Millennium & Copthorne Hotels says the Government's tax changes will lift its deferred tax liability by about $26 million in the June financial year, which will result in a loss.
It says the change in its June year accounts, which are yet to be issued, is a one-off, non-cash charge which does not affect its cashflows.
The Government is lowering the company tax rate from 30% to 28% and scrapping the allowance for depreciation on buildings.
Millennium & Copthorne says it will pay an extra $1 million per year in tax from next year.