Hotel operator Millennium & Copthorne has said that the improving trend it saw in the first quarter of the year has continued in the second, bringing the company out of the red for the first half of 2004.

Chair Kwek Leng Beng said continued recovery in occupancy and room rates in the key markets of London and New York had contributed to group turnover being up 8 per cent to £262.7m, group operating profit rising 131 per cent to £35.8m and pre-tax profits increasing to £20.6m from a £6.3m loss in 2003.

Kwek added that business in New York had been boosted by the weak dollar, which had encouraged leisure travel to the US.

In the next half of the year the company aims to refurbish and upgrade 100 rooms at the Millennium Broadway Hotel New York and completely renovate one of the two towers at the Orchard Hotel Singapore.

It is also thought that the company is considering introducing casinos at some of its UK properties – but the development depends on the expected deregulation of gaming.

Millennium & Copthorne has also announced that Tony Potter – who, alongside Wong Hong Ren has been joint interim chief executive since the departure of John Wilson in March – is to take on the permanent role of group chief executive at the end of the year.

David Cashman, who has been responsible for the group’s finances since the departure of David Thomas, also last March, has been appointed group chief financial officer with immediate effect.

Kwek said: “Our recovery is firmly on track. The improving trend we saw in the second half of 2003 and in the first quarter has continued. We are particularly encouraged by the significant improvements achieved in our key markets of New York, London and Asia.

“We have focused on improving the operational performance of our hotels, appraising our asset portfolio, introducing strengthened management teams and marketing initiatives as well as maintaining a tighter control on costs.

"We remain confident that we are well positioned to make further progress in the second half and beyond.”