Millennium & Copthorne Hotels drops to over 3-yr low on virus impact

Millennium & Copthorne Hotels New Zealand

17/03/2020 22:30

** Shares of Millennium & Copthorne Hotels New Zealand Ltd
 MCK.NZ  fall as much as 4.6% to NZ$2.29, their lowest since
November 2016
    ** Hotel operator suspends any profit guidance for 2020
indefinitely with immediate effect; expects the level of hotel
revenue loss for H1 about NZ$24 mln ($14.3 mln)  urn:newsml:reuters.com:*:nNZW6Lprm8
    ** Anticipates FY2020 result for hotel operations would run
at a loss if current trading patterns continue into H2
    ** Co says requirement for all arrivals into New Zealand to
self-isolate is having significant and potentially long-lasting
effect on its hotel business 
    ** Adds that restrictions on public gatherings will also
substantially affect conferencing and meetings business for rest
of the year and possibly into 2021
    ** MCK received confirmation from its insurers that these
losses are not covered by business interruption insurance as the
hotels are not closed by COVID-19
    ** There will be reduced hours, there will be job losses -
MD BK Chiu
    ** There is no question that this is the most severe crisis
MCK has faced - Chiu
    ** Stock posts its biggest intraday pct fall since Feb. 2019
    ** Stock among biggest percentage losers on the NZX All
Capital index  .NZCI 
    ** Stock down 11.1% this year, as of last close

($1 = 1.6807 New Zealand dollars)

 (Reporting by Deepali Saxena)
 ((Deepali.Saxena@thomsonreuters.com;))