Millennium & Copthorne Hotels New Zealand has announced a 47.5% fall in net profit for the six months to the end of June, despite sales rising 10%.
The company says profit for the first half of 2013 was $11.562 million compared to more than $22 million in the same period in 2012.
Last year, profits from its 34.2% owned Chinese commercial property development associate added $11.877 million to the company's operating profit.
This year, First Sponsor Capital brought in only $204,000. Taking that into account, the company's chairman, Wong Hong Ren, says the result is satisfactory.
The company's residential subdivision operations, CDL Investments, contributed nearly $8 million to operating profit, up 49.5%.
Profit from the company's core hotel operations was down 17% to about $8.09 million, while hotel revenues rose nearly 1%.
The cashflow statement shows payments to suppliers and employees rose 60% to $46,636.
Wong Hong Ren says he expects the property investment arms will lift profits and sales and the hotels will benefit from investment into the growth of Asian tourists.
