Millennium & Copthorne Hotels grew its group revenue per available room (RevPAR) by 7.9% to £82.78 in 2017, an increase of 3.2% in constant currency.
For the fourth quarter of 2017, RevPAR fell by 1.1% to £83.88 in reported currency and increased by 1.2% in constant currency.
Hotel revenue increased by 8.1% to £880m, driven by foreign exchange gains of £39m and full-year contributions from Millennium Hilton New York One UN Plaza (which re-opened in September 2016 after refurbishment) and Grand Millennium Auckland (which joined the group in September 2016).
Underlying hotel performance was flat.
Kwek Leng Beng, chairman, said performance was impacted by industry-wide factors, including political instability in Korea, the unabated growth in popularity among customers of online travel agents and alternative lodging options, and rising costs, especially in London.
He added: "Our New York business will take some time to restore profitability in light of strong union operating environment, union driven wage increases and the continuing growth in room supply.
"The group expects to make significant capital investment for a needed transformation to the repositioning of our hotels so as to keep pace with guest expectations. Increased expenditure on both maintenance and product improvement will therefore be necessary for the group to stay relevant and competitive. We also remain alert to opportunities to grow by acquisition."
Total revenue for 2017 grew by 8.9% to £1,008m, including foreign exchange gains of £46m.
Profit before tax for the year increased by 36.1% to £147m and included impairment charges of £38m, net revaluation gains of £9m and reversal of impairment of the group's shareholder loan to Fena Estate of £12m. After removing the effects of the impairment losses and revaluation gains, the group's reported profit before tax was £176m (2016: £152m).
In light of anticipated capital spending requirements, the board has recommended a final ordinary dividend of 4.42p per share, giving a total ordinary dividend for the year of 6.5p, down from 7.74p the year before.
At 8:05am: (LON:MLC) Millennium Copthorne Hotels PLC share price was -4.5p at 533.5p