Rendezvous Hotel targets niche market

RENDEZVOUS Hotel Kuala Lumpur, which is scheduled to open this July, expects to register operating profits within a year of business.

This four-star 444-room business hotel located in Changkat Thambi Dollah, off Jalan Pudu, expects to fill between 55 per cent and 60 per cent of its room inventory and make an average of RM250 to RM280 per night in the first year.

It is also looking at a gross operating profit (GOP) of 30-odd per cent in the first year. GOP is gross revenue from rooms, food and beverage, laundry or business centre minus cost of operations like wages, electricity and amenities.

This projection would seem rather optimistic for a new hotel in Malaysia, but general manager Freddy Sim thinks it is achievable as the economy is recovering.

Moreover, Sim feels that there is still plenty of room for growth in the four-star business hotel category and that the package it offers will lure the crowd.

"We are looking at creative business packages specifically catered to the businessman. Business people (now) must have good Internet connection, (as such) we are looking to provide complimentary Internet connection," he said.

The fact that during the global crisis, many corporations moved their business to four-star hotels from five-star hotels to save costs. Not many have reverted to five-star hotels, and this would further lend support to its performance.

Unlike most hotel operators in Malaysia who either own and manage or own or simply manage hotels, Rendezvous will be leased from the owner.

"We are leasing the hotel portion and will manage it. It is a 12 years plus six-year lease," Sim told Business Times in an interview.

The hotel is part of the RM250 million Taragon Puteri KL integrated development. It also comprises serviced apartments and retail lots.

"Two-thirds of the building is the hotel and a third is apartments which are sold as residences. The retail portion is small," he said.

Malaysia will be the group's third property outside of Australia after Singapore and Shanghai.

Rendezvous, according to Sim, offers Asian elegance and grace in its service culture.

This hotel expects 35 per cent of both its business and leisure crowd to be derived from the domestic market, followed by 17 per cent from Singapore.

China, Japan and South Korea are expected to make up 15 per cent of its guest profile while another 8 per cent will come from Europe. The Indian and Middle East market is expected to contribute 15 per cent.

Rendezvous Hospitality Group (RHG), a subsidiary of Straits Trading Co Ltd, is a relatively new, but growing Singapore brand. It plans to have 12,000 rooms by 2020, from 2,600 rooms now.

RHG manages hotels under the Rendezvous and Marque brand through Rendezvous Hotels & Resorts International.

Marque, is another hotel that the group plans to open and grow in Malaysia. The hotel is targeted at younger businessmen. Marque is described as being bold and carrying strong colours.

It appeals to people who like to be seen such like those who do interior designing or are in advertising.