MCK FY25 RESULTS FOR THE 12 MONTHS ENDED 31 DECEMBER 2025
24/02/2026 11:53 NZDT, FLLYRP
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