MCK FY25 RESULTS FOR THE 12 MONTHS ENDED 31 DECEMBER 2025
Name of issuer
Reporting Period
Previous Reporting Period
Currency
Amount (000s)
Revenue from continuing operations$186,733
Total Revenue$186,733
Net profit/(loss) from continuing operations $20,218
Total net profit/(loss) $20,218
Amount per Quoted Equity Security
Imputed amount per Quoted Equity Security
Record Date
Dividend Payment Date
Prior comparable period
Net tangible assets per Quoted Equity Security$3.46
A brief explanation of any of the figures above
necessary to enable the figures to be understood
Name of person authorised to make this
announcement
Contact person for this announcement
Contact phone number
Contact email address
Date of release through MAP
Tuesday, 24 February 2026
$0.01166667
Friday, 8 May 2026
Friday, 15 May 2026
Current period
$3.58
Refer to Media Release and Investor Presentation
Authority for this announcement
Takeshi Ito – Company Secretary
Takeshi Ito – Company Secretary
+64 21 591 531
takeshi.ito@millenniumhotels.com
$0.03000000
Results for announcement to the market
Millennium & Copthorne Hotels New Zealand Limited
12 months to 31 December 2025
12 months to 31 December 2024
NZD
Percentage change
5.99%
5.99%
632.01%
632.01%
Final Dividend
---
24 February 2026:
MCK FY25 RESULTS FOR THE 12 MONTHS ENDED 31 DECEMBER 2025
Revenue at 5-year high as Hotels momentum continues, balancing property cycle lows
Millennium & Copthorne Hotels New Zealand Limited (the Company, MCK) (NZX: MCK) has announced its
results for the 12 months to 31 December 2025 (FY25), with continued positivity in the Hotels business driving
revenue to a 5-year high, helping to balance out a softer result from property subsidiary, CDL Investments
New Zealand Limited (CDI).
Revenue $186.7m, up 6% yoy, driven by continuing momentum in the Hotels business
Operating profit $30.6m, down 28% yoy, as cyclical property headwinds continue to impact on CDI,
MCK’s 65% owned subsidiary
Profit after tax $24.8m, up 182% yoy (2024 included a $25.8m one off, non-cash deferred tax
adjustment)
Profit after tax of $20.2m attributable to MCK shareholders
Strong balance sheet with cash and short terms deposits of $24.2m. Total Assets increased 5% to
$800.5m
Fair market value of hotel and properties assessed at $1.1b. Net asset backing per share on market
value basis assessed as $5.24 per share
Fully imputed dividend declared of 3 cents per share, payable on 15 May 2026
MCK’s chairman, Colin Sim, said: “This was another set of strong results from our key Hotels business,
validating our execution to date and signalling the transition from the Revive to Thrive phase of our hotels’
strategy. We have continued to grow the value of our portfolio, through both our long-term refurbishment
plan as well as disciplined investment to expand our footprint. The purchase of the Mayfair Hotel in
Christchurch in January 2025 was an important strategic acquisition and, along with the Sofitel Brisbane
Central, has performed above expectations. CDI continues to be impacted by the subdued New Zealand
housing market.”
MCK’s Hotels business continued to make gains in revenue and profit in 2025, with a significant year on year
uplift in results despite a very challenging winter season. Hotel revenue grew by 19.5% yoy to $130.9 m, with
increasing demand from international travellers and an emerging recovery in the corporate and domestic
markets.
The result was underpinned by more rooms becoming available as various refurbishment work was
completed, including key projects at Millennium Hotel Queenstown, Millennium Hotel Rotorua and Copthorne
Hotel & Resort Bay of Islands. Seismic strengthening works will commence at Copthorne Hotel Wellington
Oriental Bay later in 2026.
The purchase of The Mayfair Hotel in Christchurch in January 2025 also provided a boost to MCK’s revenues
and profit for FY25. The Mayfair has shown very positive occupancy throughout the year and is soon to join
the exclusive Leng’s Collection of luxury hotels within the Millennium & Copthorne group.
The Sofitel Brisbane continued the strong and consistent demand pattern seen in the previous year as
Brisbane cements its reputation for sporting and cultural events ahead of the 2027 Rugby World Cup and
2032 Summer Olympic Games. The 50% joint venture provided an after-tax profit contributions of $2.64m.
Sales of the Zenith Apartments in Sydney are continuing, with 16 apartment sales in 2025 boosting Australia
revenues. The six remaining apartments are expected to be sold during 2026 and this will be the last
contribution from this property to MCK’s revenues and profit.
CDL Investments New Zealand Limited (CDI) – MCK’s majority-owned subsidiary – reported a challenging year
for the residential property sector, with market confidence remaining constrained despite easing inflation and
mortgage interest rates. CDI has stated that they are cautiously optimistic and anticipate that any recovery in
residential demand in New Zealand would be gradual and influenced by the broader economic environment.
CDI has signalled that its focus would be on disciplined capital management and ensuring they are well
positioned to respond to a more confident market when more positive conditions return. CDI has declared a
fully imputed dividend of 1 cent per share for FY25.
Financial Performance
For the FY25 year, MCK delivered its highest revenue result in five years, with a 6% yoy increase to $186.7m.
Operating profit decreased 28% yoy to $30.6m, as a result of the lower contribution being made from CDI,
offset in part by increased Hotel revenue and a disciplined focus on cost management.
Profit before tax was down 30% yoy to $33.0m. Profit after tax attributable to MCK shareholders was $20.2m
(2024: $2.8m). The 2024 figure included a $25.8m one off, non-cash deferred tax adjustment.
The company continues to maintain a strong balance sheet. MCK’s cash position as at 31 December 2025 was
$24.2m (2024: $41.3m). Bank debt was $20m (2024: $3m) at year end, reflecting drawdowns to settle the
Mayfair Hotel and to fund refurbishment and other property projects. Total book value of assets increased to
$800.5m (2024: $762.3m), with the fair market value of hotel and properties assessed at $1.1b as at 31
December 2025, implying a net market asset value of $5.24 per share. An impairment loss relating to
Copthorne Hotel Palmerston North of $3.8 million was recognised during the year. There was no impairment
loss recognised in respect of Copthorne Hotel Wellington Oriental Bay.
MCK has declared a fully imputed dividend of 3 cents per share payable on 15 May 2026.
2026 Outlook
MCK’s Hotels business is expected to continue its current upward trajectory, supported by positive demand
trends and with inventory at key properties back to almost 100% availability following the completion of
refurbishment works.
MCK’s Managing Director, Stuart Harrison, noted the positive performance from the Hotels business at the
start of the year.
“2026 has started strongly and if the current demand patterns continue into the year, this should be reflected
in improved metrics at half year. Our customers are enthused and wanting to stay at our hotels across the
country and we are looking at building on this positivity.
“We are continually looking to create new opportunities and experiences for visitors and have seen the
benefits provided by large concerts and events which have attracted a significant number of overseas
participants into New Zealand. These have helped stimulate regional economies and we believe that there is
now more enthusiasm to bring more of these events to New Zealand with the assistance of central and local
government support”, he said.
Chairman Colin Sim said: “The long-term drivers for our business are positive but our optimism is tempered
with some caution. On the positive side, international visitor numbers to New Zealand continue to rise and
we have seen a strengthening of both the domestic and corporate markets. MCK has the core product and
people in place and we are focused on securing business across all market segments and regions as the
tourism market rebounds.
“That said, as we signalled in our 2025 interim results announcements, our reasons for remaining cautious still
come from continued uncertainty at home and abroad. The property market recovery in New Zealand is now
likely to be more gradual than anticipated and domestic inflationary pressures also remain slightly higher than
expected. Globally, geopolitical risks persist and continue to affect global tourism patterns. MCK is not
immune from these factors.
“We are confident that 2026 will be a profitable one for MCK, but the extent of our success may be affected
by some factors which we are unable to control”.
ENDS
Issued by Millennium & Copthorne Hotels New Zealand Limited
For investor relations enquiries, please contact:
Stuart Harrison, Managing Director
M: +64 21 869 216
E: enquiries@mckhotels.co.nz
About Millennium & Copthorne Hotels New Zealand Limited
Millennium & Copthorne Hotels New Zealand Limited (NZX:MCK) is the only NZSX listed hotel owner-operator with 19 owned/leased/franchised
hotels based in New Zealand under the Millennium, Grand Millennium, M Social, Copthorne and Kingsgate brands. As part of the Millennium &
Copthorne Hotels group, we are proud to be part of a global network of over 120 properties in gateway cities across Asia, Europe, North America,
the Middle East and New Zealand. MCK also has property interests in Australia through its Kingsgate Group subsidiaries including a 50% ownership
interest in the Sofitel Hotel Brisbane Central through a joint venture. MCK is the majority shareholder in land developer CDL Investments New
Zealand Limited (NZX:CDI).
For more information, visit our website: www.millenniumhotels.co.nz
---
FY25 RESULTS PRESENTATION
FOR THE YEAR ENDED 31 DECEMBER 2025
Revenue at 5-year high as Hotels momentum continues, balancing
property cycle lows
Hotel improvement programme adding value to existing assets
Strategic execution proving the resilience of the business,
and working through the Revive to Thrive strategy
Positioned to capitalise as tourism and property sectors rebound
2
In 2025 MCK celebrated its 40th year of continuous operations in New Zealand
MHR celebrated its 30th Pearl Anniversary—a testament to decades of
excellence, growth, and unwavering commitment to hospitality
GROUP PROFIT
BEFORE TAX
NZ HOTEL
REVENUE
TOTAL
REVENUE
$
33.0m
-29.8%
$
130.9m
+19.5%
$
186.7m
+6.0%
NTA PER SHAREPROPERTY
ASSETS
EARNINGS PER
SHARE
BOOK VALUE
$
3.58
MARKET VALUE
$5.24
3
BOOK VALUE
$
752.2m
MARKET VALUE
2
$
1.1b
12.78
cents
-25.6%
1
•Hotels: continuing positive growth
Strong performance from
recent acquisition of The
Mayfair;
Release of refurbished rooms
helps meet demand
•Residential land development:
Subdued property market and sales
mix negatively impacts revenue and
margin
•Use of capital: continuing to invest
in hotel property refurbishments
and network expansion
1. Prior year adjusted for one-off deferred tax adjustment, made as a result ofgovernment legislation change
2. Unaudited, assessed market valuation based on analysis by independent property experts as at31 December 2025.Includes 100% of: NZ hotels, Zenith Apartments and CDI property assets; and 50% of:
Sofitel Brisbane Hotel
3. Unaudited, adjusted for MCK proportion of shareholding being 100% NZ hotels and Zenith Apartments, 65% of CDI and 50% SofitelBrisbane and including an allowance for tax on the revaluation of property
assets
FY25 Performance Snapshot
Uplift in results; material growth in hotel revenue over past two years
3
Strategic execution
•Strong results validating execution to date and signalling
a transition from the Revive to Thrive phase of strategy
•Robust balance sheet providing optionality, ready to
deploy
Key Events
•Settled acquisition of The Mayfair Hotel, Christchurch in
January, 2025
•Hotel room refurbishments completed at Millennium
Hotels Queenstown and Rotorua
•Reinstated hotel rooms at Copthorne Hotel & Resort Bay
of Islands and Queenstown Lakefront
•Partial closure of Copthorne Hotel Wellington for seismic
strengthening work
Valuable asset portfolio
•19
*
NZ hotel properties in attractive locations
•Fair value of NZ hotel properties of $575m
•Majority shareholding in CDI, 50% ownership of Sofitel
Brisbane, owner of 6 apartments in Zenith Residences
(Sydney)
Long term drivers are positive
•New Zealand is a top tourist destination and the second
highest export earner for NZ
•Domestic and international travel spend continue to
increase as economic headwinds ease
*inclManaged and Franchise properties
FY25 Summary Messages
Strong execution on Revive delivering results,
supported by high value portfolio with increased room availability.
4
Millennium Hotel Queenstown
Business Performance
5
New Zealand Hotel Brands:
•Lifestyle – M Social & The Mayfair
•Premium - Millennium Collection
•Comfortable - Copthorne incl Kingsgate
CDL Investments New Zealand:
•Land developments
•Investment properties
•Projects in progress across New Zealand
Australia:
•Zenith Residences – Exit Strategy
•JV - Sofitel Brisbane Central
Our Business
•Own and operate hotels across New Zealand;
building beachhead in Australia
•Experienced executive team
•~1,200 team members across New Zealand and
Australia
•Own 65% shareholding in CDL Investments NZ –
residential and commercial land development
•NZX-listed. Board with independent Chairman, as
well as representation from majority shareholder
•MCK is 84% owned by CDL Hotels Holdings, a 100%
subsidiary of Hong Leong Group
6
FY2025 Hotel Rooms Revenue increased by 19.5%
compared to the same period last year
Q1 2025: Positive flow of international visitors and domestic
market along with increased room capacity & inclusion of The
Mayfair.
Q2 & Q3 2025: Steady trading in challenging conditions as
increased hotel inventory impact.
Q4 2025: Positive flow with: hotel room refurbishments
completing; international visitor arrivals; and domestic market
uplift from events (notable in Auckland).
Average hotel occupancy up 3% on prior year to 70%
Q1
2024
Q2
2024
Q3
2024
Q4
2024
Q1
2025
Q2
2025
Q3
2025
Q4
2025
NZ Hotels Quarterly Revenue
NZ Hotel Business
Focus on making sure hotel properties deliver your best time and place
- right here, right now
7
Jan-20
Apr-20
Jul-20
Oct-20
Jan-21
Apr-21
Jul-21
Oct-21
Jan-22
Apr-22
Jul-22
Oct-22
Jan-23
Apr-23
Jul-23
Oct-23
Jan-24
Apr-24
Jul-24
Oct-24
Jan-25
Apr-25
Jul-25
Oct-25
Covid
•Tourism continues to recover and demand from
overseas continues to improve along with increased
flights
•International visitor arrivals to New Zealand totalled
3.5m in the December 2025 year (up 6%) – being the
first year since March 2020 to exceed 3.5m
•Main reason for travel – over 50% stated holiday and
vacation
•Domestic consumer and corporate travel spend
remains subdued
•Events attracting international visitors to New
Zealand assists in the recovery
•An ongoing but incomplete inbound recovery.
Correlation between increasing international visitor
numbers and MCK occupancy
New Zealand’s Tourism Market
Short term impact of capacity, on track for recovery.
MCK well positioned for tourism uplift with increased room capacity following refurbishments
8
Continued Investment Into Hotel Network
Expansion and improvement; Full benefits of refurbishment programme yet to be realised
FILLING IN THE GAPS IN OUR NETWORK
$31.9mSettled January 2025, adding 67 rooms & suitesThe Mayfair Hotel, Christchurch
Timing of completionSizeKey projects completed
Q1 FY25
Refurbishment of 48 Seaspray rooms and
Reinstatement of 40 Garden Wing rooms
Copthorne Hotel & Resort Bay Of
Islands
Q4 FY25
Refurbishment of 127 rooms completed and 2
suites nearing completion
Millennium Hotel Rotorua
Q4 FY25
Refurbishment of 11 suites completed and 4
suites nearing completion
Millennium Hotel Queenstown
Q4 FY25Soft refurbishment of Block 2 comprising 52
rooms to add them back into inventory
Copthorne Hotel & Resort Queenstown
Lakefront
Q4 FY25
Recladding and other works including HVAC and
re-painting to all tower rooms.
Copthorne Hotel Palmerston North
Millennium Hotel Queenstown - SuiteMillennium Hotel Rotorua – DeluxeCopthorne Hotel Palmerston North
Sofitel Brisbane
•Consistent demand across all major segments
•Uplift from special events (British & Irish Lions rugby tour,
State of Origin rugby league, Ashes cricket and in-house
conferencing)
•Increasing contribution to group profitability expected to
continue
Zenith Apartments (Sydney)
•Sale of 16 apartment (FY2024: 9)
•Transfer of units from rental pool to vacant to meet market
demand as part of sell-down
•Reducing stream of income with 6 remaining apartments
FY24
$m
FY25
$m
Sofitel Brisbane Joint Venture
8.6%53.4758.08Hotel Revenue 100%
49.4%6.079.07Hotel Operating profit
3.025.28Profit after tax for the year
75.0%1.512.64MCK’s share of: Profit after tax
50%
1.761.01Net finance expense
FY24FY25Zenith Apartments – 100%
916Units sold this year
226Units Available
0.7%$17.6m$17.7mRental & Sales Income
-8.8%$9.5m$8.7mProfit before tax for the year
Australia Operations
Uplift in performance from Sofitel Brisbane, positive progress on apartment
10
•Diverse portfolio of land development
•Earnings resilience from industrial and commercial
property leasing
•Advancing its consented and active developments
•Diverse portfolio across development and
investment
Continually looking to grow the Portfolio
•evolving planning and land use settings at national
and regional levels
•cautiously optimistic, expecting recovery in
residential demand to be gradual
FY24
$m
FY25
$m
-22.4%49.138.1Revenue
-38.5%24.415.0Operating profit
-42.5%26.815.4Profit before tax
251.4275.5Development properties
36.335.5Investment properties
33.313.9Cash and bank deposits
1.0%328.6331.6Total assets
00Bank debt
0.4%319.7321.1Net assets
CDL Investments
Progressing its development programme and positioning the business for the future
11
Copthorne Hotel and Resort Bay of Islands
2025 Financial Results
12
•Uplift in revenue driven by NZ Hotels business with
increased room capacity & inclusion of The Mayfair
•Operating profit reduction due to
•softer residential property market (reduced
number of CDL sections sold at lower margins)
•margin compression at Zenith Apartments
•non-cash impairment of Copthorne Hotel
Palmerston North hotel asset, reflecting
updated independent valuation
•Profit after tax attributable to MCK shareholders
$20.2m (FY24 tax adjusted
*
would be $27.2m)
•Dividend of 3c per share maintained
FY24
$m
FY25
$m
6.0%176.2186.7Revenue
-27.9%42.530.6Operating profit
3.1(0.2)Net finance income
1.52.6Share of profit of joint venture (Sofitel
Brisbane)
-29.8%47.133.0Profit before tax
632.0%2.820.2Profit after tax and NCI
*
(attributable to MCK shareholders)
1.75c12.78cEarnings per share
17.17cEPS excl. one-off deferred tax adjustment
*
3.0c3.0cDividend (per share)
* Prior year impacted by one-off deferred tax adjustment, made as a result of government legislation change
FY25 Financial Results
Resilient hotel performance amid softer property market
13
Highest revenue result in past 5 years
*
•NZ Hotel operations: inclusion of The Mayfair and returning
of rooms post refurbishments
•CDL Investments: Broader economic pressures continued
to influence buying decisions resulting in lower sales
•Australia: Reducing rental income and ongoing sell-down of
Zenith apartments (6 remaining)
0
20
40
60
80
100
120
140
160
180
200
FY21 FY22 FY23 FY24 FY25
Revenue *
HotelRentalProperty sales
* Excludes revenue from Sofitel Brisbane as this is a joint venture and is therefore equity accounted
Sustained 6% revenue uplift to $186.7m
Driven by increasing rooms inventory in Hotel business and ongoing sell-down at Zenith
14
•Total assets grew $38m (including the acquisition of
The Mayfair Hotel for $31.9m) funded by current
year profits and draw down of bank debt
•Development property acquisitions settled by CDL
Investments
•Investment properties are the remaining Zenith
Apartments & CDL Investments Industrial / Retail
Properties
•Positive cash positions as at 31 December, with
$24.2m on a consolidated basis
•Balance Sheet further strengthened as net assets
up $20m to $685m
FY24
$m
FY25
$m
283.4321.7Property, plant and equipment
264.1279.7Development properties
36.335.5Investment properties
46.651.2Investment in JV
63.864.1Loans in JV
41.324.2Cash and bank deposits
5.0%762.3800.5Total assets
3.020.0Bank debt
32.732.3Deferred tax liability
61.663.2Other Liabilities
3.0%664.9685.0Net Assets
3.463.58NTA per share
Resilient Balance Sheet
Provides optionality for further growth
15
16
•Book value $752.2m
•Hotel land and buildings carried at historic
cost including refurbishments less
depreciation
•Investment Properties consist of
commercial warehousing & retail shops –
carried at cost less depreciation
•Development land – carried at cost,
including acquisition, development and
holding costs.
•Property revaluations are not recognised
on Balance Sheet
•Fair market value $1.1billion
1
1. Unaudited, assessed market valuation based on independent
valuations, acquisition cost and management estimates as at31
December 2025. Includes 100% of: NZ hotels, Zenith Apartments and
CDI property assets; and 50% of Sofitel Brisbane Hotel
$523.4m$571.2m$935.1m
Australia
portfolio
NZ
portfolio
Property Portfolio
Actively managing the portfolio with hotel refurbishments, land development and property sales
16
•Surplus land adjacent to hotels - in Rotorua, Palmerston North and Queenstown – being considered
for further development or sale
•Seismic assessments to take place following upcoming changes to criteria and work through any
requirements for seismic strengthening in Wellington, Oriental Bay
•Remediating or replacing critical aged infrastructure at key hotels
•Auckland Downtown Carpark development,adjoining M Social Hotel, progressing through consenting
with consideration required on the impacts and the opportunity available for further development of
the hotel site
•Whangarei land – further developing the feasibility of a hotel development working
through requirements to establish viability to commence construction
•Development worksacross CDI’s key sites, maintaining flexibility across its landholdings, carefully
staged investment, and progressed consent pathways where possible
Strategic opportunities in the property portfolio
Optimising the use of capital across the hotel portfolio and under-utilised land and buildings
17
Kingsgate Hotel Te Anau
2026 Outlook
18
•Global and domestic economic recovery expected to
continue driving travellers and hotel demand –
reinvigorated late-2025 and looking to continue to
build within 2026
•Central and local Government stability and support
needed to promote NZ and attract tourists,
conferences and events
•Variations in activity expected with Government
elections and world-wide tourism events
•Property markets in New Zealand are showing
cautiously optimistic but gradual signs of recovery
2026 Priorities
•Continue to increase the utilisation of rooms
available to sell following refurbishments and rooms
being reinstated
•Continued investment into refurbishment upgrades
and infrastructure
•Grow My Millennium loyalty scheme to drive
bookings
•Identify and assess opportunities for surplus land
•CDI looking to advance a development pipeline that
supports long term value creation
2026 Outlook
Continue progress through Revive
and embrace Thrive strategy
19
Millennium Hotel Rotorua
Appendices
20
19
Hotels in New Zealand
Opportunity to fill in the network
2,300 rooms per night owned and managed
1
Hotel in Australia
*
Beachhead established.
Significant opportunity to build footprint
*50/50 Joint Venture of Brisbane Central Hotel – with Hotel Management Agreement
The Mayfair acquired January 2025
Our Hotel Networks
As at 31 January 2026
21
Residential & commercial land development
4x Commercial Investment properties -
2x Warehouses (NLA 16,402 m2 WALE ~4.1 years )
2x Retail (NLA 3,411 m2 WALE ~4.5 years)
Projects across New Zealand
11x Residential Land Development
1x Commercial Land Development
CDL Investments NZ (NZX: CDI)
65.1% shareholding
Provides MCK with a diversified property portfolio and revenue stream
22
23
Explore New Zealand with Millennium Hotel and Resorts
At Millennium Hotels and Resorts, we believe there are A Thousand Ways of Happiness — and it all starts with
where you stay. Proudly located across New Zealand’s most sought-after destinations, from the urban energy of
gateway cities to scenic lakes, bays, and mountains, our hotels offer the best of both business and leisure.
With trusted global standards and deep local roots, our 19 properties are uniquely equipped to deliver
memorable experiences. We offer everything from refined corporate stays and large-scale conferences to group
tours, romantic escapes, and unforgettable family holidays. Our versatile event spaces include some of the
largest ballrooms in their regions, backed by dedicated on-site teams and cutting-edge facilities.
Every hotel offers easy access, and some locations provide ample car parking, ensuring a smooth and hassle-
free guest experience. And with a range of brands — from smart 3-star solutions to elegant 5-star escapes — we
cater to a wide range of budgets, travel styles, and business needs. Plus, My Millennium members enjoy
exclusive rates, stay benefits, and recognition every time they book direct.
24
LIFESTYLE
25
LIFESTYLE
26
PREMIUM
27
COMFORTABLE
28
29
This announcement has been prepared by Millennium & Copthorne Hotels New Zealand Limited ("M&C Hotels"). The
details in this announcement provide general information only. It is not intended as investment, legal, tax or financial
advice or recommendation to any person and must not be relied on as such. You should obtain independent
professional advice prior to making any decision relating to your investment or financial needs.
All references to $ are to New Zealand dollars unless otherwise indicated. Percentages may be subject to rounding.
This announcement may contain forward-looking statements. Forward-looking statements can include words such as
“expect”, “intend”, “plan”, “believe”, “continue” or similar words in connection with discussions of future operating or
financial performance or conditions. The forward-looking statements are based on management's and directors’
current expectations and assumptions regarding the M&C Hotels business, assets and performance and other future
conditions, circumstances and results. As with any projection or forecast, forward-looking statements are inherently
susceptible to uncertainty and to any changes in circumstances. M&C Hotels actual results may vary materially from
those expressed or implied in the forward-looking statements. M&C Hotels and its directors, employees and/or
shareholders have no liability whatsoever to any person for any loss arising from this announcement or any
information supplied in connection with it. M&C Hotels are under no obligation to update this announcement or the
information contained in it after it has been released. Past performance is no indication of future performance.
Disclaimer
30
---
Millennium & Copthorne Hotels New Zealand Limited
FIN 1
Consolidated Income Statement
For the year ended 31 December 2025
Group
Group
DOLLARS IN THOUSANDS Note 2025 2024
Hotel revenue 130,854 109,486
Rental income 4,390 4,028
Property sales 51,489 62,670
Revenue 186,733 176,184
Cost of sales 3,10 (87,805) (78,328)
Gross profit 98,928 97,856
Administration expenses 2,3 (33,734) (29,795)
Other operating expenses 2,3 (34,569) (25,600)
Operating profit 30,625 42,461
Finance income 4 3,175 5,347
Finance costs 4 (3,393) (2,235)
Net finance income (218) 3,112
Share of profit of joint venture, net of tax 22 2,639 1,508
Profit before income tax 33,046 47,081
Income tax expense 5 (8,250) (38,293)
Profit for the year 24,796 8,788
Attributable to:
Owners of the parent 20,218 2,762
Non-controlling interests 4,578 6,026
Profit for the year 24,796 8,788
Basic and diluted earnings per share (cents) 8 12.78 1.75
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2025
Group
Group
DOLLARS IN THOUSANDS 2025 2024
Profit for the year 24,796 8,788
Other comprehensive income
Items that are or may be reclassified to profit or loss
Foreign exchange translation movements 4,010
2,226
Total comprehensive income for the year 28,806 11,014
Total comprehensive income for the year attributable to:
Owners of the parent 24,228 4,988
Non-controlling interests 4,578 6,026
Total comprehensive income for the year 28,806 11,014
Millennium & Copthorne Hotels New Zealand Limited
FIN 2
Consolidated Statement of Changes in Equity
For the year ended 31 December 2025
Group
Attributable to equity holders of the Group
DOLLARS IN THOUSANDS
Share
Capital
Exchange
Reserve
Retained
Earnings
Treasury
Stock
Total
Non-
controlling
Interests
Total
Equity
Balance at 1 January 2025 383,266 1,246 163,429 (26) 547,915 116,990 664,905
Movement in exchange translation reserve - 4,010 - - 4,010 - 4,010
Total other comprehensive income - 4,010 - - 4,010 - 4,010
Profit for the year - - 20,218 - 20,218 4,578 24,796
Total comprehensive income for the year - 4,010 20,218 - 24,228 4,578 28,806
Transactions with owners, recorded
directly in equity:
Dividends paid to:
Owners of the parent - - (4,747) - (4,747) - (4,747)
Non-controlling interests - - - - - (4,619) (4,619)
Supplementary dividends - - (29) - (29) - (29)
Foreign investment tax credits - - 29 - 29 - 29
Movement in non-controlling interests
without a change in control
- - (150) - (150) 824 674
Balance at 31 December 2025 383,266 5,256 178,750 (26) 567,246 117,773 685,019
Millennium & Copthorne Hotels New Zealand Limited
FIN 3
Consolidated Statement of Changes in Equity
For the year ended 31 December 2024
Group
Attributable to equity holders of the Group
DOLLARS IN THOUSANDS
Share
Capital
Exchange
Reserve
Retained
Earnings
Treasury
Stock
Total
Non-
controlling
Interests
Total
Equity
Balance at 1 January 2024 383,266 (980) 165,656 (26) 547,916 114,536 662,452
Movement in exchange translation reserve - 2,226 - - 2,226 - 2,226
Total other comprehensive income - 2,226 - - 2,226 - 2,226
Profit for the year - - 2,762 - 2,762 6,026 8,788
Total comprehensive income for the year - 2,226 2,762 - 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 - - (94) - (94) - (94)
Foreign investment tax credits - - 94 - 94 - 94
Movement in non-controlling interests
without a change in control
- - (242) - (242) 965 723
Balance at 31 December 2024 383,266 1,246 163,429 (26) 547,915 116,990 664,905
Millennium & Copthorne Hotels New Zealand Limited
FIN 4
Consolidated Statement of Financial Position
As at 31 December 2025
Group
Group
DOLLARS IN THOUSANDS
Note
2025
2024
SHAREHOLDERS’ EQUITY
Issued capital 7 383,240 383,240
Reserves 184,006 164,675
Equity attributable to owners of the parent 567,246 547,915
Non-controlling interests 117,773 116,990
TOTAL EQUITY 685,019 664,905
Represented by:
NON CURRENT ASSETS
Property, plant and equipment 9 321,711 283,430
Development properties 10 257,854 228,634
Investment properties 11 35,525 36,301
Investment in associates 2 2
Investment in joint venture 22 51,209 46,554
Total non-current assets 666,301 594,921
CURRENT ASSETS
Cash and cash equivalents 12 20,361 39,726
Short term bank deposits 3,872 1,571
Trade and other receivables 13 22,212 23,497
Advances to related parties 20 64,821 65,326
Inventories 1,045 1,771
Development properties 10 21,851 35,454
Total current assets 134,162 167,345
Total assets 800,463 762,266
NON CURRENT LIABILITIES
Lease liability 21 26,483 26,726
Deferred tax 15 32,331 32,718
Interest-bearing loans and borrowings 14, 26 20,000 3,000
Total non-current liabilities 78,814 62,444
CURRENT LIABILITIES
Trade and other payables 16 33,502 30,524
Trade payables due to related parties 20 789 1,767
Lease liability 21 444 370
Income tax payable 1,895 2,256
Total current liabilities 36,630 34,917
Total liabilities 115,444 97,361
NET ASSETS 685,019 664,905
For and on behalf of the board
LS PRESTON, DIRECTOR, SNB HARRISON, MANAGING DIRECTOR,
24 February 2026 24 February 2026
Millennium & Copthorne Hotels New Zealand Limited
FIN 5
Consolidated Statement of Cash Flows
For the year ended 31 December 2025
Group Group
DOLLARS IN THOUSANDS Note
2025
2024
CASH FLOWS FROM OPERATING ACTIVITIES
Cash was provided from:
Receipts from customers 188,015 172,358
Interest received 1,882 5,196
Cash was applied to:
Payments to suppliers and employees
(138,790) (126,244)
Purchases of development land 1 (14,811) (23,720)
Interest paid (1,422) (175)
Income tax paid (9,136) (13,738)
Net cash inflow from operating activities 25,738 13,677
CASH FLOWS FROM INVESTING ACTIVITIES
Cash was (applied to)/provided from:
Proceeds from the sale of property, plant and equipment 40 30
Purchases of property, plant and equipment 9 (52,252) (28,448)
Purchases of investment property 11 (535) (1,017)
Repayment from joint venture 20 2,301 -
Divestments in short term bank deposits (2,301) 62,504
Net cash (outflow)/inflow from investing activities (52,747) 33,069
CASH FLOWS FROM FINANCING ACTIVITIES
Cash was (applied to)/provided from:
Drawdown/(Repayment) of borrowings 14 17,000 (8,968)
Lease payments 21(c) (2,302) (2,174)
Dividends paid to shareholders of Millennium & Copthorne Hotels
New Zealand Ltd 7 (4,747) (4,747)
Dividends paid to non-controlling shareholders (4,619) (4,537)
Net cash inflow/(outflow) from financing activities 5,332 (20,426)
Net increase/(decrease) in cash and cash equivalents (21,677) 26,320
Add opening cash and cash equivalents 39,726 11,256
Exchange rate adjustment 2,312 2,150
Closing cash and cash equivalents 12 20,361 39,726
Millennium & Copthorne Hotels New Zealand Limited
FIN 6
Consolidated Statement of Cash Flows – continued
For the year ended 31 December 2025
Group Group
DOLLARS IN THOUSANDS Note 2025
2024
RECONCILIATION OF NET PROFIT FOR THE YEAR TO CASH FLOWS
FROM OPERATING ACTIVITIES
Profit for the year
24,796 8,788
Adjusted for non-cash items:
Share of profit from joint venture
(2,639) (1,508)
Loss/(Gain) on sale of property, plant and equipment
2
30 (1)
Depreciation of property, plant and equipment and investment property
9, 11
9,656 7,751
Depreciation of Right-Of-Use assets
9
901 895
Impairment loss of property, plant and equipment
9
3,789 -
Unrealised foreign exchange losses
(1,208) (659)
Interest expense
3,304 2,017
Income tax expense
5
8,250 38,293
46,879 55,576
Adjustments for movements in working capital:
Decrease/ (Increase) in trade & other receivables
1,285 (3,106)
Decrease/ (Increase) in inventories
726 (131)
(Increase) in development properties
(15,421) (19,618)
(Decrease)/ Increase in trade & other payables
2,975 (1,770)
(Decrease) in related parties
(148) (3,361)
Cash generated from operations
36,296 27,589
Interest paid
(1,422) (175)
Income tax paid
(9,136) (13,738)
Cash inflows from operating activities
25,738 13,677
Reconciliation of movement of liabilities to cash flows arising from
financing activities
External borrowings as at 1 January
3,000 11,968
Proceeds from borrowings
17,000
3,000
Repayment of term loans
- (11,968)
Financing cash flows
17,000 (8,968)
External borrowings as at 31 December
20,000 3,000
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2025
FIN 7
Significant accounting policies
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 2025 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.
(a) Statement of compliance
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 2026.
(b) Basis of preparation
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 except where IFRS requiring fair value to be
used 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 judgments 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.
(c) New standard and interpretations issued but not yet adopted
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.
A number of amended standards are effective for annual periods beginning after 1 January 2026 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 currently finalising its assessment of the financial reporting impacts arising from these forthcoming changes, including
the significant new presentation and disclosure requirements introduced by NZ IFRS 18 Presentation and Disclosure in Financial
Statements, which becomes effective for periods beginning on or after 1 January 2027. These standards are not expected to have
a material financial impact on the Group; however, they may result in changes to the presentation and disclosures within the
consolidated financial statements as the Group applies the revised requirements.
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
(d) Foreign currency
Foreign currency transactions
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.
(e) Insurance proceeds
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.
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2025
FIN 8
Significant accounting policies - continued
(f) Revenue
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.
(g) Pillar 2
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
detailed discussion.
(h) Significant judgements and estimates
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. Certain critical accounting judgements in applying the
Group’s accounting policies are described below.
Development property
The Group is 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 determined by an independent registered valuer exceeds the carrying value of development properties.
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 or is due 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.
Investment property
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 exceeds the carrying value of investment properties (see
Note 9). In determining the recoverable amount, the valuer adopted primarily the income capitalisation approach with discounted
cash flow and depreciated replacement cost approaches used to corroborate. The income capitalisation approach assessed
market rent for each asset is capitalised in perpetuity from the valuation date at an appropriate capitalisation rate. 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.
Property, plant, and equipment
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.
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2025
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. Lease
22. Investment in joint venture
23. Non-controlling interests (“NCI”)
24. Subsequent events
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2025
FIN 10
1. Segment reporting
Operating segments
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
Hotel Operations
Residential Land
Development Investment Property
Residential Property
Development Group
Dollars in thousands
2025 2024 2025 2024 2025 2024 2025 2024 2025 2024
External revenue
130,854 109,486 34,989 46,313 3,147 2,746 17,743 17,611 186,733 176,184
Earnings before interest, tax,
depreciation & amortisation 22,111 17,356 12,493 22,255 3,140 2,731 7,229 8,765 44,973 51,107
Finance income 1,281 2,180 407 2,381 - - 1,487 786 3,175 5,347
Finance expense
(3,386) (2,224) (8) (9) - - (1) (2) (3,395) (2,235)
Depreciation and amortisation
(9,076) (7,183) (7) (8) (554) (550) (17) (10) (9,654) (7,751)
Depreciation of Right-of-use
assets
(856) (846) (37) (39) - - (10) (10) (903) (895)
Impairment loss of PP&E
(3,789) - - - - - - - (3,789) -
Share of profit of Joint venture 2,639 1,508 - - - - - - 2,639 1,508
Profit before income tax
8,924 10,791 12,848 24,580 2,586 2,181 8,688 9,529 33,046 47,081
Income tax expense (1,588) (24,547) (3,644) (6,852) (724) (4,528) (2,294) (2,366) (8,250) (38,293)
Profit after income tax 7,336 (13,756) 9,204 17,728 1,862 (2,347) 6,394 7,163 24,796 8,788
Cash & cash equivalents and
short term bank deposits 3,808 2,599 13,924 33,287 - - 6,502 5,411 24,234 41,297
Investment in associates
- - 2 2 - - - - 2 2
Investment in joint venture
51,209 46,555 - - - - - - 51,209 46,555
Other segment assets 400,543 364,960 282,174 259,032 35,525 36,301 6,776 14,119 725,018 674,412
Total assets
455,560 414,114 296,100 292,321 35,525 36,301 13,278 19,530 800,463 762,266
Segment liabilities (74,525) (58,256) (5,068) (2,362) - - (1,626) (1,769) (81,219) (62,387)
Tax liabilities (26,312) (27,720) (884) (2,229) (4,495) (4,379) (2,534) (646) (34,225) (34,974)
Total liabilities
(100,837) (85,976) (5,952) (4,591) (4,495) (4,379) (4,160) (2,415) (115,444) (97,361)
Property, plant and equipment
expenditure
52,226 27,830 25 2
- -
1 616 52,252 28,448
Investment property
expenditure
- - - - 535 1,017 - - 535 1,017
Residential land development
expenditure
- - 26,424 22,458
- -
- - 26,424 22,458
Purchase of land for
residential land development
- - 14,811 23,720 - - - - 14,811 23,720
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2025
FIN 11
1. Segment reporting - continued
(b) Geographical areas
The Group operates in the following main geographical areas:
New Zealand.
Australia.
Segment revenue is based on the geographical location of the asset.
New Zealand Australia Group
Dollars In Thousands 2025 2024 2025 2024 2025 2024
External revenue 168,990 158,573 17,743 17,611 186,733 176,184
Earnings before interest, tax, depreciation &
amortisation 39,856 42,360 5,115 8,747 44,971 51,107
Finance income 640 3,381 2,535 1,966 3,175 5,347
Finance expense (3,392) (2,233) (1) (2) (3,393) (2,235)
Depreciation and amortisation (9,638) (7,741) (17) (10) (9,655) (7,751)
Depreciation of Right-Of-Use Assets (892) (885) (10) (10) (902) (895)
Impairment loss of PP&E (3,789) - - - (3,789) -
Share of profit of joint venture - - 2,639 1,508 2,639 1,508
Profit before income tax 22,785 34,882 10,261 12,199 33,046 47,081
Income tax (expense)/credit (5,962) (35,931) (2,288) (2,362) (8,250) (38,293)
Profit after income tax 16,823 (1,049) 7,973 9,837 24,796 8,788
Cash & cash equivalents and short-term
bank deposits 17,732 35,886 6,502 5,411 24,234 41,297
Investment in associates 2 2 - - 2 2
Investment in joint venture - - 51,209 46,555 51,209 46,555
Investment properties 35,525 36,301 - - 35,525 36,301
Segment assets 618,637 560,240 70,856 77,871 689,493 638,111
Total assets 671,896 632,429 128,567 129,837 800,463 762,266
Segment liabilities (79,592) (60,618) (1,626) (1,769) (81,218) (62,387)
Tax liabilities (31,692) (34,328) (2,534) (646) (34,226) (34,974)
Total liabilities (111,284) (94,946) (4,160) (2,415) (115,444) (97,361)
Material additions to segment assets:
Property, plant and equipment expenditure 52,251 27,832 1 616 52,252 28,448
Investment property expenditure 535 1,017 - - 535 1,017
Residential land development expenditure 26,424 24,236 - - 26,424 24,236
Purchase of land for residential land
development 14,811 23,720 - - 14,811 23,720
An operating segment is a distinguishable component of the Group:
that is engaged in business activities from which it earns revenues and incurs expenses;
whose operating results are regularly reviewed by the Group’s chief operating decision maker to make decisions on
resource allocation to the segment and assess its performance; and
for which discrete financial information is available.
Segment information is presented in respect of the 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 that it
is this group which determines the allocation of resources to segments and assesses their performance.
Segment results include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.
Segment capital expenditure is the total cost incurred during the period to acquire segment assets that are expected to be used for
more than one period.
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2025
FIN 12
2. Administration and other operating expenses
Group
Dollars In Thousands Note 2025 2024
Depreciation 9, 11 10,557 8,646
Fees incurred for services received from audit firm
Audit fees 436 475
Out of scope audit fees relating to prior year - 22
Tax Compliance 43 42
Tax Advisory 21 2
Green House Gas reporting assurance 21 119
Agreed upon procedures - 7
Directors’ fees 19 458 392
Rental expenses 774 722
Provision for bad debts
Debts written off 63 25
Movement in doubtful debt provision (62) (112)
Net loss/ (gain) on disposal of property, plant and equipment 30 1
3. Personnel expenses
Group
Dollars In Thousands 2025 2024
Wages and salaries 54,926 49,057
Employee related expenses and benefits 2,049 2,004
Contributions to defined contribution plans 832 697
Increase in liability for long-service leave 82 30
57,889 51,788
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 likelihood that the liability will arise.
4. Net finance income
Recognised in the income statement
Group
Dollars In Thousands 2025 2024
Interest income 1,879 4,476
Foreign exchange gain 1,296 871
Finance income
3,175 5,347
Interest expense (3,304) (2,022)
Foreign exchange loss (89) (212)
Finance costs (3,393) (2,234)
Net finance (costs)/income recognised in the income statement (218) 3,112
Finance income and expenses
Finance income comprises interest 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 interest 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.
Finance expenses comprise interest payable on borrowings calculated using the effective interest rate method, interest costs on lease
liability and foreign exchange losses that are recognised in the income statement.
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2025
FIN 13
4. Net finance income - continued
Recognised in other comprehensive income
Group
Dollars In Thousands 2025 2024
Foreign exchange translation movements 4,010 2,226
Exchange translation of financial statements of foreign operations
The assets and liabilities of foreign operations are translated to New Zealand dollars at foreign exchange rates ruling at the balance
date. The revenues and expenses of foreign operations are translated to New Zealand dollars at rates approximating the foreign
exchange rates ruling at the dates of the transactions. Foreign exchange differences arising on re-translation 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 into the income statement.
5. Income tax expense
Recognised in the income statement
Group
Dollars In Thousands 2025 2024
Current tax expense
Current year 8,973 12,820
Adjustments for prior years (305) (229)
8,668 12,591
Deferred tax expense
Origination and reversal of temporary difference (418) (58)
Changes in treatment of building depreciation - 25,760
(418) 25,702
Total income tax expense in the income statement 8,250 38,293
Reconciliation of tax expense
Group
Dollars In Thousands 2025 2024
Profit before income tax 33,046 47,081
Income tax at the company tax rate of 28% (2024: 28%) 9,253 13,183
Adjusted for:
Non-deductible expenses 90 37
Tax rate difference (if different from 28% above) 206 189
Tax exempt income (994) (647)
Removal of deductibility of tax depreciation for industrial and commercial buildings - 25,760
(Over)/Under - provided in prior years (305) (229)
Total income tax expense
8,250 38,293
Effective tax rate (excluding off-one changes on tax depreciation impact) 25% 27%
Income tax on the profit or loss for the year comprises current and deferred tax. Income tax is recognised in the income statement
except to the extent that it relates to items recognised directly in other comprehensive income or equity, in which case it is recognised
in other comprehensive income or equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the
balance date, and any adjustment to tax payable in respect of previous years.
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.
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2025
FIN 14
5. Income tax expense - continued
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.
Removal of tax depreciation on commercial and industrial buildings
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.
Deferred Tax on Buildings
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 was
recognised within the year ended 31 December 2024.
Pillar 2
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 2025. 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. Imputation credits
The KIN Holdings Group has A$16.64 million (2024: A$16.13 million) franking credits available as at 31 December 2025.
Group
Dollars In Thousands 2025 2024
Imputation credits available for use in subsequent reporting periods 144,731 140,351
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2025
FIN 15
7. Capital and reserves
Share capital
Group Group
2025 2025 2024 2024
Shares $000’s Shares $000’s
Ordinary shares issued 1 January
105,578,290 350,048 105,578,290 350,048
Ordinary shares issued at 31 December – fully paid
105,578,290 350,048 105,578,290 350,048
Redeemable preference shares 1 January
52,739,543 33,218 52,739,543 33,218
Redeemable preference shares issued at 31 December – fully
paid 52,739,543 33,218 52,739,543 33,218
Ordinary shares repurchased and held as treasury stock 1
January (99,547) (26) (99,547) (26)
Ordinary shares repurchased and held as treasury stock 31
December (99,547) (26) (99,547) (26)
Total shares issued and outstanding
158,218,286 383,240 158,218,286 383,240
At 31 December 2025, the authorised share capital consisted of 105,578,290 ordinary shares (2024: 105,578,290 ordinary shares)
with no par value and 52,739,543 redeemable preference shares (2024: 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.
Repurchase of share capital
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.
Exchange reserve
The exchange reserve comprises the foreign exchange differences arising from the translation of the financial statements of foreign
operations.
Dividends
The following dividends were declared and paid during the year ended 31 December:
Company
Dollars In Thousands 2025 2024
Ordinary Dividend – 3.0 cents per qualifying share (2024: 3.0 cents) 4,747 4,747
Supplementary Dividend – 0.0053 cents per qualifying share (2024: 0.053 cents) 29 94
4,776 4,841
After 31 December 2025, the following dividends were declared by the directors. The dividends have not been provided for and there
are no income tax consequences.
Dollars In Thousands
Company
Ordinary Dividend – 3.0 cents per qualifying share (2024: 3.0 cents) 4,747
Supplementary Dividend – 0.0053 cents per qualifying share (2024: 0.0053 cents) 29
Total Dividends 4,776
Dividends and tax
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. Earnings per share
Basic earnings per share
The calculation of basic earnings per share at 31 December 2025 was based on the profit attributable to ordinary and redeemable
preference shareholders of $20,218,000 (2024: $2,762,000) and weighted average number of shares outstanding during the year
ended 31 December 2025 of 158,218,286 (2024: 158,218,286), calculated as follows:
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2025
FIN 16
8. Earnings per share – continued
Profit attributable to shareholders
Group
Dollars In Thousands 2025 2024
Profit for the year 24,796 8,788
Profit attributable to non-controlling interests (4,578) (6,026)
Profit attributable to shareholders 20,218 2,762
Weighted average number of shares
Group
2025 2024
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
Diluted earnings per share
The calculation of diluted earnings per share is the same as basic earnings per share.
Group
2025 2024
Basic and Diluted Earnings per share (cents per share) 12.78 1.75
9. Property, plant and equipment
Group
Dollars In Thousands
Freehold
Land Buildings
Plant,
Equipment,
Fixtures &
Fittings
Motor
Vehicles
Work
In
Progress
Right Of
Use Asset Total
Cost
Balance at 1 January 2024 46,661 221,865 112,614 76 8,039 28,823 418,078
Acquisitions - 616 2 - 27,830 79 28,527
Disposals - (15) (107) - - (63) (185)
Transfers between categories - 13,603 4,886 - (18,489) - -
Movements in foreign exchange - - 15 - - - 15
Balance at 31 December 2024 46,661 236,069 117,410 76 17,380 28,839 446,435
Balance at 1 January 2025 46,661 236,069 117,410 76 17,380 28,839 446,435
Acquisitions 3,100 24,800 4,000 - 20,352 288 52,540
Disposals - (952) (359) (10) - (175) (1,496)
Transfers between categories 3,836 20,876 7,818 16 (32,546) - -
Movements in foreign exchange - - 20 - - 2 22
Balance at 31 December 2025 53,597 280,793 128,889 82 5,186 28,954 497,501
Depreciation and impairment losses
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)
Balance at 31 December 2024 - (59,359) (100,614) (76) - (2,956) (163,005)
Balance at 1 January 2025 - (59,359) (100,614) (76) - (2,956) (163,005)
Depreciation charge for the year - (5,097) (4,004) (1) - (901) (10,003)
Impairment (3,789) - - - - (3,789)
Disposals - 586 279 10 - 141 1,016
Movements in foreign exchange - - (7) - - (2) (9)
Balance at 31 December 2025 - (67,659) (104,346) (67) - (3,718) (175,790)
Carrying amounts
At 1 January 2024 46,661 166,241 15,380 - 8,039 26,730 263,051
At 31 December 2024 46,661 176,710 16,796 - 17,380 25,883 283,430
At 31 December 2025 53,597 213,134 24,543 15 5,186 25,236 321,711
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2025
FIN 17
9. Property, plant and equipment - continued
Initial recording
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.
Subsequent measurement
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.
Impairment
Impairment assessment approach
The Group assesses impairment of non-financial 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. Management has determined that each hotel property constitutes a separate cash‑generating unit (CGU) for impairment testing
purposes. Where spare land is held under a separate legal title and does not contribute to the hotel’s operating cash inflows, it is
assessed separately. Otherwise, the CGU comprises the hotel’s property, plant and equipment recorded for that site. 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.
Recognition of impairment loss
An impairment loss of $3.8 million was recognised during the year (2024: nil). This impairment relates to hotel PP&E assets whose
carrying amounts exceeded their recoverable amounts using the valuation methodologies listed in the table below. The impairment
is recognised within “Administration and Other Operating Expenses – Depreciation and Impairment” in the consolidated income
statement. The impairment was allocated to the affected CGUs on a pro‑rata basis across buildings, plant & equipment and related
PP&E categories in accordance with NZ IAS 36.
Determination of recoverable amount
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 2025 the recoverable amount of the CGU was determined by independent appraiser Colliers
and in 2024 both Colliers and Bower Valuations Limited were used.
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 prevailing market
conditions. As at 31 December 2025, the hotel property market and broader economy continued to experience uncertainty influenced
by high interest rates earlier in the year, inflationary pressures, and geopolitical tensions, alongside slower global growth and a
subdued domestic economy. Although monetary policy easing and improving international visitor arrivals have provided some
optimism, risks remain. Significant assumptions used in the valuation are inherently subjective. Key estimates and judgements are
influenced by these uncertainties. At the valuation date, there remains a limited number of recent hotel sales transactions, which
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2025
FIN 18
9. Property, plant and equipment – continued
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:
Key valuation
input
Range of valuation input value
Measurement of sensitivity on
valuation
2025 2024
Increase in the
input
Decrease in the
input
Occupancy rate 58% - 81% 59% - 83% Higher Lower
Average daily
rate
$180 - $223 $185 - $214 Higher Lower
Rev PAR* $125 - $176 $121 - $177 Higher Lower
Discount rate 10% - 12% 10% - 12% Lower Higher
Capitalization rate 8% - 10% 9% - 11% Lower Higher
SQM rate $439 $449 Lower Higher
* Revenue per Available Room – a hospitality metric combining average room rate and occupancy rate.
CGUs sensitive to impairment
Two hotel assets were considered sensitive to impairment:
The recoverable amount of one of the 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
$1.4 million and is considered to be sensitive to impairment from a reasonably possible change in square metre rate.
The recoverable amount of one hotel asset with a carrying value of $5.1 million was close to its recoverable amount. Any
material change in key assumptions (listed in the above table) would therefore result in an impairment.
Conclusion
Management and the directors believe that the key assumptions used, and estimates made, represent the most realistic assessment
of each CGU.
Depreciation
Land is not depreciated. Depreciation on other assets is calculated using the straight-line method to allocate their cost to their residual
values over their estimated useful lives, as follows:
Building core 50 years or lease term if shorter
Building surfaces and finishes 30 years or lease term if shorter
Plant and machinery 15 - 20 years
Furniture and equipment 10 years
Soft furnishings 5 - 7 years
Computer equipment 5 years
Motor vehicles 4 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 ascribed to building core range between 10% to 24% of the building core.
Disposal or retirement
Gains or losses arising from the disposal or retirement of property, plant and equipment are determined as the difference 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 disposal.
Right of use assets
The accounting policy for right of use asset is disclosed in Note 21.
Pledged assets
A total of three (2024: three) hotel properties with a total book value of $90.89 million (2024: $83.25 million) are pledged to the bank
as security against the loan facility disclosed in Note 14.
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2025
FIN 19
9. Property, plant and equipment – continued
Climate-related disclosure
The Group continues to assess the impact of climate change on its business and its tangible assets. Climate change poses significant
risks and challenges for the land development industry (residential and commercial), as it affects the physical, operational, and
financial aspects of land development. Extreme weather events, such as floods, storms, heatwaves, and droughts, can damage
existing infrastructure, disrupt the supply chain, reduce the ability to conduct and complete works, and increase the insurance and
development and acquisition costs. While property developers and landowners are increasingly cognisant of the climate-related
impacts on their properties, the investment community have yet to price in the climate-related impacts on asset values. This means
that the current market value of residential and commercial land may not reflect the potential losses or gains associated with their
exposure to climate risks or their adoption of sustainability measures, decarbonisation initiatives, and sound environmental
stewardship. While valuers have made no explicit adjustments to the recoverable amount of the selected properties in respect of
climate change matters, it is anticipated that climate change may have a greater influence on valuations in the future as investment
markets place a greater emphasis on climate change and a property's environmental resilience and credentials. Known climate risks
are reflected in the adopted capitalisation and discount rates.
The acquisition of the Mayfair Hotel Christchurch was completed on 22 January 2025. This was a freehold acquisition of the existing
hotel located at 155 Victoria Street, Christchurch. The company acquired the following assets for a total consideration of $31.9m.
( a ) Freehold land and buildings from Centro Roydvale Limited
( b ) Furniture, fittings & plant and business as a going concern of the Mayfair Hotel from Mayfair Luxury Hotels Limited
The acquisition was accounted for as an acquisition of assets.
10. Development properties
Group
Dollars In Thousands 2025 2024
Development land 275,474 251,445
Residential development 4,231 12,643
279,705 264,088
Less expected to settle within one year (21,851) (35,454)
257,854 228,634
Development land recognised in cost of sales 17,205 19,274
Residential development recognised in cost of sales 8,932 7,381
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 (2024: 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. The
Group’s assessment for the reporting period did not identify any instances where the carrying amount of development property
exceeded its net realisable value, and accordingly, no impairment loss has been recognised.
11. Investment properties
Group
Dollars In Thousands Freehold Land Buildings
Work In
Progress Total
Cost
Balance at 1 January 2024 659 36,716 - 37,375
Transfers between categories - - - -
Additions - - 1,017 1,017
Balance at 31 December 2024 659 36,716 1,017 38,392
Balance at 1 January 2025 659 36,716 1,017 38,392
Transfers between categories - 118 (118) -
Reclassify to other assets - - (757) (757)
Additions - - 535 535
Balance at 31 December 2025 659 36,834 677 38,170
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2025
FIN 20
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.
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 2025 was
determined by an independent registered valuer, DM Koomen SPINZ of Extensor Advisory Limited as $69.9 million (2024: $65.1
million).
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.
Impairment
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 determined using the fair value less costs to sell basis and were estimated using the income
capitalisation approach, discounted cash flow and comparative sales methodologies.
During the year, management did not identify any investment properties that experienced a carrying value less than it’s net
realisable value. Average market capitalisation rates appropriate to the properties range from 4.50% to 6.88% (2024: 4.50% to
7.25%). Average market rent per square metre rates appropriate to the properties range from $275 to $476 (2024: $263 to $450).
There is no impairment expense recognised in the period (2024: no impairment).
Operating lease
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 2025 was $3.1 million (2024: $2.7 million).
The following table sets out a maturity analysis of lease payments, showing the undiscounted lease payments to be received after
the reporting date:
Group
Dollars In Thousands 2025 2024
Within 1 year 3,336 2,745
More than 1 year but within 2 years 3,377 2,793
More than 2 years but within 3 years 3,339 2,835
More than 3 years but within 4 years 2,359 2,784
More than 4 years but within 5 years 814 1,947
After 5 years 787 708
14,012 13,812
11. Investment properties – continued
Dollars In Thousands Freehold Land Buildings
Work In
Progress Total
Carrying amounts
Depreciation
Balance at 1 January 2024 - 1,541 - 1,541
Depreciation charge for the year - 550 - 550
Balance at 31 December 2024 - 2,091 - 2,091
Balance at 1 January 2025 - 2,091 - 2,091
Depreciation charge for the year - 554 - 554
Balance at 31 December 2025 - 2,645 - 2,645
At 1 January 2025 659 34,625 1,017 36,301
At 31 December 2025 659 34,189 677 35,525
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2025
FIN 21
12. Cash and cash equivalents
Group
Dollars In Thousands 2025 2024
Cash 17,658 35,638
Call deposits 2,703 4,088
20,361 39,726
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.
13. Trade and other receivables
Group
Dollars In Thousands 2025 2024
Trade receivables 10,204 9,594
Less provision for doubtful debts (22) (86)
Other trade receivables and prepayments 12,030 13,989
22,212 23,497
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
14. Interest-bearing loans and borrowings
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.
Group
Dollars in
Thousands Currency
Interest
Rate Facility Total
31 December 2025 31 December 2024
Face Value
Carrying
Amount Face Value
Carrying
Amount
Revolving credit NZD 3.46% 75,000 17,000 17,000 3,000 3,000
Overdraft NZD 3.46% 5,000 4,000 4,000 - -
TOTAL 80,000 20,000 20,000 3,000 3,000
Current - - - -
Non-current 20,000 20,000 3,000 3,000
Terms and debt repayment schedule
The Group has adopted classification of liabilities as current or non-current (amendments to NZ IAS 1) from 1 January 2024. The
bank facilities are secured over hotel properties with a carrying amount of $90.89 million (2024: $83.25 million) – refer to Note 9. The
Group’s facilities were renewed on 22 December 2023 with a facility limit of $120 million. A further amendment was executed on 6
October 2025 to reduce the facility limit from $120 million to $80 million and to extend the maturity date to 30 July 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.
Interest-bearing loans and borrowings
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.
15. Deferred tax assets and liabilities
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.
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2025
FIN 22
15. Deferred tax assets and liabilities - continued
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.
Impact of change in tax depreciation
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 2024.
Recognised deferred tax assets and liabilities
Deferred tax assets and liabilities are attributable to the following:
Group
Assets Liabilities Net
Dollars In Thousands 2025 2024 2025 2024 2025 2024
Property, plant and
equipment (includes Right of
use assets)
- - 38,488 39,142 38,488 39,142
Investment property - - 4,495 4,379 4,495 4,379
Development properties (1,013) (750) - - (1,013) (750)
Accruals (128) (147) - - (128) (147)
Employee benefits (1,732) (1,999) - - (1,732) (1,999)
Lease liability (7,540) (7,586) - - (7,540) (7,586)
Trade and other payables (1,196) (1,247) - - (1,196) (1,247)
Net investment in foreign
operations - - 957 926 957 926
Net tax (assets) / liabilities (11,609) (11,729) 43,940 44,447 32,331 32,718
Movement in deferred tax balances during the year
Group
Dollars In Thousands
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 liability (7,651) 65 - (7,586)
Trade and other payables (1,297) 50 - (1,247)
Net investment in foreign operations 883 28 15 926
7,001 25,702 15 32,718
Movement in deferred tax balances during the year
Group
Dollars In Thousands
Balance
1 Jan 25
Recognised in
Income
Recognised
in equity
Balance
31 Dec 25
Property, plant and equipment (includes Right of use
assets) 39,142 (654) - 38,488
Investment property 4,379 116 - 4,495
Development properties (750) (263) - (1,013)
Accruals (147) 19 - (128)
Employee benefits (1,999) 267 - (1,732)
Lease liability (7,586) 46 - (7,540)
Trade and other payables (1,247) 51 - (1,196)
Net investment in foreign operations 926 - 31 957
32,718 (418) 31 32,331
16. Trade and other payables
Group
Dollars In Thousands 2025 2024
Trade payables 5,119 3,948
Employee entitlements 6,237 7,518
Non-trade payables and accrued expenses 22,146 19,058
33,502 30,524
Trade and other payables are stated at amortised cost.
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2025
FIN 23
17. 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 related parties.
Non-derivative financial instruments are recognised initially at fair value plus, for instruments not at fair value through the income
statement, any directly attributable transaction costs. Subsequent to initial recognition non-derivative financial instruments are
measured as described in accounting policies below.
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.
Liquidity risk
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:
2025
2024*
* These prior period comparative amounts have been restated to exclude non-financial liabilities such as revenue in advance.
Dollars In Thousands
Statement of
Financial
Position
Contractual
Cash Out
Flows
6 Months or
Less
6-12
Months
1-2
Years
2-5
Years
More
than 5
Years
Interest-bearing loans and
borrowings 20,000 20,000 - - 20,000 - -
Trade Payables 5,119 5,119 5,119 - - - -
Other payables 23,408 23,408 23,408 - - - -
Trade payables due to
related parties 788 788 788 - - - -
Total non-derivative liabilities 49,315 49,315 29,315 - 20,000 - -
Dollars In Thousands
Statement of
Financial
Position
Contractual
Cash Out
Flows
6 Months or
Less
6-12
Months
1-2
Years
2-5
Years
More than
5 Years
Interest-bearing loans and
borrowings 3,000 3,000 - - 3,000 - -
Trade Payables 3,948 3,948 3,948 - - - -
Other payables* 21,876 21,876 21,876 - - - -
Trade payables due to
related parties 1,767 1,767 1,767 - - - -
Total non-derivative
liabilities 30,591 30,591 27,591 - 3,000 - -
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2025
FIN 24
17. Financial instruments -continued
Credit risk
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.
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 $8,892 (2024: $8,300). All other credit risk exposure relates to New Zealand.
Market risk
(i) Interest rate risk
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 would have decreased profit before tax for the Group in the current period by $0.29 million (2024:
$0.64 million increase), assuming all other variables remained constant.
Effective interest and re-pricing analysis
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
(ii) Foreign currency risk
The Group owns 100.00% (2024: 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.
Capital management
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.
Group 2025 2024
Dollars In
Thousands
Effective
interest rate
Total
6 months
or less
6 to 12
months
Effective
interest rate
Total
6 months
or less
6 to 12
months
Note
Interest bearing
cash & cash
equivalents * 12
0.00% to
3.55% 20,361 20,361 -
0.00% to
4.25% 39,726 39,726 -
Short term bank
deposits *
3.51% to
4.01% 3,872 1,571 2,301
5.25% to
5.91% 1,571 75 1,496
Secured bank
loans * 14 3.46% 20,000 20,000 - 5.42% 3,000 3,000 -
Bank overdrafts * 14 3.46% - - - 5.42% - - -
Intercompany
Loan* 4.93 % 20,362 - 20,362 5.75% 19,556 19,556 -
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2025
FIN 25
17. Financial instruments – continued
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.
Fair values
The fair values together with the carrying amounts shown in the statement of financial position are as follows:
Group Carrying amount
Fair value
Carrying
amount
Fair value
Dollars In Thousands Note 2025 2025 2024* 2024*
FINANCIAL ASSETS
Cash and cash equivalents 12 20,361 20,361 39,726 39,726
Short term bank deposits 3,872 3,872 1,571 1,571
Trade and other receivables* 15,786 15,786 15,359 15,359
Advances to related parties 20 64,820 64,820 65,326 65,326
FINANCIAL LIABILITIES
Secured bank loans and overdrafts 14 (20,000) (20,000) (3,000) (3,000)
Trade and other payables* 16 (28,527) (28,527) (25,824) (25,824)
Trade payables due to related parties 20 (789) (789) (1,767) (1,767)
55,523 55,523 91,391 91,391
* These prior period comparative amounts have been restated to exclude non-financial assets and non-financial liabilities such as
prepayments, deposits paid for asset purchases, and revenue in advance.
Estimation of fair values
The following summarises the major methods and assumptions used in estimating 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 of the short maturities of these items.
(b) Borrowings. The carrying amounts for the borrowings represent their fair values because the interest rates are reset to market
periodically, every 1 to 2 months.
18. Capital and land development commitments
As at 31 December 2025, the Group had entered into contractual commitments for capital expenditure, development expenditure,
and purchases of land. Development expenditure represents amounts contracted and forecast to be incurred in 2026 in accordance
with the Group’s development programme.
Group
Dollars In Thousands 2025 2024
Mayfair Hotel Christchurch - 31,900
Capital expenditure 1,664 7,968
Development expenditure 29,949 24,269
Land purchases 4,913 13,261
36,526 77,398
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
officers.
Transactions with key management personnel
Directors of the Company and their immediate relatives control nil (2024: Nil) of the voting shares of the Company. There were no
loans (2024: $nil) advanced to directors for the year ended 31 December 2025. Key management personnel include the Board
comprising non-executive directors, executive directors and executive officers.
Total remuneration for key management personnel
Group
Dollars In Thousands 2025 2024
Non-executive directors 458 392
Executive director 642 563
Executive officers 833 894
1,933 1,849
Non-executive directors receive director’s fees only. Executive director and executive officers 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).
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2025
FIN 26
20. Group entities
Control of the Group
Millennium & Copthorne Hotels New Zealand Limited is a 86.39% (2024: 80.97%) 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:
Group
Dollars In Thousands Nature of balance 2025 2024
Trade payables and receivables due to related parties
Millennium & Copthorne Hotels Limited Recharge of expenses (789) (1,767)
Marquee Hotel Holdings Pty Ltd Interest bearing advance 20,362 19,556
Marquee Hotel Holdings Pty Ltd Interest free advance 43,718 44,195
CDLHT (BVI) One Ltd Recharge of expenses 1,190 1,581
CDLHT (BVI) One Ltd Rent (450) (6)
64,031 63,559
No debts with related parties were written off or forgiven during the year. Interest at 4.93% (2024: 5.75%) was charged on interest
bearing advance during 2025. 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 $450,000 (2024 $6,000) 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 2025, the Group had the following transactions with related parties:
Group
Dollars In Thousands Nature of balance 2025 2024
Marquee Hotel Holdings Pty Ltd Interest received 1,048 1,180
CDLHT (BVI) One Ltd
Management, franchise and
incentive income 914 932
M&C Reservation Services Ltd (UK) Insurance recharge, Management
and marketing support* (696) (1,846)
CDL Hotels Holdings New Zealand Limited Recharge of takeover offer expenses
and accounting support fee received 2,181 60
Millennium & Copthorne International Limited Recharge of expenses 495 239
*The amount recognised in profit and loss in the reporting period was $0.66m.
Subsidiary companies
The principal subsidiary companies of Millennium & Copthorne Hotels New Zealand Limited included in the consolidation as at 31
December 2025 are:
Principal Activity
Principal
Place of
Business
Group
Holding %
2025
Group
Holding %
2024
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
Quantum Limited 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
CDL Investments New Zealand Limited Holding Company NZ 65.12 65.31
100% owned subsidiaries of CDL Investments New
Zealand Limited are:
CDL Land New Zealand Limited
Property Investment and
Development NZ
KIN Holdings Limited 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.
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2025
FIN 27
20. Group entities - continued
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.
Subsidiaries
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.
Transactions eliminated on consolidation
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.
21. Lease
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.
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.
21(a) Lease Liability
The expected contractual undiscounted cash outflows of lease liabilities are as follows:
Group
Dollars In Thousands 2025 2024
Less than 6 months 1,176 1,110
More than 6 months but within 12 months 1,124 1,156
More than 1 year but within 2 years 2,163 2,227
More than 2 years but within 5 years 6,295 6,232
After 5 years 92,123 93,666
102,881 104,391
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.
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2025
FIN 28
21(a) Lease Liability - continued
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.
Short-term leases and leases of low-value assets
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.
21(b) Schedule of right-of-use assets by class
Dollars In
Thousands Lease term
Carrying
value @
01/01/25
Depreciation
on right-of-
use asset
for the year
Addition
during the
year
Disposal
during the
year
Movement in
foreign
exchange
Carrying
value @
31/12/25
Land sites at
hotels
Renewal at 21
year cycles for
perpetuity
19,978
(345) 82
-
- 19,715
Corporate office
building and
hotel carpark
Between 5 to
23 years 5,445 (286) - - - 5,159
Motor vehicles
Between 12 to
45 months 460 (270) 206 (34) - 362
Totals
25,883 (901) 288 (34) - 25,236
21(c) Schedule of lease liabilities by class
Dollars In
Thousands Lease term
Carrying
value @
01/01/25
Interest
expense
for the year
Addition
during the
year
Disposal
during the
year
Lease
payment for
the year
Carrying
value @
31/12/25
Land sites at
hotels
Renewal at 21
year cycles for
perpetuity
20,889
1,285 82
-
(1,330) 20,926
Corporate office
building and
hotel carpark
Between 5 to
23 years 5,712 546 - - (645) 5,613
Motor vehicles
Between 12 to
45 months 495 48 206 (34) (327) 388
Totals 27,096 1,879 288 (34) (2,302) 26,927
21(d) Exemptions and exclusions
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 @
31/12/25
Lease
commitments
within one year
Lease
commitments
between one
and 5 years
Lease
commitments
more than 5
years
Short term leases <12
months
123
112
112
-
-
Low value leased assets
35
176
35
141
-
Variable lease payments
under service and
management contracts
616
21,539
896
3,586
17,057
Total 774 21,827 1,043 3,727 17,057
22. Investment in joint venture
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.
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2025
FIN 29
22. Investment in joint venture – continued
In 2023, 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 $2.639m (2024: $1.508m).
Principal Activity
Principal
Place of
Business
Group
Holding
%
2025
Marquee Hotel Holdings Pty Limited 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 of Marquee 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:
Group Group
Dollars In Thousands
2025 2024
Non-current assets
208,686 203,903
Current assets
36,643 26,112
Non-current liabilities
(3,584) (1,382)
Current liabilities
(139,326) (135,525)
Net assets (100%)
102,419 93,108
Group’s share (50%)
51,209 46,554
The current assets balance of the joint venture includes a cash and cash equivalents balance of $32.23m (2024:$21.74m). The
current liabilities balance of the joint venture includes balances owing to shareholders of $128.15m (2024:$125.87m).
Group Group
2025 2024
Revenue
58,077 53,470
Operating profit/(loss)
9,072 6,074
Interest (expense)/income
(1,013) (1,756)
Income tax expense
(2,781) (1,301)
Profit for the year (100%)
5,278 3,017
Group’s share of profit (50%)
2,639 1,508
Movements in the carrying value of joint venture:
Group Group
2025 2024
Balance at 1 January
46,554 43,943
Purchase of investment
- -
Share of profit for the year
2,639 1,508
Foreign exchange adjustments
2,016 1,103
Balance at 31 December
51,209 46,554
Millennium & Copthorne Hotels New Zealand Limited
Notes to the Consolidated Financial Statements for the year ended 31 December 2025
FIN 30
23. Non-controlling interests (“NCI”)
The following subsidiary has material NCI.
Principal Activity
Principal
Place of
Business
Holding %
2025
Holding %
2024
CDL Investments New Zealand Limited “CDI”
Property Investment and
Development NZ 34.88 34.69
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.
CDI Group
Dollars In Thousands 2025 2024
Revenue 38,117 49,059
Profit after tax 11,066 15,381
Profit attributable to NCI 3,860 5,336
Other comprehensive income - -
Total comprehensive income 11,066 15,381
Other comprehensive income attributable to NCI
3,860 5,336
Current assets
37,569 70,172
Non-current assets
294,056 258,450
Current liabilities
(5,989) (4,593)
Non-current liabilities (4,458) (4,377)
Net assets 321,178 319,652
Net assets attributable to NCI 112,027 110,887
CDI Group
Dollars In Thousands 2025 2024
Cash outflow from operating activities (9,748) (8,129)
Cash inflow from investing activities (560) 48,497
Cash outflow from financing activities (9,813) (9,724)
Net increase/(decrease) in cash and cash equivalents (20,121) 30,644
Dividends paid to NCI during the year 3,543 3,507
24. Subsequent events
On 24 February 2026, an ordinary dividend of 3.0 cents per qualifying share and a supplementary dividend of 0.0053 cents per
qualifying share were declared by the Directors. Details are in Note 7.
© 2026 KPMG, a New Zealand Partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,
a private English company limited by guarantee. All rights reserved.
Document classification: KPMG Public
Independent Auditor’s Report
To the shareholders of Millennium & Copthorne Hotels New Zealand Limited
Report on the audit of the consolidated financial statements
Opinion
We have audited the accompanying consolidated
financial statements which comprise:
- the consolidated statement of financial position as
at 31 December 2025;
- the consolidated income statement, consolidated
statements of comprehensive income, changes in
equity and cash flows for the year then ended;
and
- notes, including material accounting policy
information and other explanatory information.
In our opinion, the accompanying consolidated
financial statements of Millennium & Copthorne
Hotels New Zealand Limited (the Company) and its
subsidiaries (the Group) on pages 1 - 30 present
fairly in all material respects:
- the Group’s financial position as at 31
December 2025 and its financial
performance and cash flows for the year
ended on that date;
- In accordance with New Zealand
Equivalents to International Financial
Reporting Standards (NZ IFRS) issued by
the New Zealand Accounting Standards
Board and the International Financial
Reporting Standards issued by the
International Accounting Standards Board.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs (NZ)). We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
We are independent of Millennium & Copthorne Hotels New Zealand Limited in accordance with Professional
and Ethical Standard 1 International Code of Ethics for Assurance Practitioners (Including International
Independence Standards) (New Zealand) issued by the New Zealand Auditing and Assurance Standards Board
and the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional
Accountants (including International Independence Standards) (IESBA Code), as applicable to audits of financial
statements of public interest entities. We have also fulfilled our other ethical responsibilities in accordance with
Professional and Ethical Standards 1 and the IESBA Code.
Our responsibilities under ISAs (NZ) are further described in the Auditor’s responsibilities for the audit of the
consolidated financial statements section of our report.
Our firm has provided other services to the Group in relation to tax compliance, tax advisory services as well as
limited assurance work on climate related disclosure. Subject to certain restrictions, partners and employees of
our firm may also deal with the Group on normal terms within the ordinary course of trading activities of the
business of the Group. These matters have not impaired our independence as auditor of the Group. The firm has
no other relationship with, or interest in, the Group.
2
Materiality
The scope of our audit was influenced by our application of materiality. Materiality helped us to determine the
nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both individually
and on the consolidated financial statements as a whole. The materiality for the consolidated financial statements
as a whole was set at $1.92m determined with reference to a benchmark of the Group’s profit before tax. We
chose the benchmark because, in our view, this is a key measure of the Group’s performance.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
the consolidated financial statements in the current period. We summarise below those matters and our key audit
procedures to address those matters in order that the shareholders as a body may better understand the process
by which we arrived at our audit opinion.
Our procedures were undertaken in the context of and solely for the purpose of our audit opinion on the
consolidated consolidated financial statements as a whole and we do not express discrete opinions on separate
elements of the consolidated consolidated financial statements.
The key audit matter How the matter was addressed in our audit
Impairment of hotel assets
Refer to Note 9 to the consolidated
financial statements.
Impairment of hotel assets is a key
audit matter given the magnitude of
the balance (hotel assets being 40%
of total assets), conditions that
indicate potential impairment and the
judgement required by us in
assessing the Group’s key valuation
assumptions to determine the value
of specific hotel assets.
The recoverable amount of hotel
assets was determined by an
external valuer. We focused on the
key assumptions in the valuation
models including the projected
occupancy rates, average daily room
rates (ADRs), discount rates,
terminal capitalisation rates,
capitalisation rates and square metre
rates. Due to slower economic
growth, geopolitical unrest, slower
than expected recovery from COVID-
19, excess supply in some markets
and difficult low season trading
conditions continue to affect
occupancy rates and Average Daily
Our audit procedures included:
• Organising hotel visits for a sample of selected hotels and
assessing if there are any impairment indicators such as physical
damages and poor condition or major refurbishments.
• Evaluating the Group’s determination of the appropriate unit of
measure for impairment testing purposes, or changes thereto, the
cash-generating unit (“CGU”).
• Assessing each hotel asset for impairment indicators with
consideration of changes in contractual arrangements, economic
conditions, financial performance, physical quality of the
underlying asset and capital expenditure requirements, among
other factors. Identify specific hotels with impairment indicators.
• Assessing the scope of work performed, competency, professional
qualifications, independence, and experience of the external
valuer(s) engaged by the Group. This included direct enquiry and
challenging the methods and assumptions used by external
valuer(s).
• Assessing the Group’s key valuation assumptions aforementioned
in the external valuations by:
- comparing to externally derived data from hotel industry
reports and other market data;
- assessing the relevance and reasonableness of the key
assumptions with reference to rates used in the prior year
3
The key audit matter How the matter was addressed in our audit
Rates, which could in turn impact
hotel valuations.
external valuations, financial performance and recent
market evidence presented by the valuer(s).
• Assessing the accuracy of the external valuer(s)’ and
management’s previous forecasts to inform our evaluation of the
forecasts incorporated into the valuation models. This included
comparing actual occupancy rates, ADRs and direct costs to the
assumptions projected over the forecast period and used in the
prior period valuations.
• Assessing hotels that are most sensitive to impairment using
sensitivity analysis over key assumptions and comparing the
headroom.
• Assessing the adequacy of the disclosures made in the financial
statements by using our understanding obtained from our testing
and against the requirements of the relevant accounting
standards.
We did not identify material exceptions from procedures performed,
and the financial statement disclosure is consistent with the
requirements of the accounting standards.
Capitalisation and allocation of development costs
Refer to Note 10 to the financial
statements.
The Group’s development property
comprises land and development
costs incurred to develop land into
subdivisions and individual
properties for sale. The development
property portfolio represents 35% of
total assets on the consolidated
statement of financial position.
The capitalisation and allocation of
development costs is a key audit
matter as determining whether to
capitalise or expense costs relating
to development of land is subjective,
as it depends on whether the costs
enhance the land or maintain the
current value. In addition, there is
significant judgement in determining
whether obligations exist for future
costs and how to allocate capitalised
development costs to individual
properties or stages.
The key judgements used in this
determination are:
Our audit procedures included:
• Evaluating the Group’s accounting policy for capitalisation of
development costs against NZ IAS 2;
• Testing the design and implementation, as well as operating
effectiveness of internal review of allocation of costs to projects or
stages;
• Testing samples of capitalised development costs and vouched to
supporting documents. For each selected sample, we:
• Considered the nature of the costs capitalised and evaluated
whether they are eligible for capitalisation under NZ IAS 2;
• Assessed the appropriateness of the allocation of cost to the
individual project and stages;
• Compared the amount capitalised against amounts per supporting
documents;
• Inspecting Sales and Purchase Agreements, settlement
statements and cash payments for land acquisitions during the
reporting period. We further assessed the accounting treatment for
unsettled land acquisitions for which the Group has paid a deposit
prior to the year-end;
• Performing analytical procedures to assess appropriateness of the
margins across periods of sale;
4
The key audit matter How the matter was addressed in our audit
• Whether costs are eligible for
capitalisation under the relevant
accounting standards.
• The allocation of capitalised
costs to the individual projects,
stages and land lots and the
associated recognition of cost of
sales.
• Whether a capitalised cost and
the associated liability for future
obligations should be recorded
under the relevant accounting
standard.
• Performing a retrospective review of the forecast costs and cost of
sales to assess management’s ability to forecast future costs
accurately based on readily available information;
• Evaluating the reasonableness of the Group’s judgement to record
liabilities for future obligations and that these have been
appropriately measured and recorded in accordance with the
applicable accounting standards;
• Assessing the accuracy and completeness of disclosures made in
the Consolidated Financial Statements of the Group against
results of our testing and against the requirements of the
accounting standards.
Our testing did not identify any material exceptions related to the
capitalisation of development costs, the allocation of those costs to
individual project stages and the recognition of future development
cost obligations.
Other information
The directors, on behalf of the Group, are responsible for the other information. The other information comprises
the Chairman and Managing Director’s review, NZX Results Announcement, and Media Release (but does not
include the consolidated financial statements and our auditor’s report thereon), which we obtained prior to the
date of this auditor’s report, and the Group’s Annual Report which is expected to be made available to us after
that date.
Our opinion on the consolidated financial statements does not cover any other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements our responsibility is to read the other
information and in doing so, consider whether the other information is materially inconsistent with the
consolidated financial statements or our knowledge obtained in the audit or otherwise appears materially
misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of this
auditor’s report, we conclude there is a material misstatement of this other information, we are required to report
that fact. We have nothing to report in this regard.
When we read the Group’s Annual Report, if we conclude that there is a material misstatement therein, we are
required to communicate the matter to directors and use our professional judgement to determine the appropriate
action to take.
Use of this independent auditor’s report
This independent auditor’s report is made solely to the shareholders. Our audit work has been undertaken so
that we might state to the shareholders those matters we are required to state to them in the independent
auditor’s report and for no other purpose. To the fullest extent permitted by law, none of KPMG, any entities
directly or indirectly controlled by KPMG, or any of their respective members or employees, accept or assume
any responsibility and deny all liability to anyone other than the shareholders for our audit work, this independent
auditor’s report, or any of the opinions we have formed.
5
Responsibilities of directors for the consolidated financial
statements
The directors, on behalf of the Group, are responsible for:
— the preparation and fair presentation of the consolidated financial statements in accordance with NZ
IFRS issued by the New Zealand Accounting Standards Board and the International Financial Reporting
Standards issued by the International Accounting Standards Board;
— implementing the necessary internal control to enable the preparation of a consolidated set of financial
statements that is free from material misstatement, whether due to fraud or error; and
— assessing the ability of the Group to continue as a going concern. This includes disclosing, as
applicable, matters related to going concern and using the going concern basis of accounting unless
they either intend to liquidate or to cease operations or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the consolidated
financial statements
Our objective is:
— to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error; and
— to issue an independent auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance but it is not a guarantee that an audit conducted in
accordance with ISAs NZ will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the basis of the
consolidated financial statements.
A further description of our responsibilities for the audit of the consolidated financial statements is located at the
External Reporting Board (XRB) website at:
https://www.xrb.govt.nz/standards/assurance-standards/auditors-responsibilities/audit-report-1-1/
This description forms part of our independent auditor’s report.
The engagement partner on the audit resulting in this independent auditor’s report is Matthew Wilcox.
For and on behalf of:
KPMG
Auckland
24 February 2026
---
Distribution Notice
Please note: all cash amounts in this form should be provided to 8 decimal places
Section 1: Issuer information
Name of issuer Millennium & Copthorne Hotels New Zealand
Limited
Financial product name/description Ordinary Shares
NZX ticker code MCK
ISIN (If unknown, check on NZX
website)
NZMCKE0004S9
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year X Quarterly
Half Year Special
DRP applies
Record date 8 May 2026
Ex-Date (one business day before the
Record Date)
7 May 2026
Payment date (and allotment date for
DRP)
15 May 2026
Total monies associated with the
distribution
1
$3,167,348.70
Source of distribution (for example,
retained earnings)
Retained earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution
2
$0.04166667
Gross taxable amount
3
$0.04166667
Total cash distribution
4
$0.03000000
Excluded amount (applicable to listed
PIEs)
n/a
Supplementary distribution amount $0.00529412
Section 3: Imputation credits and Resident Withholding Tax
5
Is the distribution imputed Fully imputed
Partial imputation
No imputation
1
Continuous issuers should indicate that this is based on the number of units on issue at the date of the form
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of
Resident Withholding Tax (RWT).
3
“Gross taxable amount” is the gross distribution minus any excluded income.
4
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT.
This should include any excluded amounts, where applicable to listed PIEs.
5
The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is
fully imputed the imputation credits will be 28% of the gross taxable amount with remaining 5% being RWT. This does not constitute
advice as to whether or not RWT needs to be withheld.
If fully or partially imputed, please
state imputation rate as % applied
6
28%
Imputation tax credits per financial
product
$0.01166667
Resident Withholding Tax per
financial product
$0.00208333
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
Not applicable
Start date and end date for
determining market price for DRP
Date strike price to be announced (if
not available at this time)
Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)
DRP strike price per financial product
Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
Section 5: Authority for this announcement
Name of person
authorised to make
this announcement
Takeshi Ito (Company Secretary)
Contact person for this
announcement
Takeshi Ito (Company Secretary)
Contact phone number
09 353 5005
Contact email address
takeshi.ito@millenniumhotels.com
Date of release through MAP
24/02/2026
6
Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.
---
Distribution Notice
Please note: all cash amounts in this form should be provided to 8 decimal places
Section 1: Issuer information
Name of issuer Millennium & Copthorne Hotels New Zealand
Limited
Financial product name/description Redeemable Preference Shares
NZX ticker code MCK
ISIN (If unknown, check on NZX
website)
NZMCKE0005S6
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year X Quarterly
Half Year Special
DRP applies
Record date 8 May 2026
Ex-Date (one business day before the
Record Date)
7 May 2026
Payment date (and allotment date for
DRP)
15 May 2026
Total monies associated with the
distribution
1
$1,582,186.29
Source of distribution (for example,
retained earnings)
Retained earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution
2
$0.04166667
Gross taxable amount
3
$0.04166667
Total cash distribution
4
$0.03000000
Excluded amount (applicable to listed
PIEs)
n/a
Supplementary distribution amount $0.00529412
Section 3: Imputation credits and Resident Withholding Tax
5
Is the distribution imputed Fully imputed
Partial imputation
No imputation
1
Continuous issuers should indicate that this is based on the number of units on issue at the date of the form
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of
Resident Withholding Tax (RWT).
3
“Gross taxable amount” is the gross distribution minus any excluded income.
4
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT.
This should include any excluded amounts, where applicable to listed PIEs.
5
The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is
fully imputed the imputation credits will be 28% of the gross taxable amount with remaining 5% being RWT. This does not constitute
advice as to whether or not RWT needs to be withheld.
If fully or partially imputed, please
state imputation rate as % applied
6
28%
Imputation tax credits per financial
product
$0.01166667
Resident Withholding Tax per
financial product
$0.00208333
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
Not applicable
Start date and end date for
determining market price for DRP
Date strike price to be announced (if
not available at this time)
Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)
DRP strike price per financial product
Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
Section 5: Authority for this announcement
Name of person
authorised to make
this announcement
Takeshi Ito (Company Secretary)
Contact person for this
announcement
Takeshi Ito (Company Secretary)
Contact phone number
09 353 5005
Contact email address
takeshi.ito@millenniumhotels.com
Date of release through MAP
24/02/2026
6
Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.
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