UPDATE 2-Hotelier M&C says worst of recession may be over

* Warns full recovery may take two or more years

* RevPAR down 17.7 percent in Q3

* Rate of RevPAR decline slowing

* Says "not the time" for disposals

* Shares down 1.8 percent

(Adds CEO, analyst comment, background, shares)

By Matt Scuffham

LONDON, Nov 5 (Reuters) - Hotelier Millennium & Copthorne (MLC.L) said the worst of the recession may be over as its rate of revenue decline slowed but warned it could take more than two years for trading to recover to the levels seen in 2007.

M&C, which operates 120 hotels across the world, said on Thursday revenue per available room (RevPAR), a key industry measure, dropped by 17.7 percent in the third quarter compared with a fall of 21.3 percent in the second quarter.