Malaysia Property News is a free resource website sharing Daily Property News & information about Property in Malaysia, which related to, Property Market, Property Investment, Commercial Property , Hot Properties Malaysia, Real Estate, Retail Shop, Business Park, Condominium Malaysia, Terraces & Apartment Malaysia, Houses, Residence, Resort and many more.

Monday, October 5, 2009

Tradewinds sets sights on hotel acquisitions abroad

Hotelier and property developer Tradewinds Corp Bhd (TCB) is setting its eyes on hotel acquisitions abroad, as this provides better and speedier returns on investments.

It has been looking at several proposals which it has received from around the region.

"We have been approached by various parties, but we are not actively pursuing any of these at the moment, neither are we saying no to these proposals," chief executive officer Shaharul Farez Hassan told Business Times.

He added that he sees Southeast Asia as a suitable location for its foreign venture.
"Hotels in other countries fare better in terms of room rates," he said.

With the exception of Langkawi, Malaysian hotels in general rake in lower average room rates compared to their counterparts elsewhere.

TCB's previous foreign hotel initiatives were in Vietnam and Sarajevo, Bosnia Herzegovina. It sold its partially completed hotel in Hanoi, The InterContinental Westlake hotel, two years ago for US$75 million (RM261 million). This gave TCB a one time net gain of RM148.5 million.

Tradewinds had also previously won a bid for a hotel in Sarajevo, but pulled out after due diligence was conducted.

Meanwhile, Shaharul expects its hotel division revenue to dip by between 10 per cent and 13 per cent in the year ending December 31 2009, as the global economic crisis and the H1N1 flu sees people travelling far less.

Last year, the division chalked up RM332.74 million, which accounted for 70 per cent of its total revenue of RM475.46 million.

In the first half ended June 30 2009, TCB made a net profit of RM13.12 million on the back of RM223.63 million. Sixty four per cent of the revenue was from its hotel division.

This year, its worst hit hotel has been Hotel Istana Kuala Lumpur. Business is down by about 10 per cent compared to last year. Nevertheless, all hotels are profitable.

The best performing hotel in terms of room rates is the five star Meritus Pelangi Beach Resort & Spa, Langkawi which it owns but is operated by Singapore Meritus International Hotels Pte Ltd.

Other hotels owned and operated by the group include Mutiara Taman Negara, Pahang and Mutiara Johor Baru.

Hotels owned by TCB but operated by an international chain include Crowne Plaza Mutiara Kuala Lumpur, Hilton Batang Ai Longhouse Resort, Sarawak, Hilton Kuching and Hilton Petaling Jaya.

TCB also manages the Mutiara Burau Bay Beach Resort, Langkawi for the Langkawi Development Authority.

By Business Times (by Vasantha Ganesan)

No comments: