Hotel chain blames Brexit for shortage of workers and profit fall
Millennium & Copthorne Hotels has blamed a shortage of workers due to Brexit uncertainty for contributing to falling profits.
The hotel chain reported a 28% fall in pre-tax profits to £106m for the 12 months to 31 December 2018, compared with the same period in 2017. It said Brexit concerns had affected its UK hotels, particularly in London.
The hotel chain also blamed the US-China trade war, minimum wage and competition from Airbnb for its woes. In particular, revenue per available room in London dropped 7.4%, partly due to the closure of its Mayfair hotel for refurbishment.
“Concerns about Brexit have affected the Group’s UK hotels especially in London, where the hotels started to face difficulties in recruiting EU workers which currently comprise more than half of the London workforce,” it said in a statement.
The hotel chain also said that it had been affected by the increase in the minimum wage, which came into force last year.
“The shortage of talent-from rank and file to senior management-is intensifying with many new hotels being built around the world, not to mention the growth of Airbnb and serviced apartments,” said chairman Kwek Leng Beng.
He stressed that all hospitality businesses would “need to evolve and embrace” changes in the industry in order to remain relevant and profitable.