Hotels group Millennium & Copthorne (M&C) reported a near halving of profits during the last half-year after being hurt by the fall in world travel following September 11.

The Gatwick-based group, which owns or operates 91 hotels around the world, said pre-tax profits for the six months to June 30 fell to £25.6 million against £46.2 million the previous year.

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

However, chairman Kwek Leng Beng said the group's performance - particularly when compared with profits of £8 million 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 said the hotels industry had expected a "very slow recovery" following the terrorist attacks in the US.

It added the group's recovery from the slump in demand began early this year.

While the business climate remained uncertain, its half-year performance had exceeded its expectations.

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

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

M&C said in London, where it owns The Copthorne Tara and The Millennium Gloucester, the market continued to be demanding, particularly due to less business coming from the US.

During the half-year it managed to keep the number of visitors up by targeting leisure customers but the amount made per room was down as it lowered prices.

Occupancy in the hotels was 81.8 per cent, up from 80.6 per cent.