By BUSINESS TIMES
BOUSTEAD Holdings Bhd, a property and plantation group controlled by the Malaysia Armed Forces Pension Fund, will build and manage a RM100 million hotel in Penang under the Royale Bintang banner.
The four-star hotel will be built on Weld Quay or Pengkalan Weld near the jetty terminal on the island.
“The hotel is expected to be completed by 2010. There will a total of 295 rooms and the project cost is around RM100 million,” The Royale Bintang Hotel director of operations Mokhtar Khir said.
Mokhtar expects the hotel, targeted at both business and leisure travellers, to chalk up a 70 per cent occupancy rate in the first year of operations.
He added that the hotel is looking forward to an average room rate (ARR) of RM160.
Boustead currently owns and operates two hotels – The Royale Bintang Kuala Lumpur on Jalan Bukit Bintang and The Royale Bintang Damansara in Mutiara Damansara.
Meanwhile, the Conlay Plaza Hotel on Jalan Conlay in Kuala Lumpur, to be managed by Boustead Hotels & Resorts Sdn Bhd, is scheduled to be completed in 2009.
It is a 392-unit five-star facility, of which 288 are rooms and 104 are apartment units.
As the operator of the hotel, Boustead hopes to deliver to the owner, Irat Hotels & Resorts Sdn Bhd, a 60 per cent average occupancy rate and an ARR RM300 in the first year of operations.
On the cards is also a 50:50 joint-venture hotel project in Bukit Bintang.
When asked about the status of this project, Mokhtar said: “The development has not commenced yet and we are currently still at the planning stage.”
Yet another hotel in the group’s agenda is a second hotel in Mutiara Damansara.
“In view of the high occupancy rate at the Royale Bintang Damansara hotel, the group is in the midst of planning for the another hotel in Mutiara Damansara.
“The Boustead Group is always on the look out for opportunities that will enhance our shareholders’ value. We are leveraging on our expertise in both property development and hospitality and service,” he said.