KIH investing nearly US$100m on expansion

KUALA LUMPUR: Hong Kong-based Kosmopolito Hotels International Ltd (KHI) is investing close to US$100 million (RM307 million) to expand its hotel portfolio.

The plan includes managing two new properties in Malaysia.

Elsewhere, the company is setting up two hotels each in China and Hong Kong under the Dorsett Regency label, which will open next year, said president Winnie Chiu Wing Kwan.

By 2013, KHI will open a hotel each in Singapore and London, under the same label, she said.

"The whole company is about growth. In the next five years, we aim to increase the rooms to 6,630 from 4,176 currently. We have enough loans to cover our expansion so there is no need to raise funds for now," Chiu told Business Times in an interview recently.

"The strategy for us is really China. We believe in the growth of tourism in China. If you look at statistics, Chinese people are still travelling. As they get more accustomed to our brand, we believe they will continue to stay with us. We plan to have a presence in more cities, albeit cautiously," she said.

Set up in January 2007 and listed on the Hong Kong Stock Exchange in October 2010, KHI is a fast-growing developer, owner and operator of 17 hotels in Hong Kong, Malaysia, Singapore and China.

The company, wholly owned by Far East Consortium International Ltd, was founded by Malaysian tycoon Tan Sri David Chiu.

It operates hotels under four key brands in different market segments. They are the upscale Hotel Kosmopolito, boutique series by Kosmopolito, mid-scale business hotel Dorsett Regency and economy hotel Silka.

For the financial year ended March 31 2011, KHI posted net profit of HK$208 million (RM82 million), 354.9 per cent higher than the previous year, driven by strong growth in revenue (HK$876 million or RM346 million) and net gains from non-recurring items.

Its average room occupancy rate was 79 per cent.

Chiu said plans in the pipeline include KHI buying industrial buildings and converting them into hotels, and taking advantage of cheap properties available under the current market conditions.

"I believe in good corporate governance and transparency and will continue to have quarterly updates on what we do and plan. This is to let our shareholders know where we are heading," she said.

"We are heavily bought by foreign funds from the US, Europe and Singapore. Our next growth area will be Australia and Taiwan," she added.

Kosmopolito to expand in Malaysia

Hong Kong's Kosmopolito Hotels International is optimistic of Malaysia and growth in the three- and four-star hotel category

Kuala Lumpur: Hong Kong's Kosmopolito Hotels International Ltd (KHI) aims to expand its hotel portfolio in Malaysia, either by building properties from scratch or taking over abandoned buildings.

President Winnie Chiu Wing Kwan said the company may also buy hotels that are not performing well, and turn around the properties by strategising on its key brands.

"We like distress properties and are interested in three- and four-star hotels. We believe in turning around. Our group also has the experience to convert industrial and office buildings into hotels, so there are a lot out there for us.

"We are optimistic of Malaysia and growth in the three- and four-star hotel category. Budget airlines like AirAsia and FireFly have revolutionised this place and contri-buted to industry growth," Chiu told Business Times in an interview recently.

Currently, KHI has five hotels in Malaysia - Dorsett Regency Hotel Kuala Lumpur, Grand Dorsett Subang, Grand Dorsett Labuan, Dorsett Johor and Maytower Hotel and Serviced Residences - all opera-ting in the three- and four-star ca-tegories.

Chiu said the company is looking to set up more hotels in the Klang Valley and Sabah.

KHI is also interested in management contracts to boost income, she said.

By the third quarter of next year and in 2013, the company expects to manage two new hotels under Malaysia Land Properties Sdn Bhd (Mayland) in Cheras and at Plaza Damas 3 in Sri Hartamas, Kuala Lumpur.

In Cheras, Mayland had acquired Phoenix Plaza, now called Cheras Central Shopping Mall, in 2009 for some RM80 million.

Mayland is re-modelling the complex for more than RM120 million and the new set-up will include a shopping mall and a four-star hotel, which will operate under the Dorsett Regency brand.

At Plaza Damas 3, MayLand is also building a four-star hotel, which will carry the same brand name.

Kuala Terengganu City Centre expected to double RM2.6bil tourism revenue

TERENGGANU: The upcoming Kuala Terengganu City Centre (KTCC) project is expected to attract more than RM2.6bil worth of tourism revenue into the state’s coffers.

State Tourism, Arts and Heritage Committee chairman Datuk Abdul Rahin Mohd Said said the project would be driven mostly by private sector investments with the state government providing infrastructure support, such as road construction and land reclamation.

“In 2009, the state’s tourism revenue amounted to about RM2.6bil. We expect the amount to at least double when the KTCC is in place in the next few years.

“The number of visitors to the state peaked at 3.5 million in 2008 but dwindled this year due to the global economic crisis,” he said in a statement, adding that he was confident KTCC would draw more tourists when it was completed.

Abdul Rahin said the project, to be launched by Mentri Besar Datuk Seri Ahmad Said today, covered a 7km area from the centre of Sungai Terengganu.

“We expect the project to change the look and feel of Kuala Terengganu.

The project was conceptualised in 2004 under the East Coast Economic Region masterplan as a catalyst to rejuvenate economic activities here,” he said.

He also expressed his confidence that the project would benefit many quarters, especially the state’s tourism industry.

“The KTCC is designed to be one of the state’s main tourist attractions and will also provide facilities for domestic and foreign tourists.

“We have about 16,000 hotel rooms in the city and expect the number to increase to about 40,000 upon the KTCC’s completion,” he said, adding that the ultimate aim was to provide 100,000 rooms.

Abdul Rahin said the KTCC development included the construction of shopping malls, five-star hotels, international standard marina, cruise facilities and office buildings.

“We will promote the area as a tourism gateway featuring a royal township, waterfront destinations and a hub for meetings, conventions and exhibitions.

“There will also be a healthcare and wellness industry with world-class medical care and spa resorts,” he said.

By FARIK ZOLKEPLI
farik@thestar.com.my

Luxury hotel to attract more tourists



Convenient location:The Heritage is located in the
center of Malacca’s major tourist attractions.

 MALACCA: Seni Pujaan Sdn Bhd (SPSB) made its debut in the historical city with the development of a new luxury boutique residence — The Heritage — in a joint venture effort with Yayasan DMDI.
The project was launched by Chief Minister Datuk Seri Mohd Ali Rustam and was also attended by other distinguished guests.

The Heritage is located in the UNESCO designated heritage city, right in the center of most of Malacca’s major tourist attractions.

The Heritage also sports the best of both worlds — a colonial-inspired design fully furnished withmodern amenities.

As a pioneer in offering a luxury boutique residence in Malacca, SPSB plans to spearhead the trend for high-end living in the state.

SPSB is confident that the project will contribute to the development of the tourism industry in the state.

With the availability of this boutique residence, tourists will be encouraged for longer stays and this will further improve Malacca’s tourism and related industries.

The Heritage features 261 units consisting of 68 units of studio apartments, 35 units of studio apartments with kitchenette, 32 units of business suites, 113 units of two-bedroom apartments, two units of three-bedroom apartments and 11 units of double-storey commercial units.

Wooing tourists the Sunway, KLIA way

SUNWAY Medical Centre, San Francisco, USA. People who don't know any better would think that the Sunway Group has actually opened a hospital in the US.

Sunway Medical Centre, San Francisco, is in fact a hospital that appears in the Tamil movie "180", but there is only one Sunway Medical Centre and it is located in Malaysia.

Movies are often used as a tool to lure tourists to our shores. Bollywood actor Shah Rukh Khan was given the "Datuk" title for his contribution towards Malaysia's tourism, particularly, in Malacca.

Similarly, we were elated that Sean Connery and Catherine Zeta Jones were shooting "Entrapment" in Malaysia.

About a decade ago, Malaysia was marketed aggressively by Tourism Malaysia and along with this we saw a rise in the number of film producers from India coming to Malaysia to shoot their movies. Tourist numbers grew in tandem.

It is always a proud moment to see Malaysia on the big screen with foreign actors. It is also exciting to try and identify the location of certain scenes.

In the movie "Time" there were scenes of The Palace of the Golden Horses and in "Anniyan" scenes of Kuala Lumpur International Airport (KLIA).

Other popular spots regularly used to shoot Indian movies are Sunway Lagoon Resort and Langkawi.

Sometimes, locations are not really what they seem and could startle the audience. When "Entrapment" was released, it carried scenes which depicted Malaysia as a backward country.

In the Tamil movie "Goa", scenes of the beaches were all from Langkawi instead of India's beach resort Goa.

In recent years, KLIA has been appearing as a US airport. In the movie "Anandha Thandavam", KLIA is shown as JFK airport.

We are all aware that US airports have very high security, particularly after September 11, and getting permission to shoot at airports may be a "no-no".

But, to movie fans who now recognise that KLIA is being passed-off as a US airport, we are no longer proud of it but tend to react somewhat like this: "WHAT??!! This is KLIA la."

Coming back to Sunway, marketing its hospital via movies, as in "180", may be a good way to create publicity and bring in the medical tourists.

Nevertheless, for those who live in Malaysia and recognise the name, the first thing that hits them is "Is there a Sunway Medical Centre in the US?"

Scenes of Malaysia or of Malaysian brands in foreign movies is a fabulous idea to leverage on ... But, if you don't want to be fooled, best to read the credits.

Three more reasons to visit Johor

JOHOR BARU: Iskandar Malaysia is set to become a premier leisure and entertainment centre by 2013, when three projects costing more than RM1 billion come on stream in the economic region.

Pinewood Iskandar Malaysia Studios, an indoor theme park and MSC Cyber City will complement two projects taking shape — Johor Premium Outlet (JPO) and Legoland. Together, they will turn the region into a hard-to-resist destination.

Work on the three additional projects is expected to start by early next year and completed in about a year.

The RM350 million studios, which will spread over 32ha, will feature Bollywood-style film studios and facilities. This is a project involving Khazanah Nasional Bhd, a strategic investor in Iskandar Malaysia.

Pinewood has its origins in the United Kingdom in 1936. The first studios in West London have played host to many productions over the years, from blockbuster films, including James Bond movies, to television shows and commercials.

The theme park, which has yet to be named, is expected to occupy 1.6ha and cost some RM400 million. A project by UEM Land Holdings Bhd, the theme park will be built near Puteri Harbour and is scheduled for opening by late next year or early 2013.

The RM312 million MSC Cyber City project will be developed by MSC Cyberport Bhd in several phases over a period of 10 years, with the first phase to be ready by 2013.

The 60ha project will become a major landmark for leisure activities, such as computer games.

State Tourism and Domestic Trade Committee chairman Hoo Seong Chang said the state government was upbeat about the prospect of bigger tourist arrivals with the implementation of the three projects.

“This means we will have five new attractions on top of the present fare.

This will be a breakthrough for the Johor tourism industry,” he told the New Straits Times.

JPO at Kulaijaya is expected to open by year-end while Legoland at Nusajaya is scheduled for opening next September. The former is a luxury shopping destination, offering branded apparel at discounted prices under one roof.

Legoland, the first of its kind in Asia, is a family entertainment centre that will provide interactive rides, shows and attractions.

Malaysia Tourist Guides Council president Jimmy Leong said Johor could expect an influx of tourists when all the new tourist products were ready.