By BUSINESS TIMES
SINGAPORE hotel management company, Radiance Hospitality Group, plans to manage five more budget hotels in Malaysia, bringing the total number of hotels under its ambit to nine.
The new hotels will be built by Hopan Corp Sdn Bhd for RM5 million to RM7 million collectively in the next 18 months.
“Together with the support of Hopan group of companies, we have been able to secure five more properties in Bercham, Perak; Kulim, Kedah; Kuantan, Pahang; Kota Baru, Kelantan and Malacca to be converted into Replica Inns,” Radiance chief executive officer Syed Fadzil Al’ Shahab said in Kuala Lumpur yesterday.
He was speaking to reporters after launching the Replica Inn Bukit Bintang and Replica Inn Chinatown, a two-star budget boutique concept hotel.
Radiance Hospitality now manages a stable of eight hotels and resorts with a total inventory of over 1,200 rooms. The hotels cover the major Asian cities, in particular, Malaysia and China.
Hopan will develop three new Replica Inns in Bercham, Kulim and Malacca, while the other two hotels in Kuantan and Kota Baru will be a joint venture between Hopan and two other companies.
It plans to borrow 60 per cent of the amount needed to build the new hotels and finance the rest with its own funds.
“The group anticipates to formally secure another 12 additional hotel properties in Singapore, Cambodia, China and Malaysia within the next 16 months,” said Syed said.
“We expect our stable of hotels and resorts regionwide to exceed 50 in number, the majority of which will be our Replica Inns, being our fastest growing brand within our portfolio,” he added.
For 2007, Radiance hopes to grow 25 per cent of its group revenue backed by existing and upcoming hotels in Malaysia and overseas.
Last year, the group received RM45 million in revenue with less than 40 per cent coming from business in Malaysia while China and other foreign countries contributed the balance.