Tune Hotels may be listed in 2013

Tune Hotels Regional Services Sdn Bhd, the budget hotel chain owned by Tony Fernandes, head of Southeast Asia’s biggest low-cost carrier, may go public in early 2013 to expand its hospitality network, its chief executive officer said.

Tune Hotels, a unit of investment company Tune Group led by Fernandes, aims to have as many as 60 hotels across 10 countries including the U.K. and India by the end of 2012, said Mark Lankester, CEO of the hospitality group. The goal is to operate 100 by 2014, he said.

“We need to raise more capital to invest and continue the brand-growing,” Lankester said in an interview yesterday. “For us to continue growing, the cheapest capital is always going to be public capital. Securing public capital through an IPO makes a lot of sense.”

Fernandes, 46, is aiming to repeat his success with AirAsia Bhd., which was listed in 2004 and overtook national carrier Malaysian Airline System Bhd last year to become the country’s biggest airline by market value. AirAsia’s shares have doubled in the past year, while Malaysian Air has fallen 18 per cent.

AirAsia has said it intends to spin off and list its Thai and Indonesian units this year, while its long-haul associate AirAsia X Sdn Bhd may sell shares in Europe and Asia in 2012.

Tune Group, which Fernandes co-founded with AirAsia’s Deputy CEO Kamarudin Meranun, invested in businesses ranging from hotels, prepaid mobile-phone services to online financial products.

Reinvesting Income

Petaling Jaya-based Tune Hotels, which is profitable, has been reinvesting its income to grow the business, Lankester said, without disclosing its earnings. The company is preparing itself for an initial public offering and has yet to decide which stock exchange it would be listed on.

Tune Hotels has expanded to 12 properties in Malaysia, Indonesia and the U.K. since the opening of its first hotel in downtown Kuala Lumpur four years ago. Development deals are signed to add another 90 assets in Southeast Asia, Australia, London and India, Lankester said.

While the company owns most of the hotels currently under operation, it has accelerated the expansion through partnerships and franchise arrangements, he said. Tune Hotels teamed up with U.K.-based investment company Queensway Group Ltd. last year to develop and run 15 properties across in the London area by 2017, and it’s working with Apodis Hospitality Group to invest in 20 Indian hotels, he said.

Fernandes entered the airline business by mortgaging his home and digging into savings to buy then AirAsia for RM1 (33 US cents) in 2001, assuming its debts and two ageing Boeing Co planes. He now has a net worth of US$470 million, according to Forbes magazine, and is also principal of the Lotus F1 Racing team. -- Bloomberg

Malaysia in top 10 'friendliest' countries list

FRANKFURT: Malaysia is considered to be one of the 10 “friendliest” countries of the world, according to a survey conducted by HSBC.

Malaysia is ranked 9th in the list, according to the poll, conducted last year.

Besides the friendliness of the local people, another criterion for judging a country’s friendliness is how simple it is for foreigners to live and integrate themselves in the local environment.

The HSBC poll surveyed over 4,000 people from more than 100 countries between April and June 2010.

Respondents were asked to give answers to questions such as where it is simplest to find local friends, how easy is it to learn the language of a country or adapt to and integrate in its culture.

Eighty per cent of those surveyed said that English was their mother tongue.

Germany, a non-English-speaking country, however, made it to the list -- ranking 10th directly behind Malaysia.

South Africa, ranked 3rd, according to the poll, is “very open” to foreigners who want to live there.

The top 10 friendliest countries of the world, according to the survey, are: 1. Canada, 2. Bermuda, 3. South Africa, 4. United States, 5. Australia, 6. Spain, 7. France, 8. Great Britain, 9. Malaysia and 10. Germany. -- BERNAMA

Hilton hotel to 'crown' RM1.5b Puchong project

The fast-growing district of Puchong in Selangor will welcome a Hilton hotel in 2013, which is part of a RM1.5 billion mixed-development project named Millenia City.

The project, located on a 40.5-hectare site, is being developed by privately-held Millenium Land Sdn Bhd, which shares similar directors as Tanco Bhd.

The group yesterday signed an agreement with international hotel chain, Hilton Worldwide, to manage Hilton Garden Inn Hotel that will target the mid-market business and leisure travellers.

Millennia City, which is set to be the commercial heartbeat of Puchong, will comprise M Square, a 380,000 sq ft self-enclosed six-storey shopping mall that is linked to the 255-room Hilton Garden Inn and a 2.1 million sq ft Street Mall comprising 13 blocks of six-storey retail and office units.

The development will start by the third quarter this year and is targeted for completion by 2013. The company also plans to build high-rise apartment, targeting the high income group.

"From our research, we found that Puchong is currently one of the fastest growing districts in Malaysia in terms of growth especially in three key area - population, monthly household income and commercialisation," said executive director Benjamin Tan in Kuala Lumpur.

Also present at the signing ceremony were tourism minister Datuk Seri Ng Yen Yen and Hilton Worldwide senior vice president Middle East and Asia Pacific Andrew Clough.

The primary catchment in Puchong reaches an estimated 420,000 people while its secondary catchment area, some 10 minutes away, reaches some 1.2 million people.

"As such, we believe that the development of Millennia City will be a highly significant project as we foresee it to be a major cornerstone of a modern, trendy and touristy Puchong," said Tan.

50pc more hotel rooms needed

BY 2020, Malaysia needs 50 per cent more hotel rooms to cater for the anticipated tourist arrivals of 36 million.

As at February this year, there were a total of 1,610 hotels in the three to five star category and budget hotels in Malaysia. Together the hotels provide 161,117 rooms.

The increase, Deputy Minister of Tourism Datuk Dr James Dawos Mamit said, would be required throughout the country.

Malacca records the highest number of tourists, he added.

Mamit, who read the speech on behalf of Tourism Minister Datuk Seri Dr Ng Yen Yen at the official launch of InterContinental Kuala Lumpur, said that in Kuala Lumpur alone there are 236 hotels, offering 30,000 rooms.

The average occupancy of hotels in Kuala Lumpur in 2010 was 66.9 per cent, which was 4.2 per cent higher than in 2009.

However, the average occupancy of hotels in Malaysia declined by 1.6 per cent, registering 59.3 per cent. This was despite an increase in arrivals in 2010 of 24.6 million compared with 23.6 million in 2009.

Mamit said the decline could have been a result of people opting for Malaysian Homestay.

"There was a dramatic increase in the number of homestays," he said.

This year's tourist arrivals target is set at 25 million and the government is looking at bringing in high-yield tourists.

He added that any decline in arrivals from Japan will be cushioned by higher arrivals from China and India, particularly affluent tourists.

Meanwhile, some of the confirmed new room inventory to enter the Klang Valley market over the next five years are St Regis Kuala Lumpur, Grand Hyatt, Pullman Bangsar, Best Western Premier Dua Sentral, Hilton Garden Inn, Movenpick, Park Regis Kuala Lumpur and Four Season Place.

Plan to transform Rebak Island into unique retreat

Rebak Island Resort, on a 158ha private island off Langkawi, is planning to enhance the island to attract more guests.

The resort, 75 per cent-owned by DRB-HICOM Bhd's unit Hicom Indungan Sdn Bhd, is looking at developing private beaches for guests and opening a wellness spa.

Rebak Island Resort, in which Langkawi Development Authority and Mofaz have a 19 per cent and 6 per cent stake respectively, is managed by Indian luxury hotel chain Taj Hotels Resorts and Palaces.

General manager Mahesh S. Aiyer said these plans are likely to be completed in the next two to three years.

"Rebak is a unique private island. In sync with the positioning of a private island, we need to extract the potential of the island," he said during an interview with Business Times.

For a start, it plans to open an additional restaurant serving Asean and Japanese cuisine.

It is also looking at a yoga retreat and a restaurant serving organic food.

Subsequently, it may also develop two private beaches and set up a spa complex aimed at capturing not only guests from its resorts but also tourists from the main island.

Rebak Island, he said, will be transformed into a rejuvenation spot where unique activities can be conducted such as a cooking holiday and for photography enthusiasts.

Tugu Negara

The National Monument is a sculpture that commemorates those who died in Malaysia's struggle for freedom, principally against the Japanese occupation during World War II and the Malayan Emergency , which lasted from 1948 until 1960. It is located in the Federal capital, Kuala Lumpur. The Malaysian Houses of Parliament is situated near the monument.

It is the world's tallest bronze freestanding sculpture grouping. Every year on July 31 on Warriors' Day, the Yang di-Pertuan Agong, the Prime Minister and heads of military and the police pay their respects to the fallen heroes by laying garlands at the monument.

DesignConstructed in 1966, the monument is 15 meters (49.21 feet) tall, made of bronze and was designed by Austrian sculptor Felix de Weldon, who was also responsible for the famed USMC War Memorial in Virginia, United States.

The granite base of the monument bears the old coat of arms of Malaysia, flanked on either side by inscriptions in English with Roman script and Malay with Jawi script:

"Dedicated to the heroic fighters in the cause of peace and freedom,

May the blessing of Allah be upon them"

The monument depicts a group of soldiers holding the Malaysian national flag, the Jalur Gemilang, aloft. Each of the bronze figures symbolizes leadership, suffering, unity, vigilance, strength, courage and sacrifice.

Tourists give city the thumbs up

KUALA LUMPUR: The latest report by Euromonitor International has placed Kuala Lumpur ahead of Paris, Hong Kong and New York in terms of international tourist arrivals.

According to the Top City Destinations Ranking 2009, the Federal capital is ranked fourth out of 100 cities in the world.

New York City, Dubai, Paris and Hong Kong have been placed in the sixth, seventh, eight and tenth spot, respectively.

The report showed that despite the unprecedented drop in international tourists arrivals worldwide which fell by 3.5 per cent, Kuala Lumpur recorded a growth of 5.2 per cent, which saw 9,400,000 tourists entering the country in 2009.

Euromonitor International is a leading independent provider of business intelligence on industries, countries and consumers.

What's attracting visitors to Kuala Lumpur? Streets caught up with some tourists in the city to find out.

Australian Liam Swaaney (left), 29, loves the architecture of the buildings.

"I can't stop shooting pictures of the beautiful buildings in Kuala Lumpur. Malaysia is a good starting point for a Southeast Asia vacation," said Swaaney.

He said he could see the rich cultural diversity of the country just by looking at the architecture of the buildings.

Megan Cantwell (below), 24, who loves backpacking, said Kuala Lumpur has much to offer in terms of places to visit.

"I've been here for only three days and I've already seen some great places like the Twin Towers, Dataran Merdeka and KL Tower," said Cantwell, a Canadian.

Rupinder Singh, 29, from India, said he's in Kuala Lumpur for a business trip as well as a short vacation.

"This is my first time to Malaysia and I have visited many interesting places," said Rupinder, who visited Dataran Merdeka and Batu Caves, among others, with his wife.

Elena Kozlova, 30, who hopped off from a bus load of Russian tourists at Dataran Merdeka was surprised to see so much of greenery despite the many tall buildings.

"I've enjoyed every moment since I set foot in the country. I'll definitely be back," said Kozlova, who is heading for Borneo for a two-week diving trip.

Iqbal Warsi, 55, from London decided to visit the city after hearing all the wonderful stories about Kuala Lumpur from her son, who was here for his honeymoon.

Iqbal and her husband love everything there is about the city, especially Bukit Bintang.

"It reminds us of Piccadilly in London. We can find all kinds of food and see the different cultures in one small place," said Iqbal. They added that the locals were friendly and helpful.

Frenchman Nicolas Lamballe, 32, who is on his second visit, loves the city.

"Kuala Lumpur is a beautiful place with very nice people. I will definitely come back and bring more friends with me next time," said Lamballe.