrri ibbuuttaabbllee ttoo ::
Owners of the parent 4,988 22,018
Non-controlling interests 6,026 5,315
TToottaall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr 1111,,001144 2277,,333333
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 1
Consolidated Income Statement
FFoorr tthhee yyeeaarr eennddeedd 3311 DDe ecceemmbbeerr 22002244
GGrroouupp GGrroouupp
DDOOLLLLAARRSS IINN TTHHOOUUSSAANNDDSS NNo ot tee 22002244 22002233
Hotel revenue 109,486 101,072
Rental income 4,028 3,944
Property sales 62,670 40,643
RRe evveennuuee 117766,,118844 114455,,665599
Cost of sales 3,10 (78,328) (67,879)
GGrroossss pprrooffiitt 9977,,885566 7777,,778800
Other income - 397
Administration expenses 2,3 (29,795) (25,532)
Other operating expenses 2,3 (25,600) (20,501)
OOppeerraattiinngg pprrooffiitt 4422,,446611 3322,,114444
Finance income 4 5,347 7,700
Finance costs 4 (2,235) (2,444)
NNe et t ffiinnaannccee iinnccoommee 33,,111122 55,,225566
Share of profit of joint venture, net of tax 24 1,508 73
PPr rooffiitt bbeeffoorree iinnccoommee ttaaxx 4477,,008811 3377,,447733
Income tax expense 5 (38,293) (10,556)
PPr rooffiitt ffoorr tthhee yyeeaarr 88,,778888 2266,,991177
AAt tttrri ibbuuttaabbllee ttoo::
Owners of the parent 2,762 21,602
Non-controlling interests 6,026 5,315
PPr rooffiitt ffoorr tthhee yyeeaarr 88,,778888 2266,,991177
Basic and diluted earnings per share (cents) 8 1.75 13.65
Consolidated Statement of Comprehensive Income
FFoorr tthhee yyeeaarr eennddeedd 3311 DDe ecceemmbbeerr 22002244
GGrroouupp GGrroouupp
DDOOLLLLAARRSS IINN TTHHOOUUSSAANNDDSS 22002244 22002233
PPr rooffiitt ffoorr tthhee yyeeaarr 88,,778888 2266,,991177
OOtthheerr ccoommpprreehheennssiivvee iinnccoommee
IItteemmss tthhaatt aarree oorr mmaayy bbee rreeccllaassssiiffiieedd ttoo pprrooffiitt oorr lloossss
Foreign exchange translation movements 2,226 416
TToottaall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr 1111,,001144 2277,,333333
TToottaall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr aattttrri ibbuuttaabbllee ttoo ::
Owners of the parent 4,988 22,018
Non-controlling interests 6,026 5,315
TToottaall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr 1111,,001144 2277,,333333
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 1
Consolidated Income Statement
FFoorr tthhee yyeeaarr eennddeedd 3311 DDe ecceemmbbeerr 22002244
GGrroouupp GGrroouupp
DDOOLLLLAARRSS IINN TTHHOOUUSSAANNDDSS NNo ot tee 22002244 22002233
Hotel revenue 109,486 101,072
Rental income 4,028 3,944
Property sales 62,670 40,643
RRe evveennuuee 117766,,118844 114455,,665599
Cost of sales 3,10 (78,328) (67,879)
GGrroossss pprrooffiitt 9977,,885566 7777,,778800
Other income - 397
Administration expenses 2,3 (29,795) (25,532)
Other operating expenses 2,3 (25,600) (20,501)
OOppeerraattiinngg pprrooffiitt 4422,,446611 3322,,114444
Finance income 4 5,347 7,700
Finance costs 4 (2,235) (2,444)
NNe et t ffiinnaannccee iinnccoommee 33,,111122 55,,225566
Share of profit of joint venture, net of tax 24 1,508 73
PPr rooffiitt bbeeffoorree iinnccoommee ttaaxx 4477,,008811 3377,,447733
Income tax expense 5 (38,293) (10,556)
PPr rooffiitt ffoorr tthhee yyeeaarr 88,,778888 2266,,991177
AAt tttrri ibbuuttaabbllee ttoo::
Owners of the parent 2,762 21,602
Non-controlling interests 6,026 5,315
PPr rooffiitt ffoorr tthhee yyeeaarr 88,,778888 2266,,991177
Basic and diluted earnings per share (cents) 8 1.75 13.65
Consolidated Statement of Comprehensive Income
FFoorr tthhee yyeeaarr eennddeedd 3311 DDe ecceemmbbeerr 22002244
GGrroouupp GGrroouupp
DDOOLLLLAARRSS IINN TTHHOOUUSSAANNDDSS 22002244 22002233
PPr rooffiitt ffoorr tthhee yyeeaarr 88,,778888 2266,,991177
OOtthheerr ccoommpprreehheennssiivvee iinnccoommee
IItteemmss tthhaatt aarree oorr mmaayy bbee rreeccllaassssiiffiieedd ttoo pprrooffiitt oorr lloossss
Foreign exchange translation movements 2,226 416
TToottaall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr 1111,,001144 2277,,333333
TToottaall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr aattttrri ibbuuttaabbllee ttoo ::
Owners of the parent 4,988 22,018
Non-controlling interests 6,026 5,315
TToottaall ccoommpprreehheennssiivvee iinnccoommee ffoorr tthhee yyeeaarr 1111,,001144 2277,,333333
FIN 3 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024
MM
ii
ll
ll
ee
nn
nn
ii
uu
mm
&&
CC
oo
pp
tt
hh
oo
rr
nn
ee
HH
oo
tt
ee
ll
ss
NN
ee
ww
ZZ
ee
aa
ll
aa
nn
dd
LL
ii
mm
ii
tt
ee
dd
The
accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN
3
Consolidated Statement of Changes in Equity
FF
oo
rr
tt
hh
ee
yy
ee
aa
rr
ee
nn
dd
ee
dd
33
11
DD
ee
cc
ee
mm
bb
ee
rr
22
00
22
33
GG
rr
oo
uu
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AA
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tt
rr
ii
bb
uu
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aa
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ee
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ee
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RSS
IIN
N TTH
HO
OU
US
SAAN
ND
DSS
SS
hh
aa
rr
ee
CC
aa
pp
ii
tt
aa
ll
EE
xx
cc
hh
aa
nn
gg
ee
RR
ee
ss
ee
rr
vv
ee
RR
ee
tt
aa
ii
nn
ee
dd
EE
aa
rr
nn
ii
nn
gg
ss
TT
rr
ee
aa
ss
uu
rr
yy
SS
tt
oo
cc
kk
TT
oo
tt
aa
ll
NN
oo
nn
--
cc
oo
nn
tt
rr
oo
ll
ll
ii
nn
gg
IInnt
teer
re
es
st
tss
TT
oo
tt
aa
ll
EE
qq
uu
ii
tt
yy
Balance at 1 January 202
3
338
83
3,
,226
66
6
((1
1,
,339
96
6)
)
114
49
9,
,117
75
5
((2
26
6)
)
553
31
1,
,001
19
9
111
11
1,
,668
82
2
664
42
2,
,770
01
1
Movement in exchange translation reserve
-
416
-
-
416
-
416
Total
other comprehensive income
-
416
-
-
416
-
416
Profit for the year
-
-
21,602
-
21,602
5,315
26,917
Total comprehensive income for the year
-
416
21,602
-
22,018
5,315
27,333
Transactions with owners, recorded directly in equity:
Dividends paid to:
Owners of the parent
-
-
(4,747)
-
(4,747)
-
(4,747)
Non
-
controlling interests
-
-
-
-
-
(4,324)
(4,324)
Supplementary dividends
-
-
(98)
-
(98)
-
(98)
Foreign investment tax credits
-
-
98
-
98
-
98
Movement in non
-controlling interests
without a change in control
-
-
(374)
-
(374)
1,863
1,489
BBa
al
laan
nc
ce
e
aat
t 331
1
DDe ecce
em
mb
be
er
r
220
02
2
33
338
83
3,
,226
66
6
((9
98
80
0)
)
116
65
5,
,665
56
6
((2
26
6)
)
554
47
7,
,991
16
6
111
14
4,
,553
36
6
666
62
2,
,445
52
2
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 4
Consolidated Statement of Financial Position
AAss aatt 3311 DDe ecceemmbbeerr 22002244
GGrroouupp GGrroouupp
DDOOLLLLAARRSS IINN TTHHOOUUSSAANNDDSS NNo ot tee 22002244 22002233
SSHHAARREEHHOOLLDDEERRSS’ ’ EEQQUUI ITTYY
Issued capital 7 383,240 383,240
Reserves 164,675 164,676
EEq quuiittyy aattttrri ibbuuttaabbllee ttoo oowwn neerrss ooff tthhee ppaarreenntt 554477,,991155 554477,,991166
Non-controlling interests 116,990 114,536
TTOOT TAAL L EEQQUUI ITTYY 666644,,990055 666622,,445522
RRe epprreesseenntteedd bbyy::
NNOONN CCUURRRREENNTT AASSSSEETTSS
Property, plant and equipment 9 283,430 263,051
Development properties 10 228,634 217,221
Investment properties 11 36,301 35,834
Investment in associates 2 2
Investment in joint venture 24 46,554 43,943
TToottaall nnoonn--ccuurrrreenntt aasssseettss 559944,,992211 556600,,005511
CCUURRRREENNT T AASSSSEETTSS
Cash and cash equivalents 12 39,726 11,256
Short term bank deposits 1,571 64,075
Trade and other receivables 13 23,497 20,391
Advances to related parties 20 65,326 62,516
Inventories 1,771 1,640
Development properties 10 35,454 26,861
TToottaall ccuurrrreenntt aasssseettss 116677,,334455 118866,,773399
TToottaall aasssseettss 776622,,226666 774466,,779900
NNOONN CCUURRRREENNTT LLIIAABBI ILLIITTIIEESS
Lease liability 22 26,726 27,111
Deferred tax 15 32,718 7,001
Interest-bearing loans and borrowings 14, 26 3,000 -
TToottaall nnoonn--ccuurrrreenntt lliiaabbiilliittiieess 6622,,444444 3344,,111122
CCUURRRREENNT T LLIIAABBI ILLIITTIIEESS
Interest-bearing loans and borrowings 14, 26 - 11,968
Trade and other payables 16 30,524 32,348
Trade payables due to related parties 20 1,767 2,318
Lease liability 22 370 215
Income tax payable 2,256 3,377
TToottaall ccuurrrreenntt lliiaabbiilliittiieess 3344,,991177 5500,,222266
TToottaall lliiaabbiilliittiieess 9977,,336611 8844,,333388
NNEETT AASSSSEETTSS 666644,,990055 666622,,445522
FFoorr aanndd oonn bbeehhaallff ooff tthhee bbooaarrdd
LLSS PPRREESSTTOONN,, DDI IRREECCTTOORR,, SSNNBB HHAARRRRIISSOONN, , MMAANNAAGGIINNGG DDI IRREECCT TOORR, ,
2244 FFeebbrruuaarryy 220022552244 FFeebbrruuaarryy 22002255
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 4
Consolidated Statement of Financial Position
AAss aatt 3311 DDe ecceemmbbeerr 22002244
GGrroouupp GGrroouupp
DDOOLLLLAARRSS IINN TTHHOOUUSSAANNDDSS NNo ot tee 22002244 22002233
SSHHAARREEHHOOLLDDEERRSS’ ’ EEQQUUI ITTYY
Issued capital 7 383,240 383,240
Reserves 164,675 164,676
EEq quuiittyy aattttrri ibbuuttaabbllee ttoo oowwn neerrss ooff tthhee ppaarreenntt 554477,,991155 554477,,991166
Non-controlling interests 116,990 114,536
TTOOT TAAL L EEQQUUI ITTYY 666644,,990055 666622,,445522
RRe epprreesseenntteedd bbyy::
NNOONN CCUURRRREENNTT AASSSSEETTSS
Property, plant and equipment 9 283,430 263,051
Development properties 10 228,634 217,221
Investment properties 11 36,301 35,834
Investment in associates 2 2
Investment in joint venture 24 46,554 43,943
TToottaall nnoonn--ccuurrrreenntt aasssseettss 559944,,992211 556600,,005511
CCUURRRREENNT T AASSSSEETTSS
Cash and cash equivalents 12 39,726 11,256
Short term bank deposits 1,571 64,075
Trade and other receivables 13 23,497 20,391
Advances to related parties 20 65,326 62,516
Inventories 1,771 1,640
Development properties 10 35,454 26,861
TToottaall ccuurrrreenntt aasssseettss 116677,,334455 118866,,773399
TToottaall aasssseettss 776622,,226666 774466,,779900
NNOONN CCUURRRREENNTT LLIIAABBI ILLIITTIIEESS
Lease liability 22 26,726 27,111
Deferred tax 15 32,718 7,001
Interest-bearing loans and borrowings 14, 26 3,000 -
TToottaall nnoonn--ccuurrrreenntt lliiaabbiilliittiieess 6622,,444444 3344,,111122
CCUURRRREENNT T LLIIAABBI ILLIITTIIEESS
Interest-bearing loans and borrowings 14, 26 - 11,968
Trade and other payables 16 30,524 32,348
Trade payables due to related parties 20 1,767 2,318
Lease liability 22 370 215
Income tax payable 2,256 3,377
TToottaall ccuurrrreenntt lliiaabbiilliittiieess 3344,,991177 5500,,222266
TToottaall lliiaabbiilliittiieess 9977,,336611 8844,,333388
NNEETT AASSSSEETTSS 666644,,990055 666622,,445522
FFoorr aanndd oonn bbeehhaallff ooff tthhee bbooaarrdd
LLSS PPRREESSTTOONN,, DDI IRREECCTTOORR,, SSNNBB HHAARRRRIISSOONN, , MMAANNAAGGIINNGG DDI IRREECCT TOORR, ,
2244 FFeebbrruuaarryy 220022552244 FFeebbrruuaarryy 22002255
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024 | FIN 4
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 4
Consolidated Statement of Financial Position
AAss aatt 3311 DDe ecceemmbbeerr 22002244
GGrroouupp GGrroouupp
DDOOLLLLAARRSS IINN TTHHOOUUSSAANNDDSS NNo ot tee 22002244 22002233
SSHHAARREEHHOOLLDDEERRSS’ ’ EEQQUUI ITTYY
Issued capital 7 383,240 383,240
Reserves 164,675 164,676
EEq quuiittyy aattttrri ibbuuttaabbllee ttoo oowwn neerrss ooff tthhee ppaarreenntt 554477,,991155 554477,,991166
Non-controlling interests 116,990 114,536
TTOOT TAAL L EEQQUUI ITTYY 666644,,990055 666622,,445522
RRe epprreesseenntteedd bbyy::
NNOONN CCUURRRREENNTT AASSSSEETTSS
Property, plant and equipment 9 283,430 263,051
Development properties 10 228,634 217,221
Investment properties 11 36,301 35,834
Investment in associates 2 2
Investment in joint venture 24 46,554 43,943
TToottaall nnoonn--ccuurrrreenntt aasssseettss 559944,,992211 556600,,005511
CCUURRRREENNT T AASSSSEETTSS
Cash and cash equivalents 12 39,726 11,256
Short term bank deposits 1,571 64,075
Trade and other receivables 13 23,497 20,391
Advances to related parties 20 65,326 62,516
Inventories 1,771 1,640
Development properties 10 35,454 26,861
TToottaall ccuurrrreenntt aasssseettss 116677,,334455 118866,,773399
TToottaall aasssseettss 776622,,226666 774466,,779900
NNOONN CCUURRRREENNTT LLIIAABBI ILLIITTIIEESS
Lease liability 22 26,726 27,111
Deferred tax 15 32,718 7,001
Interest-bearing loans and borrowings 14, 26 3,000 -
TToottaall nnoonn--ccuurrrreenntt lliiaabbiilliittiieess 6622,,444444 3344,,111122
CCUURRRREENNT T LLIIAABBI ILLIITTIIEESS
Interest-bearing loans and borrowings 14, 26 - 11,968
Trade and other payables 16 30,524 32,348
Trade payables due to related parties 20 1,767 2,318
Lease liability 22 370 215
Income tax payable 2,256 3,377
TToottaall ccuurrrreenntt lliiaabbiilliittiieess 3344,,991177 5500,,222266
TToottaall lliiaabbiilliittiieess 9977,,336611 8844,,333388
NNEETT AASSSSEETTSS 666644,,990055 666622,,445522
FFoorr aanndd oonn bbeehhaallff ooff tthhee bbooaarrdd
LLSS PPRREESSTTOONN,, DDIIRREECCTTOORR,, SSNNBB HHAARRRRIISSOONN,, MMAANNAAGGIINNGG DDIIRREECCTTOORR,,
2244 FFeebbrruuaarryy 220022552244 FFeebbrruuaarryy 22002255
MMiilllleennnniiuumm && CCoopptthhoorrnnee HHootteellss NNeeww ZZeeaallaanndd LLiimmiitteedd
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 4
Consolidated Statement of Financial Position
AAss aatt 3311 DDe ecceemmbbeerr 22002244
GGrroouupp GGrroouupp
DDOOLLLLAARRSS IINN TTHHOOUUSSAANNDDSS NNo ot tee 22002244 22002233
SSHHAARREEHHOOLLDDEERRSS’ ’ EEQQUUI ITTYY
Issued capital 7 383,240 383,240
Reserves 164,675 164,676
EEq quuiittyy aattttrri ibbuuttaabbllee ttoo oowwn neerrss ooff tthhee ppaarreenntt 554477,,991155 554477,,991166
Non-controlling interests 116,990 114,536
TTOOT TAAL L EEQQUUI ITTYY 666644,,990055 666622,,445522
RRe epprreesseenntteedd bbyy::
NNOONN CCUURRRREENNTT AASSSSEETTSS
Property, plant and equipment 9 283,430 263,051
Development properties 10 228,634 217,221
Investment properties 11 36,301 35,834
Investment in associates 2 2
Investment in joint venture 24 46,554 43,943
TToottaall nnoonn--ccuurrrreenntt aasssseettss 559944,,992211 556600,,005511
CCUURRRREENNT T AASSSSEETTSS
Cash and cash equivalents 12 39,726 11,256
Short term bank deposits 1,571 64,075
Trade and other receivables 13 23,497 20,391
Advances to related parties 20 65,326 62,516
Inventories 1,771 1,640
Development properties 10 35,454 26,861
TToottaall ccuurrrreenntt aasssseettss 116677,,334455 118866,,773399
TToottaall aasssseettss 776622,,226666 774466,,779900
NNOONN CCUURRRREENNTT LLIIAABBI ILLIITTIIEESS
Lease liability 22 26,726 27,111
Deferred tax 15 32,718 7,001
Interest-bearing loans and borrowings 14, 26 3,000 -
TToottaall nnoonn--ccuurrrreenntt lliiaabbiilliittiieess 6622,,444444 3344,,111122
CCUURRRREENNT T LLIIAABBI ILLIITTIIEESS
Interest-bearing loans and borrowings 14, 26 - 11,968
Trade and other payables 16 30,524 32,348
Trade payables due to related parties 20 1,767 2,318
Lease liability 22 370 215
Income tax payable 2,256 3,377
TToottaall ccuurrrreenntt lliiaabbiilliittiieess 3344,,991177 5500,,222266
TToottaall lliiaabbiilliittiieess 9977,,336611 8844,,333388
NNEETT AASSSSEETTSS 666644,,990055 666622,,445522
FFoorr aanndd oonn bbeehhaallff ooff tthhee bbooaarrdd
LLSS PPRREESSTTOONN,, DDI IRREECCTTOORR,, SSNNBB HHAARRRRIISSOONN, , MMAANNAAGGIINNGG DDI IRREECCT TOORR, ,
2244 FFeebbrruuaarryy 220022552244 FFeebbrruuaarryy 22002255
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 2024
Mil lennium & Copthorne Hotels New Z ealand Li mited
The a ccompanyin g n ote s fo rm p art of, and s hould be read in conjunctio n with, t hese financial s ta tements .
FIN 5
Consol idated St atement of Cash Flo ws
For the year ended 31 December 2024
Group Group
DOLLARS IN THOUSANDS Note 2024 2023
CASH FLOWS FROM O PERATI NG ACTIVITI ES
Cash was provided from:
Receipt s from c ustomers 172,358 142,092
Receipt s from in sure rs - 397
In te re st receiv ed 5,1 96 8,2 48
Cash was applied to:
Payments to suppliers a nd employees
(126,244) (99,843)
Purc hases o f development land 1 (23,720) (20,407)
In te re st paid (175) (104)
In come t ax p aid (13,738) (10,701)
Net cash inflow from operating activities 13,677 19,682
CASH FLOWS FROM INVESTING ACTIVITI ES
Cash was (applied to)/provided from:
Proceeds from t he sale of property, plant and equipment 30 387
Purc hases o f property , plant and equipment 9 (28,448) (13,901)
Purc hases o f investment property (1,0 17) (386)
In vestment in j oint venture 24 -(44,048)
Advance t o jo int ventu re 20 -(62,261)
Di vestments in short term b ank d eposit s 62,504 47,871
N
et cash (outflow)/inflow from investing activities 33,069 (72,338)
CASH FLOWS FROM F INANCING ACTIVITI ES
C
ash was (applied to)/provided from:
Drawdown/(Repayment) of borro wi ngs 14 (8 ,9 68) 11,968
Lease p ayments 22(c) (2 ,174) (2 ,1 61)
Di vidends p aid to shareholders o f Mill ennium & Copth orn e H ote ls
New Zealand L td 7 (4 ,7 47) (4 ,7 47)
Di vidends p aid to n on-controlli ng share holders (4 ,537) (4 ,3 24)
N
et cash inflow/(outflow) from financing activities (20,426) 736
N
et increase/(decrease) in cash and cash equivalents 26,320 (51,920)
Add opening cash a nd cash e quivale nts 11,256 61,387
Exchange rate adjustment 2,1 50 1,7 89
C
losing cash and cash equivalents 12 39,726 11,256
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 6
Consolidated Statement of Cash Flows – continued
FFoorr tthhee yyeeaarr eennddeedd 3311 DDe ecceemmbbeerr 22002244
GGrroouupp GGrroouupp
DDOOLLLLAARRSS IINN TTHHOOUUSSAANNDDSS NNo ot tee 22002244 22002233
RECONCILIATION OF NET PROFIT FOR THE YEAR TO CASH FLOWS
FROM OPERATING ACTIVITIES
PPr rooffiitt ffoorr tthhee yyeeaarr 8,788 26,917
AAd djjuusstteedd ffoorr nnoonn--ccaasshh iitteemmss::
Share of profit joint venture (1,508) (73)
Gain on sale of property, plant and equipment
2
(1)(376)
Depreciation of property, plant and equipment and investment property
9, 11
7,751 7,845
Depreciation of Right-Of-Use assets
9
895 850
Unrealised foreign exchange losses (659) 435
Interest expense 2,017 1,956
Income tax expense
5
38,293 10,556
5555,,557766 4488,,111100
AAd djjuussttmmeennttss ffoorr mmoovveemmeennttss iinn wwo or rkkiinngg ccaappiittaall::
(Increase) in trade & other receivables (3,106) (5,955)
(Increase) in inventories (131)(231)
(Increase) in development properties (19,618) (15,576)
(Decrease)/ Increase in trade & other payables (1,770) 4,324
(Decrease) in related parties (3,361) (185)
CCa asshh ggeenneerraatteedd ffrroomm ooppeerraattiioonnss 2277,,558899 3300,,448877
Interest paid (175)(104)
Income tax paid (13,738) (10,701)
CCa asshh iinnfflloowws s ffrroomm ooppeerraattiinngg aaccttiivviittiieess 1133,,667777 1199,,668822
RRe eccoonncciilliiaattiioonn ooff mmoovveemmeenntt ooff lliiaabbiilliittiieess ttoo ccaasshh fflloowws s aarri issiinngg ffrroomm
ffiinnaanncciinngg aaccttiivviittiieess
External borrowings as at 01 January 1111,,996688 -
Proceeds from borrowings 3,000 11,968
Repayment of term loans ((1111,,996688)) -
FFi innaanncciinngg ccaasshh fflloowwss ((88,,996688)) 1111,,996688
External borrowings as at 31 December 33,,000000 1111,,996688
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 5
Consolidated Statement of Cash Flows
FFoorr tthhee yyeeaarr eennddeedd 3311 DDe ecceemmbbeerr 22002244
GGrroouupp GGrroouupp
DDOOLLLLAARRSS IINN TTHHOOUUSSAANNDDSS NNo ot tee 22002244 22002233
CASH FLOWS FROM OPERATING ACTIVITIES
CCa asshh wwa ass pprroovviiddeedd ffrroomm::
Receipts from customers 172,358 142,092
Receipts from insurers - 397
Interest received 5,196 8,248
CCa asshh wwa ass aapppplliieedd ttoo::
Payments to suppliers and employees
(126,244) (99,843)
Purchases of development land 1 (23,720) (20,407)
Interest paid (175) (104)
Income tax paid (13,738) (10,701)
NNe et t ccaasshh iinnffllooww ffrroomm ooppeerraattiinngg aaccttiivviittiieess 1133,,667777 1199,,668822
CASH FLOWS FROM INVESTING ACTIVITIES
CCa asshh wwa ass ((aapppplliieedd ttoo))//pprroovviiddeedd ffrroomm::
Proceeds from the sale of property, plant and equipment 30 387
Purchases of property, plant and equipment 9 (28,448) (13,901)
Purchases of investment property (1,017) (386)
Investment in joint venture 24 -(44,048)
Advance to joint venture 20 -(62,261)
Divestments in short term bank deposits 62,504 47,871
NNe et t ccaasshh ((oouuttffllooww) )//iinnf fllooww ffrroomm iinnvveessttiinngg aaccttiivviittiieess 3333,,006699 ((7722,,333388))
CASH FLOWS FROM FINANCING ACTIVITIES
CCa asshh wwa ass ((aapppplliieedd ttoo))//pprroovviiddeedd ffrroomm::
Drawdown/(Repayment) of borrowings 14 (8,968) 11,968
Lease payments 22(c) (2,174) (2,161)
Dividends paid to shareholders of Millennium & Copthorne Hotels
New Zealand Ltd 7 (4,747) (4,747)
Dividends paid to non-controlling shareholders (4,537) (4,324)
NNe et t ccaasshh iinnf fllooww/ /((oouuttffllooww) ) ffrroomm ffiinnaanncciinngg aaccttiivviittiieess ((2200,,442266)) 773366
NNe et t iinnccrreeaassee//((ddeeccrreeaassee)) iinn ccaasshh aanndd ccaasshh eeqquuiivvaalleennttss 2266,,332200 ((5511,,992200))
Add opening cash and cash equivalents 11,256 61,387
Exchange rate adjustment 2,150 1,789
CCl loossiinngg ccaasshh aanndd ccaasshh eeqquuiivvaalleennttss 12 3399,,772266 1111,,225566
Millennium & Copthorne Hotels New Zealand Limited
The a ccompanyin g n ote s fo rm p art of, and s hould be read in conjunctio n with, t hese financial s ta tements .
FIN 5
Consol idated St atement of Cash Flo ws
For the year ended 31 December 2024
Group Group
DOLLARS IN THOUSANDS Note 2024 2023
CASH FLOWS FROM O PERATI NG ACTIVITI ES
Cash was provided from:
Receipt s from c ustomers 172,358 142,092
Receipt s from in sure rs - 397
In te re st receiv ed 5,1 96 8,2 48
Cash was applied to:
Payments to suppliers a nd employees
(126,244) (99,843)
Purc hases o f development land 1 (23,720) (20,407)
In te re st paid (175) (104)
In come t ax p aid (13,738) (10,701)
Net cash inflow from operating activities 13,677 19,682
CASH FLOWS FROM INVESTING ACTIVITI ES
Cash was (applied to)/provided from:
Proceeds from t he sale of property, plant and equipment 30 387
Purc hases o f property , plant and equipment 9 (28,448) (13,901)
Purc hases o f investment property (1,0 17) (386)
In vestment in j oint venture 24 -(44,048)
Advance t o jo int ventu re 20 -(62,261)
Di vestments in short term b ank d eposit s 62,504 47,871
Ne
t cash (outflow)/inflow from investing activ ities 33,069 (72,338)
CASH FLOWS FROM F INANCING ACTIVITI ES
C
ash was (applied to)/provided from:
Drawdown/(Repayment) of borro wi ngs 14 (8 ,9 68) 11,968
Lease p ayments 22(c) (2 ,174) (2 ,1 61)
Di vidends p aid to shareholders o f Mill ennium & Copth orn e H ote ls
New Zealand L td 7 (4 ,7 47) (4 ,7 47)
Di vidends p aid to n on-controlli ng share holders (4 ,537) (4 ,3 24)
N
et cash inflow/(outflow) from financing activities (20,426) 736
Ne
t increase/(decrease) in cash and cash equivalents 26,320 (51,920)
Add opening cash a nd cash e quivale nts 11,256 61,387
Exchange rate adjustment 2,1 50 1,7 89
C
losing cash and cash equivalents 12 39,726 11,256
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 5
Consolidated Statement of Cash Flows
FFoorr tthhee yyeeaarr eennddeedd 3311 DDe ecceemmbbeerr 22002244
GGrroouupp GGrroouupp
DDOOLLLLAARRSS IINN TTHHOOUUSSAANNDDSS NNo ot tee 22002244 22002233
CASH FLOWS FROM OPERATING ACTIVITIES
CCa asshh wwa ass pprroovviiddeedd ffrroomm::
Receipts from customers 172,358 142,092
Receipts from insurers - 397
Interest received 5,196 8,248
CCa asshh wwa ass aapppplliieedd ttoo::
Payments to suppliers and employees
(126,244) (99,843)
Purchases of development land 1 (23,720) (20,407)
Interest paid (175) (104)
Income tax paid (13,738) (10,701)
NNe et t ccaasshh iinnffllooww ffrroomm ooppeerraattiinngg aaccttiivviittiieess 1133,,667777 1199,,668822
CASH FLOWS FROM INVESTING ACTIVITIES
CCa asshh wwa ass ((aapppplliieedd ttoo))//pprroovviiddeedd ffrroomm::
Proceeds from the sale of property, plant and equipment 30 387
Purchases of property, plant and equipment 9 (28,448) (13,901)
Purchases of investment property (1,017) (386)
Investment in joint venture 24 -(44,048)
Advance to joint venture 20 -(62,261)
Divestments in short term bank deposits 62,504 47,871
NNe et t ccaasshh ((oouuttffllooww) )//iinnf fllooww ffrroomm iinnvveessttiinngg aaccttiivviittiieess 3333,,006699 ((7722,,333388))
CASH FLOWS FROM FINANCING ACTIVITIES
CCa asshh wwa ass ((aapppplliieedd ttoo))//pprroovviiddeedd ffrroomm::
Drawdown/(Repayment) of borrowings 14 (8,968) 11,968
Lease payments 22(c) (2,174) (2,161)
Dividends paid to shareholders of Millennium & Copthorne Hotels
New Zealand Ltd 7 (4,747) (4,747)
Dividends paid to non-controlling shareholders (4,537) (4,324)
NNe et t ccaasshh iinnf fllooww/ /((oouuttffllooww) ) ffrroomm ffiinnaanncciinngg aaccttiivviittiieess ((2200,,442266)) 773366
NNe et t iinnccrreeaassee//((ddeeccrreeaassee)) iinn ccaasshh aanndd ccaasshh eeqquuiivvaalleennttss 2266,,332200 ((5511,,992200))
Add opening cash and cash equivalents 11,256 61,387
Exchange rate adjustment 2,150 1,789
CCl loossiinngg ccaasshh aanndd ccaasshh eeqquuiivvaalleennttss 12 3399,,772266 1111,,225566
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 6
Consolidated Statement of Cash Flows – continued
FFoorr tthhee yyeeaarr eennddeedd 3311 DDe ecceemmbbeerr 22002244
GGrroouupp GGrroouupp
DDOOLLLLAARRSS IINN TTHHOOUUSSAANNDDSS NNo ot tee 22002244 22002233
RECONCILIATION OF NET PROFIT FOR THE YEAR TO CASH FLOWS
FROM OPERATING ACTIVITIES
PPr rooffiitt ffoorr tthhee yyeeaarr 8,788 26,917
AAd djjuusstteedd ffoorr nnoonn--ccaasshh iitteemmss::
Share of profit joint venture (1,508) (73)
Gain on sale of property, plant and equipment
2
(1)(376)
Depreciation of property, plant and equipment and investment property
9, 11
7,751 7,845
Depreciation of Right-Of-Use assets
9
895 850
Unrealised foreign exchange losses (659) 435
Interest expense 2,017 1,956
Income tax expense
5
38,293 10,556
5555,,557766 4488,,111100
AAd djjuussttmmeennttss ffoorr mmoovveemmeennttss iinn wwo or rkkiinngg ccaappiittaall::
(Increase) in trade & other receivables (3,106) (5,955)
(Increase) in inventories (131)(231)
(Increase) in development properties (19,618) (15,576)
(Decrease)/ Increase in trade & other payables (1,770) 4,324
(Decrease) in related parties (3,361) (185)
CCa asshh ggeenneerraatteedd ffrroomm ooppeerraattiioonnss 2277,,558899 3300,,448877
Interest paid (175)(104)
Income tax paid (13,738) (10,701)
CCa asshh iinnfflloowws s ffrroomm ooppeerraattiinngg aaccttiivviittiieess 1133,,667777 1199,,668822
RRe eccoonncciilliiaattiioonn ooff mmoovveemmeenntt ooff lliiaabbiilliittiieess ttoo ccaasshh fflloowws s aarri issiinngg ffrroomm
ffiinnaanncciinngg aaccttiivviittiieess
External borrowings as at 01 January 1111,,996688 -
Proceeds from borrowings 3,000 11,968
Repayment of term loans ((1111,,996688)) -
FFi innaanncciinngg ccaasshh fflloowwss ((88,,996688)) 1111,,996688
External borrowings as at 31 December 33,,000000 1111,,996688
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024 | FIN 6
Mil lennium & Copthorne Hotels New Z ealand Li mited
The a ccompanyin g n ote s fo rm p art of, and s hould be read in conjunctio n with, t hese financial s ta tements .
FIN 5
Consol idated St atement of Cash Flo ws
For the year ended 31 December 2024
Group Group
DOLLARS IN THOUSANDS Note 2024 2023
CASH FLOWS FROM O PERATI NG ACTIVITI ES
Cash was provided from:
Receipt s from c ustomers 172,358 142,092
Receipt s from in sure rs - 397
In te re st receiv ed 5,1 96 8,2 48
Cash was applied to:
Payments to suppliers a nd employees
(126,244) (99,843)
Purc hases o f development land 1 (23,720) (20,407)
In te re st paid (175) (104)
In come t ax p aid (13,738) (10,701)
Net cash inflow from operating activities 13,677 19,682
CASH FLOWS FROM INVESTING ACTIVITI ES
Cash was (applied to)/provided from:
Proceeds from t he sale of property, plant and equipment 30 387
Purc hases o f property , plant and equipment 9 (28,448) (13,901)
Purc hases o f investment property (1,0 17) (386)
In vestment in j oint venture 24 -(44,048)
Advance t o jo int ventu re 20 -(62,261)
Di vestments in short term b ank d eposit s 62,504 47,871
Ne
t cash (outflow)/inflow from investing activ ities 33,069 (72,338)
CASH FLOWS FROM F INANCING ACTIVITI ES
C
ash was (applied to)/provided from:
Drawdown/(Repayment) of borro wi ngs 14 (8 ,9 68) 11,968
Lease p ayments 22(c) (2 ,174) (2 ,1 61)
Di vidends p aid to shareholders o f Mill ennium & Copth orn e H ote ls
New Zealand L td 7 (4 ,7 47) (4 ,7 47)
Di vidends p aid to n on-controlli ng share holders (4 ,537) (4 ,3 24)
N
et cash inflow/(outflow) from financing activities (20,426) 736
Ne
t increase/(decrease) in cash and cash equivalents 26,320 (51,920)
Add opening cash a nd cash e quivale nts 11,256 61,387
Exchange rate adjustment 2,1 50 1,7 89
C
losing cash and cash equivalents 12 39,726 11,256
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 5
Consolidated Statement of Cash Flows
FFoorr tthhee yyeeaarr eennddeedd 3311 DDe ecceemmbbeerr 22002244
GGrroouupp GGrroouupp
DDOOLLLLAARRSS IINN TTHHOOUUSSAANNDDSS NNo ot tee 22002244 22002233
CASH FLOWS FROM OPERATING ACTIVITIES
CCa asshh wwa ass pprroovviiddeedd ffrroomm::
Receipts from customers 172,358 142,092
Receipts from insurers - 397
Interest received 5,196 8,248
CCa asshh wwa ass aapppplliieedd ttoo::
Payments to suppliers and employees
(126,244) (99,843)
Purchases of development land 1 (23,720) (20,407)
Interest paid (175) (104)
Income tax paid (13,738) (10,701)
NNe et t ccaasshh iinnffllooww ffrroomm ooppeerraattiinngg aaccttiivviittiieess 1133,,667777 1199,,668822
CASH FLOWS FROM INVESTING ACTIVITIES
CCa asshh wwa ass ((aapppplliieedd ttoo))//pprroovviiddeedd ffrroomm::
Proceeds from the sale of property, plant and equipment 30 387
Purchases of property, plant and equipment 9 (28,448) (13,901)
Purchases of investment property (1,017) (386)
Investment in joint venture 24 -(44,048)
Advance to joint venture 20 -(62,261)
Divestments in short term bank deposits 62,504 47,871
NNe et t ccaasshh ((oouuttffllooww) )//iinnf fllooww ffrroomm iinnvveessttiinngg aaccttiivviittiieess 3333,,006699 ((7722,,333388))
CASH FLOWS FROM FINANCING ACTIVITIES
CCa asshh wwa ass ((aapppplliieedd ttoo))//pprroovviiddeedd ffrroomm::
Drawdown/(Repayment) of borrowings 14 (8,968) 11,968
Lease payments 22(c) (2,174) (2,161)
Dividends paid to shareholders of Millennium & Copthorne Hotels
New Zealand Ltd 7 (4,747) (4,747)
Dividends paid to non-controlling shareholders (4,537) (4,324)
NNe et t ccaasshh iinnf fllooww/ /((oouuttffllooww) ) ffrroomm ffiinnaanncciinngg aaccttiivviittiieess ((2200,,442266)) 773366
NNe et t iinnccrreeaassee//((ddeeccrreeaassee)) iinn ccaasshh aanndd ccaasshh eeqquuiivvaalleennttss 2266,,332200 ((5511,,992200))
Add opening cash and cash equivalents 11,256 61,387
Exchange rate adjustment 2,150 1,789
CCl loossiinngg ccaasshh aanndd ccaasshh eeqquuiivvaalleennttss 12 3399,,772266 1111,,225566
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 5
Consolidated Statement of Cash Flows
FFoorr tthhee yyeeaarr eennddeedd 3311 DDe ecceemmbbeerr 22002244
GGrroouupp GGrroouupp
DDOOLLLLAARRSS IINN TTHHOOUUSSAANNDDSS NNo ot tee 22002244 22002233
CASH FLOWS FROM OPERATING ACTIVITIES
CCa asshh wwa ass pprroovviiddeedd ffrroomm::
Receipts from customers 172,358 142,092
Receipts from insurers - 397
Interest received 5,196 8,248
CCa asshh wwa ass aapppplliieedd ttoo::
Payments to suppliers and employees
(126,244) (99,843)
Purchases of development land 1 (23,720) (20,407)
Interest paid (175) (104)
Income tax paid (13,738) (10,701)
NNe et t ccaasshh iinnffllooww ffrroomm ooppeerraattiinngg aaccttiivviittiieess 1133,,667777 1199,,668822
CASH FLOWS FROM INVESTING ACTIVITIES
CCa asshh wwa ass ((aapppplliieedd ttoo))//pprroovviiddeedd ffrroomm::
Proceeds from the sale of property, plant and equipment 30 387
Purchases of property, plant and equipment 9 (28,448) (13,901)
Purchases of investment property (1,017) (386)
Investment in joint venture 24 -(44,048)
Advance to joint venture 20 -(62,261)
Divestments in short term bank deposits 62,504 47,871
NNe et t ccaasshh ((oouuttffllooww) )//iinnf fllooww ffrroomm iinnvveessttiinngg aaccttiivviittiieess 3333,,006699 ((7722,,333388))
CASH FLOWS FROM FINANCING ACTIVITIES
CCa asshh wwa ass ((aapppplliieedd ttoo))//pprroovviiddeedd ffrroomm::
Drawdown/(Repayment) of borrowings 14 (8,968) 11,968
Lease payments 22(c) (2,174) (2,161)
Dividends paid to shareholders of Millennium & Copthorne Hotels
New Zealand Ltd 7 (4,747) (4,747)
Dividends paid to non-controlling shareholders (4,537) (4,324)
NNe et t ccaasshh iinnf fllooww/ /((oouuttffllooww) ) ffrroomm ffiinnaanncciinngg aaccttiivviittiieess ((2200,,442266)) 773366
NNe et t iinnccrreeaassee//((ddeeccrreeaassee)) iinn ccaasshh aanndd ccaasshh eeqquuiivvaalleennttss 2266,,332200 ((5511,,992200))
Add opening cash and cash equivalents 11,256 61,387
Exchange rate adjustment 2,150 1,789
CCl loossiinngg ccaasshh aanndd ccaasshh eeqquuiivvaalleennttss 12 3399,,772266 1111,,225566
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 6
Consolidated Statement of Cash Flows – continued
FFoorr tthhee yyeeaarr eennddeedd 3311 DDe ecceemmbbeerr 22002244
GGrroouupp GGrroouupp
DDOOLLLLAARRSS IINN TTHHOOUUSSAANNDDSS NNo ot tee 22002244 22002233
RECONCILIATION OF NET PROFIT FOR THE YEAR TO CASH FLOWS
FROM OPERATING ACTIVITIES
PPr rooffiitt ffoorr tthhee yyeeaarr 8,788 26,917
AAd djjuusstteedd ffoorr nnoonn--ccaasshh iitteemmss::
Share of profit joint venture (1,508) (73)
Gain on sale of property, plant and equipment
2
(1)(376)
Depreciation of property, plant and equipment and investment property
9, 11
7,751 7,845
Depreciation of Right-Of-Use assets
9
895 850
Unrealised foreign exchange losses (659) 435
Interest expense 2,017 1,956
Income tax expense
5
38,293 10,556
5555,,557766 4488,,111100
AAd djjuussttmmeennttss ffoorr mmoovveemmeennttss iinn wwo or rkkiinngg ccaappiittaall::
(Increase) in trade & other receivables (3,106) (5,955)
(Increase) in inventories (131)(231)
(Increase) in development properties (19,618) (15,576)
(Decrease)/ Increase in trade & other payables (1,770) 4,324
(Decrease) in related parties (3,361) (185)
CCa asshh ggeenneerraatteedd ffrroomm ooppeerraattiioonnss 2277,,558899 3300,,448877
Interest paid (175)(104)
Income tax paid (13,738) (10,701)
CCa asshh iinnfflloowws s ffrroomm ooppeerraattiinngg aaccttiivviittiieess 1133,,667777 1199,,668822
RRe eccoonncciilliiaattiioonn ooff mmoovveemmeenntt ooff lliiaabbiilliittiieess ttoo ccaasshh fflloowws s aarri issiinngg ffrroomm
ffiinnaanncciinngg aaccttiivviittiieess
External borrowings as at 01 January 1111,,996688 -
Proceeds from borrowings 3,000 11,968
Repayment of term loans ((1111,,996688)) -
FFi innaanncciinngg ccaasshh fflloowwss ((88,,996688)) 1111,,996688
External borrowings as at 31 December 33,,000000 1111,,996688
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 5
Consolidated Statement of Cash Flows
FFoorr tthhee yyeeaarr eennddeedd 3311 DDeecceemmbbeerr 22002244
GGrroouupp GGrroouupp
DDOOLLLLAARRSS IINN TTHHOOUUSSAANNDDSS NNo ot tee 22002244 22002233
CASH FLOWS FROM OPERATING ACTIVITIES
CCa asshh wwa ass pprroovviiddeedd ffrroomm::
Receipts from customers 172,358 142,092
Receipts from insurers - 397
Interest received 5,196 8,248
CCa asshh wwa ass aapppplliieedd ttoo::
Payments to suppliers and employees
(126,244) (99,843)
Purchases of development land 1 (23,720) (20,407)
Interest paid (175) (104)
Income tax paid (13,738) (10,701)
NNe et t ccaasshh iinnffllooww ffrroomm ooppeerraattiinngg aaccttiivviittiieess 1133,,667777 1199,,668822
CASH FLOWS FROM INVESTING ACTIVITIES
CCa asshh wwa ass ((aapppplliieedd ttoo))//pprroovviiddeedd ffrroomm::
Proceeds from the sale of property, plant and equipment 30 387
Purchases of property, plant and equipment 9 (28,448) (13,901)
Purchases of investment property (1,017) (386)
Investment in joint venture 24 -(44,048)
Advance to joint venture 20 -(62,261)
Divestments in short term bank deposits 62,504 47,871
NNe et t ccaasshh ((oouuttffllooww) )//iinnf fllooww ffrroomm iinnvveessttiinngg aaccttiivviittiieess 3333,,006699 ((7722,,333388))
CASH FLOWS FROM FINANCING ACTIVITIES
CCa asshh wwa ass ((aapppplliieedd ttoo))//pprroovviiddeedd ffrroomm::
Drawdown/(Repayment) of borrowings 14 (8,968) 11,968
Lease payments 22(c) (2,174) (2,161)
Dividends paid to shareholders of Millennium & Copthorne Hotels
New Zealand Ltd 7 (4,747) (4,747)
Dividends paid to non-controlling shareholders (4,537) (4,324)
NNe et t ccaasshh iinnf fllooww/ /((oouuttffllooww) ) ffrroomm ffiinnaanncciinngg aaccttiivviittiieess ((2200,,442266)) 773366
NNe et t iinnccrreeaassee//((ddeeccrreeaassee)) iinn ccaasshh aanndd ccaasshh eeqquuiivvaalleennttss 2266,,332200 ((5511,,992200))
Add opening cash and cash equivalents 11,256 61,387
Exchange rate adjustment 2,150 1,789
CCl loossiinngg ccaasshh aanndd ccaasshh eeqquuiivvaalleennttss 12 3399,,772266 1111,,225566
Mil lennium & Copthorne Hotels New Z ealand Li mited
The a ccompanyin g n ote s fo rm p art of, and s hould be read in conjunctio n with, t hese financial s ta tements .
FIN 5
Consol idated St atement of Cash Flo ws
For the year ended 31 December 2024
Group Group
DOLLARS IN THOUSANDS Note 2024 2023
CASH FLOWS FROM O PERATI NG ACTIVITI ES
Cash was provided from:
Receipt s from c ustomers 172,358 142,092
Receipt s from in sure rs - 397
In te re st receiv ed 5,1 96 8,2 48
Cash was applied to:
Payments to suppliers a nd employees
(126,244) (99,843)
Purc hases o f development land 1 (23,720) (20,407)
In te re st paid (175) (104)
In come t ax p aid (13,738) (10,701)
Net cash inflow from operating activities 13,677 19,682
CASH FLOWS FROM INVESTING ACTIVITI ES
Cash was (applied to)/provided from:
Proceeds from t he sale of property, plant and equipment 30 387
Purc hases o f property , plant and equipment 9 (28,448) (13,901)
Purc hases o f investment property (1,0 17) (386)
In vestment in j oint venture 24 -(44,048)
Advance t o jo int ventu re 20 -(62,261)
Di vestments in short term b ank d eposit s 62,504 47,871
Ne
t cash (outflow)/inflow from investing activ ities 33,069 (72,338)
CASH FLOWS FROM F INANCING ACTIVITI ES
C
ash was (applied to)/provided from:
Drawdown/(Repayment) of borro wi ngs 14 (8 ,9 68) 11,968
Lease p ayments 22(c) (2 ,174) (2 ,1 61)
Di vidends p aid to shareholders o f Mill ennium & Copth orn e H ote ls
New Zealand L td 7 (4 ,7 47) (4 ,7 47)
Di vidends p aid to n on-controlli ng share holders (4 ,537) (4 ,3 24)
N
et cash inflow/(outflow) from financing activities (20,426) 736
Ne
t increase/(decrease) in cash and cash equivalents 26,320 (51,920)
Add opening cash a nd cash e quivale nts 11,256 61,387
Exchange rate adjustment 2,1 50 1,7 89
C
losing cash and cash equivalents 12 39,726 11,256
MMiilllleennnniiuumm && CCoopptthhoorrnnee HHootteellss NNeeww ZZeeaallaanndd LLiimmiitteedd
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 5
Consolidated Statement of Cash Flows
FFoorr tthhee yyeeaarr eennddeedd 3311 DDe ecceemmbbeerr 22002244
GGrroouupp GGrroouupp
DDOOLLLLAARRSS IINN TTHHOOUUSSAANNDDSS NNo ot tee 22002244 22002233
CASH FLOWS FROM OPERATING ACTIVITIES
CCa asshh wwa ass pprroovviiddeedd ffrroomm::
Receipts from customers 172,358 142,092
Receipts from insurers - 397
Interest received 5,196 8,248
CCa asshh wwa ass aapppplliieedd ttoo::
Payments to suppliers and employees
(126,244) (99,843)
Purchases of development land 1 (23,720) (20,407)
Interest paid (175) (104)
Income tax paid (13,738) (10,701)
NNe et t ccaasshh iinnffllooww ffrroomm ooppeerraattiinngg aaccttiivviittiieess 1133,,667777 1199,,668822
CASH FLOWS FROM INVESTING ACTIVITIES
CCa asshh wwa ass ((aapppplliieedd ttoo))//pprroovviiddeedd ffrroomm::
Proceeds from the sale of property, plant and equipment 30 387
Purchases of property, plant and equipment 9 (28,448) (13,901)
Purchases of investment property (1,017) (386)
Investment in joint venture 24 -(44,048)
Advance to joint venture 20 -(62,261)
Divestments in short term bank deposits 62,504 47,871
NNe et t ccaasshh ((oouuttffllooww) )//iinnf fllooww ffrroomm iinnvveessttiinngg aaccttiivviittiieess 3333,,006699 ((7722,,333388))
CASH FLOWS FROM FINANCING ACTIVITIES
CCa asshh wwa ass ((aapppplliieedd ttoo))//pprroovviiddeedd ffrroomm::
Drawdown/(Repayment) of borrowings 14 (8,968) 11,968
Lease payments 22(c) (2,174) (2,161)
Dividends paid to shareholders of Millennium & Copthorne Hotels
New Zealand Ltd 7 (4,747) (4,747)
Dividends paid to non-controlling shareholders (4,537) (4,324)
NNe et t ccaasshh iinnf fllooww/ /((oouuttffllooww) ) ffrroomm ffiinnaanncciinngg aaccttiivviittiieess ((2200,,442266)) 773366
NNe et t iinnccrreeaassee//((ddeeccrreeaassee)) iinn ccaasshh aanndd ccaasshh eeqquuiivvaalleennttss 2266,,332200 ((5511,,992200))
Add opening cash and cash equivalents 11,256 61,387
Exchange rate adjustment 2,150 1,789
CCl loossiinngg ccaasshh aanndd ccaasshh eeqquuiivvaalleennttss 12 3399,,772266 1111,,225566
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 6
Consolidated Statement of Cash Flows – continued
FFoorr tthhee yyeeaarr eennddeedd 3311 DDe ecceemmbbeerr 22002244
GGrroouupp GGrroouupp
DDOOLLLLAARRSS IINN TTHHOOUUSSAANNDDSS NNo ot tee 22002244 22002233
RECONCILIATION OF NET PROFIT FOR THE YEAR TO CASH FLOWS
FROM OPERATING ACTIVITIES
PPr rooffiitt ffoorr tthhee yyeeaarr 8,788 26,917
AAd djjuusstteedd ffoorr nnoonn--ccaasshh iitteemmss::
Share of profit joint venture (1,508) (73)
Gain on sale of property, plant and equipment
2
(1)(376)
Depreciation of property, plant and equipment and investment property
9, 11
7,751 7,845
Depreciation of Right-Of-Use assets
9
895 850
Unrealised foreign exchange losses (659) 435
Interest expense 2,017 1,956
Income tax expense
5
38,293 10,556
5555,,557766 4488,,111100
AAd djjuussttmmeennttss ffoorr mmoovveemmeennttss iinn wwo or rkkiinngg ccaappiittaall::
(Increase) in trade & other receivables (3,106) (5,955)
(Increase) in inventories (131)(231)
(Increase) in development properties (19,618) (15,576)
(Decrease)/ Increase in trade & other payables (1,770) 4,324
(Decrease) in related parties (3,361) (185)
CCa asshh ggeenneerraatteedd ffrroomm ooppeerraattiioonnss 2277,,558899 3300,,448877
Interest paid (175)(104)
Income tax paid (13,738) (10,701)
CCa asshh iinnfflloowws s ffrroomm ooppeerraattiinngg aaccttiivviittiieess 1133,,667777 1199,,668822
RRe eccoonncciilliiaattiioonn ooff mmoovveemmeenntt ooff lliiaabbiilliittiieess ttoo ccaasshh fflloowws s aarri issiinngg ffrroomm
ffiinnaanncciinngg aaccttiivviittiieess
External borrowings as at 01 January 1111,,996688 -
Proceeds from borrowings 3,000 11,968
Repayment of term loans ((1111,,996688)) -
FFi innaanncciinngg ccaasshh fflloowwss ((88,,996688)) 1111,,996688
External borrowings as at 31 December 33,,000000 1111,,996688
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 7 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 7
SSiiggnniiffiiccaanntt aaccccoouunnttiinngg ppoolliicciieess
Millennium & Copthorne Hotels New Zealand Limited is a company domiciled in New Zealand registered under the Companies Act 1993 and
listed on the New Zealand Stock Exchange. Millennium & Copthorne Hotels New Zealand Limited (the “Company”) is a Financial Markets
Conduct Reporting Entity in terms of the Financial Markets Conduct Act 2013 and the Financial Reporting Act 2013. The financial statements
of the Company for the year ended 31 December 2024 comprise the Company and its subsidiaries (together referred to as the “Group”). The
registered office is located at Level 7, 23 Customs Street East, Auckland, New Zealand.
The principal activities of the Group are ownership and operation of hotels in New Zealand; development and sale of residential land in New
Zealand; investment properties comprising commercial warehousing and retail shops in New Zealand; and development and sale of residential
units in Australia.
(
(aa))SSttaatteemmeenntt ooff ccoommpplliiaannccee
The financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting Practice (NZ GAAP).
They comply with New Zealand equivalents to International Financial Reporting Standards (NZ IFRSs) as appropriate for Tier 1
profit-oriented entities. The financial statements also comply with International Financial Reporting Standards (IFRSs).
The financial statements were authorised for issuance on 24 February 2025.
(
(bb))BBaassiiss ooff pprreeppaarraattiioonn
The financial statements are presented in the Company’s functional currency of New Zealand Dollars, rounded to the nearest
thousand, unless otherwise indicated. They are prepared on the historical cost basis and on a going concern basis.
The preparation of financial statements in conformity with NZ IFRSs requires management to make judgments, estimates and
assumptions that affect the application of the Group’s policies and reported amounts of assets and liabilities, income and expenses.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the
period in which the estimate is revised and in any future period affected.
In particular, information about significant areas of estimation uncertainty and critical judgements in applying accounting policies
that have the most significant effect on the amount recognised in the financial statements are described in Note 21 – Accounting
Estimates and Judgements.
(
(cc))CChhaannggee iinn aaccccoouunnttiinngg ppoolliicciieess aanndd nneeww ssttaannddaarrddss aaddoopptteedd iinn tthhee yyeeaarr
The accounting policies have been applied consistently to all periods presented in the consolidated financial statements. The Group
adopted all new and amended standards that became effective during the reporting period, specifically FRS-44 New Zealand
Additional Disclosures of Fees for Audit Firms' Services and Amendment to NZ IAS 1 Non-current Liabilities with Covenants. The
accounting policies are now included within the relevant notes to the consolidated financial statements.
Several new and amended standards are effective for annual periods starting after January 1, 2025. The Group has not early
adopted any new or amended standards in preparing the consolidated financial statements. Further details can be found in note 23.
(
(dd))FFoorreeiiggnn ccuurrrreennccyy
FFoorreeiiggnn ccuurrrreennccyy ttrraannssaaccttiioonnss
Transactions in foreign currencies are translated at the foreign exchange rate ruling at the date of the transaction. Monetary assets
and liabilities denominated in foreign currencies at the balance date are translated to New Zealand dollars at the foreign exchange
rate ruling at that date. Foreign exchange differences arising on translation are recognised in the income statement. Non-monetary
assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the
date of the transaction. Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value are
translated to New Zealand dollars at foreign exchange rates ruling at the dates the fair value was determined.
(
(ee))IInnssuurraannccee pprroocceeeeddss
Compensation from third parties for items of property, plant and equipment that were damaged, impaired, lost or given up is included
in the profit or loss when the compensation becomes virtually certain. Any subsequent purchase or construction of replacement
assets are separate economic events and are accounted for separately.
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 8
SSiiggnni iffiiccaanntt aaccccoouunnt tiinngg ppool liicciieess -- ccoonnt tiinnuueedd
((ff)) RReevveennuuee
Revenue from sale of goods and services in the ordinary course of business is recognised when the Group satisfies a performance
obligation by transferring control of a promised good or service to the customer. The amount of revenue recognised is the amount
of the transaction price allocated to the satisfied performance obligation.
Revenue represents amounts derived from:
•The ownership, management and operation of hotels: revenue from sale of goods is recognised at the point control is
transferred to the customer (point of sale) and for services provided, over the period the service is provided.
•Income from property rental: recognised on an accruals basis, straight line over the lease period. Lease incentives
granted are recognised as an integral part of the total rental income.
•Income from development property sales: recognised when the customer obtains control (when the title is transferred)
of the property and is able to direct and obtain the benefits from the property. The Group grants settlement terms of up
to 12 months on certain sections as part of the Sale and Purchase agreement for unconditional sales. In some instances,
the acquirers are permitted access to the residential sections for building activities prior to settlement. However, the
acquirer does not obtain substantially all of the remaining benefits of the asset until final settlement of the land and title
has passed.
((ff))PPiillllaarr 22
The Group has adopted the International Tax Reform – Pillar Two Model Rules – Amendments to NZ IAS 12 approved by the New
Zealand External Reporting Board from the issuance date of 10 August 2023. The amendments provide a temporary mandatory
exception from deferred tax accounting and require new disclosures in the annual financial statements in relation to the
implementation of the Pillar Two Model Rules published by the Organisation for Economic Co-operation and Development. The
Group has applied the exception with immediate effect. The mandatory exception applies retrospectively. The group has a
presence in jurisdictions that have enacted or substantively enacted legislation in relation to the Pillar Two model rules. The
ultimate parent of the group also being captured under the said rule in their country of operation. Refer to income tax note 5 for
detail discussion.
MMiilllleennnniiuumm && CCoopptthhoorrnnee HHootteellss NNeeww ZZeeaallaanndd LLiimmiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 10
11..SSeeggmme enntt rreeppoorrttiinngg
OOppeerraattiinngg sseeggmmeennttss
The Group consisted of the following main operating segments:
•Hotel operations, comprising income from the ownership and management of hotels.
•Residential land development, comprising the development and sale of residential land sections.
•Residential and commercial property development, comprising the development and sale of residential
apartments.
•Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
(a)Operating Segments
HHootteell OOp peerraattiioonnss
RReessiiddeennttiiaall LLaanndd
DDeevveellooppmmeenntt
IInnvveessttmme enntt
PPrrooppeerrttyy
RReessiiddeennttiiaall PPrrooppeerrttyy
DDeevveellooppmmeenntt GGrroouupp
Dollars in thousands
22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233
External revenue109,486 101,072 46,313 28,284 2,746 2,494 17,611 13,809 176,184 145,659
Earnings before interest,
depreciation
& amortisation
17,356 19,299 22,255 13,697 2,731 2,473 8,765 5,371 51,107 40,840
Finance income 2,180 2,411 2,381 3,514 - - 786 1,775 5,347 7,700
Finance expense (2,224) (2,429) (9)(12)- - (2)(3)(2,235) (2,444)
Depreciation and amortisation
(7,183) (6,900) (8)(7)(550)(933)(10)(6)(7,751) (7,846)
Depreciation of Right-of-use
assets
(846)(806)(39)(34)- - (10)(10)(895)(850)
Share of profit of Joint venture
1,508 73- - - - - - 1,508 73
Profit before income tax 10,791 11,648 24,580 17,158 2,181 1,540 9,529 7,127 47,081 37,473
Income tax expense
(24,547) (3,179) (6,852) (4,805) (4,528) (431) (2,366) (2,141) (38,293) (10,556)
Profit after income tax (13,756) 8,469 17,728 12,353 (2,347) 1,109 7,163 4,986 8,788 26,917
Cash & cash equivalents and
short term bank deposits
2,599 16,982 33,287 52,159 - - 5,411 6,190 41,297 75,331
Investment in associates - - 2 2 - - - - 2 2
Investment in joint venture
46,555 43,943 - - - - - - 46,555 43,943
Other segment assets
364,960 339,925 259,032 231,231 36,301 35,834 14,119 20,524 674,412 627,514
Total assets 414,114 400,850 292,321 283,392 36,301 35,834 19,530 26,714 762,266 746,790
Segment liabilities
(58,256) (68,516) (2,362) (4,053) - - (1,769) (1,391) (62,387) (73,960)
Tax liabilities (27,720) (7,393) (2,229) (1,449) (4,379) - (646)(1,536)(34,974) (10,378)
Total liabilities
(85,976) (75,909) (4,591) (5,502) (4,379) - (2,415) (2,927) (97,361) (84,338)
Property, plant and equipment
expenditure
27,830 13,821 2 56
- -
616 14 28,448 13,901
Investment property
expenditure
- - - - 1,017 386 - - 1,017 386
Residential land development
expenditure
- - 22,458 10,135
- -
- - 22,458 10,135
Purchase of land for
residential land development
- - 23,720 20,407 - - - - 23,720 20,407
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 10
11..SSeeggmme enntt rreeppoorrttiinngg
OOppeerraattiinngg sseeggmmeennttss
The Group consisted of the following main operating segments:
•Hotel operations, comprising income from the ownership and management of hotels.
•Residential land development, comprising the development and sale of residential land sections.
•Residential and commercial property development, comprising the development and sale of residential
apartments.
•Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
(a)Operating Segments
HHootteell OOp peerraattiioonnss
RReessiiddeennttiiaall LLaanndd
DDeevveellooppmmeenntt
IInnvveessttmme enntt
PPrrooppeerrttyy
RReessiiddeennttiiaall PPrrooppeerrttyy
DDeevveellooppmmeenntt GGrroouupp
Dollars in thousands
22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233
External revenue109,486 101,072 46,313 28,284 2,746 2,494 17,611 13,809 176,184 145,659
Earnings before interest,
depreciation
& amortisation
17,356 19,299 22,255 13,697 2,731 2,473 8,765 5,371 51,107 40,840
Finance income 2,180 2,411 2,381 3,514 - - 786 1,775 5,347 7,700
Finance expense (2,224) (2,429) (9)(12)- - (2)(3)(2,235) (2,444)
Depreciation and amortisation
(7,183) (6,900) (8)(7)(550)(933)(10)(6)(7,751) (7,846)
Depreciation of Right-of-use
assets
(846)(806)(39)(34)- - (10)(10)(895)(850)
Share of profit of Joint venture
1,508 73- - - - - - 1,508 73
Profit before income tax 10,791 11,648 24,580 17,158 2,181 1,540 9,529 7,127 47,081 37,473
Income tax expense
(24,547) (3,179) (6,852) (4,805) (4,528) (431) (2,366) (2,141) (38,293) (10,556)
Profit after income tax (13,756) 8,469 17,728 12,353 (2,347) 1,109 7,163 4,986 8,788 26,917
Cash & cash equivalents and
short term bank deposits
2,599 16,982 33,287 52,159 - - 5,411 6,190 41,297 75,331
Investment in associates - - 2 2 - - - - 2 2
Investment in joint venture
46,555 43,943 - - - - - - 46,555 43,943
Other segment assets
364,960 339,925 259,032 231,231 36,301 35,834 14,119 20,524 674,412 627,514
Total assets 414,114 400,850 292,321 283,392 36,301 35,834 19,530 26,714 762,266 746,790
Segment liabilities
(58,256) (68,516) (2,362) (4,053) - - (1,769) (1,391) (62,387) (73,960)
Tax liabilities (27,720) (7,393) (2,229) (1,449) (4,379) - (646)(1,536)(34,974) (10,378)
Total liabilities
(85,976) (75,909) (4,591) (5,502) (4,379) - (2,415) (2,927) (97,361) (84,338)
Property, plant and equipment
expenditure
27,830 13,821 2 56
- -
616 14 28,448 13,901
Investment property
expenditure
- - - - 1,017 386 - - 1,017 386
Residential land development
expenditure
- - 22,458 10,135
- -
- - 22,458 10,135
Purchase of land for
residential land development
- - 23,720 20,407 - - - - 23,720 20,407
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024 | FIN 8
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 7
SSiiggnni iffiiccaanntt aaccccoouunnt tiinngg ppool liicciieess
Millennium & Copthorne Hotels New Zealand Limited is a company domiciled in New Zealand registered under the Companies Act 1993 and
listed on the New Zealand Stock Exchange. Millennium & Copthorne Hotels New Zealand Limited (the “Company”) is a Financial Markets
Conduct Reporting Entity in terms of the Financial Markets Conduct Act 2013 and the Financial Reporting Act 2013. The financial statements
of the Company for the year ended 31 December 2024 comprise the Company and its subsidiaries (together referred to as the “Group”). The
registered office is located at Level 7, 23 Customs Street East, Auckland, New Zealand.
The principal activities of the Group are ownership and operation of hotels in New Zealand; development and sale of residential land in New
Zealand; investment properties comprising commercial warehousing and retail shops in New Zealand; and development and sale of residential
units in Australia.
((aa)) SSttaatteemme enntt oof f ccoommp pl liiaannccee
The financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting Practice (NZ GAAP).
They comply with New Zealand equivalents to International Financial Reporting Standards (NZ IFRSs) as appropriate for Tier 1
profit-oriented entities. The financial statements also comply with International Financial Reporting Standards (IFRSs).
The financial statements were authorised for issuance on 24 February 2025.
((bb)) BBaassiiss ooff ppr reeppaarraattiioonn
The financial statements are presented in the Company’s functional currency of New Zealand Dollars, rounded to the nearest
thousand, unless otherwise indicated. They are prepared on the historical cost basis and on a going concern basis.
The preparation of financial statements in conformity with NZ IFRSs requires management to make judgments, estimates and
assumptions that affect the application of the Group’s policies and reported amounts of assets and liabilities, income and expenses.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the
period in which the estimate is revised and in any future period affected.
In particular, information about significant areas of estimation uncertainty and critical judgements in applying accounting policies
that have the most significant effect on the amount recognised in the financial statements are described in Note 21 – Accounting
Estimates and Judgements.
((cc))CChhaannggee iinn aaccccoouunnttiinngg ppoolliicciieess aanndd nneeww ssttaannddaarrddss aaddoopptteedd iinn tthhee yyeeaarr
The accounting policies have been applied consistently to all periods presented in the consolidated financial statements. The Group
adopted all new and amended standards that became effective during the reporting period, specifically FRS-44 New Zealand
Additional Disclosures of Fees for Audit Firms' Services and Amendment to NZ IAS 1 Non-current Liabilities with Covenants. The
accounting policies are now included within the relevant notes to the consolidated financial statements.
Several new and amended standards are effective for annual periods starting after January 1, 2025. The Group has not early
adopted any new or amended standards in preparing the consolidated financial statements. Further details can be found in note 23.
((dd)) FFoorreeiiggnn ccuurrrreennccyy
FFoor reeiiggnn ccuurrrreennccyy ttrraannssaaccttiioonnss
Transactions in foreign currencies are translated at the foreign exchange rate ruling at the date of the transaction. Monetary assets
and liabilities denominated in foreign currencies at the balance date are translated to New Zealand dollars at the foreign exchange
rate ruling at that date. Foreign exchange differences arising on translation are recognised in the income statement. Non-monetary
assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the
date of the transaction. Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value are
translated to New Zealand dollars at foreign exchange rates ruling at the dates the fair value was determined.
((ee)) IInnssuurraannccee ppr roocceeeeddss
Compensation from third parties for items of property, plant and equipment that were damaged, impaired, lost or given up is included
in the profit or loss when the compensation becomes virtually certain. Any subsequent purchase or construction of replacement
assets are separate economic events and are accounted for separately.
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 8
SSiiggnniiffiiccaanntt aaccccoouunnttiinngg ppoolliicciieess -- ccoonnttiinnuueedd
((ff))RReevveennuuee
Revenue from sale of goods and services in the ordinary course of business is recognised when the Group satisfies a performance
obligation by transferring control of a promised good or service to the customer. The amount of revenue recognised is the amount
of the transaction price allocated to the satisfied performance obligation.
Revenue represents amounts derived from:
•The ownership, management and operation of hotels: revenue from sale of goods is recognised at the point control is
transferred to the customer (point of sale) and for services provided, over the period the service is provided.
•Income from property rental: recognised on an accruals basis, straight line over the lease period. Lease incentives
granted are recognised as an integral part of the total rental income.
•Income from development property sales: recognised when the customer obtains control (when the title is transferred)
of the property and is able to direct and obtain the benefits from the property. The Group grants settlement terms of up
to 12 months on certain sections as part of the Sale and Purchase agreement for unconditional sales. In some instances,
the acquirers are permitted access to the residential sections for building activities prior to settlement. However, the
acquirer does not obtain substantially all of the remaining benefits of the asset until final settlement of the land and title
has passed.
(
(ff))PPiillllaarr 22
The Group has adopted the International Tax Reform – Pillar Two Model Rules – Amendments to NZ IAS 12 approved by the New
Zealand External Reporting Board from the issuance date of 10 August 2023. The amendments provide a temporary mandatory
exception from deferred tax accounting and require new disclosures in the annual financial statements in relation to the
implementation of the Pillar Two Model Rules published by the Organisation for Economic Co-operation and Development. The
Group has applied the exception with immediate effect. The mandatory exception applies retrospectively. The group has a
presence in jurisdictions that have enacted or substantively enacted legislation in relation to the Pillar Two model rules. The
ultimate parent of the group also being captured under the said rule in their country of operation. Refer to income tax note 5 for
detail discussion.
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 10
11..SSeeggmme enntt rreeppoorrttiinngg
OOppeerraattiinngg sseeggmmeennttss
The Group consisted of the following main operating segments:
•Hotel operations, comprising income from the ownership and management of hotels.
•Residential land development, comprising the development and sale of residential land sections.
•Residential and commercial property development, comprising the development and sale of residential
apartments.
•Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
(a)Operating Segments
HHootteell OOp peerraattiioonnss
RReessiiddeennttiiaall LLaanndd
DDeevveellooppmmeenntt
IInnvveessttmme enntt
PPrrooppeerrttyy
RReessiiddeennttiiaall PPrrooppeerrttyy
DDeevveellooppmmeenntt GGrroouupp
Dollars in thousands
22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233
External revenue109,486 101,072 46,313 28,284 2,746 2,494 17,611 13,809 176,184 145,659
Earnings before interest,
depreciation
& amortisation
17,356 19,299 22,255 13,697 2,731 2,473 8,765 5,371 51,107 40,840
Finance income 2,180 2,411 2,381 3,514 - - 786 1,775 5,347 7,700
Finance expense (2,224) (2,429) (9)(12)- - (2)(3)(2,235) (2,444)
Depreciation and amortisation
(7,183) (6,900) (8)(7)(550)(933)(10)(6)(7,751) (7,846)
Depreciation of Right-of-use
assets
(846)(806)(39)(34)- - (10)(10)(895)(850)
Share of profit of Joint venture
1,508 73- - - - - - 1,508 73
Profit before income tax 10,791 11,648 24,580 17,158 2,181 1,540 9,529 7,127 47,081 37,473
Income tax expense
(24,547) (3,179) (6,852) (4,805) (4,528) (431) (2,366) (2,141) (38,293) (10,556)
Profit after income tax (13,756) 8,469 17,728 12,353 (2,347) 1,109 7,163 4,986 8,788 26,917
Cash & cash equivalents and
short term bank deposits
2,599 16,982 33,287 52,159 - - 5,411 6,190 41,297 75,331
Investment in associates - - 2 2 - - - - 2 2
Investment in joint venture
46,555 43,943 - - - - - - 46,555 43,943
Other segment assets
364,960 339,925 259,032 231,231 36,301 35,834 14,119 20,524 674,412 627,514
Total assets 414,114 400,850 292,321 283,392 36,301 35,834 19,530 26,714 762,266 746,790
Segment liabilities
(58,256) (68,516) (2,362) (4,053) - - (1,769) (1,391) (62,387) (73,960)
Tax liabilities (27,720) (7,393) (2,229) (1,449) (4,379) - (646)(1,536)(34,974) (10,378)
Total liabilities
(85,976) (75,909) (4,591) (5,502) (4,379) - (2,415) (2,927) (97,361) (84,338)
Property, plant and equipment
expenditure
27,830 13,821 2 56
- -
616 14 28,448 13,901
Investment property
expenditure
- - - - 1,017 386 - - 1,017 386
Residential land development
expenditure
- - 22,458 10,135
- -
- - 22,458 10,135
Purchase of land for
residential land development
- - 23,720 20,407 - - - - 23,720 20,407
MMiilllleennnniiuumm && CCoopptthhoorrnnee HHootteellss NNeeww ZZeeaallaanndd LLiimmiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 10
11..SSeeggmme enntt rreeppoorrttiinngg
OOppeerraattiinngg sseeggmmeennttss
The Group consisted of the following main operating segments:
•Hotel operations, comprising income from the ownership and management of hotels.
•Residential land development, comprising the development and sale of residential land sections.
•Residential and commercial property development, comprising the development and sale of residential
apartments.
•Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
(a)Operating Segments
HHootteell OOp peerraattiioonnss
RReessiiddeennttiiaall LLaanndd
DDeevveellooppmmeenntt
IInnvveessttmme enntt
PPrrooppeerrttyy
RReessiiddeennttiiaall PPrrooppeerrttyy
DDeevveellooppmmeenntt GGrroouupp
Dollars in thousands
22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233
External revenue109,486 101,072 46,313 28,284 2,746 2,494 17,611 13,809 176,184 145,659
Earnings before interest,
depreciation
& amortisation
17,356 19,299 22,255 13,697 2,731 2,473 8,765 5,371 51,107 40,840
Finance income 2,180 2,411 2,381 3,514 - - 786 1,775 5,347 7,700
Finance expense (2,224) (2,429) (9)(12)- - (2)(3)(2,235) (2,444)
Depreciation and amortisation
(7,183) (6,900) (8)(7)(550)(933)(10)(6)(7,751) (7,846)
Depreciation of Right-of-use
assets
(846)(806)(39)(34)- - (10)(10)(895)(850)
Share of profit of Joint venture
1,508 73- - - - - - 1,508 73
Profit before income tax 10,791 11,648 24,580 17,158 2,181 1,540 9,529 7,127 47,081 37,473
Income tax expense
(24,547) (3,179) (6,852) (4,805) (4,528) (431) (2,366) (2,141) (38,293) (10,556)
Profit after income tax (13,756) 8,469 17,728 12,353 (2,347) 1,109 7,163 4,986 8,788 26,917
Cash & cash equivalents and
short term bank deposits
2,599 16,982 33,287 52,159 - - 5,411 6,190 41,297 75,331
Investment in associates - - 2 2 - - - - 2 2
Investment in joint venture
46,555 43,943 - - - - - - 46,555 43,943
Other segment assets
364,960 339,925 259,032 231,231 36,301 35,834 14,119 20,524 674,412 627,514
Total assets 414,114 400,850 292,321 283,392 36,301 35,834 19,530 26,714 762,266 746,790
Segment liabilities
(58,256) (68,516) (2,362) (4,053) - - (1,769) (1,391) (62,387) (73,960)
Tax liabilities (27,720) (7,393) (2,229) (1,449) (4,379) - (646)(1,536)(34,974) (10,378)
Total liabilities
(85,976) (75,909) (4,591) (5,502) (4,379) - (2,415) (2,927) (97,361) (84,338)
Property, plant and equipment
expenditure
27,830 13,821 2 56
- -
616 14 28,448 13,901
Investment property
expenditure
- - - - 1,017 386 - - 1,017 386
Residential land development
expenditure
- - 22,458 10,135
- -
- - 22,458 10,135
Purchase of land for
residential land development
- - 23,720 20,407 - - - - 23,720 20,407
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 9 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 9
Index
1.Segment reporting
2.Administration and other operating expenses
3.Personnel expenses
4.Net finance income
5.Income tax expense
6.Imputation credits
7.Capital and reserves
8.Earnings per share
9.Property, plant and equipment
10.Development properties
11.Investment properties
12.Cash and cash equivalents
13.Trade and other receivables
14.Interest-bearing loans and borrowings
15.Deferred tax assets and liabilities
16.Trade and other payables
17.Financial instruments
18.Capital and land development commitments
19.Related parties
20.Group entities
21.Accounting estimates and judgements
22.Lease
23.New standard and interpretations issued but not yet adopted
24.Investment in joint venture
25.Non-controlling interests (“NCI”)
26.Subsequent events
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 10
11..SSeeggmme enntt rreeppoorrttiinngg
OOppeerraattiinngg sseeggmmeennttss
The Group consisted of the following main operating segments:
•Hotel operations, comprising income from the ownership and management of hotels.
•Residential land development, comprising the development and sale of residential land sections.
•Residential and commercial property development, comprising the development and sale of residential
apartments.
•Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
(a)Operating Segments
HHootteell OOp peerraattiioonnss
RReessiiddeennttiiaall LLaanndd
DDeevveellooppmmeenntt
IInnvveessttmme enntt
PPrrooppeerrttyy
RReessiiddeennttiiaall PPrrooppeerrttyy
DDeevveellooppmmeenntt GGrroouupp
Dollars in thousands
22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233
External revenue109,486 101,072 46,313 28,284 2,746 2,494 17,611 13,809 176,184 145,659
Earnings before interest,
depreciation
& amortisation
17,356 19,299 22,255 13,697 2,731 2,473 8,765 5,371 51,107 40,840
Finance income 2,180 2,411 2,381 3,514 - - 786 1,775 5,347 7,700
Finance expense (2,224) (2,429) (9)(12)- - (2)(3)(2,235) (2,444)
Depreciation and amortisation
(7,183) (6,900) (8)(7)(550)(933)(10)(6)(7,751) (7,846)
Depreciation of Right-of-use
assets
(846)(806)(39)(34)- - (10)(10)(895)(850)
Share of profit of Joint venture
1,508 73- - - - - - 1,508 73
Profit before income tax 10,791 11,648 24,580 17,158 2,181 1,540 9,529 7,127 47,081 37,473
Income tax expense
(24,547) (3,179) (6,852) (4,805) (4,528) (431) (2,366) (2,141) (38,293) (10,556)
Profit after income tax (13,756) 8,469 17,728 12,353 (2,347) 1,109 7,163 4,986 8,788 26,917
Cash & cash equivalents and
short term bank deposits
2,599 16,982 33,287 52,159 - - 5,411 6,190 41,297 75,331
Investment in associates - - 2 2 - - - - 2 2
Investment in joint venture
46,555 43,943 - - - - - - 46,555 43,943
Other segment assets
364,960 339,925 259,032 231,231 36,301 35,834 14,119 20,524 674,412 627,514
Total assets 414,114 400,850 292,321 283,392 36,301 35,834 19,530 26,714 762,266 746,790
Segment liabilities
(58,256) (68,516) (2,362) (4,053) - - (1,769) (1,391) (62,387) (73,960)
Tax liabilities (27,720) (7,393) (2,229) (1,449) (4,379) - (646)(1,536)(34,974) (10,378)
Total liabilities
(85,976) (75,909) (4,591) (5,502) (4,379) - (2,415) (2,927) (97,361) (84,338)
Property, plant and equipment
expenditure
27,830 13,821 2 56
- -
616 14 28,448 13,901
Investment property
expenditure
- - - - 1,017 386 - - 1,017 386
Residential land development
expenditure
- - 22,458 10,135
- -
- - 22,458 10,135
Purchase of land for
residential land development
- - 23,720 20,407 - - - - 23,720 20,407
MMiilllleennnniiuumm && CCoopptthhoorrnnee HHootteellss NNeeww ZZeeaallaanndd LLiimmiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 10
11..SSeeggmme enntt rreeppoorrttiinngg
OOppeerraattiinngg sseeggmmeennttss
The Group consisted of the following main operating segments:
•Hotel operations, comprising income from the ownership and management of hotels.
•Residential land development, comprising the development and sale of residential land sections.
•Residential and commercial property development, comprising the development and sale of residential
apartments.
•Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
(a)Operating Segments
HHootteell OOp peerraattiioonnss
RReessiiddeennttiiaall LLaanndd
DDeevveellooppmmeenntt
IInnvveessttmme enntt
PPrrooppeerrttyy
RReessiiddeennttiiaall PPrrooppeerrttyy
DDeevveellooppmmeenntt GGrroouupp
Dollars in thousands
22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233
External revenue109,486 101,072 46,313 28,284 2,746 2,494 17,611 13,809 176,184 145,659
Earnings before interest,
depreciation
& amortisation
17,356 19,299 22,255 13,697 2,731 2,473 8,765 5,371 51,107 40,840
Finance income 2,180 2,411 2,381 3,514 - - 786 1,775 5,347 7,700
Finance expense (2,224) (2,429) (9)(12)- - (2)(3)(2,235) (2,444)
Depreciation and amortisation
(7,183) (6,900) (8)(7)(550)(933)(10)(6)(7,751) (7,846)
Depreciation of Right-of-use
assets
(846)(806)(39)(34)- - (10)(10)(895)(850)
Share of profit of Joint venture
1,508 73- - - - - - 1,508 73
Profit before income tax 10,791 11,648 24,580 17,158 2,181 1,540 9,529 7,127 47,081 37,473
Income tax expense
(24,547) (3,179) (6,852) (4,805) (4,528) (431) (2,366) (2,141) (38,293) (10,556)
Profit after income tax (13,756) 8,469 17,728 12,353 (2,347) 1,109 7,163 4,986 8,788 26,917
Cash & cash equivalents and
short term bank deposits
2,599 16,982 33,287 52,159 - - 5,411 6,190 41,297 75,331
Investment in associates - - 2 2 - - - - 2 2
Investment in joint venture
46,555 43,943 - - - - - - 46,555 43,943
Other segment assets
364,960 339,925 259,032 231,231 36,301 35,834 14,119 20,524 674,412 627,514
Total assets 414,114 400,850 292,321 283,392 36,301 35,834 19,530 26,714 762,266 746,790
Segment liabilities
(58,256) (68,516) (2,362) (4,053) - - (1,769) (1,391) (62,387) (73,960)
Tax liabilities (27,720) (7,393) (2,229) (1,449) (4,379) - (646)(1,536)(34,974) (10,378)
Total liabilities
(85,976) (75,909) (4,591) (5,502) (4,379) - (2,415) (2,927) (97,361) (84,338)
Property, plant and equipment
expenditure
27,830 13,821 2 56
- -
616 14 28,448 13,901
Investment property
expenditure
- - - - 1,017 386 - - 1,017 386
Residential land development
expenditure
- - 22,458 10,135
- -
- - 22,458 10,135
Purchase of land for
residential land development
- - 23,720 20,407 - - - - 23,720 20,407
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024 | FIN 10
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 9
Index
1.Segment reporting
2.Administration and other operating expenses
3.Personnel expenses
4.Net finance income
5.Income tax expense
6.Imputation credits
7.Capital and reserves
8.Earnings per share
9.Property, plant and equipment
10.Development properties
11.Investment properties
12.Cash and cash equivalents
13.Trade and other receivables
14.Interest-bearing loans and borrowings
15.Deferred tax assets and liabilities
16.Trade and other payables
17.Financial instruments
18.Capital and land development commitments
19.Related parties
20.Group entities
21.Accounting estimates and judgements
22.Lease
23.New standard and interpretations issued but not yet adopted
24.Investment in joint venture
25.Non-controlling interests (“NCI”)
26.Subsequent events
MMiilllleennnniiuumm && CCoopptthhoorrnnee HHootteellss NNeeww ZZeeaallaanndd LLiimmiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 10
11..SSeeggmmeenntt rreeppoorrttiinngg
OOppeerraattiinngg sseeggmmeennttss
The Group consisted of the following main operating segments:
•Hotel operations, comprising income from the ownership and management of hotels.
•Residential land development, comprising the development and sale of residential land sections.
•Residential and commercial property development, comprising the development and sale of residential
apartments.
•Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
(a)Operating Segments
HHootteell OOp peerraattiioonnss
RReessiiddeennttiiaall LLaanndd
DDeevveellooppmmeenntt
IInnvveessttmmeenntt
PPrrooppeerrttyy
RReessiiddeennttiiaall PPrrooppeerrttyy
DDeevveellooppmmeenntt GGrroouupp
Dollars in thousands
22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233
External revenue109,486 101,072 46,313 28,284 2,746 2,494 17,611 13,809 176,184 145,659
Earnings before interest,
depreciation
& amortisation
17,356 19,299 22,255 13,697 2,731 2,473 8,765 5,371 51,107 40,840
Finance income 2,180 2,411 2,381 3,514 - - 786 1,775 5,347 7,700
Finance expense (2,224) (2,429) (9)(12)- - (2)(3)(2,235) (2,444)
Depreciation and amortisation
(7,183) (6,900) (8)(7)(550)(933)(10)(6)(7,751) (7,846)
Depreciation of Right-of-use
assets
(846)(806)(39)(34)- - (10)(10)(895)(850)
Share of profit of Joint venture
1,508 73- - - - - - 1,508 73
Profit before income tax 10,791 11,648 24,580 17,158 2,181 1,540 9,529 7,127 47,081 37,473
Income tax expense
(24,547) (3,179) (6,852) (4,805) (4,528) (431) (2,366) (2,141) (38,293) (10,556)
Profit after income tax (13,756) 8,469 17,728 12,353 (2,347) 1,109 7,163 4,986 8,788 26,917
Cash & cash equivalents and
short term bank deposits
2,599 16,982 33,287 52,159 - - 5,411 6,190 41,297 75,331
Investment in associates - - 2 2 - - - - 2 2
Investment in joint venture
46,555 43,943 - - - - - - 46,555 43,943
Other segment assets
364,960 339,925 259,032 231,231 36,301 35,834 14,119 20,524 674,412 627,514
Total assets 414,114 400,850 292,321 283,392 36,301 35,834 19,530 26,714 762,266 746,790
Segment liabilities
(58,256) (68,516) (2,362) (4,053) - - (1,769) (1,391) (62,387) (73,960)
Tax liabilities (27,720) (7,393) (2,229) (1,449) (4,379) - (646)(1,536)(34,974) (10,378)
Total liabilities
(85,976) (75,909) (4,591) (5,502) (4,379) - (2,415) (2,927) (97,361) (84,338)
Property, plant and equipment
expenditure
27,830 13,821 2 56
- -
616 14 28,448 13,901
Investment property
expenditure
- - - - 1,017 386 - - 1,017 386
Residential land development
expenditure
- - 22,458 10,135
- -
- - 22,458 10,135
Purchase of land for
residential land development
- - 23,720 20,407 - - - - 23,720 20,407
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 10
11..SSeeggmme enntt rreeppoorrttiinngg
OOppeerraattiinngg sseeggmmeennttss
The Group consisted of the following main operating segments:
•Hotel operations, comprising income from the ownership and management of hotels.
•Residential land development, comprising the development and sale of residential land sections.
•Residential and commercial property development, comprising the development and sale of residential
apartments.
•Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
(a)Operating Segments
HHootteell OOp peerraattiioonnss
RReessiiddeennttiiaall LLaanndd
DDeevveellooppmmeenntt
IInnvveessttmme enntt
PPrrooppeerrttyy
RReessiiddeennttiiaall PPrrooppeerrttyy
DDeevveellooppmmeenntt GGrroouupp
Dollars in thousands
22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233
External revenue109,486 101,072 46,313 28,284 2,746 2,494 17,611 13,809 176,184 145,659
Earnings before interest,
depreciation
& amortisation
17,356 19,299 22,255 13,697 2,731 2,473 8,765 5,371 51,107 40,840
Finance income 2,180 2,411 2,381 3,514 - - 786 1,775 5,347 7,700
Finance expense (2,224) (2,429) (9)(12)- - (2)(3)(2,235) (2,444)
Depreciation and amortisation
(7,183) (6,900) (8)(7)(550)(933)(10)(6)(7,751) (7,846)
Depreciation of Right-of-use
assets
(846)(806)(39)(34)- - (10)(10)(895)(850)
Share of profit of Joint venture
1,508 73- - - - - - 1,508 73
Profit before income tax 10,791 11,648 24,580 17,158 2,181 1,540 9,529 7,127 47,081 37,473
Income tax expense
(24,547) (3,179) (6,852) (4,805) (4,528) (431) (2,366) (2,141) (38,293) (10,556)
Profit after income tax (13,756) 8,469 17,728 12,353 (2,347) 1,109 7,163 4,986 8,788 26,917
Cash & cash equivalents and
short term bank deposits
2,599 16,982 33,287 52,159 - - 5,411 6,190 41,297 75,331
Investment in associates - - 2 2 - - - - 2 2
Investment in joint venture
46,555 43,943 - - - - - - 46,555 43,943
Other segment assets
364,960 339,925 259,032 231,231 36,301 35,834 14,119 20,524 674,412 627,514
Total assets 414,114 400,850 292,321 283,392 36,301 35,834 19,530 26,714 762,266 746,790
Segment liabilities
(58,256) (68,516) (2,362) (4,053) - - (1,769) (1,391) (62,387) (73,960)
Tax liabilities (27,720) (7,393) (2,229) (1,449) (4,379) - (646)(1,536)(34,974) (10,378)
Total liabilities
(85,976) (75,909) (4,591) (5,502) (4,379) - (2,415) (2,927) (97,361) (84,338)
Property, plant and equipment
expenditure
27,830 13,821 2 56
- -
616 14 28,448 13,901
Investment property
expenditure
- - - - 1,017 386 - - 1,017 386
Residential land development
expenditure
- - 22,458 10,135
- -
- - 22,458 10,135
Purchase of land for
residential land development
- - 23,720 20,407 - - - - 23,720 20,407
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 11 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024
Mil lennium & Copthorne Hotels New Z ealand Li mited
Notes to the Consolidated Financial Statements for the ye ar ended 31 Dece mber 20 24
The a ccompanyin g n ote s fo rm p art of, and s hould be read in conjunctio n with, t hese financial s ta tements .
FIN 11
1.Segment reporting - continued
(b)Geographical areas
The Group o perates i n t he f oll owing main g eographical a reas:
•
New Z ealand.
•
Australia.
Segment revenue is based on the geographical l ocation of t he asset.
New Zealand Australia Group
Dollars I n T housands
2024 2023 2024 2023 2024 2023
External revenue 158,573 131,850 17,611 13,809 176,184 145,659
Earnings b efore i nterest, depreciation &
amortisation 42,360 35,487 8,747 5,353 51,107 40,840
Fi nance i ncome 3,381 5,925 1,966 1,775 5,347 7,700
Fi nance expense (2,233) (2,441) (2)(3)(2,235) (2,444)
Depreciation and amortisation (7,741) (7,840) (10)(6)(7,751) (7,846)
Depreciation of Right-Of-Use A ssets (885)(840)(10)(10)(895)(850)
Share of p rofit of joint venture - - 1,508 731,508 73
Profit b efore income tax 34,882 30,291 12,199 7,182 47,081 37,473
Income tax ( expense)/credit (35,931) (8,422) (2,362) (2,134) (38,293) (10,556)
Profit after income tax (1,049) 21,869 9,837 5,048 8,788 26,917
Cash & cash equivalents and short term
bank deposits 35,886 69,141 5,411 6,190 41,297 75,331
Investment in associat es2 2 - - 2 2
Investment in j oint venture - - 46,555 43,943 46,555 43,943
Investment properties 36,301 35,834 - - 36,301 35,834
Segment assets 560,240 508,895 77,871 82,785 638,111 591,680
Total assets 632,429 613,872 129,837 132,918 762,266 746,790
Segment liabilities (29,970) (29,976) (32,417) (43,984) (62,387) (73,960)
Tax l iabili ties (34,328) (8,842) (646)(1,536)(34,974) (10,378)
Total l iabilities (64,298) (38,818) (33,063) (45,520) (97,361) (84,338)
Material additions t o s egment assets:
Property, plant a nd equipment expenditure 27,832 13,887 616 14 28,448 13,901
Investment property expenditure1,017 386 - - 1,017 386
Residential l and d evelopment expenditure 24,236 10,135 - - 24,236 10,135
Purchase of l and f or residential land
development 23,720
20,407 - - 23,720 20,407
An o perating s egment is a d isti nguishable c omponent of t he G roup:
•
that is engaged in business activities f rom which it e arns r evenues a nd incurs expenses;
•
whose operating result s are regularly reviewed by the Group’s chief operating decision maker to make decisions on
resource a llocation t o t he s egment and assess it s performance; and
•
for which discrete f inancial information is avail able.
Segment information is presented in respect of t
he Group’s reporting segments. Operating segments are the primary basis of
segment reporting. The Group has determined that its chief operating decision maker is the Board of Directors on the basis th at it
is this g roup which determines t he allocation of r esources t o s egments and assesses t heir p erformance.
Segment results include it ems d irectl y attributable to a s egment as well as t hose t hat can b e allocated o n a reasonable b asis .
Segm
ent c apital expenditure is t he t otal c ost in curred during the period t o acquire segment assets t hat are expected t o b e used f or
more t han one p eriod.
Mil lennium & Copthorne Hotels New Z ealand Li mited
Notes to the Consolidated Financial Statements for the ye ar ended 31 Dece mber 20 24
The a ccompanyin g n ote s fo rm p art of, and s hould be read in conjunctio n with, t hese financial s ta tements .
FIN 12
2.Administration and other operating expenses
Group
Dollars I n T housands
Note 2024 2023
Depreciation 9, 1 1 8,646 8,695
Fees incurred f or services received f rom audit f irm
Audit fees 475 374
Out of s cope a udit f ees relating to p rior y ear 22 -
Tax C ompliance 42 40
Tax A dvisory 2 61
Green H ouse G as reporting assurance 119 -
Strategy support advisory services - 74
Agreed u pon procedures 7 -
Directors’ fees 19
392 350
Rental expenses 722 694
Provision f or bad d ebts
Debts written off 25 20
Movement i n d oubtful debt provision (112) 127
Net loss/ (gain) on disposal of p roperty, pl ant a nd equipment 1 (376)
3.Personnel expenses
Group
Dollars I n T housands
2024 2023
Wages a nd salaries 49,057 44,109
Wage subsidies -(30)
Employee related expenses and benefits 2,004 2,078
Contributions t o d efined contribution plans 697 625
Increase in liabili ty for l ong-service l eave 30 76
51,788 46,858
Em
ployee long-term service benefits
The Group’s net obligation in respect of long-term service benefits, is the amount of future benefit that employees have earned in
return for their service in the current and prior periods. The obligation is calculated using their expected remuneration and an
assessment of the lik elihood that the liability will arise.
4
.Net finance income
Recognised in the i ncome statement
Group
Dollars I n T housands
2024 2023
Interest income 4,476 7,700
Foreign exchange gain 871 -
Fi nance i ncome
5,347 7,700
Interest expense (2.022) (2.009)
Foreign exchange loss (212)(435)
Fi nance c osts (2,234) (2,444)
Net finance income recognised in the income statement 3,112 5,256
Finance income and expenses
Fi nance income comprises int erest income on funds invested, dividend income and foreign currency gains that are recognised in
profit or loss. Interest income is recognised as it accrues, using the effective int erest method. Dividend income is recognised in the
income statement on the date the entity’ s right to receive payments is established which in the case of quoted securities is the ex-
dividend date.
Fi nance expenses comprise interest payable on borrowings calculated using the effective int er
est rate method, interest costs on lease
liability and foreign exchange losses t hat are recognised in t he income statement.
MMiilllleennnniiuumm && CCoopptthhoorrnnee HHootteellss NNeeww ZZeeaallaanndd LLiimmiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 10
11..SSeeggmme enntt rreeppoorrttiinngg
OOppeerraattiinngg sseeggmmeennttss
The Group consisted of the following main operating segments:
•Hotel operations, comprising income from the ownership and management of hotels.
•Residential land development, comprising the development and sale of residential land sections.
•Residential and commercial property development, comprising the development and sale of residential
apartments.
•Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
(a)Operating Segments
HHootteell OOp peerraattiioonnss
RReessiiddeennttiiaall LLaanndd
DDeevveellooppmmeenntt
IInnvveessttmme enntt
PPrrooppeerrttyy
RReessiiddeennttiiaall PPrrooppeerrttyy
DDeevveellooppmmeenntt GGrroouupp
Dollars in thousands
22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233
External revenue109,486 101,072 46,313 28,284 2,746 2,494 17,611 13,809 176,184 145,659
Earnings before interest,
depreciation
& amortisation
17,356 19,299 22,255 13,697 2,731 2,473 8,765 5,371 51,107 40,840
Finance income 2,180 2,411 2,381 3,514 - - 786 1,775 5,347 7,700
Finance expense (2,224) (2,429) (9)(12)- - (2)(3)(2,235) (2,444)
Depreciation and amortisation
(7,183) (6,900) (8)(7)(550)(933)(10)(6)(7,751) (7,846)
Depreciation of Right-of-use
assets
(846)(806)(39)(34)- - (10)(10)(895)(850)
Share of profit of Joint venture
1,508 73- - - - - - 1,508 73
Profit before income tax 10,791 11,648 24,580 17,158 2,181 1,540 9,529 7,127 47,081 37,473
Income tax expense
(24,547) (3,179) (6,852) (4,805) (4,528) (431) (2,366) (2,141) (38,293) (10,556)
Profit after income tax (13,756) 8,469 17,728 12,353 (2,347) 1,109 7,163 4,986 8,788 26,917
Cash & cash equivalents and
short term bank deposits
2,599 16,982 33,287 52,159 - - 5,411 6,190 41,297 75,331
Investment in associates - - 2 2 - - - - 2 2
Investment in joint venture
46,555 43,943 - - - - - - 46,555 43,943
Other segment assets
364,960 339,925 259,032 231,231 36,301 35,834 14,119 20,524 674,412 627,514
Total assets 414,114 400,850 292,321 283,392 36,301 35,834 19,530 26,714 762,266 746,790
Segment liabilities
(58,256) (68,516) (2,362) (4,053) - - (1,769) (1,391) (62,387) (73,960)
Tax liabilities (27,720) (7,393) (2,229) (1,449) (4,379) - (646)(1,536)(34,974) (10,378)
Total liabilities
(85,976) (75,909) (4,591) (5,502) (4,379) - (2,415) (2,927) (97,361) (84,338)
Property, plant and equipment
expenditure
27,830 13,821 2 56
- -
616 14 28,448 13,901
Investment property
expenditure
- - - - 1,017 386 - - 1,017 386
Residential land development
expenditure
- - 22,458 10,135
- -
- - 22,458 10,135
Purchase of land for
residential land development
- - 23,720 20,407 - - - - 23,720 20,407
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 10
11..SSeeggmme enntt rreeppoorrttiinngg
OOppeerraattiinngg sseeggmmeennttss
The Group consisted of the following main operating segments:
•Hotel operations, comprising income from the ownership and management of hotels.
•Residential land development, comprising the development and sale of residential land sections.
•Residential and commercial property development, comprising the development and sale of residential
apartments.
•Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
(a)Operating Segments
HHootteell OOp peerraattiioonnss
RReessiiddeennttiiaall LLaanndd
DDeevveellooppmmeenntt
IInnvveessttmme enntt
PPrrooppeerrttyy
RReessiiddeennttiiaall PPrrooppeerrttyy
DDeevveellooppmmeenntt GGrroouupp
Dollars in thousands
22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233
External revenue109,486 101,072 46,313 28,284 2,746 2,494 17,611 13,809 176,184 145,659
Earnings before interest,
depreciation
& amortisation
17,356 19,299 22,255 13,697 2,731 2,473 8,765 5,371 51,107 40,840
Finance income 2,180 2,411 2,381 3,514 - - 786 1,775 5,347 7,700
Finance expense (2,224) (2,429) (9)(12)- - (2)(3)(2,235) (2,444)
Depreciation and amortisation
(7,183) (6,900) (8)(7)(550)(933)(10)(6)(7,751) (7,846)
Depreciation of Right-of-use
assets
(846)(806)(39)(34)- - (10)(10)(895)(850)
Share of profit of Joint venture
1,508 73- - - - - - 1,508 73
Profit before income tax 10,791 11,648 24,580 17,158 2,181 1,540 9,529 7,127 47,081 37,473
Income tax expense
(24,547) (3,179) (6,852) (4,805) (4,528) (431) (2,366) (2,141) (38,293) (10,556)
Profit after income tax (13,756) 8,469 17,728 12,353 (2,347) 1,109 7,163 4,986 8,788 26,917
Cash & cash equivalents and
short term bank deposits
2,599 16,982 33,287 52,159 - - 5,411 6,190 41,297 75,331
Investment in associates - - 2 2 - - - - 2 2
Investment in joint venture
46,555 43,943 - - - - - - 46,555 43,943
Other segment assets
364,960 339,925 259,032 231,231 36,301 35,834 14,119 20,524 674,412 627,514
Total assets 414,114 400,850 292,321 283,392 36,301 35,834 19,530 26,714 762,266 746,790
Segment liabilities
(58,256) (68,516) (2,362) (4,053) - - (1,769) (1,391) (62,387) (73,960)
Tax liabilities (27,720) (7,393) (2,229) (1,449) (4,379) - (646)(1,536)(34,974) (10,378)
Total liabilities
(85,976) (75,909) (4,591) (5,502) (4,379) - (2,415) (2,927) (97,361) (84,338)
Property, plant and equipment
expenditure
27,830 13,821 2 56
- -
616 14 28,448 13,901
Investment property
expenditure
- - - - 1,017 386 - - 1,017 386
Residential land development
expenditure
- - 22,458 10,135
- -
- - 22,458 10,135
Purchase of land for
residential land development
- - 23,720 20,407 - - - - 23,720 20,407
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024 | FIN 12
Mil lennium & Copthorne Hotels New Z ealand Li mited
Notes to the Consolidated Financial Statements for the ye ar ended 31 Dece mber 20 24
The a ccompanyin g n ote s fo rm p art of, and s hould be read in conjunctio n with, t hese financial s ta tements .
FIN 11
1.Segment reporting - continued
(b)Geographical areas
The Group o perates i n t he f oll owing main g eographical a reas:
•
New Z ealand.
•
Australia.
Segment revenue is based on the geographical l ocation of t he asset.
New Zealand Australia Group
Dollars I n T housands
2024 2023 2024 2023 2024 2023
External revenue 158,573 131,850 17,611 13,809 176,184 145,659
Earnings b efore i nterest, depreciation &
amortisation 42,360 35,487 8,747 5,353 51,107 40,840
Fi nance i ncome 3,381 5,925 1,966 1,775 5,347 7,700
Fi nance expense (2,233) (2,441) (2)(3)(2,235) (2,444)
Depreciation and amortisation (7,741) (7,840) (10)(6)(7,751) (7,846)
Depreciation of Right-Of-Use A ssets (885)(840)(10)(10)(895)(850)
Share of p rofit of joint venture - - 1,508 731,508 73
Profit b efore income tax 34,882 30,291 12,199 7,182 47,081 37,473
Income tax ( expense)/credit (35,931) (8,422) (2,362) (2,134) (38,293) (10,556)
Profit after income tax (1,049) 21,869 9,837 5,048 8,788 26,917
Cash & cash equivalents and short term
bank deposits 35,886 69,141 5,411 6,190 41,297 75,331
Investment in associat es2 2 - - 2 2
Investment in j oint venture - - 46,555 43,943 46,555 43,943
Investment properties 36,301 35,834 - - 36,301 35,834
Segment assets 560,240 508,895 77,871 82,785 638,111 591,680
Total assets 632,429 613,872 129,837 132,918 762,266 746,790
Segment liabilities (29,970) (29,976) (32,417) (43,984) (62,387) (73,960)
Tax l iabili ties (34,328) (8,842) (646)(1,536)(34,974) (10,378)
Total l iabilities (64,298) (38,818) (33,063) (45,520) (97,361) (84,338)
Material additions t o s egment assets:
Property, plant a nd equipment expenditure 27,832
13,887 616 14 28,448 13,901
Investment property expenditure1,017 386 - - 1,017 386
Residential l and d evelopment expenditure 24,236 10,135 - - 24,236 10,135
Purchase of l and f or residential land
development 23,720
20,407 - - 23,720 20,407
An o perating s egment is a d isti nguishable c omponent of t he G roup:
•
that is engaged in business activities f rom which it e arns r evenues a nd incurs expenses;
•
whose operating result s are regularly reviewed by the Group’s chief operating decision maker to make decisions on
resource a llocation t o t he s egment and assess it s performance; and
•
for which discrete f inancial information is avail able.
Segment information is presented in respect of t
he Group’s reporting segments. Operating segments are the primary basis of
segment reporting. The Group has determined that its chief operating decision maker is the Board of Directors on the basis th at it
is this g roup which determines t he allocation of r esources t o s egments and assesses t heir p erformance.
Segment results include it ems d irectl y attributable to a s egment as well as t hose t hat can b e allocated o n a reasonable b asis .
Segm
ent c apital expenditure is t he t otal c ost in curred during the period t o acquire segment assets t hat are expected t o b e used f or
more t han one p eriod.
Mil lennium & Copthorne Hotels New Z ealand Li mited
Notes to the Consolidated Financial Statements for the ye ar ended 31 Dece mber 20 24
The a ccompanyin g n ote s fo rm p art of, and s hould be read in conjunctio n with, t hese financial s ta tements .
FIN 12
2.Administration and other operating expenses
Group
Dollars I n T housands
Note 2024 2023
Depreciation 9, 1 1 8,646 8,695
Fees incurred f or services received f rom audit f irm
Audit fees 475 374
Out of s cope a udit f ees relating to p rior y ear 22 -
Tax C ompliance 42 40
Tax A dvisory 2 61
Green H ouse G as reporting assurance 119 -
Strategy support advisory services - 74
Agreed u pon procedures 7 -
Directors’ fees 19
392 350
Rental expenses 722 694
Provision f or bad d ebts
Debts written off 25 20
Movement i n d oubtful debt provision (112) 127
Net loss/ (gain) on disposal of p roperty, pl ant a nd equipment 1 (376)
3.Personnel expenses
Group
Dollars I n T housands
2024 2023
Wages a nd salaries 49,057 44,109
Wage subsidies -(30)
Employee related expenses and benefits 2,004 2,078
Contributions t o d efined contribution plans 697 625
Increase in liabili ty for l ong-service l eave 30 76
51,788 46,858
Employee long-term service benefits
The Group’s net obligation in respect of long-term service benefits, is the amount of future benefit that employees have earned in
return for their service in the current and prior periods. The obligation is calculated using their expected remuneration and an
assessment of the lik elihood that the liability will arise.
4
.Net finance income
Recognised in the income statement
Group
Dollars I n T housands
2024 2023
Interest income 4,476 7,700
Foreign exchange gain 871 -
Fi nance i ncome
5,347 7,700
Interest expense (2.022) (2.009)
Foreign exchange loss (212)(435)
Fi nance c osts (2,234) (2,444)
Net finance income recognised in the income statement 3,112 5,256
Finance income and expenses
Fi nance income comprises int erest income on funds invested, dividend income and foreign currency gains that are recognised in
profit or loss. Interest income is recognised as it accrues, using the effective int erest method. Dividend income is recognised in the
income statement on the date the entity’ s right to receive payments is established which in the case of quoted securities is the ex-
dividend date.
Fi nance expenses comprise interest payable on borrowings calculated using the effective int er
est rate method, interest costs on lease
liability and foreign exchange losses t hat are recognised in t he income statement.
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 10
11..SSeeggmme enntt rreeppoorrttiinngg
OOppeerraattiinngg sseeggmmeennttss
The Group consisted of the following main operating segments:
•Hotel operations, comprising income from the ownership and management of hotels.
•Residential land development, comprising the development and sale of residential land sections.
•Residential and commercial property development, comprising the development and sale of residential
apartments.
•Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
(a)Operating Segments
HHootteell OOp peerraattiioonnss
RReessiiddeennttiiaall LLaanndd
DDeevveellooppmmeenntt
IInnvveessttmme enntt
PPrrooppeerrttyy
RReessiiddeennttiiaall PPrrooppeerrttyy
DDeevveellooppmmeenntt GGrroouupp
Dollars in thousands
22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233
External revenue109,486 101,072 46,313 28,284 2,746 2,494 17,611 13,809 176,184 145,659
Earnings before interest,
depreciation
& amortisation
17,356 19,299 22,255 13,697 2,731 2,473 8,765 5,371 51,107 40,840
Finance income 2,180 2,411 2,381 3,514 - - 786 1,775 5,347 7,700
Finance expense (2,224) (2,429) (9)(12)- - (2)(3)(2,235) (2,444)
Depreciation and amortisation
(7,183) (6,900) (8)(7)(550)(933)(10)(6)(7,751) (7,846)
Depreciation of Right-of-use
assets
(846)(806)(39)(34)- - (10)(10)(895)(850)
Share of profit of Joint venture
1,508 73- - - - - - 1,508 73
Profit before income tax 10,791 11,648 24,580 17,158 2,181 1,540 9,529 7,127 47,081 37,473
Income tax expense
(24,547) (3,179) (6,852) (4,805) (4,528) (431) (2,366) (2,141) (38,293) (10,556)
Profit after income tax (13,756) 8,469 17,728 12,353 (2,347) 1,109 7,163 4,986 8,788 26,917
Cash & cash equivalents and
short term bank deposits
2,599 16,982 33,287 52,159 - - 5,411 6,190 41,297 75,331
Investment in associates - - 2 2 - - - - 2 2
Investment in joint venture
46,555 43,943 - - - - - - 46,555 43,943
Other segment assets
364,960 339,925 259,032 231,231 36,301 35,834 14,119 20,524 674,412 627,514
Total assets 414,114 400,850 292,321 283,392 36,301 35,834 19,530 26,714 762,266 746,790
Segment liabilities
(58,256) (68,516) (2,362) (4,053) - - (1,769) (1,391) (62,387) (73,960)
Tax liabilities (27,720) (7,393) (2,229) (1,449) (4,379) - (646)(1,536)(34,974) (10,378)
Total liabilities
(85,976) (75,909) (4,591) (5,502) (4,379) - (2,415) (2,927) (97,361) (84,338)
Property, plant and equipment
expenditure
27,830 13,821 2 56
- -
616 14 28,448 13,901
Investment property
expenditure
- - - - 1,017 386 - - 1,017 386
Residential land development
expenditure
- - 22,458 10,135
- -
- - 22,458 10,135
Purchase of land for
residential land development
- - 23,720 20,407 - - - - 23,720 20,407
MMiilllleennnniiuumm && CCoopptthhoorrnnee HHootteellss NNeeww ZZeeaallaanndd LLiimmiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 10
11..SSeeggmme enntt rreeppoorrttiinngg
OOppeerraattiinngg sseeggmmeennttss
The Group consisted of the following main operating segments:
•Hotel operations, comprising income from the ownership and management of hotels.
•Residential land development, comprising the development and sale of residential land sections.
•Residential and commercial property development, comprising the development and sale of residential
apartments.
•Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
(a)Operating Segments
HHootteell OOp peerraattiioonnss
RReessiiddeennttiiaall LLaanndd
DDeevveellooppmmeenntt
IInnvveessttmme enntt
PPrrooppeerrttyy
RReessiiddeennttiiaall PPrrooppeerrttyy
DDeevveellooppmmeenntt GGrroouupp
Dollars in thousands
22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233
External revenue109,486 101,072 46,313 28,284 2,746 2,494 17,611 13,809 176,184 145,659
Earnings before interest,
depreciation
& amortisation
17,356 19,299 22,255 13,697 2,731 2,473 8,765 5,371 51,107 40,840
Finance income 2,180 2,411 2,381 3,514 - - 786 1,775 5,347 7,700
Finance expense (2,224) (2,429) (9)(12)- - (2)(3)(2,235) (2,444)
Depreciation and amortisation
(7,183) (6,900) (8)(7)(550)(933)(10)(6)(7,751) (7,846)
Depreciation of Right-of-use
assets
(846)(806)(39)(34)- - (10)(10)(895)(850)
Share of profit of Joint venture
1,508 73- - - - - - 1,508 73
Profit before income tax 10,791 11,648 24,580 17,158 2,181 1,540 9,529 7,127 47,081 37,473
Income tax expense
(24,547) (3,179) (6,852) (4,805) (4,528) (431) (2,366) (2,141) (38,293) (10,556)
Profit after income tax (13,756) 8,469 17,728 12,353 (2,347) 1,109 7,163 4,986 8,788 26,917
Cash & cash equivalents and
short term bank deposits
2,599 16,982 33,287 52,159 - - 5,411 6,190 41,297 75,331
Investment in associates - - 2 2 - - - - 2 2
Investment in joint venture
46,555 43,943 - - - - - - 46,555 43,943
Other segment assets
364,960 339,925 259,032 231,231 36,301 35,834 14,119 20,524 674,412 627,514
Total assets 414,114 400,850 292,321 283,392 36,301 35,834 19,530 26,714 762,266 746,790
Segment liabilities
(58,256) (68,516) (2,362) (4,053) - - (1,769) (1,391) (62,387) (73,960)
Tax liabilities (27,720) (7,393) (2,229) (1,449) (4,379) - (646)(1,536)(34,974) (10,378)
Total liabilities
(85,976) (75,909) (4,591) (5,502) (4,379) - (2,415) (2,927) (97,361) (84,338)
Property, plant and equipment
expenditure
27,830 13,821 2 56
- -
616 14 28,448 13,901
Investment property
expenditure
- - - - 1,017 386 - - 1,017 386
Residential land development
expenditure
- - 22,458 10,135
- -
- - 22,458 10,135
Purchase of land for
residential land development
- - 23,720 20,407 - - - - 23,720 20,407
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 13 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024
Mil lennium & Copthorne Hotels New Z ealand Li mited
Notes to the Consolidated Financial Statements for the ye ar ended 31 Dece mber 20 24
The a ccompanyin g n ote s fo rm p art of, and s hould be read in conjunctio n with, t hese financial s ta tements .
FIN 13
4.Net finance income - continued
Recognised in other comprehensive income
Group
Dollars I n T housands
2024 2023
Foreign exchange translation movements 2,226 416
Exchange translation of financial statements of foreign operations
The assets and liabilities of foreign operations are t ranslat ed to New Zealand dollars at foreign exchange rates ruling at t he balance
date. The revenues and expenses of foreign operations are translat ed to New Zealand dollars at rates approximating the foreign
exchange rates ruling at the dates of t he t ransactions. F oreign exchange differences arising on re-translat ion are recognised directly
as a separate component of equity. When a foreign operation is disposed of, in part or in full, the relevant amount in the exchange
reserve is released in
to the income s tatement.
5.Income tax expense
Recognised in the income statement
Group
Dollars I n T housands
2024 2023
Current tax expense
Current y ear 12,820 13,142
Adjustments for prior years (229) 132
12,591 13,274
Deferred tax expense
Origination and reversal of t emporary d ifference (58)(2,718)
Changes in treatment of buildi ng depreciation 25,760 -
25,702 (2,718)
Total income tax expense in the income statement 38,293 10,556
The Group qualified for tax relief in rolling over the depreciat ion recovery from the disposal of Copthorne Hotel Christchurch Central
in 2012. No replacement property was acquired during 2023 and the tax relief ended on 31 December 2023. In 2023, the deferred
liability of $3.02 million provided for the depreciat ion recovery was released and an equivalent amount was provided in the current
tax e xpense.
R
econciliation of tax expense
Group
Dollars I n T housands
2024 2023
Profit b efore income tax 47,081 37,473
Income tax at t he company t ax rate of 28% (2023: 2 8%) 13,183 10,492
Adjusted for:
Non-deductible expenses 37 -
Tax r ate dif ference ( if d ifferent f rom 28% a bove) 189 146
Tax exempt i ncome (647)(214)
Removal of deductibili ty of t ax depreciation for industrial a nd commercial b uildings 25,760 -
(Over)/Under - provided in p rior y ears (229) 132
Total income tax expense
38,293 10,556
Effecti ve t ax rate (excluding off-one c hanges on t ax depreciation impact) 28% 28%
Income tax on the profit or loss for the year comprises current and deferred tax. Income tax is recognised in the income stat ement
except to the extent that it relat es to items recognised directl y in other comprehensive income or equity, in which case it is recognised
in other c omprehensive income or equit y.
Current t ax is t he expected t ax payable on the t axable income for t he y ear, using tax rates e nacted o r substantively e nacted at t he
bala
nce d ate, and any a djustment t o t ax payable in respect of previous y ears.
Deferred tax is recognised in respect of the temporary differences between the carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for taxation purposes. The foll owing temporary differences are not provided for: goodwill
not deductible for tax purposes; the initial recognition of assets or liabilities that neither aff
ect accounting nor taxable profit; and
differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future. The
amount of deferred tax p rovided is based on the expected manner of realis ation or settl ement of the carrying amount of assets and
liabilities, using t ax rates e nacted or substantively e nacted at t he b alance d ate.
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 14
55..IInnccoomme e ttaaxx eexxppeennssee -- ccoonnttiinnuueedd
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the
asset can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be
realised.
Deferred tax assets and deferred tax liabilities are offset only if the Group has a legally enforceable right to set off current tax assets
against current tax liabilities; the Group intends to settle net; and the deferred tax assets and the deferred tax liabilities relate to
income taxes levied by the same taxation authority.
RReemmo ovvaall oof f ttaaxx ddeepprreecciiaattiioonn oonn ccoommmmeerrcciiaall aanndd iinndduussttrriiaall bbuuiillddiinnggss
From the 2020/21 tax year, the Group has been depreciating its commercial and industrial buildings on a 2% diminishing value
basis, following the reinstatement of tax depreciation for buildings with a useful life of 50 years or more as part of the government's
COVID-19: Economic Response Package.
Effective from 1 April 2024, the tax depreciation rate reverted to 0%, impacting the tax value of buildings held from the 2024/25 tax
year onwards. The Group recognises deferred tax on temporary differences at the tax rates expected to apply when these
differences reverse, using the tax rates enacted or substantively enacted at the balance sheet date. The change in tax legislation
effective from 1 April 2024 eliminates the tax base of commercial and industrial buildings, thereby creating a temporary difference
that leads to a deferred tax liability. This liability is recognised unless the initial recognition exemption (IRE) under NZ IAS 12 applies,
which precludes the recognition of deferred tax on initial recognition of an asset or liability in a transaction that is not a business
combination and at the time of the transaction affects neither accounting nor taxable profit and is a non cash item.
DDeeffeerrrreedd TTaaxx oonn BBuuiillddiinnggss
The impact of the removal of tax depreciation on commercial and industrial buildings, which reduced the tax base to nil creating a
significant taxable temporary difference for all the Group’s hotel assets and commercial buildings, classified as either Property,
Plant and Equipment or investment properties, irrespective of their date of acquisition. The recognition of this temporary difference
as a deferred tax liability depends on whether the buildings were acquired through business combination and whether the initial
recognition exception (IRE) in NZ IAS 12 was previously applied.
The change in tax legislation effective from 1 April 2024 eliminates the tax base for these assets, thereby creating a temporary
difference that leads to a deferred tax liability (DTL). As part of recognising the DTL, a one-off tax expense of $25.8m has been
recognised within the year ended 31 December 2024.
PPiillllaarr 22
The Group operates in multiple jurisdictions, some of which have enacted or substantively enacted tax legislation to implement the
Pillar Two Model Rules from a date commencing on or after 1 January 2024. Based on the assessment carried out, management
concluded that there is no current tax impact in the Group’s financial statements for the year ended 31 December 2024. The Group
has applied a temporary mandatory exception from deferred tax accounting in respect of the Pillar Two Model Rules and will
account for any top-up tax liabilities arising from the application of the rules as a current tax when it is incurred. Under the Pillar Two
Model Rules, the Group will be required to pay a top-up tax if the effective tax rate per jurisdiction (calculated using the prescribed
approach) is below the 15% minimum rate.
The group continues to monitor and evaluate the domestic implementation of the Pillar Two rules in the jurisdictions in which it
operates. The group's potential exposure to Pillar Two taxes, based on legislation that is enacted or substantively enacted, is not
expected to be material.
66..IImmp puuttaattiioonn ccrreeddiittss
The KIN Holdings Group has A$16.13 million (2023: A$13.11 million) franking credits available as at 31 December 2024.
GGrroouupp
Dollars In Thousands 22002244 22002233
Imputation credits available for use in subsequent reporting periods 140,351 134,317
MMiilllleennnniiuumm && CCoopptthhoorrnnee HHootteellss NNeeww ZZeeaallaanndd LLiimmiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 10
11..SSeeggmme enntt rreeppoorrttiinngg
OOppeerraattiinngg sseeggmmeennttss
The Group consisted of the following main operating segments:
•Hotel operations, comprising income from the ownership and management of hotels.
•Residential land development, comprising the development and sale of residential land sections.
•Residential and commercial property development, comprising the development and sale of residential
apartments.
•Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
(a)Operating Segments
HHootteell OOp peerraattiioonnss
RReessiiddeennttiiaall LLaanndd
DDeevveellooppmmeenntt
IInnvveessttmme enntt
PPrrooppeerrttyy
RReessiiddeennttiiaall PPrrooppeerrttyy
DDeevveellooppmmeenntt GGrroouupp
Dollars in thousands
22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233
External revenue109,486 101,072 46,313 28,284 2,746 2,494 17,611 13,809 176,184 145,659
Earnings before interest,
depreciation
& amortisation
17,356 19,299 22,255 13,697 2,731 2,473 8,765 5,371 51,107 40,840
Finance income 2,180 2,411 2,381 3,514 - - 786 1,775 5,347 7,700
Finance expense (2,224) (2,429) (9)(12)- - (2)(3)(2,235) (2,444)
Depreciation and amortisation
(7,183) (6,900) (8)(7)(550)(933)(10)(6)(7,751) (7,846)
Depreciation of Right-of-use
assets
(846)(806)(39)(34)- - (10)(10)(895)(850)
Share of profit of Joint venture
1,508 73- - - - - - 1,508 73
Profit before income tax 10,791 11,648 24,580 17,158 2,181 1,540 9,529 7,127 47,081 37,473
Income tax expense
(24,547) (3,179) (6,852) (4,805) (4,528) (431) (2,366) (2,141) (38,293) (10,556)
Profit after income tax (13,756) 8,469 17,728 12,353 (2,347) 1,109 7,163 4,986 8,788 26,917
Cash & cash equivalents and
short term bank deposits
2,599 16,982 33,287 52,159 - - 5,411 6,190 41,297 75,331
Investment in associates - - 2 2 - - - - 2 2
Investment in joint venture
46,555 43,943 - - - - - - 46,555 43,943
Other segment assets
364,960 339,925 259,032 231,231 36,301 35,834 14,119 20,524 674,412 627,514
Total assets 414,114 400,850 292,321 283,392 36,301 35,834 19,530 26,714 762,266 746,790
Segment liabilities
(58,256) (68,516) (2,362) (4,053) - - (1,769) (1,391) (62,387) (73,960)
Tax liabilities (27,720) (7,393) (2,229) (1,449) (4,379) - (646)(1,536)(34,974) (10,378)
Total liabilities
(85,976) (75,909) (4,591) (5,502) (4,379) - (2,415) (2,927) (97,361) (84,338)
Property, plant and equipment
expenditure
27,830 13,821 2 56
- -
616 14 28,448 13,901
Investment property
expenditure
- - - - 1,017 386 - - 1,017 386
Residential land development
expenditure
- - 22,458 10,135
- -
- - 22,458 10,135
Purchase of land for
residential land development
- - 23,720 20,407 - - - - 23,720 20,407
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 10
11..SSeeggmme enntt rreeppoorrttiinngg
OOppeerraattiinngg sseeggmmeennttss
The Group consisted of the following main operating segments:
•Hotel operations, comprising income from the ownership and management of hotels.
•Residential land development, comprising the development and sale of residential land sections.
•Residential and commercial property development, comprising the development and sale of residential
apartments.
•Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
(a)Operating Segments
HHootteell OOp peerraattiioonnss
RReessiiddeennttiiaall LLaanndd
DDeevveellooppmmeenntt
IInnvveessttmme enntt
PPrrooppeerrttyy
RReessiiddeennttiiaall PPrrooppeerrttyy
DDeevveellooppmmeenntt GGrroouupp
Dollars in thousands
22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233
External revenue109,486 101,072 46,313 28,284 2,746 2,494 17,611 13,809 176,184 145,659
Earnings before interest,
depreciation
& amortisation
17,356 19,299 22,255 13,697 2,731 2,473 8,765 5,371 51,107 40,840
Finance income 2,180 2,411 2,381 3,514 - - 786 1,775 5,347 7,700
Finance expense (2,224) (2,429) (9)(12)- - (2)(3)(2,235) (2,444)
Depreciation and amortisation
(7,183) (6,900) (8)(7)(550)(933)(10)(6)(7,751) (7,846)
Depreciation of Right-of-use
assets
(846)(806)(39)(34)- - (10)(10)(895)(850)
Share of profit of Joint venture
1,508 73- - - - - - 1,508 73
Profit before income tax 10,791 11,648 24,580 17,158 2,181 1,540 9,529 7,127 47,081 37,473
Income tax expense
(24,547) (3,179) (6,852) (4,805) (4,528) (431) (2,366) (2,141) (38,293) (10,556)
Profit after income tax (13,756) 8,469 17,728 12,353 (2,347) 1,109 7,163 4,986 8,788 26,917
Cash & cash equivalents and
short term bank deposits
2,599 16,982 33,287 52,159 - - 5,411 6,190 41,297 75,331
Investment in associates - - 2 2 - - - - 2 2
Investment in joint venture
46,555 43,943 - - - - - - 46,555 43,943
Other segment assets
364,960 339,925 259,032 231,231 36,301 35,834 14,119 20,524 674,412 627,514
Total assets 414,114 400,850 292,321 283,392 36,301 35,834 19,530 26,714 762,266 746,790
Segment liabilities
(58,256) (68,516) (2,362) (4,053) - - (1,769) (1,391) (62,387) (73,960)
Tax liabilities (27,720) (7,393) (2,229) (1,449) (4,379) - (646)(1,536)(34,974) (10,378)
Total liabilities
(85,976) (75,909) (4,591) (5,502) (4,379) - (2,415) (2,927) (97,361) (84,338)
Property, plant and equipment
expenditure
27,830 13,821 2 56
- -
616 14 28,448 13,901
Investment property
expenditure
- - - - 1,017 386 - - 1,017 386
Residential land development
expenditure
- - 22,458 10,135
- -
- - 22,458 10,135
Purchase of land for
residential land development
- - 23,720 20,407 - - - - 23,720 20,407
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024 | FIN 14
Mil lennium & Copthorne Hotels New Z ealand Li mited
Notes to the Consolidated Financial Statements for the ye ar ended 31 Dece mber 20 24
The a ccompanyin g n ote s fo rm p art of, and s hould be read in conjunctio n with, t hese financial s ta tements .
FIN 13
4.Net finance income - continued
Recognised in other comprehensive income
Group
Dollars I n T housands
2024 2023
Foreign exchange translation movements 2,226 416
Exc
hange translation of financial statements of foreign operations
The assets and liabilities of foreign operations are t ranslat ed to New Zealand dollars at foreign exchange rates ruling at t he balance
date. The revenues and expenses of foreign operations are translat ed to New Zealand dollars at rates approximating the foreign
exchange rates ruling at the dates of t he t ransactions. F oreign exchange differences arising on re-translat ion are recognised directly
as a separate component of equity. When a foreign operation is disposed of, in part or in full, the relevant amount in the exchange
reserve is released in
to the income s tatement.
5.Income tax expense
Recognised in the i ncome statement
Group
Dollars I n T housands
2024 2023
Current tax expense
Current y ear 12,820 13,142
Adjustments for prior years (229) 132
12,591 13,274
Deferred tax expense
Origination and reversal of t emporary d ifference (58)(2,718)
Changes in treatment of buildi ng depreciation 25,760 -
25,702 (2,718)
Total income tax expense in the income statement 38,293 10,556
The Group qualified for tax relief in rolling over the depreciat ion recovery from the disposal of Copthorne Hotel Christchurch Central
in 2012. No replacement property was acquired during 2023 and the tax relief ended on 31 December 2023. In 2023, the deferred
liability of $3.02 million provided for the depreciat ion recovery was released and an equivalent amount was provided in the current
tax e xpense.
R
econciliation of tax expense
Group
Dollars I n T housands
2024 2023
Profit b efore income tax 47,081 37,473
Income tax at t he company t ax rate of 28% (2023: 2 8%) 13,183 10,492
Adjusted for:
Non-deductible expenses 37 -
Tax r ate dif ference ( if d ifferent f rom 28% a bove) 189 146
Tax exempt i ncome (647)(214)
Removal of deductibili ty of t ax depreciation for industrial a nd commercial b uildings 25,760 -
(Over)/Under - provided in p rior y ears (229) 132
Total income tax expense
38,293 10,556
Effecti ve t ax rate (excluding off-one c hanges on t ax depreciation impact) 28% 28%
Income tax on the profit or loss for the year comprises current and deferred tax. Income tax is recognised in the income stat ement
except to the extent that it relat es to items recognised directl y in other comprehensive income or equity, in which case it is recognised
in other c omprehensive income or equit y.
Current t ax is t he expected t ax payable on the t axable income for t he y ear, using tax rates e nacted o r substantively e nacted at t he
bala
nce d ate, and any a djustment t o t ax payable in respect of previous y ears.
Deferred tax is recognised in respect of the temporary differences between the carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for taxation purposes. The foll owing temporary differences are not provided for: goodwill
not deductible for tax purposes; the initial recognition of assets or liabilities that neither aff
ect accounting nor taxable profit; and
differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future. The
amount of deferred tax p rovided is based on the expected manner of realis ation or settl ement of the carrying amount of assets and
liabilities, using t ax rates e nacted or substantively e nacted at t he b alance d ate.
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 14
55..IInnccoommee ttaaxx eexxppeennssee -- ccoonnttiinnuueedd
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the
asset can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be
realised.
Deferred tax assets and deferred tax liabilities are offset only if the Group has a legally enforceable right to set off current tax assets
against current tax liabilities; the Group intends to settle net; and the deferred tax assets and the deferred tax liabilities relate to
income taxes levied by the same taxation authority.
R
Reemmoovvaall ooff ttaaxx ddeepprreecciiaattiioonn oonn ccoommmmeerrcciiaall aanndd iinndduussttrriiaall bbuuiillddiinnggss
From the 2020/21 tax year, the Group has been depreciating its commercial and industrial buildings on a 2% diminishing value
basis, following the reinstatement of tax depreciation for buildings with a useful life of 50 years or more as part of the government's
COVID-19: Economic Response Package.
Effective from 1 April 2024, the tax depreciation rate reverted to 0%, impacting the tax value of buildings held from the 2024/25 tax
year onwards. The Group recognises deferred tax on temporary differences at the tax rates expected to apply when these
differences reverse, using the tax rates enacted or substantively enacted at the balance sheet date. The change in tax legislation
effective from 1 April 2024 eliminates the tax base of commercial and industrial buildings, thereby creating a temporary difference
that leads to a deferred tax liability. This liability is recognised unless the initial recognition exemption (IRE) under NZ IAS 12 applies,
which precludes the recognition of deferred tax on initial recognition of an asset or liability in a transaction that is not a business
combination and at the time of the transaction affects neither accounting nor taxable profit and is a non cash item.
D
Deeffeerrrreedd TTaaxx oonn BBuuiillddiinnggss
The impact of the removal of tax depreciation on commercial and industrial buildings, which reduced the tax base to nil creating a
significant taxable temporary difference for all the Group’s hotel assets and commercial buildings, classified as either Property,
Plant and Equipment or investment properties, irrespective of their date of acquisition. The recognition of this temporary difference
as a deferred tax liability depends on whether the buildings were acquired through business combination and whether the initial
recognition exception (IRE) in NZ IAS 12 was previously applied.
The change in tax legislation effective from 1 April 2024 eliminates the tax base for these assets, thereby creating a temporary
difference that leads to a deferred tax liability (DTL). As part of recognising the DTL, a one-off tax expense of $25.8m has been
recognised within the year ended 31 December 2024.
P
Piillllaarr 22
The Group operates in multiple jurisdictions, some of which have enacted or substantively enacted tax legislation to implement the
Pillar Two Model Rules from a date commencing on or after 1 January 2024. Based on the assessment carried out, management
concluded that there is no current tax impact in the Group’s financial statements for the year ended 31 December 2024. The Group
has applied a temporary mandatory exception from deferred tax accounting in respect of the Pillar Two Model Rules and will
account for any top-up tax liabilities arising from the application of the rules as a current tax when it is incurred. Under the Pillar Two
Model Rules, the Group will be required to pay a top-up tax if the effective tax rate per jurisdiction (calculated using the prescribed
approach) is below the 15% minimum rate.
The group continues to monitor and evaluate the domestic implementation of the Pillar Two rules in the jurisdictions in which it
operates. The group's potential exposure to Pillar Two taxes, based on legislation that is enacted or substantively enacted, is not
expected to be material.
6
6..IImmppuuttaattiioonn ccrreeddiittss
The KIN Holdings Group has A$16.13 million (2023: A$13.11 million) franking credits available as at 31 December 2024.
GGrroouupp
Dollars In Thousands 22002244 22002233
Imputation credits available for use in subsequent reporting periods 140,351 134,317
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 10
11..SSeeggmme enntt rreeppoorrttiinngg
OOppeerraattiinngg sseeggmmeennttss
The Group consisted of the following main operating segments:
•Hotel operations, comprising income from the ownership and management of hotels.
•Residential land development, comprising the development and sale of residential land sections.
•Residential and commercial property development, comprising the development and sale of residential
apartments.
•Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
(a)Operating Segments
HHootteell OOp peerraattiioonnss
RReessiiddeennttiiaall LLaanndd
DDeevveellooppmmeenntt
IInnvveessttmme enntt
PPrrooppeerrttyy
RReessiiddeennttiiaall PPrrooppeerrttyy
DDeevveellooppmmeenntt GGrroouupp
Dollars in thousands
22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233
External revenue109,486 101,072 46,313 28,284 2,746 2,494 17,611 13,809 176,184 145,659
Earnings before interest,
depreciation
& amortisation
17,356 19,299 22,255 13,697 2,731 2,473 8,765 5,371 51,107 40,840
Finance income 2,180 2,411 2,381 3,514 - - 786 1,775 5,347 7,700
Finance expense (2,224) (2,429) (9)(12)- - (2)(3)(2,235) (2,444)
Depreciation and amortisation
(7,183) (6,900) (8)(7)(550)(933)(10)(6)(7,751) (7,846)
Depreciation of Right-of-use
assets
(846)(806)(39)(34)- - (10)(10)(895)(850)
Share of profit of Joint venture
1,508 73- - - - - - 1,508 73
Profit before income tax 10,791 11,648 24,580 17,158 2,181 1,540 9,529 7,127 47,081 37,473
Income tax expense
(24,547) (3,179) (6,852) (4,805) (4,528) (431) (2,366) (2,141) (38,293) (10,556)
Profit after income tax (13,756) 8,469 17,728 12,353 (2,347) 1,109 7,163 4,986 8,788 26,917
Cash & cash equivalents and
short term bank deposits
2,599 16,982 33,287 52,159 - - 5,411 6,190 41,297 75,331
Investment in associates - - 2 2 - - - - 2 2
Investment in joint venture
46,555 43,943 - - - - - - 46,555 43,943
Other segment assets
364,960 339,925 259,032 231,231 36,301 35,834 14,119 20,524 674,412 627,514
Total assets 414,114 400,850 292,321 283,392 36,301 35,834 19,530 26,714 762,266 746,790
Segment liabilities
(58,256) (68,516) (2,362) (4,053) - - (1,769) (1,391) (62,387) (73,960)
Tax liabilities (27,720) (7,393) (2,229) (1,449) (4,379) - (646)(1,536)(34,974) (10,378)
Total liabilities
(85,976) (75,909) (4,591) (5,502) (4,379) - (2,415) (2,927) (97,361) (84,338)
Property, plant and equipment
expenditure
27,830 13,821 2 56
- -
616 14 28,448 13,901
Investment property
expenditure
- - - - 1,017 386 - - 1,017 386
Residential land development
expenditure
- - 22,458 10,135
- -
- - 22,458 10,135
Purchase of land for
residential land development
- - 23,720 20,407 - - - - 23,720 20,407
MMiilllleennnniiuumm && CCoopptthhoorrnnee HHootteellss NNeeww ZZeeaallaanndd LLiimmiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 10
11..SSeeggmme enntt rreeppoorrttiinngg
OOppeerraattiinngg sseeggmmeennttss
The Group consisted of the following main operating segments:
•Hotel operations, comprising income from the ownership and management of hotels.
•Residential land development, comprising the development and sale of residential land sections.
•Residential and commercial property development, comprising the development and sale of residential
apartments.
•Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
(a)Operating Segments
HHootteell OOp peerraattiioonnss
RReessiiddeennttiiaall LLaanndd
DDeevveellooppmmeenntt
IInnvveessttmme enntt
PPrrooppeerrttyy
RReessiiddeennttiiaall PPrrooppeerrttyy
DDeevveellooppmmeenntt GGrroouupp
Dollars in thousands
22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233
External revenue109,486 101,072 46,313 28,284 2,746 2,494 17,611 13,809 176,184 145,659
Earnings before interest,
depreciation
& amortisation
17,356 19,299 22,255 13,697 2,731 2,473 8,765 5,371 51,107 40,840
Finance income 2,180 2,411 2,381 3,514 - - 786 1,775 5,347 7,700
Finance expense (2,224) (2,429) (9)(12)- - (2)(3)(2,235) (2,444)
Depreciation and amortisation
(7,183) (6,900) (8)(7)(550)(933)(10)(6)(7,751) (7,846)
Depreciation of Right-of-use
assets
(846)(806)(39)(34)- - (10)(10)(895)(850)
Share of profit of Joint venture
1,508 73- - - - - - 1,508 73
Profit before income tax 10,791 11,648 24,580 17,158 2,181 1,540 9,529 7,127 47,081 37,473
Income tax expense
(24,547) (3,179) (6,852) (4,805) (4,528) (431) (2,366) (2,141) (38,293) (10,556)
Profit after income tax (13,756) 8,469 17,728 12,353 (2,347) 1,109 7,163 4,986 8,788 26,917
Cash & cash equivalents and
short term bank deposits
2,599 16,982 33,287 52,159 - - 5,411 6,190 41,297 75,331
Investment in associates - - 2 2 - - - - 2 2
Investment in joint venture
46,555 43,943 - - - - - - 46,555 43,943
Other segment assets
364,960 339,925 259,032 231,231 36,301 35,834 14,119 20,524 674,412 627,514
Total assets 414,114 400,850 292,321 283,392 36,301 35,834 19,530 26,714 762,266 746,790
Segment liabilities
(58,256) (68,516) (2,362) (4,053) - - (1,769) (1,391) (62,387) (73,960)
Tax liabilities (27,720) (7,393) (2,229) (1,449) (4,379) - (646)(1,536)(34,974) (10,378)
Total liabilities
(85,976) (75,909) (4,591) (5,502) (4,379) - (2,415) (2,927) (97,361) (84,338)
Property, plant and equipment
expenditure
27,830 13,821 2 56
- -
616 14 28,448 13,901
Investment property
expenditure
- - - - 1,017 386 - - 1,017 386
Residential land development
expenditure
- - 22,458 10,135
- -
- - 22,458 10,135
Purchase of land for
residential land development
- - 23,720 20,407 - - - - 23,720 20,407
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 15 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 15
77..CCaappiittaall aanndd rreesseerrvveess
SShhaarree ccaappiittaall
GGr roouupp GGr roouupp
22002244 22002244 22002233 22002233
SShhaarreess $$000000’’ss SShhaarreess $$000000’’ss
Ordinary shares issued 1 January
105,578,290 350,048 105,578,290 350,048
OOr rddiinnaarryy sshhaarreess iissssuueedd aat t 3311 DDe ecceemmb beerr –– ffuullllyy ppaaiidd
110055,,557788,,229900 335500,,004488 110055,,557788,,229900 335500,,004488
Redeemable preference shares 1 January
52,739,543 33,218 52,739,543 33,218
RReeddeeeemma abbllee pprreeffeerreennccee sshhaarreess iissssuueedd aatt 3311 DDeecceemmb beerr –– ffuullllyy
ppaaiidd 5522,,773399,,554433 3333,,221188 5522,,773399,,554433 3333,,221188
Ordinary shares repurchased and held as treasury stock 1
January (99,547) (26) (99,547) (26)
OOr rddiinnaarryy sshhaarreess rreeppuurrcchhaasseedd aanndd hheelldd aass ttrreeaassuurryy ssttoocckk 3311
DDeecceemmb beerr ((9999,,554477)) ((2266)) ((9999,,554477)) ((2266))
TToot taal l sshhaarreess iissssuueedd aanndd oouuttssttaannddiinngg
115588,,221188,,228866 338833,,224400 115588,,221188,,228866 338833,,224400
At 31 December 2024, the authorised share capital consisted of 105,578,290 ordinary shares (2023: 105,578,290 ordinary shares)
with no par value and 52,739,543 redeemable preference shares (2023: 52,739,543 redeemable preference shares) with no par
value.
The non-voting redeemable preference shares rank equally with ordinary shares with respect to all distributions made by the
Company (including without limitation, to dividend payments) except for any distributions made in the context of a liquidation of the
Company. The Company reserves the right to the redemption of these preference shares as well as any distributions relating to these
shares and makes no guarantee that these preference shares will be redeemed or that dividends will be paid in respect of these
preference shares.
R
Reeppuurrcchhaassee ooff sshhaarree ccaappiittaall
When share capital recognised as equity is repurchased, the amount of the consideration paid, including directly attributed costs,
is recognised as a change in equity. Repurchased shares are classified as treasury stock and presented as a deduction from total
equity.
E
Exxcchhaannggee rreesseerrvvee
The exchange reserve comprises the foreign exchange differences arising from the translation of the financial statements of foreign
operations.
D
Diivviiddeennddss
The following dividends were declared and paid during the year ended 31 December:
CCoommp paannyy
Dollars In Thousands 22002244 22002233
OOr rddiinnaarryy DDi ivviiddeenndd – 3.0 cents per qualifying share (2023: 3.0 cents) 4,747 4,747
SSuupppplleemme ennttaarryy DDi ivviiddeenndd – 0.0053 cents per qualifying share (2023: 0.053 cents) 94 98
4,841 4,845
After 31 December 2024, there will be no dividends declare by the directors.
D
Diivviiddeennddss aanndd ttaaxx
Dividends are recognised as a liability in the period in which they are declared. Additional income taxes that arise from the
distribution of dividends are recognised at the same time as the liability to pay the related dividend.
8
8..EEaarrnniinnggss ppeerr sshhaarree
BBaassiicc eeaarrnniinnggss ppeerr sshhaarree
The calculation of basic earnings per share at 31 December 2024 was based on the profit attributable to ordinary and redeemable
preference shareholders of $2,762,000 (2023: $21,602,000) and weighted average number of shares outstanding during the year
ended 31 December 2024 of 158,218,286 (2023: 158,218,286), calculated as follows:
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 16
88..EEaarrnniinnggss ppeerr sshhaarree –– ccoonnttiinnuueedd
PPrrooffiitt aat tttrriibbuuttaabbllee ttoo sshhaarreehhoollddeerrss
GGr roouupp
Dollars In Thousands 22002244 22002233
Profit for the year 8,788 26,917
Profit attributable to non-controlling interests (6,026) (5,315)
Profit attributable to shareholders 2,762 21,602
WWeeiigghhtteedd aavveerraaggee nnuummb beerr oof f sshhaarreess
GGr roouupp
22002244 22002233
Weighted average number of shares (ordinary and redeemable preference shares) 158,317,833 158,317,833
Effect of own shares held (ordinary shares) (99,547) (99,547)
Weighted average number of shares for earnings per share calculation 158,218,286 158,218,286
DDiilluutteedd eeaarrnniinnggss ppeerr sshhaarree
The calculation of diluted earnings per share is the same as basic earnings per share.
GGr roouupp
22002244 22002233
Basic and Diluted Earnings per share (cents per share) 1.75 13.65
99..PPrrooppeerrttyy,, ppllaanntt aanndd eeqquuiippmme enntt
GGrroouupp
Dollars In Thousands
FFrreeeehhoolldd
LLaanndd BBuuiillddiinnggss
PPllaanntt,,
EEqquuiippmmeenntt
,, FFiixxttuurreess
&& FFiittttiinnggss
MMoottoorr
VVeehhiicclleess
WWoorrkk
IInn
PPrrooggrreessss
RRiigghhtt OOf f
UUssee AAsssseett TToottaall
CCoosstt
Balance at 1 January 2023 46,661 217,672 108,440 76 2,954 28,125 403,928
Acquisitions - - 28 -13,8732,677 16,578
Disposals - - (151) -(300)(1,979) (2,430)
Transfers between categories -4,1934,295 -(8,488)- -
Movements in foreign exchange - - 2 - - - 2
BBaallaannccee aat t 3311 DDeecceemmb beerr 22002233 4466,,666611 222211,,886655 111122,,661144 7766 88,,003399 2288,,882233 441188,,007788
Balance at 1 January 2024 46,661 221,865 112,614 76 8,039 28,823 418,078
Acquisitions -6162 -27,83079 28,527
Disposals -(15)(107)-- (63)(185)
Transfers between categories -13,6034,886 -(18,489)- -
Movements in foreign exchange - - 15 - - - 15
BBaallaannccee aat t 3311 DDeecceemmb beerr 22002244 4466,,666611 223366,,006699 111177,,441100 7766 1177,,338800 2288,,883399 444466,,443355
DDeepprreecciiaattiioonn aanndd iimmppaaiirrmmeenntt lloosssseess
Balance at 1 January 2023 -(52,086)(94,002) (72) - (2,489) (148,649)
Depreciation charge for the year -(3,538)(3,370) (4) - (850)(7,762)
Disposals - - 140 - - 1,246 1,386
Movements in foreign exchange - - (2) - - - (2)
BBaallaannccee aat t 3311 DDeecceemmb beerr 22002233 --((5555,,662244))((9977,,223344)) ((7766)) -- ((22,,009933)) ((115555,,002277))
-,(72,658)(51)-(34,351)
Balance at 1 January 2024 - (55,624) (97,234) (76) - (2,093) (155,027)
Depreciation charge for the year -(3,735)(3,466) - - (895) (8,096)
Disposals - - 93 - - 32 125
Movements in foreign exchange - - (7) - - - (7)
BBaallaannccee aat t 3311 DDeecceemmb beerr 22002244 --((5599,,335599))((110000,,661144)) ((7766)) -- ((22,,995566)) ((116633,,000055))
CCaarrrryyiinngg aammo ouunnttss
At 1 January 2023 4466,,666611 116655,,558866 1144,,443388 44 22,,995544 2255,,663366 225555,,227799
AAtt 3311 DDeecceemmb beerr 22002233 4466,,666611 116666,,224411 1155,,338800 --88,,0033992266,,773300 226633,,005511
AAtt 3311 DDeecceemmb beerr 22002244 4466,,666611 117766,,771100 1166,,779966 --1177,,3388002255,,888833 228833,,443300
MMiilllleennnniiuumm && CCoopptthhoorrnnee HHootteellss NNeeww ZZeeaallaanndd LLiimmiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 10
11..SSeeggmme enntt rreeppoorrttiinngg
OOppeerraattiinngg sseeggmmeennttss
The Group consisted of the following main operating segments:
•Hotel operations, comprising income from the ownership and management of hotels.
•Residential land development, comprising the development and sale of residential land sections.
•Residential and commercial property development, comprising the development and sale of residential
apartments.
•Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
(a)Operating Segments
HHootteell OOp peerraattiioonnss
RReessiiddeennttiiaall LLaanndd
DDeevveellooppmmeenntt
IInnvveessttmme enntt
PPrrooppeerrttyy
RReessiiddeennttiiaall PPrrooppeerrttyy
DDeevveellooppmmeenntt GGrroouupp
Dollars in thousands
22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233
External revenue109,486 101,072 46,313 28,284 2,746 2,494 17,611 13,809 176,184 145,659
Earnings before interest,
depreciation
& amortisation
17,356 19,299 22,255 13,697 2,731 2,473 8,765 5,371 51,107 40,840
Finance income 2,180 2,411 2,381 3,514 - - 786 1,775 5,347 7,700
Finance expense (2,224) (2,429) (9)(12)- - (2)(3)(2,235) (2,444)
Depreciation and amortisation
(7,183) (6,900) (8)(7)(550)(933)(10)(6)(7,751) (7,846)
Depreciation of Right-of-use
assets
(846)(806)(39)(34)- - (10)(10)(895)(850)
Share of profit of Joint venture
1,508 73- - - - - - 1,508 73
Profit before income tax 10,791 11,648 24,580 17,158 2,181 1,540 9,529 7,127 47,081 37,473
Income tax expense
(24,547) (3,179) (6,852) (4,805) (4,528) (431) (2,366) (2,141) (38,293) (10,556)
Profit after income tax (13,756) 8,469 17,728 12,353 (2,347) 1,109 7,163 4,986 8,788 26,917
Cash & cash equivalents and
short term bank deposits
2,599 16,982 33,287 52,159 - - 5,411 6,190 41,297 75,331
Investment in associates - - 2 2 - - - - 2 2
Investment in joint venture
46,555 43,943 - - - - - - 46,555 43,943
Other segment assets
364,960 339,925 259,032 231,231 36,301 35,834 14,119 20,524 674,412 627,514
Total assets 414,114 400,850 292,321 283,392 36,301 35,834 19,530 26,714 762,266 746,790
Segment liabilities
(58,256) (68,516) (2,362) (4,053) - - (1,769) (1,391) (62,387) (73,960)
Tax liabilities (27,720) (7,393) (2,229) (1,449) (4,379) - (646)(1,536)(34,974) (10,378)
Total liabilities
(85,976) (75,909) (4,591) (5,502) (4,379) - (2,415) (2,927) (97,361) (84,338)
Property, plant and equipment
expenditure
27,830 13,821 2 56
- -
616 14 28,448 13,901
Investment property
expenditure
- - - - 1,017 386 - - 1,017 386
Residential land development
expenditure
- - 22,458 10,135
- -
- - 22,458 10,135
Purchase of land for
residential land development
- - 23,720 20,407 - - - - 23,720 20,407
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 10
11..SSeeggmme enntt rreeppoorrttiinngg
OOppeerraattiinngg sseeggmmeennttss
The Group consisted of the following main operating segments:
•Hotel operations, comprising income from the ownership and management of hotels.
•Residential land development, comprising the development and sale of residential land sections.
•Residential and commercial property development, comprising the development and sale of residential
apartments.
•Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
(a)Operating Segments
HHootteell OOp peerraattiioonnss
RReessiiddeennttiiaall LLaanndd
DDeevveellooppmmeenntt
IInnvveessttmme enntt
PPrrooppeerrttyy
RReessiiddeennttiiaall PPrrooppeerrttyy
DDeevveellooppmmeenntt GGrroouupp
Dollars in thousands
22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233
External revenue109,486 101,072 46,313 28,284 2,746 2,494 17,611 13,809 176,184 145,659
Earnings before interest,
depreciation
& amortisation
17,356 19,299 22,255 13,697 2,731 2,473 8,765 5,371 51,107 40,840
Finance income 2,180 2,411 2,381 3,514 - - 786 1,775 5,347 7,700
Finance expense (2,224) (2,429) (9)(12)- - (2)(3)(2,235) (2,444)
Depreciation and amortisation
(7,183) (6,900) (8)(7)(550)(933)(10)(6)(7,751) (7,846)
Depreciation of Right-of-use
assets
(846)(806)(39)(34)- - (10)(10)(895)(850)
Share of profit of Joint venture
1,508 73- - - - - - 1,508 73
Profit before income tax 10,791 11,648 24,580 17,158 2,181 1,540 9,529 7,127 47,081 37,473
Income tax expense
(24,547) (3,179) (6,852) (4,805) (4,528) (431) (2,366) (2,141) (38,293) (10,556)
Profit after income tax (13,756) 8,469 17,728 12,353 (2,347) 1,109 7,163 4,986 8,788 26,917
Cash & cash equivalents and
short term bank deposits
2,599 16,982 33,287 52,159 - - 5,411 6,190 41,297 75,331
Investment in associates - - 2 2 - - - - 2 2
Investment in joint venture
46,555 43,943 - - - - - - 46,555 43,943
Other segment assets
364,960 339,925 259,032 231,231 36,301 35,834 14,119 20,524 674,412 627,514
Total assets 414,114 400,850 292,321 283,392 36,301 35,834 19,530 26,714 762,266 746,790
Segment liabilities
(58,256) (68,516) (2,362) (4,053) - - (1,769) (1,391) (62,387) (73,960)
Tax liabilities (27,720) (7,393) (2,229) (1,449) (4,379) - (646)(1,536)(34,974) (10,378)
Total liabilities
(85,976) (75,909) (4,591) (5,502) (4,379) - (2,415) (2,927) (97,361) (84,338)
Property, plant and equipment
expenditure
27,830 13,821 2 56
- -
616 14 28,448 13,901
Investment property
expenditure
- - - - 1,017 386 - - 1,017 386
Residential land development
expenditure
- - 22,458 10,135
- -
- - 22,458 10,135
Purchase of land for
residential land development
- - 23,720 20,407 - - - - 23,720 20,407
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024 | FIN 16
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 15
77..CCaappiittaall aanndd rreesseerrvveess
SShhaarree ccaappiittaall
GGr roouupp GGr roouupp
22002244 22002244 22002233 22002233
SShhaarreess $$000000’’ss SShhaarreess $$000000’’ss
Ordinary shares issued 1 January
105,578,290 350,048 105,578,290 350,048
OOr rddiinnaarryy sshhaarreess iissssuueedd aat t 3311 DDe ecceemmb beerr –– ffuullllyy ppaaiidd
110055,,557788,,229900 335500,,004488 110055,,557788,,229900 335500,,004488
Redeemable preference shares 1 January
52,739,543 33,218 52,739,543 33,218
RReeddeeeemma abbllee pprreeffeerreennccee sshhaarreess iissssuueedd aatt 3311 DDeecceemmb beerr –– ffuullllyy
ppaaiidd 5522,,773399,,554433 3333,,221188 5522,,773399,,554433 3333,,221188
Ordinary shares repurchased and held as treasury stock 1
January (99,547) (26) (99,547) (26)
OOr rddiinnaarryy sshhaarreess rreeppuurrcchhaasseedd aanndd hheelldd aass ttrreeaassuurryy ssttoocckk 3311
DDeecceemmb beerr ((9999,,554477)) ((2266)) ((9999,,554477)) ((2266))
TToot taal l sshhaarreess iissssuueedd aanndd oouuttssttaannddiinngg
115588,,221188,,228866 338833,,224400 115588,,221188,,228866 338833,,224400
At 31 December 2024, the authorised share capital consisted of 105,578,290 ordinary shares (2023: 105,578,290 ordinary shares)
with no par value and 52,739,543 redeemable preference shares (2023: 52,739,543 redeemable preference shares) with no par
value.
The non-voting redeemable preference shares rank equally with ordinary shares with respect to all distributions made by the
Company (including without limitation, to dividend payments) except for any distributions made in the context of a liquidation of the
Company. The Company reserves the right to the redemption of these preference shares as well as any distributions relating to these
shares and makes no guarantee that these preference shares will be redeemed or that dividends will be paid in respect of these
preference shares.
RReeppuurrcchhaassee ooff sshhaarree ccaappiittaall
When share capital recognised as equity is repurchased, the amount of the consideration paid, including directly attributed costs,
is recognised as a change in equity. Repurchased shares are classified as treasury stock and presented as a deduction from total
equity.
EExxcchhaannggee rreesseerrvvee
The exchange reserve comprises the foreign exchange differences arising from the translation of the financial statements of foreign
operations.
DDiivviiddeennddss
The following dividends were declared and paid during the year ended 31 December:
CCoommp paannyy
Dollars In Thousands 22002244 22002233
OOr rddiinnaarryy DDi ivviiddeenndd – 3.0 cents per qualifying share (2023: 3.0 cents) 4,747 4,747
SSuupppplleemme ennttaarryy DDi ivviiddeenndd – 0.0053 cents per qualifying share (2023: 0.053 cents) 94 98
4,841 4,845
After 31 December 2024, there will be no dividends declare by the directors.
DDiivviiddeennddss aanndd ttaaxx
Dividends are recognised as a liability in the period in which they are declared. Additional income taxes that arise from the
distribution of dividends are recognised at the same time as the liability to pay the related dividend.
88..EEaarrnniinnggss ppeerr sshhaarree
BBaassiicc eeaarrnniinnggss ppeerr sshhaarree
The calculation of basic earnings per share at 31 December 2024 was based on the profit attributable to ordinary and redeemable
preference shareholders of $2,762,000 (2023: $21,602,000) and weighted average number of shares outstanding during the year
ended 31 December 2024 of 158,218,286 (2023: 158,218,286), calculated as follows:
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 16
88..EEaarrnniinnggss ppeerr sshhaarree –– ccoonnttiinnuueedd
PPrrooffiitt aattttrriibbuuttaabbllee ttoo sshhaarreehhoollddeerrss
GGr roouupp
Dollars In Thousands 22002244 22002233
Profit for the year 8,788 26,917
Profit attributable to non-controlling interests (6,026) (5,315)
Profit attributable to shareholders 2,762 21,602
WWeeiigghhtteedd aavveerraaggee nnuummbbeerr ooff sshhaarreess
GGr roouupp
22002244 22002233
Weighted average number of shares (ordinary and redeemable preference shares) 158,317,833 158,317,833
Effect of own shares held (ordinary shares) (99,547) (99,547)
Weighted average number of shares for earnings per share calculation 158,218,286 158,218,286
DDiilluutteedd eeaarrnniinnggss ppeerr sshhaarree
The calculation of diluted earnings per share is the same as basic earnings per share.
GGr roouupp
22002244 22002233
Basic and Diluted Earnings per share (cents per share) 1.75 13.65
99..PPrrooppeerrttyy,, ppllaanntt aanndd eeqquuiippmmeenntt
GGrroouupp
Dollars In Thousands
FFrreeeehhoolldd
LLaanndd BBuuiillddiinnggss
PPllaanntt,,
EEqquuiippmmeenntt
,, FFiixxttuurreess
&& FFiittttiinnggss
MMoottoorr
VVeehhiicclleess
WWoorrkk
IInn
PPrrooggrreessss
RRiigghhtt OOff
UUssee AAsssseett TToottaall
CCoosstt
Balance at 1 January 2023 46,661 217,672 108,440 76 2,954 28,125 403,928
Acquisitions - - 28 -13,8732,677 16,578
Disposals - - (151) -(300)(1,979) (2,430)
Transfers between categories -4,1934,295 -(8,488)- -
Movements in foreign exchange - - 2 - - - 2
BBaallaannccee aat t 3311 DDeecceemmb beerr 22002233 4466,,666611 222211,,886655 111122,,661144 7766 88,,003399 2288,,882233 441188,,007788
Balance at 1 January 2024 46,661 221,865 112,614 76 8,039 28,823 418,078
Acquisitions -6162 -27,83079 28,527
Disposals -(15)(107)-- (63)(185)
Transfers between categories -13,6034,886 -(18,489)- -
Movements in foreign exchange - - 15 - - - 15
BBaallaannccee aat t 3311 DDeecceemmb beerr 22002244 4466,,666611 223366,,006699 111177,,441100 7766 1177,,338800 2288,,883399 444466,,443355
DDeepprreecciiaattiioonn aanndd iimmppaaiirrmmeenntt lloosssseess
Balance at 1 January 2023 -(52,086)(94,002) (72) - (2,489) (148,649)
Depreciation charge for the year -(3,538)(3,370) (4) - (850)(7,762)
Disposals - - 140 - - 1,246 1,386
Movements in foreign exchange - - (2) - - - (2)
BBaallaannccee aat t 3311 DDeecceemmb beerr 22002233 --((5555,,662244))((9977,,223344)) ((7766)) -- ((22,,009933)) ((115555,,002277))
-,(72,658)(51)-(34,351)
Balance at 1 January 2024 - (55,624) (97,234) (76) - (2,093) (155,027)
Depreciation charge for the year -(3,735)(3,466) - - (895) (8,096)
Disposals - - 93 - - 32 125
Movements in foreign exchange - - (7) - - - (7)
BBaallaannccee aat t 3311 DDeecceemmb beerr 22002244 --((5599,,335599))((110000,,661144)) ((7766)) -- ((22,,995566)) ((116633,,000055))
CCaarrrryyiinngg aammo ouunnttss
At 1 January 2023 4466,,666611 116655,,558866 1144,,443388 44 22,,995544 2255,,663366 225555,,227799
AAtt 3311 DDeecceemmb beerr 22002233 4466,,666611 116666,,224411 1155,,338800 --88,,0033992266,,773300 226633,,005511
AAtt 3311 DDeecceemmb beerr 22002244 4466,,666611 117766,,771100 1166,,779966 --1177,,3388002255,,888833 228833,,443300
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 10
11..SSeeggmme enntt rreeppoorrttiinngg
OOppeerraattiinngg sseeggmmeennttss
The Group consisted of the following main operating segments:
•Hotel operations, comprising income from the ownership and management of hotels.
•Residential land development, comprising the development and sale of residential land sections.
•Residential and commercial property development, comprising the development and sale of residential
apartments.
•Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
(a)Operating Segments
HHootteell OOp peerraattiioonnss
RReessiiddeennttiiaall LLaanndd
DDeevveellooppmmeenntt
IInnvveessttmme enntt
PPrrooppeerrttyy
RReessiiddeennttiiaall PPrrooppeerrttyy
DDeevveellooppmmeenntt GGrroouupp
Dollars in thousands
22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233
External revenue109,486 101,072 46,313 28,284 2,746 2,494 17,611 13,809 176,184 145,659
Earnings before interest,
depreciation
& amortisation
17,356 19,299 22,255 13,697 2,731 2,473 8,765 5,371 51,107 40,840
Finance income 2,180 2,411 2,381 3,514 - - 786 1,775 5,347 7,700
Finance expense (2,224) (2,429) (9)(12)- - (2)(3)(2,235) (2,444)
Depreciation and amortisation
(7,183) (6,900) (8)(7)(550)(933)(10)(6)(7,751) (7,846)
Depreciation of Right-of-use
assets
(846)(806)(39)(34)- - (10)(10)(895)(850)
Share of profit of Joint venture
1,508 73- - - - - - 1,508 73
Profit before income tax 10,791 11,648 24,580 17,158 2,181 1,540 9,529 7,127 47,081 37,473
Income tax expense
(24,547) (3,179) (6,852) (4,805) (4,528) (431) (2,366) (2,141) (38,293) (10,556)
Profit after income tax (13,756) 8,469 17,728 12,353 (2,347) 1,109 7,163 4,986 8,788 26,917
Cash & cash equivalents and
short term bank deposits
2,599 16,982 33,287 52,159 - - 5,411 6,190 41,297 75,331
Investment in associates - - 2 2 - - - - 2 2
Investment in joint venture
46,555 43,943 - - - - - - 46,555 43,943
Other segment assets
364,960 339,925 259,032 231,231 36,301 35,834 14,119 20,524 674,412 627,514
Total assets 414,114 400,850 292,321 283,392 36,301 35,834 19,530 26,714 762,266 746,790
Segment liabilities
(58,256) (68,516) (2,362) (4,053) - - (1,769) (1,391) (62,387) (73,960)
Tax liabilities (27,720) (7,393) (2,229) (1,449) (4,379) - (646)(1,536)(34,974) (10,378)
Total liabilities
(85,976) (75,909) (4,591) (5,502) (4,379) - (2,415) (2,927) (97,361) (84,338)
Property, plant and equipment
expenditure
27,830 13,821 2 56
- -
616 14 28,448 13,901
Investment property
expenditure
- - - - 1,017 386 - - 1,017 386
Residential land development
expenditure
- - 22,458 10,135
- -
- - 22,458 10,135
Purchase of land for
residential land development
- - 23,720 20,407 - - - - 23,720 20,407
MMiilllleennnniiuumm && CCoopptthhoorrnnee HHootteellss NNeeww ZZeeaallaanndd LLiimmiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 10
11..SSeeggmme enntt rreeppoorrttiinngg
OOppeerraattiinngg sseeggmmeennttss
The Group consisted of the following main operating segments:
•Hotel operations, comprising income from the ownership and management of hotels.
•Residential land development, comprising the development and sale of residential land sections.
•Residential and commercial property development, comprising the development and sale of residential
apartments.
•Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
(a)Operating Segments
HHootteell OOp peerraattiioonnss
RReessiiddeennttiiaall LLaanndd
DDeevveellooppmmeenntt
IInnvveessttmme enntt
PPrrooppeerrttyy
RReessiiddeennttiiaall PPrrooppeerrttyy
DDeevveellooppmmeenntt GGrroouupp
Dollars in thousands
22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233
External revenue109,486 101,072 46,313 28,284 2,746 2,494 17,611 13,809 176,184 145,659
Earnings before interest,
depreciation
& amortisation
17,356 19,299 22,255 13,697 2,731 2,473 8,765 5,371 51,107 40,840
Finance income 2,180 2,411 2,381 3,514 - - 786 1,775 5,347 7,700
Finance expense (2,224) (2,429) (9)(12)- - (2)(3)(2,235) (2,444)
Depreciation and amortisation
(7,183) (6,900) (8)(7)(550)(933)(10)(6)(7,751) (7,846)
Depreciation of Right-of-use
assets
(846)(806)(39)(34)- - (10)(10)(895)(850)
Share of profit of Joint venture
1,508 73- - - - - - 1,508 73
Profit before income tax 10,791 11,648 24,580 17,158 2,181 1,540 9,529 7,127 47,081 37,473
Income tax expense
(24,547) (3,179) (6,852) (4,805) (4,528) (431) (2,366) (2,141) (38,293) (10,556)
Profit after income tax (13,756) 8,469 17,728 12,353 (2,347) 1,109 7,163 4,986 8,788 26,917
Cash & cash equivalents and
short term bank deposits
2,599 16,982 33,287 52,159 - - 5,411 6,190 41,297 75,331
Investment in associates - - 2 2 - - - - 2 2
Investment in joint venture
46,555 43,943 - - - - - - 46,555 43,943
Other segment assets
364,960 339,925 259,032 231,231 36,301 35,834 14,119 20,524 674,412 627,514
Total assets 414,114 400,850 292,321 283,392 36,301 35,834 19,530 26,714 762,266 746,790
Segment liabilities
(58,256) (68,516) (2,362) (4,053) - - (1,769) (1,391) (62,387) (73,960)
Tax liabilities (27,720) (7,393) (2,229) (1,449) (4,379) - (646)(1,536)(34,974) (10,378)
Total liabilities
(85,976) (75,909) (4,591) (5,502) (4,379) - (2,415) (2,927) (97,361) (84,338)
Property, plant and equipment
expenditure
27,830 13,821 2 56
- -
616 14 28,448 13,901
Investment property
expenditure
- - - - 1,017 386 - - 1,017 386
Residential land development
expenditure
- - 22,458 10,135
- -
- - 22,458 10,135
Purchase of land for
residential land development
- - 23,720 20,407 - - - - 23,720 20,407
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 17 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 17
99..PPrrooppeerrttyy,, ppllaanntt aanndd eeqquuiippmmeenntt -- ccoonnttiinnuueedd
IInniittiiaall rreeccoorrddiinngg
Items of property, plant and equipment are initially stated at cost. The cost of purchased property, plant and equipment is the value
of the consideration given to acquire the assets and the value of other directly attributable costs, which have been incurred in bringing
the assets to the location and condition necessary for their intended service. Where parts of an item of property, plant and equipment
have different useful lives, they are accounted for as separate items of property, plant and equipment.
Capital expenditure on major projects is recorded separately within property, plant and equipment as capital work in progress. Once
the project is complete the balance is transferred to the appropriate property, plant and equipment categories. Capital work in progress
is not depreciated.
S
Suubbsseeqquueenntt mmeeaassuurreemmeenntt
Property, plant and equipment is subsequently measured at cost less accumulated depreciation and impairment losses. The Group
recognises the cost of replacing part of such an item of property, plant and equipment when that cost is incurred if it is probable that
the future economic benefits embodied within the item will flow to the Group and the cost of the item can be measured reliably. All
other costs are recognised in the income statement as an expense as incurred.
IImmppaaiirrmmeenntt
The Group assesses impairment of non-current tangible assets at each reporting date when there are indicators of impairment. If an
impairment indicator exists, the recoverable amount is estimated at the cash generating unit (“CGU”) or individual asset level. A CGU
is the smallest asset group that generates cash inflows from continuing use that are independent of other assets or cash generating
units “CGU”. Management has determined that each hotel site represents a separate CGU for the purpose of the impairment
assessment, unless separate land titles are not used for generation of cash flows by the hotel the CGU is the equivalent of the hotel
assets recorded as property, plant and equipment. The recoverable amount of assets or CGU is the greater of their fair value less
disposal costs and their value in use. An impairment loss is recognised in the income statement whenever the carrying amount of an
asset or CGU exceeds its estimated recoverable amount.
Market capitalisation is lower than the net assets indicating potential impairment. In response management used judgement to identify
impairment indicators at the CGU or individual material asset level including using thresholds to identify hotels with smaller headroom
based on prior valuations, and the hotels performance being below expectation among other factors. Indicators of impairment were
identified with reference to the individual hotels trading conditions and independent valuations.
The recoverable amounts of the Group’s CGUs or individual assets are based on fair value less cost of disposal or value in use
determined by an independent valuer. In 2024 the recoverable amount of the CGU was determined by independent appraiser Colliers
and Bower valuations Limited and in 2023 recoverable amount was determined by internal review conducted by management and
supplemented by external review on selected hotels by an independent registered valuer Bower Valuations Limited.
The valuation methods used require the independent appraiser to make a number of assumptions including estimating the future
cash flows expected to arise from the cash-generating units, suitable discount, capitalisation and square meter rates, as well as value
per room, to determine the recoverable value.
Valuation methodologies used are explained below:
Income capitalisation method Capitalisation methodology converts short term earnings derived from a property into value.
The central premise of this approach is that the adopted capitalisation rate is derived from
the yields indicated by sales of similar property investments. The yields derived from
comparable sales evidence are purported to reflect any expectations of future growth in
income and capital value.
Discounted cash flow method The discounted cashflow analysis (DCF) is based on the concept that an investment value is
the time adjusted value of future cashflows which can be obtained from an asset. This
requires explicit assumptions to be made regarding prospective income and expenses,
including occupancy and average daily rate, as well as timing and duration of cash flows over
the holding period. A five (5) year horizon with a terminal value has been adopted by Colliers
and Bower Valuations Limited to reflect the sustainable earnings profile of the asset.
Sales comparison approach Fair value is determined by applying positive and negative adjustments to recently transacted
assets of a similar nature
The property valuations require the use of judgements specific to the properties, as well as consideration of the prevailing market
conditions. As at 31 December 2024, the hotel property market and economy, were impacted by the economic uncertainty resulting
from high interest rates, inflation and geopolitical unrest, slower global growth, recession as well as continued recovery of international
travel from COVID 19. Significant assumptions used in the valuation are inherently subjective and in times of economic uncertainty
the degree of subjectivity maybe higher than it might otherwise be. Key estimates and judgements are influenced by these
uncertainties. As at the date of valuation, there remains a lower number of recent hotel sales transactions, which increases the
uncertainty around valuation conclusions. A difference in the key assumptions, when aggregated, could result in a significant change
to the valuation of a property.
The assumptions and judgements applied in the estimation of the recoverable amounts of all CGUs correspond to Level 3 category
of NZ IFRS 13 fair value hierarchy. The key unobservable inputs that required significant estimation and judgements are presented
below:
Mil lennium & Copthorne Hotels New Z ealand Li mited
Notes to the Consolidated Financial Statements for the ye ar ended 31 Dece mber 20 24
The a ccompanyin g n ote s fo rm p art of, and s hould be read in conjunctio n with, t hese financial s ta tements .
FIN 18
9.Property, plant and equipment – continued
Key valuation
in
put
R
ange of valuation input v alue Measurement of sensitivity on
va
luation
2
024 2023
In
crease in the
in
put
D
ecrease in the
in
put
Occupancy rate 59% - 83% 64% - 85% Higher Lower
Average daily
rate
$185 - $214 $166 - $271 Higher Lower
Rev P AR* $121 - $177 $118 - $231 Higher Lower
Discount rate 10% - 12% 8% - 11% Lower Higher
Capitalization rate 9% - 11% 7% - 10% Lower Higher
SQM rate 449 420 Lower Higher
* Revenue per Available Room – a hospit ality metric combining average room rate and occupancy rate.
Two hotel assets were considered sensitive to impairment:
•
The recoverable amount of one of t he hotel assets was determined on a highest and best use, being fair value of the land
less demolition costs using comparative land sales data. The fair value of this hotel asset exceeded its carrying value by
$0.9 million and is considered to be s ensitive to impairment f rom a reasonably possible change in s quare metre rate.
•
The recoverable amount of one of the hotel assets had a carrying value equivalent to its recoverable amount of $15.2
million. Any material change in k ey a ssumptions (listed in the above table) would therefore result in an i mpairment.
Management and the directors believe that the key assumptions used, and estimates made, represent the most realistic assessment
of each CGU.
D
epreciation
Land is not depreciat ed. Depreciat ion on other assets is calculated using the straight-line method to allocate their cost to their residual
values o ver t heir e stimated useful liv es, as follows:
•
Building core50 years or le ase t erm if shorter
•
Building surfaces and finishes30 years or le ase t erm if shorter
•
Plant and machinery15 - 20 years
•
Furnit ure and equipment10 years
•
Soft f urnishings5 - 7 y ears
•
Computer equipment5 y ears
•
Motor vehicles4 y ears
No residual values are ascribed to building surfaces and finishes. Residual values as
cribed to building core depend on the na ture,
location and t enure of each property. Depreciable values ascribed to building core range between 10% to 24% of the building core.
D
isposal or retirement
Gains or losses arising from the disposal or retirement of property, plant and equipment are determined as the dif ference between
the actual net disposal proceeds and the carrying amount of the asset and are recognised in the income statement on the date of
retirement or di sposal.
R
ight of use assets
The accounting polic y for ri ght of u se asset is disclosed in Note 22.
P
ledged assets
A t otal of three (2023: three) hotel properties with a total book v alue of $83.25 million (2023: $75.33 million) are pl edged to t he bank
as security against t he lo an facilit y disclosed in Note 14.
C
limate-related disclosure
The Group continues t o assess the impact of climate change on i ts b usiness and it s tangible assets. Climate change poses
significant ri sks and c hallenges for t he hotel industry and for the land development in dustry (r esidential and commercial), a s it
affects t he physical, operational, a nd financial aspects o f hotel properties. Extreme weather events, such as floods, s torms,
heatwaves, and droughts, can damage t he hotel infrastructure, di srupt t he supply chain, reduce t he occupancy and revenue, and
increase t he in surance and maintenance c osts. While hotel
in vestors, managers, and owners are in creasingly cognisant o f the
climate-related impacts on their properties, the investment community have y et t o price in the climate-related impacts on t he asset
values. T his means t hat t he current market value of hotel properties may not reflect the potential losses or gains a ssociated with
their exposure to climate ri sks or their adoption of s ustainability measures, decarbonisation initiat ives, and sound environmental
stewardship. While valuers have made no explicit adjustments to the recoverable amount of
the selected properties in respect o f
climate change matters, i t is anticipated that c limate change may have a greater in fluence on valuations in t he f uture a s in vestment
markets pl ace a greater emphasis on climate change and a property's environmental resilience and credentials. Known c limate
risks are reflected in t he adopted capitalisation and di scount rates.
MMiilllleennnniiuumm && CCoopptthhoorrnnee HHootteellss NNeeww ZZeeaallaanndd LLiimmiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 10
11..SSeeggmme enntt rreeppoorrttiinngg
OOppeerraattiinngg sseeggmmeennttss
The Group consisted of the following main operating segments:
•Hotel operations, comprising income from the ownership and management of hotels.
•Residential land development, comprising the development and sale of residential land sections.
•Residential and commercial property development, comprising the development and sale of residential
apartments.
•Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
(a)Operating Segments
HHootteell OOp peerraattiioonnss
RReessiiddeennttiiaall LLaanndd
DDeevveellooppmmeenntt
IInnvveessttmme enntt
PPrrooppeerrttyy
RReessiiddeennttiiaall PPrrooppeerrttyy
DDeevveellooppmmeenntt GGrroouupp
Dollars in thousands
22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233
External revenue109,486 101,072 46,313 28,284 2,746 2,494 17,611 13,809 176,184 145,659
Earnings before interest,
depreciation
& amortisation
17,356 19,299 22,255 13,697 2,731 2,473 8,765 5,371 51,107 40,840
Finance income 2,180 2,411 2,381 3,514 - - 786 1,775 5,347 7,700
Finance expense (2,224) (2,429) (9)(12)- - (2)(3)(2,235) (2,444)
Depreciation and amortisation
(7,183) (6,900) (8)(7)(550)(933)(10)(6)(7,751) (7,846)
Depreciation of Right-of-use
assets
(846)(806)(39)(34)- - (10)(10)(895)(850)
Share of profit of Joint venture
1,508 73- - - - - - 1,508 73
Profit before income tax 10,791 11,648 24,580 17,158 2,181 1,540 9,529 7,127 47,081 37,473
Income tax expense
(24,547) (3,179) (6,852) (4,805) (4,528) (431) (2,366) (2,141) (38,293) (10,556)
Profit after income tax (13,756) 8,469 17,728 12,353 (2,347) 1,109 7,163 4,986 8,788 26,917
Cash & cash equivalents and
short term bank deposits
2,599 16,982 33,287 52,159 - - 5,411 6,190 41,297 75,331
Investment in associates - - 2 2 - - - - 2 2
Investment in joint venture
46,555 43,943 - - - - - - 46,555 43,943
Other segment assets
364,960 339,925 259,032 231,231 36,301 35,834 14,119 20,524 674,412 627,514
Total assets 414,114 400,850 292,321 283,392 36,301 35,834 19,530 26,714 762,266 746,790
Segment liabilities
(58,256) (68,516) (2,362) (4,053) - - (1,769) (1,391) (62,387) (73,960)
Tax liabilities (27,720) (7,393) (2,229) (1,449) (4,379) - (646)(1,536)(34,974) (10,378)
Total liabilities
(85,976) (75,909) (4,591) (5,502) (4,379) - (2,415) (2,927) (97,361) (84,338)
Property, plant and equipment
expenditure
27,830 13,821 2 56
- -
616 14 28,448 13,901
Investment property
expenditure
- - - - 1,017 386 - - 1,017 386
Residential land development
expenditure
- - 22,458 10,135
- -
- - 22,458 10,135
Purchase of land for
residential land development
- - 23,720 20,407 - - - - 23,720 20,407
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 10
11..SSeeggmme enntt rreeppoorrttiinngg
OOppeerraattiinngg sseeggmmeennttss
The Group consisted of the following main operating segments:
•Hotel operations, comprising income from the ownership and management of hotels.
•Residential land development, comprising the development and sale of residential land sections.
•Residential and commercial property development, comprising the development and sale of residential
apartments.
•Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
(a)Operating Segments
HHootteell OOp peerraattiioonnss
RReessiiddeennttiiaall LLaanndd
DDeevveellooppmmeenntt
IInnvveessttmme enntt
PPrrooppeerrttyy
RReessiiddeennttiiaall PPrrooppeerrttyy
DDeevveellooppmmeenntt GGrroouupp
Dollars in thousands
22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233
External revenue109,486 101,072 46,313 28,284 2,746 2,494 17,611 13,809 176,184 145,659
Earnings before interest,
depreciation
& amortisation
17,356 19,299 22,255 13,697 2,731 2,473 8,765 5,371 51,107 40,840
Finance income 2,180 2,411 2,381 3,514 - - 786 1,775 5,347 7,700
Finance expense (2,224) (2,429) (9)(12)- - (2)(3)(2,235) (2,444)
Depreciation and amortisation
(7,183) (6,900) (8)(7)(550)(933)(10)(6)(7,751) (7,846)
Depreciation of Right-of-use
assets
(846)(806)(39)(34)- - (10)(10)(895)(850)
Share of profit of Joint venture
1,508 73- - - - - - 1,508 73
Profit before income tax 10,791 11,648 24,580 17,158 2,181 1,540 9,529 7,127 47,081 37,473
Income tax expense
(24,547) (3,179) (6,852) (4,805) (4,528) (431) (2,366) (2,141) (38,293) (10,556)
Profit after income tax (13,756) 8,469 17,728 12,353 (2,347) 1,109 7,163 4,986 8,788 26,917
Cash & cash equivalents and
short term bank deposits
2,599 16,982 33,287 52,159 - - 5,411 6,190 41,297 75,331
Investment in associates - - 2 2 - - - - 2 2
Investment in joint venture
46,555 43,943 - - - - - - 46,555 43,943
Other segment assets
364,960 339,925 259,032 231,231 36,301 35,834 14,119 20,524 674,412 627,514
Total assets 414,114 400,850 292,321 283,392 36,301 35,834 19,530 26,714 762,266 746,790
Segment liabilities
(58,256) (68,516) (2,362) (4,053) - - (1,769) (1,391) (62,387) (73,960)
Tax liabilities (27,720) (7,393) (2,229) (1,449) (4,379) - (646)(1,536)(34,974) (10,378)
Total liabilities
(85,976) (75,909) (4,591) (5,502) (4,379) - (2,415) (2,927) (97,361) (84,338)
Property, plant and equipment
expenditure
27,830 13,821 2 56
- -
616 14 28,448 13,901
Investment property
expenditure
- - - - 1,017 386 - - 1,017 386
Residential land development
expenditure
- - 22,458 10,135
- -
- - 22,458 10,135
Purchase of land for
residential land development
- - 23,720 20,407 - - - - 23,720 20,407
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024 | FIN 18
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 17
99..PPrrooppeerrttyy,, ppllaanntt aanndd eeqquuiippmme enntt -- ccoonnttiinnuueedd
IInniittiiaall rreeccoorrddiinngg
Items of property, plant and equipment are initially stated at cost. The cost of purchased property, plant and equipment is the value
of the consideration given to acquire the assets and the value of other directly attributable costs, which have been incurred in bringing
the assets to the location and condition necessary for their intended service. Where parts of an item of property, plant and equipment
have different useful lives, they are accounted for as separate items of property, plant and equipment.
Capital expenditure on major projects is recorded separately within property, plant and equipment as capital work in progress. Once
the project is complete the balance is transferred to the appropriate property, plant and equipment categories. Capital work in progress
is not depreciated.
SSuubbsseeqquueenntt mmeeaassuurreemme enntt
Property, plant and equipment is subsequently measured at cost less accumulated depreciation and impairment losses. The Group
recognises the cost of replacing part of such an item of property, plant and equipment when that cost is incurred if it is probable that
the future economic benefits embodied within the item will flow to the Group and the cost of the item can be measured reliably. All
other costs are recognised in the income statement as an expense as incurred.
IImmp paaiirrmme enntt
The Group assesses impairment of non-current tangible assets at each reporting date when there are indicators of impairment. If an
impairment indicator exists, the recoverable amount is estimated at the cash generating unit (“CGU”) or individual asset level. A CGU
is the smallest asset group that generates cash inflows from continuing use that are independent of other assets or cash generating
units “CGU”. Management has determined that each hotel site represents a separate CGU for the purpose of the impairment
assessment, unless separate land titles are not used for generation of cash flows by the hotel the CGU is the equivalent of the hotel
assets recorded as property, plant and equipment. The recoverable amount of assets or CGU is the greater of their fair value less
disposal costs and their value in use. An impairment loss is recognised in the income statement whenever the carrying amount of an
asset or CGU exceeds its estimated recoverable amount.
Market capitalisation is lower than the net assets indicating potential impairment. In response management used judgement to identify
impairment indicators at the CGU or individual material asset level including using thresholds to identify hotels with smaller headroom
based on prior valuations, and the hotels performance being below expectation among other factors. Indicators of impairment were
identified with reference to the individual hotels trading conditions and independent valuations.
The recoverable amounts of the Group’s CGUs or individual assets are based on fair value less cost of disposal or value in use
determined by an independent valuer. In 2024 the recoverable amount of the CGU was determined by independent appraiser Colliers
and Bower valuations Limited and in 2023 recoverable amount was determined by internal review conducted by management and
supplemented by external review on selected hotels by an independent registered valuer Bower Valuations Limited.
The valuation methods used require the independent appraiser to make a number of assumptions including estimating the future
cash flows expected to arise from the cash-generating units, suitable discount, capitalisation and square meter rates, as well as value
per room, to determine the recoverable value.
Valuation methodologies used are explained below:
Income capitalisation method Capitalisation methodology converts short term earnings derived from a property into value.
The central premise of this approach is that the adopted capitalisation rate is derived from
the yields indicated by sales of similar property investments. The yields derived from
comparable sales evidence are purported to reflect any expectations of future growth in
income and capital value.
Discounted cash flow method The discounted cashflow analysis (DCF) is based on the concept that an investment value is
the time adjusted value of future cashflows which can be obtained from an asset. This
requires explicit assumptions to be made regarding prospective income and expenses,
including occupancy and average daily rate, as well as timing and duration of cash flows over
the holding period. A five (5) year horizon with a terminal value has been adopted by Colliers
and Bower Valuations Limited to reflect the sustainable earnings profile of the asset.
Sales comparison approach Fair value is determined by applying positive and negative adjustments to recently transacted
assets of a similar nature
The property valuations require the use of judgements specific to the properties, as well as consideration of the prevailing market
conditions. As at 31 December 2024, the hotel property market and economy, were impacted by the economic uncertainty resulting
from high interest rates, inflation and geopolitical unrest, slower global growth, recession as well as continued recovery of international
travel from COVID 19. Significant assumptions used in the valuation are inherently subjective and in times of economic uncertainty
the degree of subjectivity maybe higher than it might otherwise be. Key estimates and judgements are influenced by these
uncertainties. As at the date of valuation, there remains a lower number of recent hotel sales transactions, which increases the
uncertainty around valuation conclusions. A difference in the key assumptions, when aggregated, could result in a significant change
to the valuation of a property.
The assumptions and judgements applied in the estimation of the recoverable amounts of all CGUs correspond to Level 3 category
of NZ IFRS 13 fair value hierarchy. The key unobservable inputs that required significant estimation and judgements are presented
below:
Mil lennium & Copthorne Hotels New Z ealand Li mited
Notes to the Consolidated Financial Statements for the ye ar ended 31 Dece mber 20 24
The a ccompanyin g n ote s fo rm p art of, and s hould be read in conjunctio n with, t hese financial s ta tements .
FIN 18
9.Property, plant and equipment – continued
Key valuation
i
nput
R
ange of valuation input value Measurement of sensitivity on
v
aluation
2
024 2023
I
ncrease in the
i
nput
D
ecrease in the
i
nput
Occupancy rate 59% - 83% 64% - 85% Higher Lower
Average daily
rate
$185 - $214 $166 - $271 Higher Lower
Rev P AR* $121 - $177 $118 - $231 Higher Lower
Discount rate 10% - 12% 8% - 11% Lower Higher
Capitalization rate 9% - 11% 7% - 10% Lower Higher
SQM rate 449 420 Lower Higher
* Revenue per Available Room – a hospit ality metric combining average room rate and occupancy rate.
Two hotel assets were considered sensitive to impairment:
•
The recoverable amount of one of t he hotel assets was determined on a highest and best use, being fair value of the land
less demolition costs using comparative land sales data. The fair value of this hotel asset exceeded its carrying value by
$0.9 million and is considered to be s ensitive to impairment f rom a reasonably possible change in s quare metre rate.
•
The recoverable amount of one of the hotel assets had a carrying value equivalent to its recoverable amount of $15.2
million. Any material change in k ey a ssumptions (listed in the above table) would therefore result in an i mpairment.
Management and
the directors believe that the key assumptions used, and estimates made, represent the most realistic assessment
of each CGU.
D
epreciation
Land is not depreciat ed. Depreciat ion on other assets is calculated using the straight-line method to allocate their cost to their residual
values o ver t heir e stimated useful liv es, as follows:
•
Building core50 years or le ase t erm if shorter
•
Building surfaces and finishes30 years or le ase t erm if shorter
•
Plant and machinery15 - 20 years
•
Furnit ure and equipment10 years
•
Soft f urnishings5 - 7 y ears
•
Computer equipment5 y ears
•
Motor vehicles4 y ears
No residual values are ascribed to building surfaces and finishes. Residual values as
cribed to building core depend on the na ture,
location and t enure of each property. Depreciable values ascribed to building core range between 10% to 24% of the building core.
D
isposal or retirement
Gains or losses arising from the disposal or retirement of property, plant and equipment are determined as the dif ference between
the actual net disposal proceeds and the carrying amount of the asset and are recognised in the income statement on the date of
retirement or di sposal.
R
ight of use assets
The accounting polic y for ri ght of u se asset is disclosed in Note 22.
P
ledged assets
A t otal of three (2023: three) hotel properties with a total book v alue of $83.25 million (2023: $75.33 million) are pl edged to t he bank
as security against t he lo an facilit y disclosed in Note 14.
C
limate-related disclosure
The Group continues t o assess the impact of climate change on i ts b usiness and it s tangible assets. Climate change poses
significant ri sks and c hallenges for t he hotel industry and for the land development in dustry (r esidential and commercial), a s it
affects t he physical, operational, a nd financial aspects o f hotel properties. Extreme weather events, such as floods, s torms,
heatwaves, and droughts, can damage t he hotel infrastructure, di srupt t he supply chain, reduce t he occupancy and revenue, and
increase t he in surance and maintenance c osts. While hotel
in vestors, managers, and owners are in creasingly cognisant o f the
climate-related impacts on their properties, the investment community have y et t o price in the climate-related impacts on t he asset
values. T his means t hat t he current market value of hotel properties may not reflect the potential losses or gains a ssociated with
their exposure to climate ri sks or their adoption of s ustainability measures, decarbonisation initiat ives, and sound environmental
stewardship. While valuers have made no explicit adjustments to the recoverable amount of
the selected properties in respect o f
climate change matters, i t is anticipated that c limate change may have a greater in fluence on valuations in t he f uture a s in vestment
markets pl ace a greater emphasis on climate change and a property's environmental resilience and credentials. Known c limate
risks are reflected in t he adopted capitalisation and di scount rates.
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 10
11..SSeeggmme enntt rreeppoorrttiinngg
OOppeerraattiinngg sseeggmmeennttss
The Group consisted of the following main operating segments:
•Hotel operations, comprising income from the ownership and management of hotels.
•Residential land development, comprising the development and sale of residential land sections.
•Residential and commercial property development, comprising the development and sale of residential
apartments.
•Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
(a)Operating Segments
HHootteell OOp peerraattiioonnss
RReessiiddeennttiiaall LLaanndd
DDeevveellooppmmeenntt
IInnvveessttmme enntt
PPrrooppeerrttyy
RReessiiddeennttiiaall PPrrooppeerrttyy
DDeevveellooppmmeenntt GGrroouupp
Dollars in thousands
22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233
External revenue109,486 101,072 46,313 28,284 2,746 2,494 17,611 13,809 176,184 145,659
Earnings before interest,
depreciation
& amortisation
17,356 19,299 22,255 13,697 2,731 2,473 8,765 5,371 51,107 40,840
Finance income 2,180 2,411 2,381 3,514 - - 786 1,775 5,347 7,700
Finance expense (2,224) (2,429) (9)(12)- - (2)(3)(2,235) (2,444)
Depreciation and amortisation
(7,183) (6,900) (8)(7)(550)(933)(10)(6)(7,751) (7,846)
Depreciation of Right-of-use
assets
(846)(806)(39)(34)- - (10)(10)(895)(850)
Share of profit of Joint venture
1,508 73- - - - - - 1,508 73
Profit before income tax 10,791 11,648 24,580 17,158 2,181 1,540 9,529 7,127 47,081 37,473
Income tax expense
(24,547) (3,179) (6,852) (4,805) (4,528) (431) (2,366) (2,141) (38,293) (10,556)
Profit after income tax (13,756) 8,469 17,728 12,353 (2,347) 1,109 7,163 4,986 8,788 26,917
Cash & cash equivalents and
short term bank deposits
2,599 16,982 33,287 52,159 - - 5,411 6,190 41,297 75,331
Investment in associates - - 2 2 - - - - 2 2
Investment in joint venture
46,555 43,943 - - - - - - 46,555 43,943
Other segment assets
364,960 339,925 259,032 231,231 36,301 35,834 14,119 20,524 674,412 627,514
Total assets 414,114 400,850 292,321 283,392 36,301 35,834 19,530 26,714 762,266 746,790
Segment liabilities
(58,256) (68,516) (2,362) (4,053) - - (1,769) (1,391) (62,387) (73,960)
Tax liabilities (27,720) (7,393) (2,229) (1,449) (4,379) - (646)(1,536)(34,974) (10,378)
Total liabilities
(85,976) (75,909) (4,591) (5,502) (4,379) - (2,415) (2,927) (97,361) (84,338)
Property, plant and equipment
expenditure
27,830 13,821 2 56
- -
616 14 28,448 13,901
Investment property
expenditure
- - - - 1,017 386 - - 1,017 386
Residential land development
expenditure
- - 22,458 10,135
- -
- - 22,458 10,135
Purchase of land for
residential land development
- - 23,720 20,407 - - - - 23,720 20,407
MMiilllleennnniiuumm && CCoopptthhoorrnnee HHootteellss NNeeww ZZeeaallaanndd LLiimmiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 10
11..SSeeggmme enntt rreeppoorrttiinngg
OOppeerraattiinngg sseeggmmeennttss
The Group consisted of the following main operating segments:
•Hotel operations, comprising income from the ownership and management of hotels.
•Residential land development, comprising the development and sale of residential land sections.
•Residential and commercial property development, comprising the development and sale of residential
apartments.
•Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
(a)Operating Segments
HHootteell OOp peerraattiioonnss
RReessiiddeennttiiaall LLaanndd
DDeevveellooppmmeenntt
IInnvveessttmme enntt
PPrrooppeerrttyy
RReessiiddeennttiiaall PPrrooppeerrttyy
DDeevveellooppmmeenntt GGrroouupp
Dollars in thousands
22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233
External revenue109,486 101,072 46,313 28,284 2,746 2,494 17,611 13,809 176,184 145,659
Earnings before interest,
depreciation
& amortisation
17,356 19,299 22,255 13,697 2,731 2,473 8,765 5,371 51,107 40,840
Finance income 2,180 2,411 2,381 3,514 - - 786 1,775 5,347 7,700
Finance expense (2,224) (2,429) (9)(12)- - (2)(3)(2,235) (2,444)
Depreciation and amortisation
(7,183) (6,900) (8)(7)(550)(933)(10)(6)(7,751) (7,846)
Depreciation of Right-of-use
assets
(846)(806)(39)(34)- - (10)(10)(895)(850)
Share of profit of Joint venture
1,508 73- - - - - - 1,508 73
Profit before income tax 10,791 11,648 24,580 17,158 2,181 1,540 9,529 7,127 47,081 37,473
Income tax expense
(24,547) (3,179) (6,852) (4,805) (4,528) (431) (2,366) (2,141) (38,293) (10,556)
Profit after income tax (13,756) 8,469 17,728 12,353 (2,347) 1,109 7,163 4,986 8,788 26,917
Cash & cash equivalents and
short term bank deposits
2,599 16,982 33,287 52,159 - - 5,411 6,190 41,297 75,331
Investment in associates - - 2 2 - - - - 2 2
Investment in joint venture
46,555 43,943 - - - - - - 46,555 43,943
Other segment assets
364,960 339,925 259,032 231,231 36,301 35,834 14,119 20,524 674,412 627,514
Total assets 414,114 400,850 292,321 283,392 36,301 35,834 19,530 26,714 762,266 746,790
Segment liabilities
(58,256) (68,516) (2,362) (4,053) - - (1,769) (1,391) (62,387) (73,960)
Tax liabilities (27,720) (7,393) (2,229) (1,449) (4,379) - (646)(1,536)(34,974) (10,378)
Total liabilities
(85,976) (75,909) (4,591) (5,502) (4,379) - (2,415) (2,927) (97,361) (84,338)
Property, plant and equipment
expenditure
27,830 13,821 2 56
- -
616 14 28,448 13,901
Investment property
expenditure
- - - - 1,017 386 - - 1,017 386
Residential land development
expenditure
- - 22,458 10,135
- -
- - 22,458 10,135
Purchase of land for
residential land development
- - 23,720 20,407 - - - - 23,720 20,407
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 19 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 19
1100..DDeevveellooppmmeenntt pprrooppeerrttiieess
GGrroouupp
Dollars In Thousands 22002244 22002233
Development land 251,445 224,540
Residential development 12,643 19,542
264,088 244,082
Less expected to settle within one year (35,454) (26,861)
222288,,663344 221177,,222211
Development land recognised in cost of sales 19,274 10,926
Residential development recognised in cost of sales 7,381 6,052
Development properties are recognised and measured in accordance with NZ IAS 2 Inventories. They are carried at the lower of cost
and net realisable value. Cost includes the cost of acquisition, development, and holding costs such as interest. Interest and other
holding costs incurred after completion of development are expensed as incurred. All holding costs are written off through profit or
loss in the year incurred with the exception of interest holding costs which are capitalised during the period when active development
is taking place. No interest (2023: nil) has been capitalised during the year.
Residential development at balance date consists of the residential development known as Zenith Residences in Sydney, Australia.
The Group’s inventory of development property is reviewed at each balance date to ensure its carrying amount is recorded at the lower
of its cost and net realisable value. The net realisable value of the development property is the estimated selling price in the ordinary
course of business less the estimated costs of completion and costs necessary to make the sale. The determination of net realisable
value of inventory involves estimates taking into consideration prevailing market conditions, current prices and expected date of
commencement and completion of the project, the estimated future selling price, cost to complete projects and selling costs. An
impairment loss is recognised in the income statement to the extent that the carrying value of development property exceeds its
estimated net realisable value.
The fair value of development property held at 31 December 2024 was determined by an independent registered valuer, DM Koomen
SPINZ of Extensor Advisory Limited. The fair value is determined to estimate the net realisable value. The net realisable value as
determined by the independent registered valuer, exceeds the carrying value of development property.
1
111..IInnvveessttmmeenntt pprrooppeerrttiieess
GGrroouupp
Investment properties consist of commercial warehousing at Wiri in Auckland, retail shops at Prestons Park in Christchurch, and retail
shops at Stonebrook in Rolleston which are fully operational. The fair value of investment properties held at 31 December 2024 was
determined by an independent registered valuer, DM Koomen SPINZ of Extensor Advisory Limited as $65.1 million (2023: $62.7
million).
Dollars In Thousands FFrreeeehhoolldd LLaanndd BBuuiillddiinnggss
WWoorrkk IInn
PPrrooggrreessss TToottaall
CCoosstt
Balance at 1 January 2023 659 36,330 - 36,989
Transfers between categories - 386 (386) -
Additions - - 386 386
BBaallaannccee aat t 3311 DDeecceemmb beerr 22002233 665599 3366,,771166 -- 3377,,337755
Balance at 1 January 2024 659 36,716 - 37,375
Transfers between categories - - - -
Additions - - 1,017 1,017
BBaallaannccee aat t 3311 DDeecceemmb beerr 22002244 665599 3366,,771166 11,,001177 3388,,339922
DDeepprreecciiaattiioonn aanndd iimmppaaiirrmmeenntt lloosssseess
-,-(88,351)
Balance at 1 January 2023 -608-608
Depreciation charge for the year - 933 - 933
BBaallaannccee aat t 3311 DDeecceemmb beerr 22002233 -- 11,,554411 -- 11,,554411
Balance at 1 January 2024 - 1,541 - 1,541
Depreciation charge for the year - 550 - 550
BBaallaannccee aat t 3311 DDeecceemmb beerr 22002244 -- 22,,009911 -- 22,,009911
CCaarrrryyiinngg aammo ouunnttss
AAtt 11 JJaannuuaarryy 22002244 665599 3355,,117755 -- 3355,,883344
AAtt 3311 DDeecceemmb beerr 22002244 665599 3344,,662255 11,,001177 3366,,330011
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 20
1111..IInnvveessttmme enntt pprrooppeerrttiieess –– ccoonnttiinnuueedd
The fair value measurement was categorised as Level 3 (highest of the fair value hierarchy) based on the inputs to the valuation
methodology used i.e. primarily the income capitalisation approach with discounted cash flow and depreciated replacement cost
approaches used to corroborate.
Investment properties are properties held either to earn rental income or capital appreciation or for both, but not for sale in the
ordinary course of business, use in the production or supply of goods and services, or for administrative purposes.
Investment properties are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes
expenditure that is directly attributable to the acquisition of the investment properties. Costs of self-constructed investment properties
include costs of materials and direct labour, any other costs directly attributable to bringing the investment properties to a working
condition for their intended use and capitalised borrowing costs. Gains and losses on disposal of investment properties (calculated
as the difference between the net proceeds from disposal and the carrying amounts of the investment properties) are recognised in
the profit and loss.
Land is not depreciated. Depreciation on the investment properties is computed by asset classes using the straight-line method to
allocate their cost to their residual values over their estimated useful lives, as follows:
•Building core 50 years
•Building surfaces and finishes 30 years
•Building services 20 – 30 years
No residual values are ascribed to building surfaces and finishes. Residual values ascribed to building core depend on the nature,
location and tenure of each property. Depreciable values of 10% are ascribed to building core.
IImmp paaiirrmme enntt
Annual reviews of the carrying amounts of investment properties are undertaken for indicators of impairment. Where indicators of
impairment were identified, the recoverable amounts were estimated based on external valuations undertaken. The cash generating
units (CGU) are individual properties. The recoverable amounts of the investment properties, being the higher of the fair value less
costs to sell and value-in-use, were predominantly determined using the fair value less costs to sell basis and were estimated using
primarily the income capitalisation approach with discounted cash flow and depreciated replacement cost approaches used to
corroborate.
During the year, management identified two (2023: two) properties with a carrying value of $14.5 million (2023: $13.7 million) that
had indicators of impairment. Average market capitalisation rates appropriate to the properties range from 6.25% to 7.25% (2023:
6.50% to 7.00%). Average market rent per square metre rates appropriate to the properties range from $318 to $396 (2023: $341
to $358). There is no impairment expense recognised in the period (2023: no impairment).
OOppeerraattiinngg lleeaassee
The Group leases out its investment property. The Group has classified these leases as operating leases, because they do not
transfer substantially all of the risks and rewards incidental to the ownership of the assets.
Rental income recognised by the Group during 2024 was $2.7 million (2023: $2.49 million).
The following table sets out a maturity analysis of lease payments, showing the undiscounted lease payments to be received after
the reporting date:
GGr roouupp
Dollars In Thousands 22002244 22002233
Within 1 year 2,745 2,665
More than 1 year but within 2 years 2,793 2,675
More than 2 years but within 3 years 2,835 2,722
More than 3 years but within 4 years 2,784 2,760
More than 4 years but within 5 years 1,947 2,668
After 5 years 708 2,553
1133,,881122 1166,,004433
1122..CCaasshh aanndd ccaasshh eeqquuiivvaalleennttss
GGr roouupp
Dollars In Thousands 22002244 22002233
Cash 35,638 6,835
Call deposits 4,088 4,421
3399,,772266 1111,,225566
Cash and cash equivalents comprise cash balances and call deposits with a maturity of three months or less. Bank overdrafts that
are repayable on demand and form an integral part of the Group’s cash management are included as a component of cash and
cash equivalents for the purpose of the statement of cash flows.
MMiilllleennnniiuumm && CCoopptthhoorrnnee HHootteellss NNeeww ZZeeaallaanndd LLiimmiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 10
11..SSeeggmme enntt rreeppoorrttiinngg
OOppeerraattiinngg sseeggmmeennttss
The Group consisted of the following main operating segments:
•Hotel operations, comprising income from the ownership and management of hotels.
•Residential land development, comprising the development and sale of residential land sections.
•Residential and commercial property development, comprising the development and sale of residential
apartments.
•Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
(a)Operating Segments
HHootteell OOp peerraattiioonnss
RReessiiddeennttiiaall LLaanndd
DDeevveellooppmmeenntt
IInnvveessttmme enntt
PPrrooppeerrttyy
RReessiiddeennttiiaall PPrrooppeerrttyy
DDeevveellooppmmeenntt GGrroouupp
Dollars in thousands
22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233
External revenue109,486 101,072 46,313 28,284 2,746 2,494 17,611 13,809 176,184 145,659
Earnings before interest,
depreciation
& amortisation
17,356 19,299 22,255 13,697 2,731 2,473 8,765 5,371 51,107 40,840
Finance income 2,180 2,411 2,381 3,514 - - 786 1,775 5,347 7,700
Finance expense (2,224) (2,429) (9)(12)- - (2)(3)(2,235) (2,444)
Depreciation and amortisation
(7,183) (6,900) (8)(7)(550)(933)(10)(6)(7,751) (7,846)
Depreciation of Right-of-use
assets
(846)(806)(39)(34)- - (10)(10)(895)(850)
Share of profit of Joint venture
1,508 73- - - - - - 1,508 73
Profit before income tax 10,791 11,648 24,580 17,158 2,181 1,540 9,529 7,127 47,081 37,473
Income tax expense
(24,547) (3,179) (6,852) (4,805) (4,528) (431) (2,366) (2,141) (38,293) (10,556)
Profit after income tax (13,756) 8,469 17,728 12,353 (2,347) 1,109 7,163 4,986 8,788 26,917
Cash & cash equivalents and
short term bank deposits
2,599 16,982 33,287 52,159 - - 5,411 6,190 41,297 75,331
Investment in associates - - 2 2 - - - - 2 2
Investment in joint venture
46,555 43,943 - - - - - - 46,555 43,943
Other segment assets
364,960 339,925 259,032 231,231 36,301 35,834 14,119 20,524 674,412 627,514
Total assets 414,114 400,850 292,321 283,392 36,301 35,834 19,530 26,714 762,266 746,790
Segment liabilities
(58,256) (68,516) (2,362) (4,053) - - (1,769) (1,391) (62,387) (73,960)
Tax liabilities (27,720) (7,393) (2,229) (1,449) (4,379) - (646)(1,536)(34,974) (10,378)
Total liabilities
(85,976) (75,909) (4,591) (5,502) (4,379) - (2,415) (2,927) (97,361) (84,338)
Property, plant and equipment
expenditure
27,830 13,821 2 56
- -
616 14 28,448 13,901
Investment property
expenditure
- - - - 1,017 386 - - 1,017 386
Residential land development
expenditure
- - 22,458 10,135
- -
- - 22,458 10,135
Purchase of land for
residential land development
- - 23,720 20,407 - - - - 23,720 20,407
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 10
11..SSeeggmme enntt rreeppoorrttiinngg
OOppeerraattiinngg sseeggmmeennttss
The Group consisted of the following main operating segments:
•Hotel operations, comprising income from the ownership and management of hotels.
•Residential land development, comprising the development and sale of residential land sections.
•Residential and commercial property development, comprising the development and sale of residential
apartments.
•Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
(a)Operating Segments
HHootteell OOp peerraattiioonnss
RReessiiddeennttiiaall LLaanndd
DDeevveellooppmmeenntt
IInnvveessttmme enntt
PPrrooppeerrttyy
RReessiiddeennttiiaall PPrrooppeerrttyy
DDeevveellooppmmeenntt GGrroouupp
Dollars in thousands
22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233
External revenue109,486 101,072 46,313 28,284 2,746 2,494 17,611 13,809 176,184 145,659
Earnings before interest,
depreciation
& amortisation
17,356 19,299 22,255 13,697 2,731 2,473 8,765 5,371 51,107 40,840
Finance income 2,180 2,411 2,381 3,514 - - 786 1,775 5,347 7,700
Finance expense (2,224) (2,429) (9)(12)- - (2)(3)(2,235) (2,444)
Depreciation and amortisation
(7,183) (6,900) (8)(7)(550)(933)(10)(6)(7,751) (7,846)
Depreciation of Right-of-use
assets
(846)(806)(39)(34)- - (10)(10)(895)(850)
Share of profit of Joint venture
1,508 73- - - - - - 1,508 73
Profit before income tax 10,791 11,648 24,580 17,158 2,181 1,540 9,529 7,127 47,081 37,473
Income tax expense
(24,547) (3,179) (6,852) (4,805) (4,528) (431) (2,366) (2,141) (38,293) (10,556)
Profit after income tax (13,756) 8,469 17,728 12,353 (2,347) 1,109 7,163 4,986 8,788 26,917
Cash & cash equivalents and
short term bank deposits
2,599 16,982 33,287 52,159 - - 5,411 6,190 41,297 75,331
Investment in associates - - 2 2 - - - - 2 2
Investment in joint venture
46,555 43,943 - - - - - - 46,555 43,943
Other segment assets
364,960 339,925 259,032 231,231 36,301 35,834 14,119 20,524 674,412 627,514
Total assets 414,114 400,850 292,321 283,392 36,301 35,834 19,530 26,714 762,266 746,790
Segment liabilities
(58,256) (68,516) (2,362) (4,053) - - (1,769) (1,391) (62,387) (73,960)
Tax liabilities (27,720) (7,393) (2,229) (1,449) (4,379) - (646)(1,536)(34,974) (10,378)
Total liabilities
(85,976) (75,909) (4,591) (5,502) (4,379) - (2,415) (2,927) (97,361) (84,338)
Property, plant and equipment
expenditure
27,830 13,821 2 56
- -
616 14 28,448 13,901
Investment property
expenditure
- - - - 1,017 386 - - 1,017 386
Residential land development
expenditure
- - 22,458 10,135
- -
- - 22,458 10,135
Purchase of land for
residential land development
- - 23,720 20,407 - - - - 23,720 20,407
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024 | FIN 20
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 19
1100..DDeevveellooppmmeenntt pprrooppeerrttiieess
GGrroouupp
Dollars In Thousands 22002244 22002233
Development land 251,445 224,540
Residential development 12,643 19,542
264,088 244,082
Less expected to settle within one year (35,454) (26,861)
222288,,663344 221177,,222211
Development land recognised in cost of sales 19,274 10,926
Residential development recognised in cost of sales 7,381 6,052
Development properties are recognised and measured in accordance with NZ IAS 2 Inventories. They are carried at the lower of cost
and net realisable value. Cost includes the cost of acquisition, development, and holding costs such as interest. Interest and other
holding costs incurred after completion of development are expensed as incurred. All holding costs are written off through profit or
loss in the year incurred with the exception of interest holding costs which are capitalised during the period when active development
is taking place. No interest (2023: nil) has been capitalised during the year.
Residential development at balance date consists of the residential development known as Zenith Residences in Sydney, Australia.
The Group’s inventory of development property is reviewed at each balance date to ensure its carrying amount is recorded at the lower
of its cost and net realisable value. The net realisable value of the development property is the estimated selling price in the ordinary
course of business less the estimated costs of completion and costs necessary to make the sale. The determination of net realisable
value of inventory involves estimates taking into consideration prevailing market conditions, current prices and expected date of
commencement and completion of the project, the estimated future selling price, cost to complete projects and selling costs. An
impairment loss is recognised in the income statement to the extent that the carrying value of development property exceeds its
estimated net realisable value.
The fair value of development property held at 31 December 2024 was determined by an independent registered valuer, DM Koomen
SPINZ of Extensor Advisory Limited. The fair value is determined to estimate the net realisable value. The net realisable value as
determined by the independent registered valuer, exceeds the carrying value of development property.
1111..IInnvveessttmme enntt pprrooppeerrttiieess
GGrroouupp
Investment properties consist of commercial warehousing at Wiri in Auckland, retail shops at Prestons Park in Christchurch, and retail
shops at Stonebrook in Rolleston which are fully operational. The fair value of investment properties held at 31 December 2024 was
determined by an independent registered valuer, DM Koomen SPINZ of Extensor Advisory Limited as $65.1 million (2023: $62.7
million).
Dollars In Thousands FFrreeeehhoolldd LLaanndd BBuuiillddiinnggss
WWoorrkk IInn
PPrrooggrreessss TToottaall
CCoosstt
Balance at 1 January 2023 659 36,330 - 36,989
Transfers between categories - 386 (386) -
Additions - - 386 386
BBaallaannccee aat t 3311 DDeecceemmb beerr 22002233 665599 3366,,771166 -- 3377,,337755
Balance at 1 January 2024 659 36,716 - 37,375
Transfers between categories - - - -
Additions - - 1,017 1,017
BBaallaannccee aat t 3311 DDeecceemmb beerr 22002244 665599 3366,,771166 11,,001177 3388,,339922
DDeepprreecciiaattiioonn aanndd iimmppaaiirrmmeenntt lloosssseess
-,-(88,351)
Balance at 1 January 2023 -608-608
Depreciation charge for the year - 933 - 933
BBaallaannccee aat t 3311 DDeecceemmb beerr 22002233 -- 11,,554411 -- 11,,554411
Balance at 1 January 2024 - 1,541 - 1,541
Depreciation charge for the year - 550 - 550
BBaallaannccee aat t 3311 DDeecceemmb beerr 22002244 -- 22,,009911 -- 22,,009911
CCaarrrryyiinngg aammo ouunnttss
AAtt 11 JJaannuuaarryy 22002244 665599 3355,,117755 -- 3355,,883344
AAtt 3311 DDeecceemmb beerr 22002244 665599 3344,,662255 11,,001177 3366,,330011
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 20
1111..IInnvveessttmmeenntt pprrooppeerrttiieess –– ccoonnttiinnuueedd
The fair value measurement was categorised as Level 3 (highest of the fair value hierarchy) based on the inputs to the valuation
methodology used i.e. primarily the income capitalisation approach with discounted cash flow and depreciated replacement cost
approaches used to corroborate.
Investment properties are properties held either to earn rental income or capital appreciation or for both, but not for sale in the
ordinary course of business, use in the production or supply of goods and services, or for administrative purposes.
Investment properties are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes
expenditure that is directly attributable to the acquisition of the investment properties. Costs of self-constructed investment properties
include costs of materials and direct labour, any other costs directly attributable to bringing the investment properties to a working
condition for their intended use and capitalised borrowing costs. Gains and losses on disposal of investment properties (calculated
as the difference between the net proceeds from disposal and the carrying amounts of the investment properties) are recognised in
the profit and loss.
Land is not depreciated. Depreciation on the investment properties is computed by asset classes using the straight-line method to
allocate their cost to their residual values over their estimated useful lives, as follows:
•Building core 50 years
•Building surfaces and finishes 30 years
•Building services 20 – 30 years
No residual values are ascribed to building surfaces and finishes. Residual values ascribed to building core depend on the nature,
location and tenure of each property. Depreciable values of 10% are ascribed to building core.
I
Immppaaiirrmmeenntt
Annual reviews of the carrying amounts of investment properties are undertaken for indicators of impairment. Where indicators of
impairment were identified, the recoverable amounts were estimated based on external valuations undertaken. The cash generating
units (CGU) are individual properties. The recoverable amounts of the investment properties, being the higher of the fair value less
costs to sell and value-in-use, were predominantly determined using the fair value less costs to sell basis and were estimated using
primarily the income capitalisation approach with discounted cash flow and depreciated replacement cost approaches used to
corroborate.
During the year, management identified two (2023: two) properties with a carrying value of $14.5 million (2023: $13.7 million) that
had indicators of impairment. Average market capitalisation rates appropriate to the properties range from 6.25% to 7.25% (2023:
6.50% to 7.00%). Average market rent per square metre rates appropriate to the properties range from $318 to $396 (2023: $341
to $358). There is no impairment expense recognised in the period (2023: no impairment).
O
Oppeerraattiinngg lleeaassee
The Group leases out its investment property. The Group has classified these leases as operating leases, because they do not
transfer substantially all of the risks and rewards incidental to the ownership of the assets.
Rental income recognised by the Group during 2024 was $2.7 million (2023: $2.49 million).
The following table sets out a maturity analysis of lease payments, showing the undiscounted lease payments to be received after
the reporting date:
GGr roouupp
Dollars In Thousands 22002244 22002233
Within 1 year 2,745 2,665
More than 1 year but within 2 years 2,793 2,675
More than 2 years but within 3 years 2,835 2,722
More than 3 years but within 4 years 2,784 2,760
More than 4 years but within 5 years 1,947 2,668
After 5 years 708 2,553
1133,,881122 1166,,004433
1122..CCaasshh aanndd ccaasshh eeqquuiivvaalleennttss
GGr roouupp
Dollars In Thousands 22002244 22002233
Cash 35,638 6,835
Call deposits 4,088 4,421
3399,,772266 1111,,225566
Cash and cash equivalents comprise cash balances and call deposits with a maturity of three months or less. Bank overdrafts that
are repayable on demand and form an integral part of the Group’s cash management are included as a component of cash and
cash equivalents for the purpose of the statement of cash flows.
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 10
11..SSeeggmme enntt rreeppoorrttiinngg
OOppeerraattiinngg sseeggmmeennttss
The Group consisted of the following main operating segments:
•Hotel operations, comprising income from the ownership and management of hotels.
•Residential land development, comprising the development and sale of residential land sections.
•Residential and commercial property development, comprising the development and sale of residential
apartments.
•Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
(a)Operating Segments
HHootteell OOp peerraattiioonnss
RReessiiddeennttiiaall LLaanndd
DDeevveellooppmmeenntt
IInnvveessttmme enntt
PPrrooppeerrttyy
RReessiiddeennttiiaall PPrrooppeerrttyy
DDeevveellooppmmeenntt GGrroouupp
Dollars in thousands
22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233
External revenue109,486 101,072 46,313 28,284 2,746 2,494 17,611 13,809 176,184 145,659
Earnings before interest,
depreciation
& amortisation
17,356 19,299 22,255 13,697 2,731 2,473 8,765 5,371 51,107 40,840
Finance income 2,180 2,411 2,381 3,514 - - 786 1,775 5,347 7,700
Finance expense (2,224) (2,429) (9)(12)- - (2)(3)(2,235) (2,444)
Depreciation and amortisation
(7,183) (6,900) (8)(7)(550)(933)(10)(6)(7,751) (7,846)
Depreciation of Right-of-use
assets
(846)(806)(39)(34)- - (10)(10)(895)(850)
Share of profit of Joint venture
1,508 73- - - - - - 1,508 73
Profit before income tax 10,791 11,648 24,580 17,158 2,181 1,540 9,529 7,127 47,081 37,473
Income tax expense
(24,547) (3,179) (6,852) (4,805) (4,528) (431) (2,366) (2,141) (38,293) (10,556)
Profit after income tax (13,756) 8,469 17,728 12,353 (2,347) 1,109 7,163 4,986 8,788 26,917
Cash & cash equivalents and
short term bank deposits
2,599 16,982 33,287 52,159 - - 5,411 6,190 41,297 75,331
Investment in associates - - 2 2 - - - - 2 2
Investment in joint venture
46,555 43,943 - - - - - - 46,555 43,943
Other segment assets
364,960 339,925 259,032 231,231 36,301 35,834 14,119 20,524 674,412 627,514
Total assets 414,114 400,850 292,321 283,392 36,301 35,834 19,530 26,714 762,266 746,790
Segment liabilities
(58,256) (68,516) (2,362) (4,053) - - (1,769) (1,391) (62,387) (73,960)
Tax liabilities (27,720) (7,393) (2,229) (1,449) (4,379) - (646)(1,536)(34,974) (10,378)
Total liabilities
(85,976) (75,909) (4,591) (5,502) (4,379) - (2,415) (2,927) (97,361) (84,338)
Property, plant and equipment
expenditure
27,830 13,821 2 56
- -
616 14 28,448 13,901
Investment property
expenditure
- - - - 1,017 386 - - 1,017 386
Residential land development
expenditure
- - 22,458 10,135
- -
- - 22,458 10,135
Purchase of land for
residential land development
- - 23,720 20,407 - - - - 23,720 20,407
MMiilllleennnniiuumm && CCoopptthhoorrnnee HHootteellss NNeeww ZZeeaallaanndd LLiimmiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 10
11..SSeeggmme enntt rreeppoorrttiinngg
OOppeerraattiinngg sseeggmmeennttss
The Group consisted of the following main operating segments:
•Hotel operations, comprising income from the ownership and management of hotels.
•Residential land development, comprising the development and sale of residential land sections.
•Residential and commercial property development, comprising the development and sale of residential
apartments.
•Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
(a)Operating Segments
HHootteell OOp peerraattiioonnss
RReessiiddeennttiiaall LLaanndd
DDeevveellooppmmeenntt
IInnvveessttmme enntt
PPrrooppeerrttyy
RReessiiddeennttiiaall PPrrooppeerrttyy
DDeevveellooppmmeenntt GGrroouupp
Dollars in thousands
22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233
External revenue109,486 101,072 46,313 28,284 2,746 2,494 17,611 13,809 176,184 145,659
Earnings before interest,
depreciation
& amortisation
17,356 19,299 22,255 13,697 2,731 2,473 8,765 5,371 51,107 40,840
Finance income 2,180 2,411 2,381 3,514 - - 786 1,775 5,347 7,700
Finance expense (2,224) (2,429) (9)(12)- - (2)(3)(2,235) (2,444)
Depreciation and amortisation
(7,183) (6,900) (8)(7)(550)(933)(10)(6)(7,751) (7,846)
Depreciation of Right-of-use
assets
(846)(806)(39)(34)- - (10)(10)(895)(850)
Share of profit of Joint venture
1,508 73- - - - - - 1,508 73
Profit before income tax 10,791 11,648 24,580 17,158 2,181 1,540 9,529 7,127 47,081 37,473
Income tax expense
(24,547) (3,179) (6,852) (4,805) (4,528) (431) (2,366) (2,141) (38,293) (10,556)
Profit after income tax (13,756) 8,469 17,728 12,353 (2,347) 1,109 7,163 4,986 8,788 26,917
Cash & cash equivalents and
short term bank deposits
2,599 16,982 33,287 52,159 - - 5,411 6,190 41,297 75,331
Investment in associates - - 2 2 - - - - 2 2
Investment in joint venture
46,555 43,943 - - - - - - 46,555 43,943
Other segment assets
364,960 339,925 259,032 231,231 36,301 35,834 14,119 20,524 674,412 627,514
Total assets 414,114 400,850 292,321 283,392 36,301 35,834 19,530 26,714 762,266 746,790
Segment liabilities
(58,256) (68,516) (2,362) (4,053) - - (1,769) (1,391) (62,387) (73,960)
Tax liabilities (27,720) (7,393) (2,229) (1,449) (4,379) - (646)(1,536)(34,974) (10,378)
Total liabilities
(85,976) (75,909) (4,591) (5,502) (4,379) - (2,415) (2,927) (97,361) (84,338)
Property, plant and equipment
expenditure
27,830 13,821 2 56
- -
616 14 28,448 13,901
Investment property
expenditure
- - - - 1,017 386 - - 1,017 386
Residential land development
expenditure
- - 22,458 10,135
- -
- - 22,458 10,135
Purchase of land for
residential land development
- - 23,720 20,407 - - - - 23,720 20,407
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 21 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 21
1133..TTrraaddee aanndd ootthheerr rreecceeiivvaabblleess
GGr roouupp
Dollars In Thousands 22002244 22002233
Trade receivables 9,594 9,728
Less provision for doubtful debts (86) (206)
Other trade receivables and prepayments 13,989 10,869
2233,,449977 2200,,339911
Trade and other receivables are stated at their cost less impairment losses. The carrying amounts of the trade receivables, other
trade receivables, and prepayments are reviewed at each balance date to determine whether there is any indication of impairment.
The Group applies the simplified approach to providing for expected credit losses prescribed by NZ IFRS 9, which permits the use of
the lifetime expected credit loss provision for all trade receivables. The allowance for doubtful debts on trade receivables are either
individually or collectively assessed based on number of days overdue. The Group takes into account the historical loss experience
and incorporates forward looking information and relevant macroeconomic factors
1
144..IInntteerreesstt--bbeeaarriinngg llooaannss aanndd bboorrrroowwiinnggss
This note provides information about the contractual terms of the Group’s interest-bearing loans and borrowings. For more information
about the Group’s exposure to interest rate and foreign currency risk, see Note 17.
G
Grroouupp
Dollars in
Thousands CCuurrrreennccyy
IInntteerreesstt
RRaattee FFaacciilliittyy TToot taal l
3311 DDe ecceemmb beerr 22002244 3311 DDe ecceemmb beerr 22002233
FFaaccee VVaalluuee
CCaarrrryyiinngg
AAmmo ouunntt FFaaccee VVaalluuee
CCaarrrryyiinngg
AAmmo ouunntt
Revolving credit NZD 5.42% 111155,,000000 3,000 3,000 10,000 10,000
Overdraft NZD 5.42% 55,,000000 - - 1,968 1,968
TTOOT TAALL 112200,,000000 33,,000000 33,,000000 1111,,996688 1111,,996688
Current - - 11,968 11,968
Non-current 3,000 3,000 - -
TTeerrmmss aanndd ddeebbtt rreeppaayymmeenntt sscchheedduullee
The Group has adopted classification of liabilities as current or non-current (amendments to NZIAS 1) from 1 January 2024.The bank
facilities are secured over hotel properties with a carrying amount of $83.25 million (2023: $75.33 million) – refer to Note 9. The Group
facilities were renewed on 22 December 2023 with a new maturity date of 31 January 2027. The Group has complied with the bank
covenants. The interest-bearing borrowings were classified as non-current as the Group has an existing right to defer settlement of
the loan for at least 12 months after the reporting period.
IInntteerreesstt--bbeeaarriinngg llooaannss aanndd bboorrrroowwiinnggss
Interest-bearing loans and borrowings are recognised initially at fair value less attributable transaction costs. Subsequent to initial
recognition, interest-bearing loans and borrowings are stated at amortised cost with any difference between cost and redemption
value being recognised in the income statement over the period of the borrowings on an effective interest basis.
1
155..DDeeffeerrrreedd ttaaxx aasssseettss aanndd lliiaabbiilliittiieess
Deferred tax is recognised in respect of the temporary differences between the carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for taxation purposes. The following temporary differences are not provided for: goodwill
not deductible for tax purposes; the initial recognition of assets or liabilities that neither affect accounting nor taxable profit; and
differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future. The
amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and
liabilities, using tax rates enacted or substantively enacted at the balance date.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the
asset can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be
realised.
Deferred tax assets and deferred tax liabilities are offset only if the Group has a legally enforceable right to set off current tax assets
against current tax liabilities; the Group intends to settle net; and the deferred tax assets and the deferred tax liabilities relate to
income taxes levied by the same taxation authority.
I
Immppaacctt ooff cchhaannggee iinn ttaaxx ddeepprreecciiaattiioonn
In 2020 as part of the response to the Covid-19, all components of commercial buildings were able to be depreciated for tax
purposes. On 28 March 2024, the Taxation (Annual Rates for 2023-24, Multinational Tax, and Remedial Matters) legislation was
enacted, encompassing a range of changes to tax legislation including the removal of the tax deduction for depreciation on building
core of commercial buildings. As a result of the change in legislation, income tax expense and deferred tax liability has increased
by $25.8m for the year.
Mil lennium & Copthorne Hotels New Z ealand Li mited
Notes to the Consolidated Financial Statements for the ye ar ended 31 Dece mber 20 24
The a ccompanyin g n ote s fo rm p art of, and s hould be read in conjunctio n with, t hese financial s ta tements .
FIN 22
15.Deferred tax assets and li abilities - continued
Recognised deferred tax assets and li abilities
Deferred tax a ssets and li abilities are attributable to the following:
Group
Assets Liabilities Net
Dollars I n T housands
2024 2023 2024 2023 2024 2023
Property, pl ant and
equipment (i ncludes Right o f
use assets)
- - 39,142 17,481 39,142 17,481
Investment property - - 4,379 345 4,379 345
Development properties (750) (212) - - (750)(212)
Accruals (147) (474) - - (147)(474)
Employee benefits (1,999) (2,074) - - (1,999) (2,074)
Lease li ability (7,586) (7,651) - - (7,586) (7,651)
Trade and other payables (1,247) (1,297) - - (1,247) (1,297)
Net in vestment in foreign
operations - - 926 883 926 883
Net t ax (assets) / li abilities (11,729) (11,708) 44,447 18,709 32,718 7,001
Movement in deferred tax balances during the year
Group
Dollars I n T housands
Balance
1 Jan 23
Recognised
in Income
Recognised
in equity
Balance
31 Dec 23
Property, plant and equipment (includes Right of use
assets) 19,776 (2,295) -17,481
Investment property 157 188 - 345
Development properties (388)179(3)(212)
Accruals (454)(18)(2)(474)
Employee benefits (1,715) (359)- (2,074)
Lease li ability (7,193) (458)- (7,651)
Trade and other payables (1,342) 45 -(1,297)
Net in vestment in foreign operations 876 - 7 883
9,717 (2,718) 2 7,001
Movement in deferred tax balances during the year
Group
Dollars I n T housands
Balance
1 Jan 24
Recognised in
Income
Recognised
in equity
Balance
31 Dec 24
Property, plant and equipment (includes Right of use
assets) 17,481 21,661 -39,142
Investment property 345 4,034 -4,379
Development properties (212)(538)-(750)
Accruals (474) 327 -(147)
Employee benefits (2,074) 75 -(1,999)
Lease li ability (7,651) 65 -(7,586)
Trade and other payables (1,297) 50 -(1,247)
Net in vestment in foreign operations 883 28 15 926
7,001 25,702 15 32,718
16.Trade and other payables
Group
Dollars I n T housands
2024 2023
Trade payables 3,948 2,790
Employee entitlements 7,518 7,652
Non-trade payables and accrued expenses 19,058 21,906
30,524 32,348
Tr ade and other payables a re s tated at amortised cost.
1
7.Fi nancial instruments
The Group only holds non-derivative financial instruments which comprise cash and cash equivalents, trade and other receivables,
trade receivables due from related parties, related party advances, secured bank loans, trade and other payables and trade payables
due to relat ed parties.
Non-derivative financial instruments are recognised initially at fair value plus, for instruments not at fair value through the income
statement, any directl y attributable transaction costs. Subsequent to initial recognition non-derivative financial instruments are
me
asured as described in accounting polic ies below.
MMiilllleennnniiuumm && CCoopptthhoorrnnee HHootteellss NNeeww ZZeeaallaanndd LLiimmiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 10
11..SSeeggmme enntt rreeppoorrttiinngg
OOppeerraattiinngg sseeggmmeennttss
The Group consisted of the following main operating segments:
•Hotel operations, comprising income from the ownership and management of hotels.
•Residential land development, comprising the development and sale of residential land sections.
•Residential and commercial property development, comprising the development and sale of residential
apartments.
•Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
(a)Operating Segments
HHootteell OOp peerraattiioonnss
RReessiiddeennttiiaall LLaanndd
DDeevveellooppmmeenntt
IInnvveessttmme enntt
PPrrooppeerrttyy
RReessiiddeennttiiaall PPrrooppeerrttyy
DDeevveellooppmmeenntt GGrroouupp
Dollars in thousands
22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233
External revenue109,486 101,072 46,313 28,284 2,746 2,494 17,611 13,809 176,184 145,659
Earnings before interest,
depreciation
& amortisation
17,356 19,299 22,255 13,697 2,731 2,473 8,765 5,371 51,107 40,840
Finance income 2,180 2,411 2,381 3,514 - - 786 1,775 5,347 7,700
Finance expense (2,224) (2,429) (9)(12)- - (2)(3)(2,235) (2,444)
Depreciation and amortisation
(7,183) (6,900) (8)(7)(550)(933)(10)(6)(7,751) (7,846)
Depreciation of Right-of-use
assets
(846)(806)(39)(34)- - (10)(10)(895)(850)
Share of profit of Joint venture
1,508 73- - - - - - 1,508 73
Profit before income tax 10,791 11,648 24,580 17,158 2,181 1,540 9,529 7,127 47,081 37,473
Income tax expense
(24,547) (3,179) (6,852) (4,805) (4,528) (431) (2,366) (2,141) (38,293) (10,556)
Profit after income tax (13,756) 8,469 17,728 12,353 (2,347) 1,109 7,163 4,986 8,788 26,917
Cash & cash equivalents and
short term bank deposits
2,599 16,982 33,287 52,159 - - 5,411 6,190 41,297 75,331
Investment in associates - - 2 2 - - - - 2 2
Investment in joint venture
46,555 43,943 - - - - - - 46,555 43,943
Other segment assets
364,960 339,925 259,032 231,231 36,301 35,834 14,119 20,524 674,412 627,514
Total assets 414,114 400,850 292,321 283,392 36,301 35,834 19,530 26,714 762,266 746,790
Segment liabilities
(58,256) (68,516) (2,362) (4,053) - - (1,769) (1,391) (62,387) (73,960)
Tax liabilities (27,720) (7,393) (2,229) (1,449) (4,379) - (646)(1,536)(34,974) (10,378)
Total liabilities
(85,976) (75,909) (4,591) (5,502) (4,379) - (2,415) (2,927) (97,361) (84,338)
Property, plant and equipment
expenditure
27,830 13,821 2 56
- -
616 14 28,448 13,901
Investment property
expenditure
- - - - 1,017 386 - - 1,017 386
Residential land development
expenditure
- - 22,458 10,135
- -
- - 22,458 10,135
Purchase of land for
residential land development
- - 23,720 20,407 - - - - 23,720 20,407
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 10
11..SSeeggmme enntt rreeppoorrttiinngg
OOppeerraattiinngg sseeggmmeennttss
The Group consisted of the following main operating segments:
•Hotel operations, comprising income from the ownership and management of hotels.
•Residential land development, comprising the development and sale of residential land sections.
•Residential and commercial property development, comprising the development and sale of residential
apartments.
•Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
(a)Operating Segments
HHootteell OOp peerraattiioonnss
RReessiiddeennttiiaall LLaanndd
DDeevveellooppmmeenntt
IInnvveessttmme enntt
PPrrooppeerrttyy
RReessiiddeennttiiaall PPrrooppeerrttyy
DDeevveellooppmmeenntt GGrroouupp
Dollars in thousands
22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233
External revenue109,486 101,072 46,313 28,284 2,746 2,494 17,611 13,809 176,184 145,659
Earnings before interest,
depreciation
& amortisation
17,356 19,299 22,255 13,697 2,731 2,473 8,765 5,371 51,107 40,840
Finance income 2,180 2,411 2,381 3,514 - - 786 1,775 5,347 7,700
Finance expense (2,224) (2,429) (9)(12)- - (2)(3)(2,235) (2,444)
Depreciation and amortisation
(7,183) (6,900) (8)(7)(550)(933)(10)(6)(7,751) (7,846)
Depreciation of Right-of-use
assets
(846)(806)(39)(34)- - (10)(10)(895)(850)
Share of profit of Joint venture
1,508 73- - - - - - 1,508 73
Profit before income tax 10,791 11,648 24,580 17,158 2,181 1,540 9,529 7,127 47,081 37,473
Income tax expense
(24,547) (3,179) (6,852) (4,805) (4,528) (431) (2,366) (2,141) (38,293) (10,556)
Profit after income tax (13,756) 8,469 17,728 12,353 (2,347) 1,109 7,163 4,986 8,788 26,917
Cash & cash equivalents and
short term bank deposits
2,599 16,982 33,287 52,159 - - 5,411 6,190 41,297 75,331
Investment in associates - - 2 2 - - - - 2 2
Investment in joint venture
46,555 43,943 - - - - - - 46,555 43,943
Other segment assets
364,960 339,925 259,032 231,231 36,301 35,834 14,119 20,524 674,412 627,514
Total assets 414,114 400,850 292,321 283,392 36,301 35,834 19,530 26,714 762,266 746,790
Segment liabilities
(58,256) (68,516) (2,362) (4,053) - - (1,769) (1,391) (62,387) (73,960)
Tax liabilities (27,720) (7,393) (2,229) (1,449) (4,379) - (646)(1,536)(34,974) (10,378)
Total liabilities
(85,976) (75,909) (4,591) (5,502) (4,379) - (2,415) (2,927) (97,361) (84,338)
Property, plant and equipment
expenditure
27,830 13,821 2 56
- -
616 14 28,448 13,901
Investment property
expenditure
- - - - 1,017 386 - - 1,017 386
Residential land development
expenditure
- - 22,458 10,135
- -
- - 22,458 10,135
Purchase of land for
residential land development
- - 23,720 20,407 - - - - 23,720 20,407
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024 | FIN 22
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 21
1133..TTr raaddee aanndd oot thheerr rreecceeiivvaabblleess
GGr roouupp
Dollars In Thousands 22002244 22002233
Trade receivables 9,594 9,728
Less provision for doubtful debts (86) (206)
Other trade receivables and prepayments 13,989 10,869
2233,,449977 2200,,339911
Trade and other receivables are stated at their cost less impairment losses. The carrying amounts of the trade receivables, other
trade receivables, and prepayments are reviewed at each balance date to determine whether there is any indication of impairment.
The Group applies the simplified approach to providing for expected credit losses prescribed by NZ IFRS 9, which permits the use of
the lifetime expected credit loss provision for all trade receivables. The allowance for doubtful debts on trade receivables are either
individually or collectively assessed based on number of days overdue. The Group takes into account the historical loss experience
and incorporates forward looking information and relevant macroeconomic factors
1144..IInntteerreesstt--bbeeaarriinngg llooaannss aanndd bboorrrroowwiinnggss
This note provides information about the contractual terms of the Group’s interest-bearing loans and borrowings. For more information
about the Group’s exposure to interest rate and foreign currency risk, see Note 17.
GGr roouupp
Dollars in
Thousands CCuurrrreennccyy
IInntteerreesstt
RRaattee FFaacciilliittyy TToot taal l
3311 DDe ecceemmb beerr 22002244 3311 DDe ecceemmb beerr 22002233
FFaaccee VVaalluuee
CCaarrrryyiinngg
AAmmo ouunntt FFaaccee VVaalluuee
CCaarrrryyiinngg
AAmmo ouunntt
Revolving credit NZD 5.42% 111155,,000000 3,000 3,000 10,000 10,000
Overdraft NZD 5.42% 55,,000000 - - 1,968 1,968
TTOOT TAALL 112200,,000000 33,,000000 33,,000000 1111,,996688 1111,,996688
Current - - 11,968 11,968
Non-current 3,000 3,000 - -
TTeer rmms s aanndd ddeebbtt rreeppaayymme enntt sscchheedduullee
The Group has adopted classification of liabilities as current or non-current (amendments to NZIAS 1) from 1 January 2024.The bank
facilities are secured over hotel properties with a carrying amount of $83.25 million (2023: $75.33 million) – refer to Note 9. The Group
facilities were renewed on 22 December 2023 with a new maturity date of 31 January 2027. The Group has complied with the bank
covenants. The interest-bearing borrowings were classified as non-current as the Group has an existing right to defer settlement of
the loan for at least 12 months after the reporting period.
IInntteerreesstt--bbeeaarriinngg llooaannss aanndd bboorrrroowwiinnggss
Interest-bearing loans and borrowings are recognised initially at fair value less attributable transaction costs. Subsequent to initial
recognition, interest-bearing loans and borrowings are stated at amortised cost with any difference between cost and redemption
value being recognised in the income statement over the period of the borrowings on an effective interest basis.
1155..DDeeffeerrrreedd ttaaxx aasssseettss aanndd lliiaabbiilliittiieess
Deferred tax is recognised in respect of the temporary differences between the carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for taxation purposes. The following temporary differences are not provided for: goodwill
not deductible for tax purposes; the initial recognition of assets or liabilities that neither affect accounting nor taxable profit; and
differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future. The
amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and
liabilities, using tax rates enacted or substantively enacted at the balance date.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the
asset can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be
realised.
Deferred tax assets and deferred tax liabilities are offset only if the Group has a legally enforceable right to set off current tax assets
against current tax liabilities; the Group intends to settle net; and the deferred tax assets and the deferred tax liabilities relate to
income taxes levied by the same taxation authority.
IImmp paacctt oof f cchhaannggee iinn ttaaxx ddeepprreecciiaattiioonn
In 2020 as part of the response to the Covid-19, all components of commercial buildings were able to be depreciated for tax
purposes. On 28 March 2024, the Taxation (Annual Rates for 2023-24, Multinational Tax, and Remedial Matters) legislation was
enacted, encompassing a range of changes to tax legislation including the removal of the tax deduction for depreciation on building
core of commercial buildings. As a result of the change in legislation, income tax expense and deferred tax liability has increased
by $25.8m for the year.
Mil lennium & Copthorne Hotels New Z ealand Li mited
Notes to the Consolidated Financial Statements for the ye ar ended 31 Dece mber 20 24
The a ccompanyin g n ote s fo rm p art of, and s hould be read in conjunctio n with, t hese financial s ta tements .
FIN 22
15.Deferred tax assets and liabilities - continued
Recognised deferred tax assets and liabilities
Deferred tax a ssets and li abilities are attributable to the following:
Group
Assets Liabilities Net
Dollars I n T housands
2024 2023 2024 2023 2024 2023
Property, pl ant and
equipment (i ncludes Right o f
use assets)
- - 39,142 17,481 39,142 17,481
Investment property - - 4,379 345 4,379 345
Development properties (750) (212) - - (750)(212)
Accruals (147) (474) - - (147)(474)
Employee benefits (1,999) (2,074) - - (1,999) (2,074)
Lease li ability (7,586) (7,651) - - (7,586) (7,651)
Trade and other payables (1,247) (1,297) - - (1,247) (1,297)
Net in vestment in foreign
operations - - 926 883 926 883
Net t ax (assets) / li abilities (11,729) (11,708) 44,447 18,709 32,718 7,001
Movement in deferred tax balances during the year
Group
Dollars I n T housands
Balance
1 Jan 23
Recognised
in Income
Recognised
in equity
Balance
31 Dec 23
Property, plant and equipment (includes Right of use
assets) 19,776 (2,295) -17,481
Investment property 157 188 - 345
Development properties (388)179(3)(212)
Accruals (454)(18)(2)(474)
Employee benefits (1,715) (359)- (2,074)
Lease li ability (7,193) (458)- (7,651)
Trade and other payables (1,342) 45 -(1,297)
Net in vestment in foreign operations 876 - 7 883
9,717 (2,718) 2 7,001
Movement in deferred tax balances during the year
Group
Dollars I n T housands
Balance
1 Jan 24
Recognised in
Income
Recognised
in equity
Balance
31 Dec 24
Property, plant and equipment (includes Right of use
assets) 17,481 21,661 -39,142
Investment property 345 4,034 -4,379
Development properties (212)(538)-(750)
Accruals (474) 327 -(147)
Employee benefits (2,074) 75 -(1,999)
Lease li ability (7,651) 65 -(7,586)
Trade and other payables (1,297) 50 -(1,247)
Net in vestment in foreign operations 883 28 15 926
7,001 25,702 15 32,718
16.Trade and other payables
Group
Dollars I n T housands
2024 2023
Trade payables 3,948 2,790
Employee entitlements 7,518 7,652
Non-trade payables and accrued expenses 19,058 21,906
30,524 32,348
Tr ade and other payables a re s tated at amortised cost.
1
7.Financial instruments
The Group only holds non-derivative financial instruments which comprise cash and cash equivalents, trade and other receivables,
trade receivables due from related parties, related party advances, secured bank loans, trade and other payables and trade payables
due to relat ed parties.
Non-derivative financial instruments are recognised initially at fair value plus, for instruments not at fair value through the income
statement, any directl y attributable transaction costs. Subsequent to initial recognition non-derivative financial instruments are
me
asured as described in accounting polic ies below.
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 10
11..SSeeggmme enntt rreeppoorrttiinngg
OOppeerraattiinngg sseeggmmeennttss
The Group consisted of the following main operating segments:
•Hotel operations, comprising income from the ownership and management of hotels.
•Residential land development, comprising the development and sale of residential land sections.
•Residential and commercial property development, comprising the development and sale of residential
apartments.
•Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
(a)Operating Segments
HHootteell OOp peerraattiioonnss
RReessiiddeennttiiaall LLaanndd
DDeevveellooppmmeenntt
IInnvveessttmme enntt
PPrrooppeerrttyy
RReessiiddeennttiiaall PPrrooppeerrttyy
DDeevveellooppmmeenntt GGrroouupp
Dollars in thousands
22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233
External revenue109,486 101,072 46,313 28,284 2,746 2,494 17,611 13,809 176,184 145,659
Earnings before interest,
depreciation
& amortisation
17,356 19,299 22,255 13,697 2,731 2,473 8,765 5,371 51,107 40,840
Finance income 2,180 2,411 2,381 3,514 - - 786 1,775 5,347 7,700
Finance expense (2,224) (2,429) (9)(12)- - (2)(3)(2,235) (2,444)
Depreciation and amortisation
(7,183) (6,900) (8)(7)(550)(933)(10)(6)(7,751) (7,846)
Depreciation of Right-of-use
assets
(846)(806)(39)(34)- - (10)(10)(895)(850)
Share of profit of Joint venture
1,508 73- - - - - - 1,508 73
Profit before income tax 10,791 11,648 24,580 17,158 2,181 1,540 9,529 7,127 47,081 37,473
Income tax expense
(24,547) (3,179) (6,852) (4,805) (4,528) (431) (2,366) (2,141) (38,293) (10,556)
Profit after income tax (13,756) 8,469 17,728 12,353 (2,347) 1,109 7,163 4,986 8,788 26,917
Cash & cash equivalents and
short term bank deposits
2,599 16,982 33,287 52,159 - - 5,411 6,190 41,297 75,331
Investment in associates - - 2 2 - - - - 2 2
Investment in joint venture
46,555 43,943 - - - - - - 46,555 43,943
Other segment assets
364,960 339,925 259,032 231,231 36,301 35,834 14,119 20,524 674,412 627,514
Total assets 414,114 400,850 292,321 283,392 36,301 35,834 19,530 26,714 762,266 746,790
Segment liabilities
(58,256) (68,516) (2,362) (4,053) - - (1,769) (1,391) (62,387) (73,960)
Tax liabilities (27,720) (7,393) (2,229) (1,449) (4,379) - (646)(1,536)(34,974) (10,378)
Total liabilities
(85,976) (75,909) (4,591) (5,502) (4,379) - (2,415) (2,927) (97,361) (84,338)
Property, plant and equipment
expenditure
27,830 13,821 2 56
- -
616 14 28,448 13,901
Investment property
expenditure
- - - - 1,017 386 - - 1,017 386
Residential land development
expenditure
- - 22,458 10,135
- -
- - 22,458 10,135
Purchase of land for
residential land development
- - 23,720 20,407 - - - - 23,720 20,407
MMiilllleennnniiuumm && CCoopptthhoorrnnee HHootteellss NNeeww ZZeeaallaanndd LLiimmiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 10
11..SSeeggmme enntt rreeppoorrttiinngg
OOppeerraattiinngg sseeggmmeennttss
The Group consisted of the following main operating segments:
•Hotel operations, comprising income from the ownership and management of hotels.
•Residential land development, comprising the development and sale of residential land sections.
•Residential and commercial property development, comprising the development and sale of residential
apartments.
•Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
(a)Operating Segments
HHootteell OOp peerraattiioonnss
RReessiiddeennttiiaall LLaanndd
DDeevveellooppmmeenntt
IInnvveessttmme enntt
PPrrooppeerrttyy
RReessiiddeennttiiaall PPrrooppeerrttyy
DDeevveellooppmmeenntt GGrroouupp
Dollars in thousands
22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233
External revenue109,486 101,072 46,313 28,284 2,746 2,494 17,611 13,809 176,184 145,659
Earnings before interest,
depreciation
& amortisation
17,356 19,299 22,255 13,697 2,731 2,473 8,765 5,371 51,107 40,840
Finance income 2,180 2,411 2,381 3,514 - - 786 1,775 5,347 7,700
Finance expense (2,224) (2,429) (9)(12)- - (2)(3)(2,235) (2,444)
Depreciation and amortisation
(7,183) (6,900) (8)(7)(550)(933)(10)(6)(7,751) (7,846)
Depreciation of Right-of-use
assets
(846)(806)(39)(34)- - (10)(10)(895)(850)
Share of profit of Joint venture
1,508 73- - - - - - 1,508 73
Profit before income tax 10,791 11,648 24,580 17,158 2,181 1,540 9,529 7,127 47,081 37,473
Income tax expense
(24,547) (3,179) (6,852) (4,805) (4,528) (431) (2,366) (2,141) (38,293) (10,556)
Profit after income tax (13,756) 8,469 17,728 12,353 (2,347) 1,109 7,163 4,986 8,788 26,917
Cash & cash equivalents and
short term bank deposits
2,599 16,982 33,287 52,159 - - 5,411 6,190 41,297 75,331
Investment in associates - - 2 2 - - - - 2 2
Investment in joint venture
46,555 43,943 - - - - - - 46,555 43,943
Other segment assets
364,960 339,925 259,032 231,231 36,301 35,834 14,119 20,524 674,412 627,514
Total assets 414,114 400,850 292,321 283,392 36,301 35,834 19,530 26,714 762,266 746,790
Segment liabilities
(58,256) (68,516) (2,362) (4,053) - - (1,769) (1,391) (62,387) (73,960)
Tax liabilities (27,720) (7,393) (2,229) (1,449) (4,379) - (646)(1,536)(34,974) (10,378)
Total liabilities
(85,976) (75,909) (4,591) (5,502) (4,379) - (2,415) (2,927) (97,361) (84,338)
Property, plant and equipment
expenditure
27,830 13,821 2 56
- -
616 14 28,448 13,901
Investment property
expenditure
- - - - 1,017 386 - - 1,017 386
Residential land development
expenditure
- - 22,458 10,135
- -
- - 22,458 10,135
Purchase of land for
residential land development
- - 23,720 20,407 - - - - 23,720 20,407
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 23 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 23
1177..FFiinnaanncciiaall iinnssttrruummeennttss -- ccoonnttiinnuueedd
On initial recognition, a financial asset is classified as subsequently measured at: Amortised cost; FVOCI- debt investment; FVOCI-
equity investment; or FVTPL. Financial liabilities are classified as measured at amortised cost or FVTPL.
Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model for managing
financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the
change in the business model.
A financial asset is measured at amortised cost if it meets both of the following conditions and not designated at FVTPL:
•It is held within a business model whose objective is to hold assets to collect contractual cash flows: and
•Its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding.
Financial assets are derecognised if the Group’s contractual rights to the cash flows from the financial assets expire or if the Group
transfer the financial asset to another party without retaining control or substantially all risks and rewards of the asset. Financial
liabilities are derecognised if the Group’s obligations specified in the contract expire or are discharged or cancelled.
Exposure to credit, liquidity and market risks arises in the normal course of the Group’s business.
L
Liiqquuiiddiittyy rriisskk
Liquidity risk represents the Group’s ability to meet its contractual obligations. The Group evaluates its liquidity requirements on an
ongoing basis. In general, the Group generates sufficient cash flows from its operating activities to meet its obligations arising from
its financial liabilities. The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient
liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking
damage to the Group’s reputation.
The following table sets out the undiscounted contractual and expected cash flows for all financial liabilities:
2
2002244
22002233
CCrreeddiitt rriisskk
Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Credit evaluations are
performed on all customers requiring credit over a certain amount. The Group does not require collateral in respect of financial assets.
There are no significant aged debtors which have not been fully provided for.
Investments are allowed only in short-term financial instruments and only with counterparties (minimum rating of Moody’s Aa3)
approved by the Board, such that the exposure to a single counterparty is minimized.
Dollars In Thousands
SSttaatteemmeenntt ooff
FFiinnaanncciiaall
PPoossiittiioonn
CCoonnttrraaccttuuaall
CCaasshh OOuutt
FFlloowwss
66 MMoonntthhss oorr
LLeessss
66--1122
MMoonntthhss
11--22
YYeeaarrss
22--55
YYeeaarrss
MMoorree
tthhaann 55
YYeeaarrss
Interest-bearing loans and
borrowings 3,000 3,000 - - 3,000 - -
Trade Payables 3,948 3,948 3,948 - - - -
Other payables 26,576 26,576 26,576 - - - -
Trade payables due to
related parties 1,767 1,767 1,767 - - - -
TToottaall nnoonn--ddeerriivvaattiivvee lliiaabbiilliittiieess 35,291 35,291 32,291 -3,000- -
Dollars In Thousands
SSttaatteemmeenntt ooff
FFiinnaanncciiaall
PPoossiittiioonn
CCoonnttrraaccttuuaall
CCaasshh OOuutt
FFlloowwss
66 MMoonntthhss oorr
LLeessss
66--1122
MMoonntthhss
11--22
YYeeaarrss
22--55
YYeeaarrss
MMoorree tthhaann
55 YYeeaarrss
Interest-bearing loans and
borrowings 11,968 11,968 11,968 - - - -
Trade Payables 2,790 2,790 2,790 - - - -
Other payables 29,558 29,558 29,558 - - - -
Trade payables due to
related parties 2,318 2,318 2,318 - - - -
TToottaall nnoonn--ddeerriivvaattiivvee
lliiaabbiilliittiieess 46,634 46,634 46,634 - - - -
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 24
1177..FFi innaanncciiaall iinnssttrruumme ennttss -- ccoonnttiinnuueedd
The related party advances to Marquee Hotel Holdings Pty Ltd detailed in note 20 were part of the acquisition of the Sofitel Brisbane
Central hotel in Queensland. At balance date there were no indicators of impairment of the advances based on asset condition,
economic environment and trading results of the hotel.
At balance date there were no significant non-related party concentrations of credit risk. The maximum exposure to credit risk is
represented by the carrying amount of each financial asset in the statement of financial position. The maximum exposure to credit
risk for non-related party advances in Australia is $8,300 (2023: $11,000). All other credit risk exposure relates to New Zealand.
MMa ar rkkeett rri isskk
((ii)) IInntteerreesstt rraattee rri isskk
In managing interest rate risks the Group aims to reduce the impact of short-term fluctuations on the Group’s earnings with an ongoing
review of its exposure to changes in interest rates on its borrowings, the maturity profile of the debt, and the cash flows of the
underlying debt. The Group maintains its borrowings at fixed rates on short term which gives the Group flexibility in the context of the
economic climate, business cycle, loan covenants, cash flows, and cash balances.
An increase of 1.0% in interest rates on deposits would have increased profit before tax for the Group in the current period by $0.64
million (2023: $1.43 million increase), assuming all other variables remained constant.
EEffffeeccttiivvee iinntteerreesstt aanndd rree--pprriicciinngg aannaallyyssiiss
In respect of income-earning financial assets and interest-bearing financial liabilities the following table indicates their effective
interest rates at the balance date and the periods in which they re-price.
* These assets / (liabilities) bear interest at a fixed rate
((iiii))FFoor reeiiggnn ccuurrrreennccyy rri isskk
The Group owns 100.00% (2023: 100.00%) of KIN Holdings Limited. Substantially all the operations of this subsidiary which includes
the Joint Venture is denominated in foreign currencies. The foreign currencies giving rise to this risk are Australian Dollars. The Group
has determined that the primary risk affects the carrying values of the net investments and loan receivable from its foreign operations
as disclosed in note 20 with the currency movements being recognised in the foreign currency translation reserves and income
statement respectively. The Group has not taken any instruments to manage this risk. The Group is not exposed to any other foreign
currency risks.
CCaappiittaall mmaannaaggeemme enntt
The Group’s capital includes share capital and retained earnings.
The Group’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future
development of the business. The impact of the level of capital on shareholders’ return is also recognised and the Group recognises
the need to maintain a balance between the higher returns that might be possible with greater gearing and the advantages and
security afforded by a sound capital position.
The Group is not subject to any externally imposed capital requirements.
The allocation of capital is, to a large extent, driven by optimisation of the return achieved on the capital allocated.
The Group’s policies in respect of capital management and allocation are reviewed regularly by the Board of Directors. There were
no changes in the Group’s capital management policies during the year.
GGrroouupp 22002244 22002233
Dollars In
Thousands
EEf fffeeccttiivvee
iinnt teer reesstt rraat tee TToot taall
66 mmoonnt thhss
oor r lleessss
66 ttoo 1122
mmoonnt thhss
EEf fffeeccttiivvee
iinnt teer reesstt rraat tee TToot taall
66 mmoonnt thhss
oor r lleessss
66 ttoo 1122
mmoonnt thhss
NNoot tee
Interest bearing
cash & cash
equivalents * 12
0.00% to
4.25% 39,726 39,726 -
0.00% to
5.50% 11,256 11,256 -
Short term bank
deposits *
5.25% to
5.91% 1,571 75 1,496
0.85% to
6.05% 64,075 58,075 6,000
Secured bank
loans * 14 5.42% 3,000 3,000 -
6.43% to
6.4525% 10,000 10,000 -
Bank overdrafts * 14 5.42% - - - 6.63% 1,968 1,968 -
Intercompany
Loan* 5.75% 19,556 19,556 - 5.68% 19,086 19,086 -
MMiilllleennnniiuumm && CCoopptthhoorrnnee HHootteellss NNeeww ZZeeaallaanndd LLiimmiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 10
11..SSeeggmme enntt rreeppoorrttiinngg
OOppeerraattiinngg sseeggmmeennttss
The Group consisted of the following main operating segments:
•Hotel operations, comprising income from the ownership and management of hotels.
•Residential land development, comprising the development and sale of residential land sections.
•Residential and commercial property development, comprising the development and sale of residential
apartments.
•Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
(a)Operating Segments
HHootteell OOp peerraattiioonnss
RReessiiddeennttiiaall LLaanndd
DDeevveellooppmmeenntt
IInnvveessttmme enntt
PPrrooppeerrttyy
RReessiiddeennttiiaall PPrrooppeerrttyy
DDeevveellooppmmeenntt GGrroouupp
Dollars in thousands
22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233
External revenue109,486 101,072 46,313 28,284 2,746 2,494 17,611 13,809 176,184 145,659
Earnings before interest,
depreciation
& amortisation
17,356 19,299 22,255 13,697 2,731 2,473 8,765 5,371 51,107 40,840
Finance income 2,180 2,411 2,381 3,514 - - 786 1,775 5,347 7,700
Finance expense (2,224) (2,429) (9)(12)- - (2)(3)(2,235) (2,444)
Depreciation and amortisation
(7,183) (6,900) (8)(7)(550)(933)(10)(6)(7,751) (7,846)
Depreciation of Right-of-use
assets
(846)(806)(39)(34)- - (10)(10)(895)(850)
Share of profit of Joint venture
1,508 73- - - - - - 1,508 73
Profit before income tax 10,791 11,648 24,580 17,158 2,181 1,540 9,529 7,127 47,081 37,473
Income tax expense
(24,547) (3,179) (6,852) (4,805) (4,528) (431) (2,366) (2,141) (38,293) (10,556)
Profit after income tax (13,756) 8,469 17,728 12,353 (2,347) 1,109 7,163 4,986 8,788 26,917
Cash & cash equivalents and
short term bank deposits
2,599 16,982 33,287 52,159 - - 5,411 6,190 41,297 75,331
Investment in associates - - 2 2 - - - - 2 2
Investment in joint venture
46,555 43,943 - - - - - - 46,555 43,943
Other segment assets
364,960 339,925 259,032 231,231 36,301 35,834 14,119 20,524 674,412 627,514
Total assets 414,114 400,850 292,321 283,392 36,301 35,834 19,530 26,714 762,266 746,790
Segment liabilities
(58,256) (68,516) (2,362) (4,053) - - (1,769) (1,391) (62,387) (73,960)
Tax liabilities (27,720) (7,393) (2,229) (1,449) (4,379) - (646)(1,536)(34,974) (10,378)
Total liabilities
(85,976) (75,909) (4,591) (5,502) (4,379) - (2,415) (2,927) (97,361) (84,338)
Property, plant and equipment
expenditure
27,830 13,821 2 56
- -
616 14 28,448 13,901
Investment property
expenditure
- - - - 1,017 386 - - 1,017 386
Residential land development
expenditure
- - 22,458 10,135
- -
- - 22,458 10,135
Purchase of land for
residential land development
- - 23,720 20,407 - - - - 23,720 20,407
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 10
11..SSeeggmme enntt rreeppoorrttiinngg
OOppeerraattiinngg sseeggmmeennttss
The Group consisted of the following main operating segments:
•Hotel operations, comprising income from the ownership and management of hotels.
•Residential land development, comprising the development and sale of residential land sections.
•Residential and commercial property development, comprising the development and sale of residential
apartments.
•Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
(a)Operating Segments
HHootteell OOp peerraattiioonnss
RReessiiddeennttiiaall LLaanndd
DDeevveellooppmmeenntt
IInnvveessttmme enntt
PPrrooppeerrttyy
RReessiiddeennttiiaall PPrrooppeerrttyy
DDeevveellooppmmeenntt GGrroouupp
Dollars in thousands
22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233
External revenue109,486 101,072 46,313 28,284 2,746 2,494 17,611 13,809 176,184 145,659
Earnings before interest,
depreciation
& amortisation
17,356 19,299 22,255 13,697 2,731 2,473 8,765 5,371 51,107 40,840
Finance income 2,180 2,411 2,381 3,514 - - 786 1,775 5,347 7,700
Finance expense (2,224) (2,429) (9)(12)- - (2)(3)(2,235) (2,444)
Depreciation and amortisation
(7,183) (6,900) (8)(7)(550)(933)(10)(6)(7,751) (7,846)
Depreciation of Right-of-use
assets
(846)(806)(39)(34)- - (10)(10)(895)(850)
Share of profit of Joint venture
1,508 73- - - - - - 1,508 73
Profit before income tax 10,791 11,648 24,580 17,158 2,181 1,540 9,529 7,127 47,081 37,473
Income tax expense
(24,547) (3,179) (6,852) (4,805) (4,528) (431) (2,366) (2,141) (38,293) (10,556)
Profit after income tax (13,756) 8,469 17,728 12,353 (2,347) 1,109 7,163 4,986 8,788 26,917
Cash & cash equivalents and
short term bank deposits
2,599 16,982 33,287 52,159 - - 5,411 6,190 41,297 75,331
Investment in associates - - 2 2 - - - - 2 2
Investment in joint venture
46,555 43,943 - - - - - - 46,555 43,943
Other segment assets
364,960 339,925 259,032 231,231 36,301 35,834 14,119 20,524 674,412 627,514
Total assets 414,114 400,850 292,321 283,392 36,301 35,834 19,530 26,714 762,266 746,790
Segment liabilities
(58,256) (68,516) (2,362) (4,053) - - (1,769) (1,391) (62,387) (73,960)
Tax liabilities (27,720) (7,393) (2,229) (1,449) (4,379) - (646)(1,536)(34,974) (10,378)
Total liabilities
(85,976) (75,909) (4,591) (5,502) (4,379) - (2,415) (2,927) (97,361) (84,338)
Property, plant and equipment
expenditure
27,830 13,821 2 56
- -
616 14 28,448 13,901
Investment property
expenditure
- - - - 1,017 386 - - 1,017 386
Residential land development
expenditure
- - 22,458 10,135
- -
- - 22,458 10,135
Purchase of land for
residential land development
- - 23,720 20,407 - - - - 23,720 20,407
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024 | FIN 24
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 23
1177..FFi innaanncciiaall iinnssttrruumme ennttss -- ccoonnttiinnuueedd
On initial recognition, a financial asset is classified as subsequently measured at: Amortised cost; FVOCI- debt investment; FVOCI-
equity investment; or FVTPL. Financial liabilities are classified as measured at amortised cost or FVTPL.
Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model for managing
financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the
change in the business model.
A financial asset is measured at amortised cost if it meets both of the following conditions and not designated at FVTPL:
•It is held within a business model whose objective is to hold assets to collect contractual cash flows: and
•Its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding.
Financial assets are derecognised if the Group’s contractual rights to the cash flows from the financial assets expire or if the Group
transfer the financial asset to another party without retaining control or substantially all risks and rewards of the asset. Financial
liabilities are derecognised if the Group’s obligations specified in the contract expire or are discharged or cancelled.
Exposure to credit, liquidity and market risks arises in the normal course of the Group’s business.
LLiiqquuiiddiittyy rri isskk
Liquidity risk represents the Group’s ability to meet its contractual obligations. The Group evaluates its liquidity requirements on an
ongoing basis. In general, the Group generates sufficient cash flows from its operating activities to meet its obligations arising from
its financial liabilities. The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient
liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking
damage to the Group’s reputation.
The following table sets out the undiscounted contractual and expected cash flows for all financial liabilities:
22002244
22002233
CCrreeddiitt rri isskk
Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Credit evaluations are
performed on all customers requiring credit over a certain amount. The Group does not require collateral in respect of financial assets.
There are no significant aged debtors which have not been fully provided for.
Investments are allowed only in short-term financial instruments and only with counterparties (minimum rating of Moody’s Aa3)
approved by the Board, such that the exposure to a single counterparty is minimized.
Dollars In Thousands
SSttaatteemme enntt ooff
FFiinnaanncciiaall
PPoossiittiioonn
CCoonnttrraaccttuuaall
CCaasshh OOu ut t
FFlloowwss
66 MMo onntthhss oorr
LLeessss
66--1122
MMoonntthhss
11--22
YYeeaarrss
22--55
YYeeaarrss
MMoorree
tthhaann 55
YYeeaarrss
Interest-bearing loans and
borrowings 3,000 3,000 - - 3,000 - -
Trade Payables 3,948 3,948 3,948 - - - -
Other payables 26,576 26,576 26,576 - - - -
Trade payables due to
related parties 1,767 1,767 1,767 - - - -
TToottaall nnoonn--ddeerriivvaattiivvee lliiaabbiilliittiieess 35,291 35,291 32,291 -3,000- -
Dollars In Thousands
SSttaatteemme enntt ooff
FFiinnaanncciiaall
PPoossiittiioonn
CCoonnttrraaccttuuaall
CCaasshh OOu ut t
FFlloowwss
66 MMoonntthhss oorr
LLeessss
66--1122
MMoonntthhss
11--22
YYeeaarrss
22--55
YYeeaarrss
MMoorree tthhaann
55 YYeeaarrss
Interest-bearing loans and
borrowings 11,968 11,968 11,968 - - - -
Trade Payables 2,790 2,790 2,790 - - - -
Other payables 29,558 29,558 29,558 - - - -
Trade payables due to
related parties 2,318 2,318 2,318 - - - -
TToottaall nnoonn--ddeerriivvaattiivvee
lliiaabbiilliittiieess 46,634 46,634 46,634 - - - -
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 24
1177..FFiinnaanncciiaall iinnssttrruummeennttss -- ccoonnttiinnuueedd
The related party advances to Marquee Hotel Holdings Pty Ltd detailed in note 20 were part of the acquisition of the Sofitel Brisbane
Central hotel in Queensland. At balance date there were no indicators of impairment of the advances based on asset condition,
economic environment and trading results of the hotel.
At balance date there were no significant non-related party concentrations of credit risk. The maximum exposure to credit risk is
represented by the carrying amount of each financial asset in the statement of financial position. The maximum exposure to credit
risk for non-related party advances in Australia is $8,300 (2023: $11,000). All other credit risk exposure relates to New Zealand.
M
Maarrkkeett rriisskk
((ii))IInntteerreesstt rraattee rriisskk
In managing interest rate risks the Group aims to reduce the impact of short-term fluctuations on the Group’s earnings with an ongoing
review of its exposure to changes in interest rates on its borrowings, the maturity profile of the debt, and the cash flows of the
underlying debt. The Group maintains its borrowings at fixed rates on short term which gives the Group flexibility in the context of the
economic climate, business cycle, loan covenants, cash flows, and cash balances.
An increase of 1.0% in interest rates on deposits would have increased profit before tax for the Group in the current period by $0.64
million (2023: $1.43 million increase), assuming all other variables remained constant.
E
Effffeeccttiivvee iinntteerreesstt aanndd rree--pprriicciinngg aannaallyyssiiss
In respect of income-earning financial assets and interest-bearing financial liabilities the following table indicates their effective
interest rates at the balance date and the periods in which they re-price.
* These assets / (liabilities) bear interest at a fixed rate
(
(iiii))FFoorreeiiggnn ccuurrrreennccyy rriisskk
The Group owns 100.00% (2023: 100.00%) of KIN Holdings Limited. Substantially all the operations of this subsidiary which includes
the Joint Venture is denominated in foreign currencies. The foreign currencies giving rise to this risk are Australian Dollars. The Group
has determined that the primary risk affects the carrying values of the net investments and loan receivable from its foreign operations
as disclosed in note 20 with the currency movements being recognised in the foreign currency translation reserves and income
statement respectively. The Group has not taken any instruments to manage this risk. The Group is not exposed to any other foreign
currency risks.
C
Caappiittaall mmaannaaggeemmeenntt
The Group’s capital includes share capital and retained earnings.
The Group’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future
development of the business. The impact of the level of capital on shareholders’ return is also recognised and the Group recognises
the need to maintain a balance between the higher returns that might be possible with greater gearing and the advantages and
security afforded by a sound capital position.
The Group is not subject to any externally imposed capital requirements.
The allocation of capital is, to a large extent, driven by optimisation of the return achieved on the capital allocated.
The Group’s policies in respect of capital management and allocation are reviewed regularly by the Board of Directors. There were
no changes in the Group’s capital management policies during the year.
GGrroouupp 22002244 22002233
Dollars In
Thousands
EEffffeeccttiivvee
iinnt teer reesstt rraat tee TToot taall
66 mmoonntthhss
oor r lleessss
66 ttoo 1122
mmoonnt thhss
EEffffeeccttiivvee
iinnt teer reesstt rraat tee TToot taall
66 mmoonntthhss
oor r lleessss
66 ttoo 1122
mmoonnt thhss
NNoot tee
Interest bearing
cash & cash
equivalents * 12
0.00% to
4.25% 39,726 39,726 -
0.00% to
5.50% 11,256 11,256 -
Short term bank
deposits *
5.25% to
5.91% 1,571 75 1,496
0.85% to
6.05% 64,075 58,075 6,000
Secured bank
loans * 14 5.42% 3,000 3,000 -
6.43% to
6.4525% 10,000 10,000 -
Bank overdrafts * 14 5.42% - - - 6.63% 1,968 1,968 -
Intercompany
Loan* 5.75% 19,556 19,556 - 5.68% 19,086 19,086 -
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 10
11..SSeeggmme enntt rreeppoorrttiinngg
OOppeerraattiinngg sseeggmmeennttss
The Group consisted of the following main operating segments:
•Hotel operations, comprising income from the ownership and management of hotels.
•Residential land development, comprising the development and sale of residential land sections.
•Residential and commercial property development, comprising the development and sale of residential
apartments.
•Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
(a)Operating Segments
HHootteell OOp peerraattiioonnss
RReessiiddeennttiiaall LLaanndd
DDeevveellooppmmeenntt
IInnvveessttmme enntt
PPrrooppeerrttyy
RReessiiddeennttiiaall PPrrooppeerrttyy
DDeevveellooppmmeenntt GGrroouupp
Dollars in thousands
22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233
External revenue109,486 101,072 46,313 28,284 2,746 2,494 17,611 13,809 176,184 145,659
Earnings before interest,
depreciation
& amortisation
17,356 19,299 22,255 13,697 2,731 2,473 8,765 5,371 51,107 40,840
Finance income 2,180 2,411 2,381 3,514 - - 786 1,775 5,347 7,700
Finance expense (2,224) (2,429) (9)(12)- - (2)(3)(2,235) (2,444)
Depreciation and amortisation
(7,183) (6,900) (8)(7)(550)(933)(10)(6)(7,751) (7,846)
Depreciation of Right-of-use
assets
(846)(806)(39)(34)- - (10)(10)(895)(850)
Share of profit of Joint venture
1,508 73- - - - - - 1,508 73
Profit before income tax 10,791 11,648 24,580 17,158 2,181 1,540 9,529 7,127 47,081 37,473
Income tax expense
(24,547) (3,179) (6,852) (4,805) (4,528) (431) (2,366) (2,141) (38,293) (10,556)
Profit after income tax (13,756) 8,469 17,728 12,353 (2,347) 1,109 7,163 4,986 8,788 26,917
Cash & cash equivalents and
short term bank deposits
2,599 16,982 33,287 52,159 - - 5,411 6,190 41,297 75,331
Investment in associates - - 2 2 - - - - 2 2
Investment in joint venture
46,555 43,943 - - - - - - 46,555 43,943
Other segment assets
364,960 339,925 259,032 231,231 36,301 35,834 14,119 20,524 674,412 627,514
Total assets 414,114 400,850 292,321 283,392 36,301 35,834 19,530 26,714 762,266 746,790
Segment liabilities
(58,256) (68,516) (2,362) (4,053) - - (1,769) (1,391) (62,387) (73,960)
Tax liabilities (27,720) (7,393) (2,229) (1,449) (4,379) - (646)(1,536)(34,974) (10,378)
Total liabilities
(85,976) (75,909) (4,591) (5,502) (4,379) - (2,415) (2,927) (97,361) (84,338)
Property, plant and equipment
expenditure
27,830 13,821 2 56
- -
616 14 28,448 13,901
Investment property
expenditure
- - - - 1,017 386 - - 1,017 386
Residential land development
expenditure
- - 22,458 10,135
- -
- - 22,458 10,135
Purchase of land for
residential land development
- - 23,720 20,407 - - - - 23,720 20,407
MMiilllleennnniiuumm && CCoopptthhoorrnnee HHootteellss NNeeww ZZeeaallaanndd LLiimmiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 10
11..SSeeggmme enntt rreeppoorrttiinngg
OOppeerraattiinngg sseeggmmeennttss
The Group consisted of the following main operating segments:
•Hotel operations, comprising income from the ownership and management of hotels.
•Residential land development, comprising the development and sale of residential land sections.
•Residential and commercial property development, comprising the development and sale of residential
apartments.
•Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
(a)Operating Segments
HHootteell OOp peerraattiioonnss
RReessiiddeennttiiaall LLaanndd
DDeevveellooppmmeenntt
IInnvveessttmme enntt
PPrrooppeerrttyy
RReessiiddeennttiiaall PPrrooppeerrttyy
DDeevveellooppmmeenntt GGrroouupp
Dollars in thousands
22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233
External revenue109,486 101,072 46,313 28,284 2,746 2,494 17,611 13,809 176,184 145,659
Earnings before interest,
depreciation
& amortisation
17,356 19,299 22,255 13,697 2,731 2,473 8,765 5,371 51,107 40,840
Finance income 2,180 2,411 2,381 3,514 - - 786 1,775 5,347 7,700
Finance expense (2,224) (2,429) (9)(12)- - (2)(3)(2,235) (2,444)
Depreciation and amortisation
(7,183) (6,900) (8)(7)(550)(933)(10)(6)(7,751) (7,846)
Depreciation of Right-of-use
assets
(846)(806)(39)(34)- - (10)(10)(895)(850)
Share of profit of Joint venture
1,508 73- - - - - - 1,508 73
Profit before income tax 10,791 11,648 24,580 17,158 2,181 1,540 9,529 7,127 47,081 37,473
Income tax expense
(24,547) (3,179) (6,852) (4,805) (4,528) (431) (2,366) (2,141) (38,293) (10,556)
Profit after income tax (13,756) 8,469 17,728 12,353 (2,347) 1,109 7,163 4,986 8,788 26,917
Cash & cash equivalents and
short term bank deposits
2,599 16,982 33,287 52,159 - - 5,411 6,190 41,297 75,331
Investment in associates - - 2 2 - - - - 2 2
Investment in joint venture
46,555 43,943 - - - - - - 46,555 43,943
Other segment assets
364,960 339,925 259,032 231,231 36,301 35,834 14,119 20,524 674,412 627,514
Total assets 414,114 400,850 292,321 283,392 36,301 35,834 19,530 26,714 762,266 746,790
Segment liabilities
(58,256) (68,516) (2,362) (4,053) - - (1,769) (1,391) (62,387) (73,960)
Tax liabilities (27,720) (7,393) (2,229) (1,449) (4,379) - (646)(1,536)(34,974) (10,378)
Total liabilities
(85,976) (75,909) (4,591) (5,502) (4,379) - (2,415) (2,927) (97,361) (84,338)
Property, plant and equipment
expenditure
27,830 13,821 2 56
- -
616 14 28,448 13,901
Investment property
expenditure
- - - - 1,017 386 - - 1,017 386
Residential land development
expenditure
- - 22,458 10,135
- -
- - 22,458 10,135
Purchase of land for
residential land development
- - 23,720 20,407 - - - - 23,720 20,407
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 25 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024
Mil lennium & Copthorne Hotels New Z ealand Li mited
Notes to the Consolidated Financial Statements for the ye ar ended 31 Dece mber 20 24
The a ccompanyin g n ote s fo rm p art of, and s hould be read in conjunctio n with, t hese financial s ta tements .
FIN 25
17.Financial instruments - continued
Fair values
The f air v alues t ogether with t he carrying amounts s hown in the statement of f inancial position are as f ollows:
Group Carrying amount
Fair value
Carrying
amount Fair value
Dollars I n Thousands
Note 2024 2024 2023 2023
LOANS AND RECEIVABLES
Cash and c ash equivalents 12 39,726 39,726 11,256 11,256
Short t erm bank deposits 1,571 1,571 64,075 64,075
Trade and other receivables 13 23,497 23,497 20,391 20,391
Advances to related parties 20 65,326 65,326 62,516 62,516
OTHER LIABILITI ES
Secured bank lo ans and o verdrafts 14 (3,000) (3,000) (11,968) (11,968)
Trade and other payables 16 (30,524) (30,524) (32,348) (32,348)
Trade payables due to relat ed parties 20 (1,767) (1,767) (2,318) (2,318)
94,829 94,829 111,604 111,604
Estimation of fair values
The following summarises the major methods and assumptions used in esti mating the fair values of financial instruments reflected in
the table:
(a)Cash, accounts receivable, accounts payable and related party balances. The carrying amounts for these balances approximate
their fair value because o f t he s hort maturities o f t hese it ems.
(b)Borrowings. The c arrying amounts for the borrowings represent their f air values because t he int erest rates are reset t o market
periodically, every 1 to 2 months.
1
8.Capital and land development commitments
As at 31 December 2024, the Group had entered into contractual commitments for the acquisition of the Mayfair Hotel Christchurch,
capital expenditure, development expenditure, and purchases of land. Development expenditure represents amounts contracted
and forecast t o b e incurred i n 2 024 in accordance w ith t he G roup’s development p rogramme.
Group
Dollars I n T housands
2024 2023
Mayfair Hotel Christchurch 31,900 -
Capital expenditure 7,968 1,330
Development e xpenditure 24,269 19,743
Land purchases 13,261 6,620
77,398 27,693
19.Related parties
Identity of related parties
The Group has a related party relationship with its parent, subsidiaries (see Note 20), joint venture and with its directors and executive
offi cers.
T
ransactions with key management personnel
Directors of the Company and their immediate relatives control nil (2023: Nil) of the voting shares of the Company. There were no
loans (2023: $nil) advanced to directors for the year ended 31 December 2024. Key management personnel include the Board
comprising non-executive directors, executive directors and executive officers.
T
otal remuneration for key management personnel
Group
Dollars I n T housands
2024 2023
Non-executive directors 392 350
Executive director 563 499
Executive officers 894 734
1,849 1,583
Non-executive directors receive director’s fees only. Executive director and executive offi cers receive short-term employee benefits
which include a base salary and an incentive plan. They do not receive remuneration or any other benefits as a director of the Parent
Company or its subsidiaries. Directors’ fees are included in “administration expenses” (see Note 2) and remuneration for executive
director and executive officers are included in “personnel expenses” ( see Note 3).
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 26
2200..GGr roouupp eennttiittiieess
CCoonnttrrooll oof f tthhee GGr roouupp
Millennium & Copthorne Hotels New Zealand Limited is a 80.97% (2023: 75.78%) owned (economic interests from both ordinary and
preference shares) subsidiary of CDL Hotels Holdings New Zealand Limited which is a wholly owned subsidiary of Millennium &
Copthorne Hotels Ltd in the United Kingdom. The ultimate parent company is Hong Leong Investment Holdings Pte Ltd in Singapore.
At balance date there were related party advances owing from/(owing to) the following related companies:
GGr roouupp
Dollars In Thousands NNaattuurree oof f bbaallaannccee 22002244 22002233
TTr raaddee ppaayyaabblleess aanndd rreecceeiivvaabblleess dduuee ttoo rreellaatteedd ppaarrttiieess
Millennium & Copthorne Hotels Limited Recharge of expenses (1,767) (1,772)
Marquee Hotel Holdings Pty Ltd Interest bearing advance 19,556 19,086
Marquee Hotel Holdings Pty Ltd Interest free advance 44,195 43,132
Marquee Hotel Holdings Pty Ltd Interest receivable - 43
CDLHT (BVI) One Ltd Recharge of expenses 1,581 255
CDLHT (BVI) One Ltd Rent (6)(546)
6633,,555599 6600,,119988
No debts with related parties were written off or forgiven during the year. Interest at 5.75% was charged on interest bearing advance
during 2024. No interest was charged for the other payables or on the interest free advance. The related party advances to Marquee
Hotel Holdings Pty Ltd are unsecured and repayable on demand.
At the balance sheet date, there was an amount owing to CDLHT (BVI) One Ltd of $6,000 (2023 $291,000) being the net amount of
rent payable with respect to the leasing of the property and the recoverable amount in relation to expenses paid on behalf.
During 2024, the Group had the following transactions with related parties:
GGr roouupp
Dollars In Thousands NNaattuurree oof f bbaallaannccee 22002244 22002233
Marquee Hotel Holdings Pty Ltd Interest receivable 1,180 43
CDLHT (BVI) One Ltd
Management, franchise and
incentive income 932 960
M&C Reservation Services Ltd (UK) Insurance recharge, Management
and marketing support* (1,846) (161)
CDL Hotels Holdings New Zealand Limited Accounting support fee received 60 60
*The amount recognised in profit and loss in the reporting period was $1.1m.
SSuubbssiiddiiaarryy ccoommp paanniieess
The principal subsidiary companies of Millennium & Copthorne Hotels New Zealand Limited included in the consolidation as at 31
December 2024 are:
Principal Activity
Principal
Place of
Business
Group
Holding %
2024
Group
Holding %
2023
Context Securities Limited Investment Holding NZ 100.00 100.00
Copthorne Hotel & Resort Bay of Islands Joint Venture Hotel Operations NZ 49.00 49.00
QQu uaannttuumm LLiimmi itteedd Holding Company NZ 100.00 100.00
100% owned subsidiaries of Quantum Limited are:
Hospitality Group Limited Holding Company NZ
100% owned subsidiaries of Hospitality Group Limited
are:
Hospitality Leases Limited
Lessee Company/Hotel
Operations NZ
QINZ Anzac Avenue Limited Hotel Owner NZ
Hospitality Services Limited
Hotel
Operations/Franchise
Holder NZ
CCDDLL IInnvveessttmme ennttss NNe eww ZZeeaallaanndd LLi immi itteedd Holding Company NZ 65.31 65.54
100% owned subsidiaries of CDL Investments New
Zealand Limited are:
CDL Land New Zealand Limited
Property Investment and
Development NZ
KKIINN HHo ollddiinnggss LLi immi itteedd Holding Company NZ 100.00 100.00
100% owned subsidiaries of KIN Holdings Limited are:
Kingsgate Investments Pty Limited
Residential Apartment
Developer Australia
Kingsgate Holdings Pty Limited Investment in JV Australia
All of the above subsidiaries have a 31 December balance date.
The Group is able to control the Copthorne Hotel & Resort Bay of Islands Joint Venture through its management agreement with the
Joint Venture and is exposed to variable returns accordingly. Therefore, the results of the Joint Venture are consolidated from the
date control commenced until the date control ceases.
MMiilllleennnniiuumm && CCoopptthhoorrnnee HHootteellss NNeeww ZZeeaallaanndd LLiimmiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 10
11..SSeeggmme enntt rreeppoorrttiinngg
OOppeerraattiinngg sseeggmmeennttss
The Group consisted of the following main operating segments:
•Hotel operations, comprising income from the ownership and management of hotels.
•Residential land development, comprising the development and sale of residential land sections.
•Residential and commercial property development, comprising the development and sale of residential
apartments.
•Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
(a)Operating Segments
HHootteell OOp peerraattiioonnss
RReessiiddeennttiiaall LLaanndd
DDeevveellooppmmeenntt
IInnvveessttmme enntt
PPrrooppeerrttyy
RReessiiddeennttiiaall PPrrooppeerrttyy
DDeevveellooppmmeenntt GGrroouupp
Dollars in thousands
22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233
External revenue109,486 101,072 46,313 28,284 2,746 2,494 17,611 13,809 176,184 145,659
Earnings before interest,
depreciation
& amortisation
17,356 19,299 22,255 13,697 2,731 2,473 8,765 5,371 51,107 40,840
Finance income 2,180 2,411 2,381 3,514 - - 786 1,775 5,347 7,700
Finance expense (2,224) (2,429) (9)(12)- - (2)(3)(2,235) (2,444)
Depreciation and amortisation
(7,183) (6,900) (8)(7)(550)(933)(10)(6)(7,751) (7,846)
Depreciation of Right-of-use
assets
(846)(806)(39)(34)- - (10)(10)(895)(850)
Share of profit of Joint venture
1,508 73- - - - - - 1,508 73
Profit before income tax 10,791 11,648 24,580 17,158 2,181 1,540 9,529 7,127 47,081 37,473
Income tax expense
(24,547) (3,179) (6,852) (4,805) (4,528) (431) (2,366) (2,141) (38,293) (10,556)
Profit after income tax (13,756) 8,469 17,728 12,353 (2,347) 1,109 7,163 4,986 8,788 26,917
Cash & cash equivalents and
short term bank deposits
2,599 16,982 33,287 52,159 - - 5,411 6,190 41,297 75,331
Investment in associates - - 2 2 - - - - 2 2
Investment in joint venture
46,555 43,943 - - - - - - 46,555 43,943
Other segment assets
364,960 339,925 259,032 231,231 36,301 35,834 14,119 20,524 674,412 627,514
Total assets 414,114 400,850 292,321 283,392 36,301 35,834 19,530 26,714 762,266 746,790
Segment liabilities
(58,256) (68,516) (2,362) (4,053) - - (1,769) (1,391) (62,387) (73,960)
Tax liabilities (27,720) (7,393) (2,229) (1,449) (4,379) - (646)(1,536)(34,974) (10,378)
Total liabilities
(85,976) (75,909) (4,591) (5,502) (4,379) - (2,415) (2,927) (97,361) (84,338)
Property, plant and equipment
expenditure
27,830 13,821 2 56
- -
616 14 28,448 13,901
Investment property
expenditure
- - - - 1,017 386 - - 1,017 386
Residential land development
expenditure
- - 22,458 10,135
- -
- - 22,458 10,135
Purchase of land for
residential land development
- - 23,720 20,407 - - - - 23,720 20,407
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 10
11..SSeeggmme enntt rreeppoorrttiinngg
OOppeerraattiinngg sseeggmmeennttss
The Group consisted of the following main operating segments:
•Hotel operations, comprising income from the ownership and management of hotels.
•Residential land development, comprising the development and sale of residential land sections.
•Residential and commercial property development, comprising the development and sale of residential
apartments.
•Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
(a)Operating Segments
HHootteell OOp peerraattiioonnss
RReessiiddeennttiiaall LLaanndd
DDeevveellooppmmeenntt
IInnvveessttmme enntt
PPrrooppeerrttyy
RReessiiddeennttiiaall PPrrooppeerrttyy
DDeevveellooppmmeenntt GGrroouupp
Dollars in thousands
22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233
External revenue109,486 101,072 46,313 28,284 2,746 2,494 17,611 13,809 176,184 145,659
Earnings before interest,
depreciation
& amortisation
17,356 19,299 22,255 13,697 2,731 2,473 8,765 5,371 51,107 40,840
Finance income 2,180 2,411 2,381 3,514 - - 786 1,775 5,347 7,700
Finance expense (2,224) (2,429) (9)(12)- - (2)(3)(2,235) (2,444)
Depreciation and amortisation
(7,183) (6,900) (8)(7)(550)(933)(10)(6)(7,751) (7,846)
Depreciation of Right-of-use
assets
(846)(806)(39)(34)- - (10)(10)(895)(850)
Share of profit of Joint venture
1,508 73- - - - - - 1,508 73
Profit before income tax 10,791 11,648 24,580 17,158 2,181 1,540 9,529 7,127 47,081 37,473
Income tax expense
(24,547) (3,179) (6,852) (4,805) (4,528) (431) (2,366) (2,141) (38,293) (10,556)
Profit after income tax (13,756) 8,469 17,728 12,353 (2,347) 1,109 7,163 4,986 8,788 26,917
Cash & cash equivalents and
short term bank deposits
2,599 16,982 33,287 52,159 - - 5,411 6,190 41,297 75,331
Investment in associates - - 2 2 - - - - 2 2
Investment in joint venture
46,555 43,943 - - - - - - 46,555 43,943
Other segment assets
364,960 339,925 259,032 231,231 36,301 35,834 14,119 20,524 674,412 627,514
Total assets 414,114 400,850 292,321 283,392 36,301 35,834 19,530 26,714 762,266 746,790
Segment liabilities
(58,256) (68,516) (2,362) (4,053) - - (1,769) (1,391) (62,387) (73,960)
Tax liabilities (27,720) (7,393) (2,229) (1,449) (4,379) - (646)(1,536)(34,974) (10,378)
Total liabilities
(85,976) (75,909) (4,591) (5,502) (4,379) - (2,415) (2,927) (97,361) (84,338)
Property, plant and equipment
expenditure
27,830 13,821 2 56
- -
616 14 28,448 13,901
Investment property
expenditure
- - - - 1,017 386 - - 1,017 386
Residential land development
expenditure
- - 22,458 10,135
- -
- - 22,458 10,135
Purchase of land for
residential land development
- - 23,720 20,407 - - - - 23,720 20,407
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024 | FIN 26
Mil lennium & Copthorne Hotels New Z ealand Li mited
Notes to the Consolidated Financial Statements for the ye ar ended 31 Dece mber 20 24
The a ccompanyin g n ote s fo rm p art of, and s hould be read in conjunctio n with, t hese financial s ta tements .
FIN 25
17.Fi nancial instruments - continued
Fair v alues
The f air v alues t ogether with t he carrying amounts s hown in the statement of f inancial position are as f ollows:
Group Carrying amount
Fair value
Carrying
amount Fair value
Dollars I n Thousands
Note 2024 2024 2023 2023
LOANS AND RECEIVABLES
Cash and c ash equivalents 12 39,726 39,726 11,256 11,256
Short t erm bank deposits 1,571 1,571 64,075 64,075
Trade and other receivables 13 23,497 23,497 20,391 20,391
Advances to related parties 20 65,326 65,326 62,516 62,516
OTHER LIABILITI ES
Secured bank lo ans and o verdrafts 14 (3,000) (3,000) (11,968) (11,968)
Trade and other payables 16 (30,524) (30,524) (32,348) (32,348)
Trade payables due to relat ed parties 20 (1,767) (1,767) (2,318) (2,318)
94,829 94,829 111,604 111,604
Estimation of fair v alues
The following summarises the major methods and assumptions used in esti mating the fair values of financial instruments reflected in
the table:
(a)Cash, accounts receivable, accounts payable and related party balances. The carrying amounts for these balances approximate
their fair value because o f t he s hort maturities o f t hese it ems.
(b)Borrowings. The c arrying amounts for the borrowings represent their f air values because t he int erest rates are reset t o market
periodically, every 1 to 2 months.
1
8.Capital and land development commitments
As at 31 December 2024, the Group had entered into contractual commitments for the acquisition of the Mayfair Hotel Christchurch,
capital expenditure, development expenditure, and purchases of land. Development expenditure represents amounts contracted
and forecast t o b e incurred i n 2 024 in accordance w ith t he G roup’s development p rogramme.
Group
Dollars I n T housands
2024 2023
Mayfair Hotel Christchurch 31,900 -
Capital expenditure 7,968 1,330
Development e xpenditure 24,269 19,743
Land purchases 13,261 6,620
77,398 27,693
19.Related parties
Identity of related parties
The Group has a related party relationship with its parent, subsidiaries (see Note 20), joint venture and with its directors and executive
offi cers.
Tr
ansactions with key management personnel
Directors of the Company and their immediate relatives control nil (2023: Nil) of the voting shares of the Company. There were no
loans (2023: $nil) advanced to directors for the year ended 31 December 2024. Key management personnel include the Board
comprising non-executive directors, executive directors and executive officers.
T
o
tal remuneration for k ey management personnel
Group
Dollars I n T housands
2024 2023
Non-executive directors 392 350
Executive director 563 499
Executive officers 894 734
1,849 1,583
Non-executive directors receive director’s fees only. Executive director and executive offi cers receive short-term employee benefits
which include a base salary and an incentive plan. They do not receive remuneration or any other benefits as a director of the Parent
Company or its subsidiaries. Directors’ fees are included in “administration expenses” (see Note 2) and remuneration for executive
director and executive officers are included in “personnel expenses” ( see Note 3).
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 26
2200..GGrroouupp eennttiittiieess
CCoonnttrrooll ooff tthhee GGrroouupp
Millennium & Copthorne Hotels New Zealand Limited is a 80.97% (2023: 75.78%) owned (economic interests from both ordinary and
preference shares) subsidiary of CDL Hotels Holdings New Zealand Limited which is a wholly owned subsidiary of Millennium &
Copthorne Hotels Ltd in the United Kingdom. The ultimate parent company is Hong Leong Investment Holdings Pte Ltd in Singapore.
At balance date there were related party advances owing from/(owing to) the following related companies:
GGr roouupp
Dollars In Thousands NNaattuurree oof f bbaallaannccee 22002244 22002233
TTr raaddee ppaayyaabblleess aanndd rreecceeiivvaabblleess dduuee ttoo rreellaatteedd ppaarrttiieess
Millennium & Copthorne Hotels Limited Recharge of expenses (1,767) (1,772)
Marquee Hotel Holdings Pty Ltd Interest bearing advance 19,556 19,086
Marquee Hotel Holdings Pty Ltd Interest free advance 44,195 43,132
Marquee Hotel Holdings Pty Ltd Interest receivable - 43
CDLHT (BVI) One Ltd Recharge of expenses 1,581 255
CDLHT (BVI) One Ltd Rent (6)(546)
6633,,555599 6600,,119988
No debts with related parties were written off or forgiven during the year. Interest at 5.75% was charged on interest bearing advance
during 2024. No interest was charged for the other payables or on the interest free advance. The related party advances to Marquee
Hotel Holdings Pty Ltd are unsecured and repayable on demand.
At the balance sheet date, there was an amount owing to CDLHT (BVI) One Ltd of $6,000 (2023 $291,000) being the net amount of
rent payable with respect to the leasing of the property and the recoverable amount in relation to expenses paid on behalf.
During 2024, the Group had the following transactions with related parties:
GGr roouupp
Dollars In Thousands NNaattuurree oof f bbaallaannccee 22002244 22002233
Marquee Hotel Holdings Pty Ltd Interest receivable 1,180 43
CDLHT (BVI) One Ltd
Management, franchise and
incentive income 932 960
M&C Reservation Services Ltd (UK) Insurance recharge, Management
and marketing support* (1,846) (161)
CDL Hotels Holdings New Zealand Limited Accounting support fee received 60 60
*The amount recognised in profit and loss in the reporting period was $1.1m.
S
Suubbssiiddiiaarryy ccoommppaanniieess
The principal subsidiary companies of Millennium & Copthorne Hotels New Zealand Limited included in the consolidation as at 31
December 2024 are:
Principal Activity
Principal
Place of
Business
Group
Holding %
2024
Group
Holding %
2023
Context Securities Limited Investment Holding NZ 100.00 100.00
Copthorne Hotel & Resort Bay of Islands Joint Venture Hotel Operations NZ 49.00 49.00
QQu uaannttuumm LLiimmi itteedd Holding Company NZ 100.00 100.00
100% owned subsidiaries of Quantum Limited are:
Hospitality Group Limited Holding Company NZ
100% owned subsidiaries of Hospitality Group Limited
are:
Hospitality Leases Limited
Lessee Company/Hotel
Operations NZ
QINZ Anzac Avenue Limited Hotel Owner NZ
Hospitality Services Limited
Hotel
Operations/Franchise
Holder NZ
CCDDLL IInnvveessttmme ennttss NNe eww ZZeeaallaanndd LLi immi itteedd Holding Company NZ 65.31 65.54
100% owned subsidiaries of CDL Investments New
Zealand Limited are:
CDL Land New Zealand Limited
Property Investment and
Development NZ
KKIINN HHo ollddiinnggss LLi immi itteedd Holding Company NZ 100.00 100.00
100% owned subsidiaries of KIN Holdings Limited are:
Kingsgate Investments Pty Limited
Residential Apartment
Developer Australia
Kingsgate Holdings Pty Limited Investment in JV Australia
All of the above subsidiaries have a 31 December balance date.
The Group is able to control the Copthorne Hotel & Resort Bay of Islands Joint Venture through its management agreement with the
Joint Venture and is exposed to variable returns accordingly. Therefore, the results of the Joint Venture are consolidated from the
date control commenced until the date control ceases.
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 10
11..SSeeggmme enntt rreeppoorrttiinngg
OOppeerraattiinngg sseeggmmeennttss
The Group consisted of the following main operating segments:
•Hotel operations, comprising income from the ownership and management of hotels.
•Residential land development, comprising the development and sale of residential land sections.
•Residential and commercial property development, comprising the development and sale of residential
apartments.
•Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
(a)Operating Segments
HHootteell OOp peerraattiioonnss
RReessiiddeennttiiaall LLaanndd
DDeevveellooppmmeenntt
IInnvveessttmme enntt
PPrrooppeerrttyy
RReessiiddeennttiiaall PPrrooppeerrttyy
DDeevveellooppmmeenntt GGrroouupp
Dollars in thousands
22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233
External revenue109,486 101,072 46,313 28,284 2,746 2,494 17,611 13,809 176,184 145,659
Earnings before interest,
depreciation
& amortisation
17,356 19,299 22,255 13,697 2,731 2,473 8,765 5,371 51,107 40,840
Finance income 2,180 2,411 2,381 3,514 - - 786 1,775 5,347 7,700
Finance expense (2,224) (2,429) (9)(12)- - (2)(3)(2,235) (2,444)
Depreciation and amortisation
(7,183) (6,900) (8)(7)(550)(933)(10)(6)(7,751) (7,846)
Depreciation of Right-of-use
assets
(846)(806)(39)(34)- - (10)(10)(895)(850)
Share of profit of Joint venture
1,508 73- - - - - - 1,508 73
Profit before income tax 10,791 11,648 24,580 17,158 2,181 1,540 9,529 7,127 47,081 37,473
Income tax expense
(24,547) (3,179) (6,852) (4,805) (4,528) (431) (2,366) (2,141) (38,293) (10,556)
Profit after income tax (13,756) 8,469 17,728 12,353 (2,347) 1,109 7,163 4,986 8,788 26,917
Cash & cash equivalents and
short term bank deposits
2,599 16,982 33,287 52,159 - - 5,411 6,190 41,297 75,331
Investment in associates - - 2 2 - - - - 2 2
Investment in joint venture
46,555 43,943 - - - - - - 46,555 43,943
Other segment assets
364,960 339,925 259,032 231,231 36,301 35,834 14,119 20,524 674,412 627,514
Total assets 414,114 400,850 292,321 283,392 36,301 35,834 19,530 26,714 762,266 746,790
Segment liabilities
(58,256) (68,516) (2,362) (4,053) - - (1,769) (1,391) (62,387) (73,960)
Tax liabilities (27,720) (7,393) (2,229) (1,449) (4,379) - (646)(1,536)(34,974) (10,378)
Total liabilities
(85,976) (75,909) (4,591) (5,502) (4,379) - (2,415) (2,927) (97,361) (84,338)
Property, plant and equipment
expenditure
27,830 13,821 2 56
- -
616 14 28,448 13,901
Investment property
expenditure
- - - - 1,017 386 - - 1,017 386
Residential land development
expenditure
- - 22,458 10,135
- -
- - 22,458 10,135
Purchase of land for
residential land development
- - 23,720 20,407 - - - - 23,720 20,407
MMiilllleennnniiuumm && CCoopptthhoorrnnee HHootteellss NNeeww ZZeeaallaanndd LLiimmiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 10
11..SSeeggmme enntt rreeppoorrttiinngg
OOppeerraattiinngg sseeggmmeennttss
The Group consisted of the following main operating segments:
•Hotel operations, comprising income from the ownership and management of hotels.
•Residential land development, comprising the development and sale of residential land sections.
•Residential and commercial property development, comprising the development and sale of residential
apartments.
•Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
(a)Operating Segments
HHootteell OOp peerraattiioonnss
RReessiiddeennttiiaall LLaanndd
DDeevveellooppmmeenntt
IInnvveessttmme enntt
PPrrooppeerrttyy
RReessiiddeennttiiaall PPrrooppeerrttyy
DDeevveellooppmmeenntt GGrroouupp
Dollars in thousands
22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233
External revenue109,486 101,072 46,313 28,284 2,746 2,494 17,611 13,809 176,184 145,659
Earnings before interest,
depreciation
& amortisation
17,356 19,299 22,255 13,697 2,731 2,473 8,765 5,371 51,107 40,840
Finance income 2,180 2,411 2,381 3,514 - - 786 1,775 5,347 7,700
Finance expense (2,224) (2,429) (9)(12)- - (2)(3)(2,235) (2,444)
Depreciation and amortisation
(7,183) (6,900) (8)(7)(550)(933)(10)(6)(7,751) (7,846)
Depreciation of Right-of-use
assets
(846)(806)(39)(34)- - (10)(10)(895)(850)
Share of profit of Joint venture
1,508 73- - - - - - 1,508 73
Profit before income tax 10,791 11,648 24,580 17,158 2,181 1,540 9,529 7,127 47,081 37,473
Income tax expense
(24,547) (3,179) (6,852) (4,805) (4,528) (431) (2,366) (2,141) (38,293) (10,556)
Profit after income tax (13,756) 8,469 17,728 12,353 (2,347) 1,109 7,163 4,986 8,788 26,917
Cash & cash equivalents and
short term bank deposits
2,599 16,982 33,287 52,159 - - 5,411 6,190 41,297 75,331
Investment in associates - - 2 2 - - - - 2 2
Investment in joint venture
46,555 43,943 - - - - - - 46,555 43,943
Other segment assets
364,960 339,925 259,032 231,231 36,301 35,834 14,119 20,524 674,412 627,514
Total assets 414,114 400,850 292,321 283,392 36,301 35,834 19,530 26,714 762,266 746,790
Segment liabilities
(58,256) (68,516) (2,362) (4,053) - - (1,769) (1,391) (62,387) (73,960)
Tax liabilities (27,720) (7,393) (2,229) (1,449) (4,379) - (646)(1,536)(34,974) (10,378)
Total liabilities
(85,976) (75,909) (4,591) (5,502) (4,379) - (2,415) (2,927) (97,361) (84,338)
Property, plant and equipment
expenditure
27,830 13,821 2 56
- -
616 14 28,448 13,901
Investment property
expenditure
- - - - 1,017 386 - - 1,017 386
Residential land development
expenditure
- - 22,458 10,135
- -
- - 22,458 10,135
Purchase of land for
residential land development
- - 23,720 20,407 - - - - 23,720 20,407
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 27 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 27
2200..GGrroouupp eennttiittiieess -- ccoonnttiinnuueedd
SSuubbssiiddiiaarriieess
Subsidiaries are entities controlled by the Company. The Company controls an entity when it is exposed to, or has rights to, variable
returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial
statements of subsidiaries are included in the financial statements from the date that control commences until the date that control
ceases.
T
Trraannssaaccttiioonnss eelliimmiinnaatteedd oonn ccoonnssoolliiddaattiioonn
Intra-group balances and any unrealised gains and losses or income and expenses arising from intra-group transactions, are
eliminated in preparing the financial statements. Unrealised gains arising from transactions with jointly controlled entities are
eliminated to the extent of the Group’s interest in the entity. Unrealised losses are eliminated in the same way as unrealised gains,
but only to the extent that there is no evidence of impairment.
2
211..AAccccoouunnttiinngg eessttiimmaatteess aanndd jjuuddggeemmeennttss
Management discussed with the Audit Committee the development, selection and disclosure of the Group’s critical accounting policies
and estimates and the application of these policies and estimates.
C
Crriittiiccaall aaccccoouunnttiinngg jjuuddggeemmeennttss iinn aappppllyyiinngg tthhee GGrroouupp’’ss aaccccoouunnttiinngg ppoolliicciieess
Certain critical accounting judgements in applying the Group’s accounting policies are described below.
D
Deevveellooppmmeenntt pprrooppeerrttyy
The Group is also exposed to a risk of impairment to development properties should the carrying value exceed the net realisable
value due to market fluctuations in the value of development properties. However, there is no indication of impairment as the net
realisable value of development properties significantly exceed the carrying value determined by an independent registered valuer.
The valuer adopts the Sales Comparison Approach to determine rates per hectare/per square metre for block land holdings in addition
to recent section sales to derive the gross realisation values. The net realisable values are determined from gross realisation values
after deducting appropriate selling costs.
For residential land under development and is yet to commence development in the short term, the valuer adopts the Residual
Subdivision Approach. This approach considers the gross realisation values of the sections less costs associated with development
including GST, sales commissions, legal fees, civil and development costs including Council contributions, professional fees, and
contingency allowances. In addition, holding costs are deducted for the estimated timing of development and sell down periods.
In both valuation approaches, the valuer makes assumptions relating to section prices, sell down periods, consumer confidence,
unemployment rates, interest rates, and external economic factors. These assumptions are sensitive to economic factors such as net
migration, Official Cash Rate set by the Reserve Bank, inflation, residential market activity, and business confidence.
I
Innvveessttmmeenntt pprrooppeerrttyy
The Group is also exposed to a risk of impairment to investment properties should the carrying value exceed the recoverable amount
due to market fluctuations in the value of investment properties. However, there is no indication of impairment as the recoverable
amount determined by an independent registered valuer significantly exceeds the carrying value of investment properties. In
determining the recoverable amount, the valuer adopts the Income Capitalisation Approach whereby the assessed market rent for
each asset is capitalised in perpetuity from the valuation date at an appropriate capitalisation rate, and uses the discounted cash flow
and depreciated replacement cost approaches to corroborate. The adopted capitalisation rate reflects the nature, location, and
tenancy profile of the property together with current market investment criteria as evidenced by recent sales. The recoverable amount
is sensitive to movements in the adopted capitalisation rate and the market rent.
P
Prrooppeerrttyy,, ppllaanntt,, aanndd eeqquuiippmmeenntt
The Group determines whether tangible fixed assets are impaired when indicators of impairments exist or based on the annual
impairment assessment. The annual assessment requires an estimate of the recoverable value of the cash generating units to which
the tangible fixed assets are allocated, which is predominantly at the individual hotel site level. The recoverable amounts of the
Group’s cash generating units or individual assets are based on fair value less cost of disposal or value in use determined by an
independent valuer. The valuation methods used require the independent appraiser to make a number of assumptions including
estimating the future cash flows expected to arise from the cash-generating units, suitable discount, capitalisation and square meter
rates, as well as value per room, to determine the recoverable value.
2
222..LLeeaassee
At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the
contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess
whether a contract conveys the right to control the use of an identified asset, the Group uses the definition of a lease in NZ IFRS 16.
This policy is applied to contracts entered into, on or after 1 January 2019.
At commencement or on modification of a contract that contains a lease component, the Group allocates the consideration in the
contract to each lease component on the basis of its relative stand-alone prices.
The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset was
recognised at cost on initial recognition, which comprised the initial amount of the lease liability adjusted for any lease payments
made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove
the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 28
2222..LLeeaassee -- ccoonnttiinnuueedd
The right of use asset is depreciated using the straight-line method from the commencement date to the end of the lease term,
unless the lease transfers ownership of the underlying asset to the Group by the end of the lease term or the cost of the right-of-
use asset reflects that the Group will exercise a purchase option. In that case the right-of-use asset will be depreciated over the
useful life of the underlying asset, which is determined on the same basis as those of property and equipment. In addition, the right-
of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain re-measurements of the lease liability.
2222((aa)) LLeeaassee LLiiaabbiilliittyy
The expected contractual undiscounted cash outflows of lease liabilities are as follows:
GGr roouupp
Dollars In Thousands 22002244 22002233
Less than 6 months 1,110 1,081
More than 6 months but within 12 months 1,156 1,079
More than 1 year but within 2 years 2,227 2,253
More than 2 years but within 5 years 6,232 10,507
After 5 years 93,666 91,584
110044,,339911 110066,,550044
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date,
discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing
rate. Generally, the Group uses its incremental borrowing rate as the discount rate.
The Group determines its incremental borrowing rate by obtaining interest rates from various external financing sources and makes
certain adjustments to reflect the terms of the lease and type of the asset leased.
Lease payments included in the measurement of the lease liability comprise the following:
-fixed payments, including in-substance fixed payments;
-variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement
date;
-amounts expected to be payable under a residual value guarantee; and
-the exercise price under a purchase option that the Group is reasonably certain to exercise, lease payments in an optional
renewal period if the Group is reasonably certain to exercise an extension option, and penalties for early termination of a lease
unless the Group is reasonably certain not to terminate early.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in
future lease payments arising from a change in an index or rate, if there is a change in the Group’s estimate of the amount expected
to be payable under a residual value guarantee, if the Group changes its assessment of whether it will exercise a purchase,
extension or termination option or if there is a revised in-substance fixed lease payment.
When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use
asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
The Group presents right-of-use assets that do not meet the definition of investment property in ‘property, plant and equipment’ and
lease liabilities in the Statement of Financial Position.
SShhoorrtt--tteerrmm lleeaasseess aanndd lleeaasseess oof f llooww--vvaalluuee aasssseettss
The Group has elected not to recognise right-of-use assets and lease liabilities for leases of low-value assets and short-term leases,
including IT equipment. The Group recognises the lease payments associated with these leases as an expense on a straight-line
basis over the lease term.
2222((bb)) SScchheedduullee oof f rri igghhtt--ooff--uussee aasssseettss bbyy ccllaassss
Dollars In
Thousands Lease term
Carrying
value @
01/01/24
Depreciation
on right-of-
use asset
for the year
Addition
during the
year
Disposal
during the
year
Movement in
foreign
exchange
Carrying
value @
31/12/24
Land sites at
hotels
Renewal at 21
year cycles for
perpetuity 20,322 (344) - - - 19,978
Corporate office
building and
hotel carpark
Between 5 to
23 years 5,727 (287) 5 - - 5,445
Motor vehicles
Between 12 to
45 months 681 (264) 74 (31) - 460
Totals 26,730 (895) 79 (31) - 25,883
MMiilllleennnniiuumm && CCoopptthhoorrnnee HHootteellss NNeeww ZZeeaallaanndd LLiimmiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 10
11..SSeeggmme enntt rreeppoorrttiinngg
OOppeerraattiinngg sseeggmmeennttss
The Group consisted of the following main operating segments:
•Hotel operations, comprising income from the ownership and management of hotels.
•Residential land development, comprising the development and sale of residential land sections.
•Residential and commercial property development, comprising the development and sale of residential
apartments.
•Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
(a)Operating Segments
HHootteell OOp peerraattiioonnss
RReessiiddeennttiiaall LLaanndd
DDeevveellooppmmeenntt
IInnvveessttmme enntt
PPrrooppeerrttyy
RReessiiddeennttiiaall PPrrooppeerrttyy
DDeevveellooppmmeenntt GGrroouupp
Dollars in thousands
22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233
External revenue109,486 101,072 46,313 28,284 2,746 2,494 17,611 13,809 176,184 145,659
Earnings before interest,
depreciation
& amortisation
17,356 19,299 22,255 13,697 2,731 2,473 8,765 5,371 51,107 40,840
Finance income 2,180 2,411 2,381 3,514 - - 786 1,775 5,347 7,700
Finance expense (2,224) (2,429) (9)(12)- - (2)(3)(2,235) (2,444)
Depreciation and amortisation
(7,183) (6,900) (8)(7)(550)(933)(10)(6)(7,751) (7,846)
Depreciation of Right-of-use
assets
(846)(806)(39)(34)- - (10)(10)(895)(850)
Share of profit of Joint venture
1,508 73- - - - - - 1,508 73
Profit before income tax 10,791 11,648 24,580 17,158 2,181 1,540 9,529 7,127 47,081 37,473
Income tax expense
(24,547) (3,179) (6,852) (4,805) (4,528) (431) (2,366) (2,141) (38,293) (10,556)
Profit after income tax (13,756) 8,469 17,728 12,353 (2,347) 1,109 7,163 4,986 8,788 26,917
Cash & cash equivalents and
short term bank deposits
2,599 16,982 33,287 52,159 - - 5,411 6,190 41,297 75,331
Investment in associates - - 2 2 - - - - 2 2
Investment in joint venture
46,555 43,943 - - - - - - 46,555 43,943
Other segment assets
364,960 339,925 259,032 231,231 36,301 35,834 14,119 20,524 674,412 627,514
Total assets 414,114 400,850 292,321 283,392 36,301 35,834 19,530 26,714 762,266 746,790
Segment liabilities
(58,256) (68,516) (2,362) (4,053) - - (1,769) (1,391) (62,387) (73,960)
Tax liabilities (27,720) (7,393) (2,229) (1,449) (4,379) - (646)(1,536)(34,974) (10,378)
Total liabilities
(85,976) (75,909) (4,591) (5,502) (4,379) - (2,415) (2,927) (97,361) (84,338)
Property, plant and equipment
expenditure
27,830 13,821 2 56
- -
616 14 28,448 13,901
Investment property
expenditure
- - - - 1,017 386 - - 1,017 386
Residential land development
expenditure
- - 22,458 10,135
- -
- - 22,458 10,135
Purchase of land for
residential land development
- - 23,720 20,407 - - - - 23,720 20,407
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 10
11..SSeeggmme enntt rreeppoorrttiinngg
OOppeerraattiinngg sseeggmmeennttss
The Group consisted of the following main operating segments:
•Hotel operations, comprising income from the ownership and management of hotels.
•Residential land development, comprising the development and sale of residential land sections.
•Residential and commercial property development, comprising the development and sale of residential
apartments.
•Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
(a)Operating Segments
HHootteell OOp peerraattiioonnss
RReessiiddeennttiiaall LLaanndd
DDeevveellooppmmeenntt
IInnvveessttmme enntt
PPrrooppeerrttyy
RReessiiddeennttiiaall PPrrooppeerrttyy
DDeevveellooppmmeenntt GGrroouupp
Dollars in thousands
22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233
External revenue109,486 101,072 46,313 28,284 2,746 2,494 17,611 13,809 176,184 145,659
Earnings before interest,
depreciation
& amortisation
17,356 19,299 22,255 13,697 2,731 2,473 8,765 5,371 51,107 40,840
Finance income 2,180 2,411 2,381 3,514 - - 786 1,775 5,347 7,700
Finance expense (2,224) (2,429) (9)(12)- - (2)(3)(2,235) (2,444)
Depreciation and amortisation
(7,183) (6,900) (8)(7)(550)(933)(10)(6)(7,751) (7,846)
Depreciation of Right-of-use
assets
(846)(806)(39)(34)- - (10)(10)(895)(850)
Share of profit of Joint venture
1,508 73- - - - - - 1,508 73
Profit before income tax 10,791 11,648 24,580 17,158 2,181 1,540 9,529 7,127 47,081 37,473
Income tax expense
(24,547) (3,179) (6,852) (4,805) (4,528) (431) (2,366) (2,141) (38,293) (10,556)
Profit after income tax (13,756) 8,469 17,728 12,353 (2,347) 1,109 7,163 4,986 8,788 26,917
Cash & cash equivalents and
short term bank deposits
2,599 16,982 33,287 52,159 - - 5,411 6,190 41,297 75,331
Investment in associates - - 2 2 - - - - 2 2
Investment in joint venture
46,555 43,943 - - - - - - 46,555 43,943
Other segment assets
364,960 339,925 259,032 231,231 36,301 35,834 14,119 20,524 674,412 627,514
Total assets 414,114 400,850 292,321 283,392 36,301 35,834 19,530 26,714 762,266 746,790
Segment liabilities
(58,256) (68,516) (2,362) (4,053) - - (1,769) (1,391) (62,387) (73,960)
Tax liabilities (27,720) (7,393) (2,229) (1,449) (4,379) - (646)(1,536)(34,974) (10,378)
Total liabilities
(85,976) (75,909) (4,591) (5,502) (4,379) - (2,415) (2,927) (97,361) (84,338)
Property, plant and equipment
expenditure
27,830 13,821 2 56
- -
616 14 28,448 13,901
Investment property
expenditure
- - - - 1,017 386 - - 1,017 386
Residential land development
expenditure
- - 22,458 10,135
- -
- - 22,458 10,135
Purchase of land for
residential land development
- - 23,720 20,407 - - - - 23,720 20,407
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024 | FIN 28
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 27
2200..GGr roouupp eennttiittiieess -- ccoonnttiinnuueedd
SSuubbssiiddiiaarriieess
Subsidiaries are entities controlled by the Company. The Company controls an entity when it is exposed to, or has rights to, variable
returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial
statements of subsidiaries are included in the financial statements from the date that control commences until the date that control
ceases.
TTr raannssaaccttiioonnss eel liimmi innaatteedd oonn ccoonnssoolliiddaattiioonn
Intra-group balances and any unrealised gains and losses or income and expenses arising from intra-group transactions, are
eliminated in preparing the financial statements. Unrealised gains arising from transactions with jointly controlled entities are
eliminated to the extent of the Group’s interest in the entity. Unrealised losses are eliminated in the same way as unrealised gains,
but only to the extent that there is no evidence of impairment.
2211..AAccccoouunnttiinngg eessttiimma at teess aanndd jjuuddggeemmeennttss
Management discussed with the Audit Committee the development, selection and disclosure of the Group’s critical accounting policies
and estimates and the application of these policies and estimates.
CCrriittiiccaall aaccccoouunnttiinngg jjuuddggeemme ennttss iinn aappppllyyiinngg tthhee GGr roouupp’’ss aaccccoouunnttiinngg ppoolliicciieess
Certain critical accounting judgements in applying the Group’s accounting policies are described below.
DDeevveellooppmme enntt ppr rooppeerrttyy
The Group is also exposed to a risk of impairment to development properties should the carrying value exceed the net realisable
value due to market fluctuations in the value of development properties. However, there is no indication of impairment as the net
realisable value of development properties significantly exceed the carrying value determined by an independent registered valuer.
The valuer adopts the Sales Comparison Approach to determine rates per hectare/per square metre for block land holdings in addition
to recent section sales to derive the gross realisation values. The net realisable values are determined from gross realisation values
after deducting appropriate selling costs.
For residential land under development and is yet to commence development in the short term, the valuer adopts the Residual
Subdivision Approach. This approach considers the gross realisation values of the sections less costs associated with development
including GST, sales commissions, legal fees, civil and development costs including Council contributions, professional fees, and
contingency allowances. In addition, holding costs are deducted for the estimated timing of development and sell down periods.
In both valuation approaches, the valuer makes assumptions relating to section prices, sell down periods, consumer confidence,
unemployment rates, interest rates, and external economic factors. These assumptions are sensitive to economic factors such as net
migration, Official Cash Rate set by the Reserve Bank, inflation, residential market activity, and business confidence.
IInnvveessttmme enntt ppr rooppeerrttyy
The Group is also exposed to a risk of impairment to investment properties should the carrying value exceed the recoverable amount
due to market fluctuations in the value of investment properties. However, there is no indication of impairment as the recoverable
amount determined by an independent registered valuer significantly exceeds the carrying value of investment properties. In
determining the recoverable amount, the valuer adopts the Income Capitalisation Approach whereby the assessed market rent for
each asset is capitalised in perpetuity from the valuation date at an appropriate capitalisation rate, and uses the discounted cash flow
and depreciated replacement cost approaches to corroborate. The adopted capitalisation rate reflects the nature, location, and
tenancy profile of the property together with current market investment criteria as evidenced by recent sales. The recoverable amount
is sensitive to movements in the adopted capitalisation rate and the market rent.
PPrrooppeerrttyy,, ppl laanntt,, aanndd eeqquuiippmme enntt
The Group determines whether tangible fixed assets are impaired when indicators of impairments exist or based on the annual
impairment assessment. The annual assessment requires an estimate of the recoverable value of the cash generating units to which
the tangible fixed assets are allocated, which is predominantly at the individual hotel site level. The recoverable amounts of the
Group’s cash generating units or individual assets are based on fair value less cost of disposal or value in use determined by an
independent valuer. The valuation methods used require the independent appraiser to make a number of assumptions including
estimating the future cash flows expected to arise from the cash-generating units, suitable discount, capitalisation and square meter
rates, as well as value per room, to determine the recoverable value.
2222..LLeeaassee
At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the
contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess
whether a contract conveys the right to control the use of an identified asset, the Group uses the definition of a lease in NZ IFRS 16.
This policy is applied to contracts entered into, on or after 1 January 2019.
At commencement or on modification of a contract that contains a lease component, the Group allocates the consideration in the
contract to each lease component on the basis of its relative stand-alone prices.
The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset was
recognised at cost on initial recognition, which comprised the initial amount of the lease liability adjusted for any lease payments
made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove
the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 28
2222..LLeeaassee -- ccoonnttiinnuueedd
The right of use asset is depreciated using the straight-line method from the commencement date to the end of the lease term,
unless the lease transfers ownership of the underlying asset to the Group by the end of the lease term or the cost of the right-of-
use asset reflects that the Group will exercise a purchase option. In that case the right-of-use asset will be depreciated over the
useful life of the underlying asset, which is determined on the same basis as those of property and equipment. In addition, the right-
of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain re-measurements of the lease liability.
2
222((aa)) LLeeaassee LLiiaabbiilliittyy
The expected contractual undiscounted cash outflows of lease liabilities are as follows:
GGr roouupp
Dollars In Thousands 22002244 22002233
Less than 6 months 1,110 1,081
More than 6 months but within 12 months 1,156 1,079
More than 1 year but within 2 years 2,227 2,253
More than 2 years but within 5 years 6,232 10,507
After 5 years 93,666 91,584
110044,,339911 110066,,550044
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date,
discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing
rate. Generally, the Group uses its incremental borrowing rate as the discount rate.
The Group determines its incremental borrowing rate by obtaining interest rates from various external financing sources and makes
certain adjustments to reflect the terms of the lease and type of the asset leased.
Lease payments included in the measurement of the lease liability comprise the following:
-fixed payments, including in-substance fixed payments;
-variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement
date;
-amounts expected to be payable under a residual value guarantee; and
-the exercise price under a purchase option that the Group is reasonably certain to exercise, lease payments in an optional
renewal period if the Group is reasonably certain to exercise an extension option, and penalties for early termination of a lease
unless the Group is reasonably certain not to terminate early.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in
future lease payments arising from a change in an index or rate, if there is a change in the Group’s estimate of the amount expected
to be payable under a residual value guarantee, if the Group changes its assessment of whether it will exercise a purchase,
extension or termination option or if there is a revised in-substance fixed lease payment.
When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use
asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
The Group presents right-of-use assets that do not meet the definition of investment property in ‘property, plant and equipment’ and
lease liabilities in the Statement of Financial Position.
S
Shhoorrtt--tteerrmm lleeaasseess aanndd lleeaasseess ooff llooww--vvaalluuee aasssseettss
The Group has elected not to recognise right-of-use assets and lease liabilities for leases of low-value assets and short-term leases,
including IT equipment. The Group recognises the lease payments associated with these leases as an expense on a straight-line
basis over the lease term.
2
222((bb)) SScchheedduullee ooff rriigghhtt--ooff--uussee aasssseettss bbyy ccllaassss
Dollars In
Thousands Lease term
Carrying
value @
01/01/24
Depreciation
on right-of-
use asset
for the year
Addition
during the
year
Disposal
during the
year
Movement in
foreign
exchange
Carrying
value @
31/12/24
Land sites at
hotels
Renewal at 21
year cycles for
perpetuity 20,322 (344) - - - 19,978
Corporate office
building and
hotel carpark
Between 5 to
23 years 5,727 (287) 5 - - 5,445
Motor vehicles
Between 12 to
45 months 681 (264) 74 (31) - 460
Totals 26,730 (895) 79 (31) - 25,883
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 10
11..SSeeggmme enntt rreeppoorrttiinngg
OOppeerraattiinngg sseeggmmeennttss
The Group consisted of the following main operating segments:
•Hotel operations, comprising income from the ownership and management of hotels.
•Residential land development, comprising the development and sale of residential land sections.
•Residential and commercial property development, comprising the development and sale of residential
apartments.
•Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
(a)Operating Segments
HHootteell OOp peerraattiioonnss
RReessiiddeennttiiaall LLaanndd
DDeevveellooppmmeenntt
IInnvveessttmme enntt
PPrrooppeerrttyy
RReessiiddeennttiiaall PPrrooppeerrttyy
DDeevveellooppmmeenntt GGrroouupp
Dollars in thousands
22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233
External revenue109,486 101,072 46,313 28,284 2,746 2,494 17,611 13,809 176,184 145,659
Earnings before interest,
depreciation
& amortisation
17,356 19,299 22,255 13,697 2,731 2,473 8,765 5,371 51,107 40,840
Finance income 2,180 2,411 2,381 3,514 - - 786 1,775 5,347 7,700
Finance expense (2,224) (2,429) (9)(12)- - (2)(3)(2,235) (2,444)
Depreciation and amortisation
(7,183) (6,900) (8)(7)(550)(933)(10)(6)(7,751) (7,846)
Depreciation of Right-of-use
assets
(846)(806)(39)(34)- - (10)(10)(895)(850)
Share of profit of Joint venture
1,508 73- - - - - - 1,508 73
Profit before income tax 10,791 11,648 24,580 17,158 2,181 1,540 9,529 7,127 47,081 37,473
Income tax expense
(24,547) (3,179) (6,852) (4,805) (4,528) (431) (2,366) (2,141) (38,293) (10,556)
Profit after income tax (13,756) 8,469 17,728 12,353 (2,347) 1,109 7,163 4,986 8,788 26,917
Cash & cash equivalents and
short term bank deposits
2,599 16,982 33,287 52,159 - - 5,411 6,190 41,297 75,331
Investment in associates - - 2 2 - - - - 2 2
Investment in joint venture
46,555 43,943 - - - - - - 46,555 43,943
Other segment assets
364,960 339,925 259,032 231,231 36,301 35,834 14,119 20,524 674,412 627,514
Total assets 414,114 400,850 292,321 283,392 36,301 35,834 19,530 26,714 762,266 746,790
Segment liabilities
(58,256) (68,516) (2,362) (4,053) - - (1,769) (1,391) (62,387) (73,960)
Tax liabilities (27,720) (7,393) (2,229) (1,449) (4,379) - (646)(1,536)(34,974) (10,378)
Total liabilities
(85,976) (75,909) (4,591) (5,502) (4,379) - (2,415) (2,927) (97,361) (84,338)
Property, plant and equipment
expenditure
27,830 13,821 2 56
- -
616 14 28,448 13,901
Investment property
expenditure
- - - - 1,017 386 - - 1,017 386
Residential land development
expenditure
- - 22,458 10,135
- -
- - 22,458 10,135
Purchase of land for
residential land development
- - 23,720 20,407 - - - - 23,720 20,407
MMiilllleennnniiuumm && CCoopptthhoorrnnee HHootteellss NNeeww ZZeeaallaanndd LLiimmiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 10
11..SSeeggmme enntt rreeppoorrttiinngg
OOppeerraattiinngg sseeggmmeennttss
The Group consisted of the following main operating segments:
•Hotel operations, comprising income from the ownership and management of hotels.
•Residential land development, comprising the development and sale of residential land sections.
•Residential and commercial property development, comprising the development and sale of residential
apartments.
•Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
(a)Operating Segments
HHootteell OOp peerraattiioonnss
RReessiiddeennttiiaall LLaanndd
DDeevveellooppmmeenntt
IInnvveessttmme enntt
PPrrooppeerrttyy
RReessiiddeennttiiaall PPrrooppeerrttyy
DDeevveellooppmmeenntt GGrroouupp
Dollars in thousands
22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233
External revenue109,486 101,072 46,313 28,284 2,746 2,494 17,611 13,809 176,184 145,659
Earnings before interest,
depreciation
& amortisation
17,356 19,299 22,255 13,697 2,731 2,473 8,765 5,371 51,107 40,840
Finance income 2,180 2,411 2,381 3,514 - - 786 1,775 5,347 7,700
Finance expense (2,224) (2,429) (9)(12)- - (2)(3)(2,235) (2,444)
Depreciation and amortisation
(7,183) (6,900) (8)(7)(550)(933)(10)(6)(7,751) (7,846)
Depreciation of Right-of-use
assets
(846)(806)(39)(34)- - (10)(10)(895)(850)
Share of profit of Joint venture
1,508 73- - - - - - 1,508 73
Profit before income tax 10,791 11,648 24,580 17,158 2,181 1,540 9,529 7,127 47,081 37,473
Income tax expense
(24,547) (3,179) (6,852) (4,805) (4,528) (431) (2,366) (2,141) (38,293) (10,556)
Profit after income tax (13,756) 8,469 17,728 12,353 (2,347) 1,109 7,163 4,986 8,788 26,917
Cash & cash equivalents and
short term bank deposits
2,599 16,982 33,287 52,159 - - 5,411 6,190 41,297 75,331
Investment in associates - - 2 2 - - - - 2 2
Investment in joint venture
46,555 43,943 - - - - - - 46,555 43,943
Other segment assets
364,960 339,925 259,032 231,231 36,301 35,834 14,119 20,524 674,412 627,514
Total assets 414,114 400,850 292,321 283,392 36,301 35,834 19,530 26,714 762,266 746,790
Segment liabilities
(58,256) (68,516) (2,362) (4,053) - - (1,769) (1,391) (62,387) (73,960)
Tax liabilities (27,720) (7,393) (2,229) (1,449) (4,379) - (646)(1,536)(34,974) (10,378)
Total liabilities
(85,976) (75,909) (4,591) (5,502) (4,379) - (2,415) (2,927) (97,361) (84,338)
Property, plant and equipment
expenditure
27,830 13,821 2 56
- -
616 14 28,448 13,901
Investment property
expenditure
- - - - 1,017 386 - - 1,017 386
Residential land development
expenditure
- - 22,458 10,135
- -
- - 22,458 10,135
Purchase of land for
residential land development
- - 23,720 20,407 - - - - 23,720 20,407
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 29 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 29
2222((cc)) SScchheedduullee ooff lleeaassee lliiaabbiilliittiieess bbyy ccllaassss
Dollars In
Thousands Lease term
Carrying
value @
01/01/24
Interest
expense
for the year
Addition
during the
year
Disposal
during the
year
Lease
payment for
the year
Carrying
value @
31/12/24
Land sites at
hotels
Renewal at 21
year cycles for
perpetuity 20,931 1,281 - - (1,323) 20,889
Corporate office
building and
hotel carpark
Between 5 to
23 years 5,688 549 5 - (530) 5,712
Motor vehicles
Between 12 to
45 months 707 66 52 (9) (321) 495
Totals 27,326 1,896 57 (9) (2,174) 27,096
2222((dd)) EExxeemmppttiioonnss aanndd eexxcclluussiioonnss
Exempted were motor vehicle leases shorter than 12 months and leased assets with value below $8,000. Excluded were variable
rentals and lease payments. The following table summarizes these leases by class:
Dollars In Thousands
Expense
recognised in
the Profit & Loss
Lease
commitments @
31/12/24
Lease
commitments
within one year
Lease
commitments
between one
and 5 years
Lease
commitments
more than 5
years
Short term leases <12
months 112 112 112 - -
Low value leased assets 23 56 14 42 -
Variable lease payments
under service and
management contracts 587 13,867 577 2,309 10,981
Total 722 14,036 703 2,351 10,981
2233..NNeeww ssttaannddaarrdd aanndd iinntteerrpprreettaattiioonnss iissssuueedd bbuutt nnoott yyeett aaddoopptteedd
A number of amended standards are effective for annual periods beginning after 1 January 2025 and earlier application is permitted.
The Group has not early adopted any new or amended standards in preparing the consolidated financial statements.
The Group is in the process of finalising the evaluation of impact from the following new and amended standards, including changes
in the Presentation and Disclosure in Financial Statements in line with NZ IFRS 18. The Group does not expect material financial
impact from these new and amended standards but note this may change the presentation and disclosures of the consolidated
financial statements.
•Amendments to NZ IAS21 Lack of Exchangeability.
•Amendments to NZ IFRS 9 and NZ IFRS 7 Classification and Measurement of Financial Instruments.
•Annual Improvements to NZ IFRS Accounting Standards – Volume 11.
•NZ IFRS 18 Presentation and Disclosure in Financial Statements.
•IFRS 19 Subsidiaries without Public Accountability: Disclosures.
•Amendments to NZ IFRS 10 and NZ IAS 28 Sale or Contribution of Assets between an Investor and its Associate or
Joint Venture
2
244..IInnvveessttmmeenntt iinn jjooiinntt vveennttuurree
A joint venture is an arrangement in which the Group has joint control, over the financial and operating policies. They are accounted
for using the equity method. The financial statements include the Group’s share of the income, expenses and reserves of the joint
venture from the date that joint control commences until the date that joint control ceases. When the Group’s share of losses exceeds
its interest in an equity accounted investee, the carrying amount of that interest (including any long-term investments) is reduced to
nil and the recognition of further losses is discontinued except to the extent that the Group has an obligation or has made payments
on behalf of the joint venture.
During the previous year, the Group through Kingsgate Holdings Pty Limited (100% subsidiary) formed a 50:50 joint venture with its
Parent Company to acquire the leasehold assets and the freehold assets of the Sofitel Brisbane Central hotel in Queensland,
Australia. The joint venture is Marquee Hotel Holdings Pty Limited. Within the Marquee Hotel Holdings group, there are six wholly
owned entities. Marquee Hotel Holdings group completed the acquisition of the Sofitel Brisbane Central on 15 December 2023. The
hotel is managed by an external hotel management group.
The Group’s share of profit in its joint venture for the year was $1.508m (2023: $0.073m).
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 30
2244..IInnvveessttmme enntt iinn jjooiinntt vveennttuurree –– ccoonnttiinnuueedd
PPrriinncciippaall AAccttiivviittyy
PPrriinncciippaall
PPllaaccee oof f
BBuussiinneessss
GGr roouupp
HHoollddiinngg
%%
22002233
MMa ar rqquueeee HHootteell HHo ollddiinnggss PPttyy LLi immi itteedd Investment Holding Australia 50.00
100% owned subsidiaries of Marquee
Hotel Holdings Pty Limited are:
Marquee Brisbane Hotel Pty Limited Trustee Company of Marquee Brisbane Hotel Trust Australia
Marquee Brisbane Hotel Trust Lessee of leasehold assets expiring 30 December 2057 Australia
Marquee Brisbane Hotel 2 Pty Limited Trustee Company ofMarquee Brisbane Hotel 2 Trust Australia
Marquee Brisbane Hotel 2 Trust Lessee of leasehold assets expiring 24 May 2120 Australia
Marquee Hotel Operations Pty Limited Trustee Company of Marquee Hotel Operations Pty Trust Australia
Marquee Hotel Operations Pty Trust Hotel Assets and Operations Australia
Summary financial information for joint venture, not adjusted for the percentage ownership held by the Group:
GGr roouupp GGr roouupp
Dollars In Thousands 22002244 22002233
Non-current assets 203,903 202,650
Current assets 26,112 27,477
Non-current liabilities (1,382) -
Current liabilities (135,525) (142,241)
Net assets (100%) 93,108 87,886
Group’s share (50%) 46,554 43,943
The current assets balance of the joint venture includes a cash and cash equivalents balance of $21.74m (2023:$26.12m). The
current liabilities balance of the joint venture includes balances owing to shareholders of $125.87m (2023:$124.5m).
GGr roouupp GGr roouupp
22002244 22002233
Revenue 53,470 2,142
Operating profit/(loss) 6,074 (175)
Interest (expense)/income (1,756) 384
Income tax expense (1,301) (63)
Profit for the year (100%) 3,017 146
Group’s share of profit (50%) 1,508 73
Movements in the carrying value of joint venture:
GGr roouupp GGr roouupp
22002244 22002233
Balance at 1 January
43,943 -
Purchase of investment
- 44,048
Share of profit for the year
1,508 73
Foreign exchange adjustments
1,103 (178)
Balance at 31 December
46,554 43,943
2255..NNo onn--ccoonnttrroolllliinngg iinntteerreessttss ((““NNCCII””))
The following subsidiary has material NCI.
Principal Activity
Principal
Place of
Business
Holding %
2024
Holding %
2023
CDL Investments New Zealand Limited “CDI”
Property Investment and
Development NZ 34.69 34.46
The following is the summarised financial information for CDL Investments New Zealand Limited and subsidiary. The information is
before intercompany eliminations with other companies in the Group.
MMiilllleennnniiuumm && CCoopptthhoorrnnee HHootteellss NNeeww ZZeeaallaanndd LLiimmiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 10
11..SSeeggmme enntt rreeppoorrttiinngg
OOppeerraattiinngg sseeggmmeennttss
The Group consisted of the following main operating segments:
•Hotel operations, comprising income from the ownership and management of hotels.
•Residential land development, comprising the development and sale of residential land sections.
•Residential and commercial property development, comprising the development and sale of residential
apartments.
•Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
(a)Operating Segments
HHootteell OOp peerraattiioonnss
RReessiiddeennttiiaall LLaanndd
DDeevveellooppmmeenntt
IInnvveessttmme enntt
PPrrooppeerrttyy
RReessiiddeennttiiaall PPrrooppeerrttyy
DDeevveellooppmmeenntt GGrroouupp
Dollars in thousands
22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233
External revenue109,486 101,072 46,313 28,284 2,746 2,494 17,611 13,809 176,184 145,659
Earnings before interest,
depreciation
& amortisation
17,356 19,299 22,255 13,697 2,731 2,473 8,765 5,371 51,107 40,840
Finance income 2,180 2,411 2,381 3,514 - - 786 1,775 5,347 7,700
Finance expense (2,224) (2,429) (9)(12)- - (2)(3)(2,235) (2,444)
Depreciation and amortisation
(7,183) (6,900) (8)(7)(550)(933)(10)(6)(7,751) (7,846)
Depreciation of Right-of-use
assets
(846)(806)(39)(34)- - (10)(10)(895)(850)
Share of profit of Joint venture
1,508 73- - - - - - 1,508 73
Profit before income tax 10,791 11,648 24,580 17,158 2,181 1,540 9,529 7,127 47,081 37,473
Income tax expense
(24,547) (3,179) (6,852) (4,805) (4,528) (431) (2,366) (2,141) (38,293) (10,556)
Profit after income tax (13,756) 8,469 17,728 12,353 (2,347) 1,109 7,163 4,986 8,788 26,917
Cash & cash equivalents and
short term bank deposits
2,599 16,982 33,287 52,159 - - 5,411 6,190 41,297 75,331
Investment in associates - - 2 2 - - - - 2 2
Investment in joint venture
46,555 43,943 - - - - - - 46,555 43,943
Other segment assets
364,960 339,925 259,032 231,231 36,301 35,834 14,119 20,524 674,412 627,514
Total assets 414,114 400,850 292,321 283,392 36,301 35,834 19,530 26,714 762,266 746,790
Segment liabilities
(58,256) (68,516) (2,362) (4,053) - - (1,769) (1,391) (62,387) (73,960)
Tax liabilities (27,720) (7,393) (2,229) (1,449) (4,379) - (646)(1,536)(34,974) (10,378)
Total liabilities
(85,976) (75,909) (4,591) (5,502) (4,379) - (2,415) (2,927) (97,361) (84,338)
Property, plant and equipment
expenditure
27,830 13,821 2 56
- -
616 14 28,448 13,901
Investment property
expenditure
- - - - 1,017 386 - - 1,017 386
Residential land development
expenditure
- - 22,458 10,135
- -
- - 22,458 10,135
Purchase of land for
residential land development
- - 23,720 20,407 - - - - 23,720 20,407
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 10
11..SSeeggmme enntt rreeppoorrttiinngg
OOppeerraattiinngg sseeggmmeennttss
The Group consisted of the following main operating segments:
•Hotel operations, comprising income from the ownership and management of hotels.
•Residential land development, comprising the development and sale of residential land sections.
•Residential and commercial property development, comprising the development and sale of residential
apartments.
•Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
(a)Operating Segments
HHootteell OOp peerraattiioonnss
RReessiiddeennttiiaall LLaanndd
DDeevveellooppmmeenntt
IInnvveessttmme enntt
PPrrooppeerrttyy
RReessiiddeennttiiaall PPrrooppeerrttyy
DDeevveellooppmmeenntt GGrroouupp
Dollars in thousands
22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233
External revenue109,486 101,072 46,313 28,284 2,746 2,494 17,611 13,809 176,184 145,659
Earnings before interest,
depreciation
& amortisation
17,356 19,299 22,255 13,697 2,731 2,473 8,765 5,371 51,107 40,840
Finance income 2,180 2,411 2,381 3,514 - - 786 1,775 5,347 7,700
Finance expense (2,224) (2,429) (9)(12)- - (2)(3)(2,235) (2,444)
Depreciation and amortisation
(7,183) (6,900) (8)(7)(550)(933)(10)(6)(7,751) (7,846)
Depreciation of Right-of-use
assets
(846)(806)(39)(34)- - (10)(10)(895)(850)
Share of profit of Joint venture
1,508 73- - - - - - 1,508 73
Profit before income tax 10,791 11,648 24,580 17,158 2,181 1,540 9,529 7,127 47,081 37,473
Income tax expense
(24,547) (3,179) (6,852) (4,805) (4,528) (431) (2,366) (2,141) (38,293) (10,556)
Profit after income tax (13,756) 8,469 17,728 12,353 (2,347) 1,109 7,163 4,986 8,788 26,917
Cash & cash equivalents and
short term bank deposits
2,599 16,982 33,287 52,159 - - 5,411 6,190 41,297 75,331
Investment in associates - - 2 2 - - - - 2 2
Investment in joint venture
46,555 43,943 - - - - - - 46,555 43,943
Other segment assets
364,960 339,925 259,032 231,231 36,301 35,834 14,119 20,524 674,412 627,514
Total assets 414,114 400,850 292,321 283,392 36,301 35,834 19,530 26,714 762,266 746,790
Segment liabilities
(58,256) (68,516) (2,362) (4,053) - - (1,769) (1,391) (62,387) (73,960)
Tax liabilities (27,720) (7,393) (2,229) (1,449) (4,379) - (646)(1,536)(34,974) (10,378)
Total liabilities
(85,976) (75,909) (4,591) (5,502) (4,379) - (2,415) (2,927) (97,361) (84,338)
Property, plant and equipment
expenditure
27,830 13,821 2 56
- -
616 14 28,448 13,901
Investment property
expenditure
- - - - 1,017 386 - - 1,017 386
Residential land development
expenditure
- - 22,458 10,135
- -
- - 22,458 10,135
Purchase of land for
residential land development
- - 23,720 20,407 - - - - 23,720 20,407
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024 | FIN 30
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 30
2244..IInnvveessttmmeenntt iinn jjooiinntt vveennttuurree –– ccoonnttiinnuueedd
PPrriinncciippaall AAccttiivviittyy
PPrriinncciippaall
PPllaaccee ooff
BBuussiinneessss
GGr roouupp
HHoollddiinngg
%%
22002233
MMa ar rqquueeee HHootteell HHo ollddiinnggss PPttyy LLi immi itteedd Investment Holding Australia 50.00
100% owned subsidiaries of Marquee
Hotel Holdings Pty Limited are:
Marquee Brisbane Hotel Pty Limited Trustee Company of Marquee Brisbane Hotel Trust Australia
Marquee Brisbane Hotel Trust Lessee of leasehold assets expiring 30 December 2057 Australia
Marquee Brisbane Hotel 2 Pty Limited Trustee Company ofMarquee Brisbane Hotel 2 Trust Australia
Marquee Brisbane Hotel 2 Trust Lessee of leasehold assets expiring 24 May 2120 Australia
Marquee Hotel Operations Pty Limited Trustee Company of Marquee Hotel Operations Pty Trust Australia
Marquee Hotel Operations Pty Trust Hotel Assets and Operations Australia
Summary financial information for joint venture, not adjusted for the percentage ownership held by the Group:
GGr roouupp GGr roouupp
Dollars In Thousands 22002244 22002233
Non-current assets 203,903 202,650
Current assets 26,112 27,477
Non-current liabilities (1,382) -
Current liabilities (135,525) (142,241)
Net assets (100%) 93,108 87,886
Group’s share (50%) 46,554 43,943
The current assets balance of the joint venture includes a cash and cash equivalents balance of $21.74m (2023:$26.12m). The
current liabilities balance of the joint venture includes balances owing to shareholders of $125.87m (2023:$124.5m).
GGr roouupp GGr roouupp
22002244 22002233
Revenue 53,470 2,142
Operating profit/(loss) 6,074 (175)
Interest (expense)/income (1,756) 384
Income tax expense (1,301) (63)
Profit for the year (100%) 3,017 146
Group’s share of profit (50%) 1,508 73
Movements in the carrying value of joint venture:
GGr roouupp GGr roouupp
22002244 22002233
Balance at 1 January
43,943 -
Purchase of investment
- 44,048
Share of profit for the year
1,508 73
Foreign exchange adjustments
1,103 (178)
Balance at 31 December
46,554 43,943
2255..NNoonn--ccoonnttrroolllliinngg iinntteerreessttss ((““NNCCII””))
The following subsidiary has material NCI.
Principal Activity
Principal
Place of
Business
Holding %
2024
Holding %
2023
CDL Investments New Zealand Limited “CDI”
Property Investment and
Development NZ 34.69 34.46
The following is the summarised financial information for CDL Investments New Zealand Limited and subsidiary. The information is
before intercompany eliminations with other companies in the Group.
MMiilllleennnni iuumm && CCooppt thhoor rnnee HHo ot teel lss NNeeww ZZeeaal laanndd LLi immiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 10
11..SSeeggmme enntt rreeppoorrttiinngg
OOppeerraattiinngg sseeggmmeennttss
The Group consisted of the following main operating segments:
•Hotel operations, comprising income from the ownership and management of hotels.
•Residential land development, comprising the development and sale of residential land sections.
•Residential and commercial property development, comprising the development and sale of residential
apartments.
•Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
(a)Operating Segments
HHootteell OOp peerraattiioonnss
RReessiiddeennttiiaall LLaanndd
DDeevveellooppmmeenntt
IInnvveessttmme enntt
PPrrooppeerrttyy
RReessiiddeennttiiaall PPrrooppeerrttyy
DDeevveellooppmmeenntt GGrroouupp
Dollars in thousands
22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233
External revenue109,486 101,072 46,313 28,284 2,746 2,494 17,611 13,809 176,184 145,659
Earnings before interest,
depreciation
& amortisation
17,356 19,299 22,255 13,697 2,731 2,473 8,765 5,371 51,107 40,840
Finance income 2,180 2,411 2,381 3,514 - - 786 1,775 5,347 7,700
Finance expense (2,224) (2,429) (9)(12)- - (2)(3)(2,235) (2,444)
Depreciation and amortisation
(7,183) (6,900) (8)(7)(550)(933)(10)(6)(7,751) (7,846)
Depreciation of Right-of-use
assets
(846)(806)(39)(34)- - (10)(10)(895)(850)
Share of profit of Joint venture
1,508 73- - - - - - 1,508 73
Profit before income tax 10,791 11,648 24,580 17,158 2,181 1,540 9,529 7,127 47,081 37,473
Income tax expense
(24,547) (3,179) (6,852) (4,805) (4,528) (431) (2,366) (2,141) (38,293) (10,556)
Profit after income tax (13,756) 8,469 17,728 12,353 (2,347) 1,109 7,163 4,986 8,788 26,917
Cash & cash equivalents and
short term bank deposits
2,599 16,982 33,287 52,159 - - 5,411 6,190 41,297 75,331
Investment in associates - - 2 2 - - - - 2 2
Investment in joint venture
46,555 43,943 - - - - - - 46,555 43,943
Other segment assets
364,960 339,925 259,032 231,231 36,301 35,834 14,119 20,524 674,412 627,514
Total assets 414,114 400,850 292,321 283,392 36,301 35,834 19,530 26,714 762,266 746,790
Segment liabilities
(58,256) (68,516) (2,362) (4,053) - - (1,769) (1,391) (62,387) (73,960)
Tax liabilities (27,720) (7,393) (2,229) (1,449) (4,379) - (646)(1,536)(34,974) (10,378)
Total liabilities
(85,976) (75,909) (4,591) (5,502) (4,379) - (2,415) (2,927) (97,361) (84,338)
Property, plant and equipment
expenditure
27,830 13,821 2 56
- -
616 14 28,448 13,901
Investment property
expenditure
- - - - 1,017 386 - - 1,017 386
Residential land development
expenditure
- - 22,458 10,135
- -
- - 22,458 10,135
Purchase of land for
residential land development
- - 23,720 20,407 - - - - 23,720 20,407
MMiilllleennnniiuumm && CCoopptthhoorrnnee HHootteellss NNeeww ZZeeaallaanndd LLiimmiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 10
11..SSeeggmme enntt rreeppoorrttiinngg
OOppeerraattiinngg sseeggmmeennttss
The Group consisted of the following main operating segments:
•Hotel operations, comprising income from the ownership and management of hotels.
•Residential land development, comprising the development and sale of residential land sections.
•Residential and commercial property development, comprising the development and sale of residential
apartments.
•Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
(a)Operating Segments
HHootteell OOp peerraattiioonnss
RReessiiddeennttiiaall LLaanndd
DDeevveellooppmmeenntt
IInnvveessttmme enntt
PPrrooppeerrttyy
RReessiiddeennttiiaall PPrrooppeerrttyy
DDeevveellooppmmeenntt GGrroouupp
Dollars in thousands
22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233
External revenue109,486 101,072 46,313 28,284 2,746 2,494 17,611 13,809 176,184 145,659
Earnings before interest,
depreciation
& amortisation
17,356 19,299 22,255 13,697 2,731 2,473 8,765 5,371 51,107 40,840
Finance income 2,180 2,411 2,381 3,514 - - 786 1,775 5,347 7,700
Finance expense (2,224) (2,429) (9)(12)- - (2)(3)(2,235) (2,444)
Depreciation and amortisation
(7,183) (6,900) (8)(7)(550)(933)(10)(6)(7,751) (7,846)
Depreciation of Right-of-use
assets
(846)(806)(39)(34)- - (10)(10)(895)(850)
Share of profit of Joint venture
1,508 73- - - - - - 1,508 73
Profit before income tax 10,791 11,648 24,580 17,158 2,181 1,540 9,529 7,127 47,081 37,473
Income tax expense
(24,547) (3,179) (6,852) (4,805) (4,528) (431) (2,366) (2,141) (38,293) (10,556)
Profit after income tax (13,756) 8,469 17,728 12,353 (2,347) 1,109 7,163 4,986 8,788 26,917
Cash & cash equivalents and
short term bank deposits
2,599 16,982 33,287 52,159 - - 5,411 6,190 41,297 75,331
Investment in associates - - 2 2 - - - - 2 2
Investment in joint venture
46,555 43,943 - - - - - - 46,555 43,943
Other segment assets
364,960 339,925 259,032 231,231 36,301 35,834 14,119 20,524 674,412 627,514
Total assets 414,114 400,850 292,321 283,392 36,301 35,834 19,530 26,714 762,266 746,790
Segment liabilities
(58,256) (68,516) (2,362) (4,053) - - (1,769) (1,391) (62,387) (73,960)
Tax liabilities (27,720) (7,393) (2,229) (1,449) (4,379) - (646)(1,536)(34,974) (10,378)
Total liabilities
(85,976) (75,909) (4,591) (5,502) (4,379) - (2,415) (2,927) (97,361) (84,338)
Property, plant and equipment
expenditure
27,830 13,821 2 56
- -
616 14 28,448 13,901
Investment property
expenditure
- - - - 1,017 386 - - 1,017 386
Residential land development
expenditure
- - 22,458 10,135
- -
- - 22,458 10,135
Purchase of land for
residential land development
- - 23,720 20,407 - - - - 23,720 20,407
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
Mil lennium & Copthorne Hotels New Z ealand Li mited
Notes to the Consolidated Financial Statements for the ye ar ended 31 Dece mber 20 24
The a ccompanyin g n ote s fo rm p art of, and s hould be read in conjunctio n with, t hese financial s ta tements .
FIN 31
25.Non-controlling interests (“NCI”) - continued
CDI Group
Dollars I n T housands
2024 2023
Revenue 49,059 30,779
Profit after t ax 15,381 13,463
Profit attributable to NCI 5,336 4,639
Ot her c omprehensive income - -
Total comprehensive income 15,381 13,463
Ot her c omprehensive income attributable to N CI
5,336 4,639
Current assets
70,172 80,244
Non-current assets 258,450 238,984
Current liabilit ies (4,593) (5,162)
Non-current l iabilities (4,377) (341)
Net assets 319,652 313,725
Net assets attributable to NCI 110,887 108,110
CDI Group
Dollars I n T housands
2024 2023
Cash outflow f rom operating activities (8,129) (10,309)
Cash inflow/(outfl ow) f rom investing acti vities 48,497 (10,325)
Cash outflow f rom financing activities (9,724) (8,874)
Net increase/(decrease) in c ash a nd cash e quivalents 30,644 (29,508)
Dividends paid to NCI during the year 3,507 3,437
26.Subsequent events
The acquisition of the Mayfair Hotel Christchurch was completed on 22 January 2025. T his was a freehold acquisition of t he existing
67 room hotel which was originally opened mid-2022 and located at 155 Victoria Street, Christchurch for $31.9m. Refer also the NZX
announcement made 22 January 2025.
Post balance date, the purchase of 6.5 hectares of land for $13.3 million in Hamilton was settled during January 2025. The settlement
will be recognised as an in crease i n la nd classified as development p roperty in 2025.
On 10 February 2025, Millennium & Copthorne
Hotels New Zealand Limited (MCK) received a takeover offer from CDL Hotels
Holdings New Z ealand Limited (CDLHH NZ) f or $2.25 per share f or all shares not already held by CDLHH NZ, which c urrently holds
75.8% of MCK’s shares. The MCK Independent Directors considered the offer t oo low and inadequate, as it did not reflect the value
of MCK’s a ssets and recovery potential. T hey advised shareholders to t ake no a ction until t he T arget C ompany Statement, in cluding
an independent assessment by Northington Partners Limited, is published on
24 February 2025. The offer is conditional and must
remain open until at le ast 8 May 2 025.
The offer includes a condition preventing MCK from declaring or paying a dividend from 20 January 2025 until the offer is unconditional
or lapses. Despit e MCK's Independent Committee requesting a waiver to allow a final dividend for the 2024 financial year, CDLHH
NZ did not agree. Consequently, MCK will not declare a final dividend for 2024.
MMiilllleennnniiuumm && CCoopptthhoorrnnee HHootteellss NNeeww ZZeeaallaanndd LLiimmiitteedd
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 10
11..SSeeggmme enntt rreeppoorrttiinngg
OOppeerraattiinngg sseeggmmeennttss
The Group consisted of the following main operating segments:
•Hotel operations, comprising income from the ownership and management of hotels.
•Residential land development, comprising the development and sale of residential land sections.
•Residential and commercial property development, comprising the development and sale of residential
apartments.
•Investment property, comprising rental income from the ownership and leasing of retail shops and industrial
warehouses.
The Group has no major customer representing greater than 10% of the Group’s total revenue.
(a)Operating Segments
HHootteell OOp peerraattiioonnss
RReessiiddeennttiiaall LLaanndd
DDeevveellooppmmeenntt
IInnvveessttmme enntt
PPrrooppeerrttyy
RReessiiddeennttiiaall PPrrooppeerrttyy
DDeevveellooppmmeenntt GGrroouupp
Dollars in thousands
22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233 22002244 22002233
External revenue109,486 101,072 46,313 28,284 2,746 2,494 17,611 13,809 176,184 145,659
Earnings before interest,
depreciation
& amortisation
17,356 19,299 22,255 13,697 2,731 2,473 8,765 5,371 51,107 40,840
Finance income 2,180 2,411 2,381 3,514 - - 786 1,775 5,347 7,700
Finance expense (2,224) (2,429) (9)(12)- - (2)(3)(2,235) (2,444)
Depreciation and amortisation
(7,183) (6,900) (8)(7)(550)(933)(10)(6)(7,751) (7,846)
Depreciation of Right-of-use
assets
(846)(806)(39)(34)- - (10)(10)(895)(850)
Share of profit of Joint venture
1,508 73- - - - - - 1,508 73
Profit before income tax 10,791 11,648 24,580 17,158 2,181 1,540 9,529 7,127 47,081 37,473
Income tax expense
(24,547) (3,179) (6,852) (4,805) (4,528) (431) (2,366) (2,141) (38,293) (10,556)
Profit after income tax (13,756) 8,469 17,728 12,353 (2,347) 1,109 7,163 4,986 8,788 26,917
Cash & cash equivalents and
short term bank deposits
2,599 16,982 33,287 52,159 - - 5,411 6,190 41,297 75,331
Investment in associates - - 2 2 - - - - 2 2
Investment in joint venture
46,555 43,943 - - - - - - 46,555 43,943
Other segment assets
364,960 339,925 259,032 231,231 36,301 35,834 14,119 20,524 674,412 627,514
Total assets 414,114 400,850 292,321 283,392 36,301 35,834 19,530 26,714 762,266 746,790
Segment liabilities
(58,256) (68,516) (2,362) (4,053) - - (1,769) (1,391) (62,387) (73,960)
Tax liabilities (27,720) (7,393) (2,229) (1,449) (4,379) - (646)(1,536)(34,974) (10,378)
Total liabilities
(85,976) (75,909) (4,591) (5,502) (4,379) - (2,415) (2,927) (97,361) (84,338)
Property, plant and equipment
expenditure
27,830 13,821 2 56
- -
616 14 28,448 13,901
Investment property
expenditure
- - - - 1,017 386 - - 1,017 386
Residential land development
expenditure
- - 22,458 10,135
- -
- - 22,458 10,135
Purchase of land for
residential land development
- - 23,720 20,407 - - - - 23,720 20,407
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
FIN 31 | MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024
MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED ANNUAL REPORT 2024 | FIN 32
Mil lennium & Copthorne Hotels New Z ealand Li mited
Notes to the Consolidated Financial Statements for the ye ar ended 31 Dece mber 20 24
The a ccompanyin g n ote s fo rm p art of, and s hould be read in conjunctio n with, t hese financial s ta tements .
FIN 31
25.Non-controlling interests (“NCI”) - continued
CDI Group
Dollars I n T housands
2024 2023
Revenue 49,059 30,779
Profit after t ax 15,381 13,463
Profit attributable to NCI 5,336 4,639
Ot her c omprehensive income - -
Total comprehensive income 15,381 13,463
Ot her c omprehensive income attributable to N CI
5,336 4,639
Current assets
70,172 80,244
Non-current assets 258,450 238,984
Current liabilit ies (4,593) (5,162)
Non-current l iabilities (4,377) (341)
Net assets 319,652 313,725
Net assets attributable to NCI 110,887 108,110
CDI Group
Dollars I n T housands
2024 2023
Cash outflow f rom operating activities (8,129) (10,309)
Cash inflow/(outfl ow) f rom investing acti vities 48,497 (10,325)
Cash outflow f rom financing activities (9,724) (8,874)
Net increase/(decrease) in c ash a nd cash e quivalents 30,644 (29,508)
Dividends paid to NCI during the year 3,507 3,437
2
6.Subsequent events
The acquisition of the Mayfair Hotel Christchurch was completed on 22 January 2025. T his was a freehold acquisition of t he existing
67 room hotel which was originally opened mid-2022 and located at 155 Victoria Street, Christchurch for $31.9m. Refer also the NZX
announcement made 22 January 2025.
Post balance date, the purchase of 6.5 hectares of land for $13.3 million in Hamilton was settled during January 2025. The settlement
will be recognised as an in crease i n la nd classified as development p roperty in 2025.
On 10 February 2025, Millennium & Copthorne
Hotels New Zealand Limited (MCK) received a takeover offer from CDL Hotels
Holdings New Z ealand Limited (CDLHH NZ) f or $2.25 per share f or all shares not already held by CDLHH NZ, which c urrently holds
75.8% of MCK’s shares. The MCK Independent Directors considered the offer t oo low and inadequate, as it did not reflect the value
of MCK’s a ssets and recovery potential. T hey advised shareholders to t ake no a ction until t he T arget C ompany Statement, in cluding
an independent assessment by Northington Partners Limited, is published on
24 February 2025. The offer is conditional and must
remain open until at le ast 8 May 2 025.
The offer includes a condition preventing MCK from declaring or paying a dividend from 20 January 2025 until the offer
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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.