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Tuesday, September 15, 2009

Far East to invest RM150m in Subang serviced apartments

Hong Kong's Far East Consortium International Ltd (FEC) plans to invest RM150 million to build serviced apartments in Subang, Selangor.

The apartment block is expected to be ready in 2014.

It is the second phase of development for Sheraton Subang Hotel and Towers, which will be rebranded as the Grand Dorsett Subang Hotel on October 1.

The five-star property sits on 6.4ha, out of which only 2.8ha have been developed.
Dorsett International Sdn Bhd president Eddie Tang said the investment is in excess of the initial RM500 million allocation provided by FEC to build or buy hotels in Malaysia.

Tang said the company had yet to firm up details such as size of the apartment units and whether the units will be sold or leased out by Dorsett.

The first phase of renovation and refurbishment, which started recently, involves a sum of RM60 million and is due to be completed in March next year.

"Phase 1 involves the rooms, lounge and reception areas, while Phase 2 will include a new lobby for the hotel and additional meeting rooms," Tang said.

The hotel currently has 350 rooms. After renovation, it will have an additional 125 rooms, which were not completed under the original owners.

The second phase will involve bringing down a hotel block to accommodate the new apartments. This will again reduce the number of rooms to 350.

Once the second phase is complete, the entire facade of the hotel is expected to be fresh and different. The hotel was previously owned by the Faber group.

FEC bought the hotel for some RM120 million.

In an interview with Business Times in July, Tang had said that Dorsett would spend an estimated RM100 million for a 200-room business boutique hotel in Sri Hartamas and RM60 million to RM70 million for a three-star 300-room hotel in Cheras.

In Kota Kinabalu, it has identified a location for a five-star 250-room resort hotel that will cost between RM70 million and RM80 million.

The group is also eyeing Penang and Kuantan. It hopes to grow its hotel portfolio to 15 by 2014.

Apart from the hotel in Subang, it also owns and operates the Dorsett Regency Kuala Lumpur, Grand Dorsett Labuan, Maytower Hotel and Serviced Residences, and the Dorsett Johor.

By Business Times (by Vasantha Ganesan)

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