REVENUE BY ACTIVITY
$million
 PROFIT BEFORE INCOME TAX (*)
BY ACTIVITY
$million

  Property Development
Hotel Operations
Rental Properties
Others
* Includes share of after-tax profit of an associate and jointly-controlled entities.
PROPERTY DEVELOPMENT

Revenue increased to $485 million (2005: $365 million) and pre-tax profit increased by $75 million to $226 million (2005: $151 million).

The increase in revenue is mainly attributable to contributions from City Square Residences, Residences @ Evelyn, The Imperial and sale of apartments in Sydney. In accordance to the Group’s policy of equity accounting for the results of its jointly-controlled entities, whilst revenue from The Sail @ Marina Bay, Parc Emily, St. Regis Residences and Edelweiss Park has not been consolidated into the Group’s total revenue, the Group’s share of profits arising from these joint venture developments has been included in pre-tax profit.

The increase in pre-tax profit, which is in-line with the improvement in revenue, is also due to profit recognised for St. Regis Residences as well as higher contributions from The Sail @ Marina Bay and Parc Emily and higher write-back of allowance for foreseeable losses on unsold units. Profit for 2005 included the gain on sale of Bayswater Tower, Kingsgate Shopping Centre and Kingsgate Commercial Centre in Sydney recognised in 2005.
HOTEL OPERATIONS

 Revenue improved by $44 million (or 2.4%) to $1,847 million (2005: $1,803 million). The increase in revenue is mainly due to improvement in the Group’s RevPAR which increased by 8.1% during the year, with particularly strong performances in the United States and Asia.

Pre-tax profit soared to $397 million (2005: $213 million). The increase in pre-tax profit resulted from improvement in RevPAR, the gain of $150.9 million recognised on sale of the 75-year lease each in Grand Copthorne Waterfront Hotel, Orchard Hotel (including Orchard Hotel Shopping Arcade) and M Hotel, and the remaining 61 years of 99-year leasehold interest in Copthorne King’s Hotel to CDL Hospitality Trusts in 2006 and the receipt of business interruption insurance proceeds from insurance broker of $15.9 million in respect of the Millenium Hilton New York. This increase would have been higher if not for the profit of £12.8 million (approximately $39.8 million) from the settlement of Millenium Hilton insurance dispute in 2005.
RENTAL PROPERTIES

Revenue increased by $8 million to $168 million (2005: $160 million) mainly due to higher carpark income generated and improved average occupancy.

In line with the improvement in revenue, pre-tax profit increased to $30 million (2005: $28 million). CDL Hospitality Trusts, in which the Company’s 53% subsidiary, Millennium & Copthorne Hotels plc, has a 39% interest, has also contributed additional profit to this segment. The increase would be higher if not for the recognition of gain from the disposal of MyeongDong Central Building in Seoul, held by a jointly-controlled entity in which the Group has a 50% interest and disposal of units in Tanglin Shopping Centre in 2005.
OTHERS

Revenue, comprising mainly income from hotel management, building maintenance contracts, project management, club operations and dividend income, has improved to $47 million (2005: $46 million).

Pre-tax profit for this segment increased by $27 million to $39 million (2005: $12 million). The increase resulted from higher unrealised gain on equities held for trading, exchange gain on foreign currency denominated deposits and securities and higher management fee income.