HOTELS group Millennium & Copthorne yesterday reported a near-halving of profits over the last half year after being hurt by the fall in world travel following September 11.

The group, which owns or operates 91 hotels around the world including the Copthorne Hotel in Newcastle, said pre-tax profits for the six months to June 30 fell to £25.6m against £46.2m the same time the previous year.

Turnover slid to £283.8m, down from £313.5m.

However, chairman Kwek Leng Beng said the group's performance - particularly when compared with profits of £8m in the six months ending December 31 - reflected a "prompt and effective response" to the market conditions.

He added: "We are focused on driving sales at a local level thereby maintaining and increasing market share, while continuing to keep a tight control on costs."

M&C, based in Horley in Surrey, said the hotels industry had expected a "very slow recovery" following the terrorist attacks in the US.

However, it said the group's recovery from the slump in demand began early this year, and while the business climate remained "uncertain" its half year performance had exceeded its expectations.

Kwek Leng Beng added: "Although the worldwide trading environment remains challenging, we are encouraged by the trading of the group in the first half of the year."

He said the second-half year had begun "in line with our expectations" and the group was "confident" that this year's performance would be better than last year.