By: Ayu Musa Kamal
VALUE Hospitality Group, a privately-held company, has submitted a proposal to manage
three hotels owned by public-listed company (PLC), said its group general manager,
"The proposal was submitted in April, while the presentation was done in May," said
Tan in an interview with Mail Money.
He, however, didn't want to name the PLC.
According to Tan, as many as eight companies had submitted their bids to the PLC
in an invited tender exercise.
Value Hospitality was included in the list because of its good track record in managing
hotels for third parties.
Tan also didn't want to reveal the details of Value Hospitality's bid but he did
say the company would normally charge between RM10,000 and RM25,000 a month to manage
a modest hotel with about 100 to 200 rooms.
"For hotels with more than 200 rooms, the charges start at about RM25,000 and go
up to as much as RM50,000 a month," said Tan.
Outsourcing the operations and management of hotels in Malaysia is becoming more
popular, especially since room rates and occupancy levels of Malaysian hotels, starting
with luxury category may stagnate over the next five years as another 10,000 rooms
are added to the current 140,000.
The oversupply is most visible in Kuala Lumpur, which has 36,000 hotel rooms, accounting
for slightly more than a quarter of Malaysia's hotel rooms. Hotel occupancy in Malaysia
since 1986 has been around 60 per cent and 65 per cent.
On Value Hospitality's chances of winning the contract, Tan said the company is
hoping that its good track record should put it in good stead, because apart from
managing hotels, it also has experience in hotel design and investment.
"But I must add that things are still in the preliminary stage and ots too early
to seriously talk about of our chances of winning the job," said Tan.
Value Hospitality currently manages seven hotels throughout Malaysia, namely the
Beverly Hotel in Kota Kinabalu, Parkcity Everly Hotel chain in Bintulu and Miri,
Prescott Hotel chain in Bongawan and Klang, Prescott Inn in Kuala Lumpur, Prescott
Metro Inn in Kajang and the Borneo Golf and Country Club.