Lanson going places

GUESTS of Lanson Place serviced apartments, who are used to the level of service by the group, will be pleased to know that it plans to triple the number of properties within the next three to five years.

Lanson Place Hospitality Management Ltd, a Wing Tai Asia Group company, is also looking at representations in several new destinations like Vietnam, Indonesia, Taiwan, South Korea, Japan and Australia.

This expansion will also see the number of rooms triple.

"Within the next three- to five- year period, our internal goal is to have 20 properties and 3,000 keys (apartment units)," the management company's senior vice president Graeme Laird said.

"It is ambitious and will all depend on having the right human resources in place", he added.

Lanson Place has a presence in Malaysia, Singapore, Hong Kong and China. In Malaysia, the properties are owned by Wing Tai Malaysia Bhd, which was previously known as DNP Holdings Bhd.

Laird, during a recent visit to Kuala Lumpur from Hong Kong, told Business Times that the expansion could be pure management contracts for its group properties or for others or those where it takes equity.

Lanson Place now has seven properties with a total of 1000 keys. Six of the properties are serviced apartments, while its sole property in Hong Kong is a hotel.

According to Laird, the group is working on introducing two accommodation categories - a premier model that is likely to be called Lanson Place Residences and one which is a rung below, called the Lanson Place Apartments.

The former will typically have 100 to 150 keys while the latter between 150 and 250 keys. Keys refer to the main door as serviced apartments can be a one-, two- or three-bedroom unit.

Currently, Lanson's two top performing properties are located one each in Beijing and Shanghai in China.

The first Lanson Place property commenced operations in 1998 in Singapore. Immediately thereafter, Lanson Place Kondominium No 8, a residential development, and Lanson Place Ambassador Row in Kuala Lumpur opened in the same year.

When asked about competition, especially in Kuala Lumpur where there has been a mushrooming of serviced residences, Laird said: "Our product is different from our competitors. Our style and finishing is of high quality. And so is our standard of service."

"You just have to arrive with a suitcase and be at home immediately," he said.

It positions itself to go beyond expectations in service standards.

If you are a guest from Lanson Place having dinner at a restaurant outside and it starts to pour, don't be surprised if a Lanson Place staff shows up at the restaurant's door just so he can hand over an umbrella to you.

By Business Times

Malaysia woos luxury hotel brands

Bulgari, Armani and Versace may no longer be just luxury retail brands found in Malaysian malls, as property developers think about bringing in their hotel brands too.

With brands like Grand Hyatt, Mandarin Oriental and Four Seasons already here while St Regis and Raffles have confirmed openings, developers are eyeing fresh and popular hotel brands.

"Developers are now beginning to look at Waldorf Astoria and also various designer-linked brands like Bulgari Hotels & Resorts, Palazzo Versace, Armani Hotels & Resorts," vice president of the Malaysian Association of Hotels (MAH) Ivo Nekvapil told Business Times in an interview recently.



If these brands make their way to our shores, they are likely to be located either in Kuala Lumpur or on Langkawi island.

Nevertheless, Nekvapil feels that sub-brands or brands that come under their more familiar parent company name should be considered as they have potential in Malaysia.

These would include brands like All Seasons and Ibis which are Accor brand hotels and Hilton Garden Inn, a Hilton group brand.

He explained that these brands have international recognition and as such Malaysia too needs these brands to give the country world recognition.

Meanwhile, when asked about the hotel scene in Klang Valley this year, Nekvapil said that there could be an addition of some 2,000 rooms in the four- and five-star hotel/serviced residence category.

Additional rooms this year will come from the opening of Somerset Ampang Kuala Lumpur, Best Western KL Sentral, Park Regis Kuala Lumpur and Pullman Kuala Lumpur Bangsar.

On occupancy and rates in the Klang Valley, Nekvapil said that 2011 could end with an average room rate (ARR) of RM360 for lower end five-star hotels and about RM500 for higher end five-star category hotels. Occupancy this year could finish at about 68 per cent.

Mandarin Oriental still leads the pack, and is now drawing an ARR of around RM700.

Last year, occupancy ended at around 65 per cent and ARR of between RM200 to RM320 per night.

Malaysia had its highest occupancy of over 70 per cent in 2007.

By Business Times

Best Western to manage and market The Haven

BEST Western International Inc, one of the world’s largest hotel chains, has been appointed by property developer Superboom Projects Sdn Bhd to manage, market and lease out The Haven Lakeside Residences.


Jonathan Badman (left) and The Haven Sdn Bhd co-principal David Yam at the site of The Haven Lakeside Residences.

BWI Hotels Sdn Bhd group director of sales and marketing (Malaysia) Jonathan Badman says this will be the group’s first undertaking of luxury residential eco-resort in Malaysia and the first of its kind in South-East Asia.

Says Badman: “Owners have a choice to stay or to lease out their units. The transaction is between themselves and Best Western Hotels. We will also manage the public areas of the project.”

He says the Arizona-based company will further improve the design and facilities at The Haven to Best Western’s premier level, the equivalent of a four-star and above in hotel rating.

The company manages and operates two hotels under franchise agreements in Malaysia currently, these being Best Western Kinabalu Daya Hotel in Kota Kinabalu and Best Western Marina Island Resort in Pangkor. Both are its core three-star brand.

In the second quarter of this year, it will be opening in three new locations namely Best Western Sandakan Hotel and Residence in Sabah (170 rooms), Best Western Premier Dua Sentral KL (352 rooms) and Riverside Malacca (170 rooms).

The group will be having four new locations in 2012 and 2013 in Malacca, Kuala Lumpur, Shah Alam, and The Haven in Tambun, Perak.

“If we cannot bring value into a relationship, we will not do it. In the case of The Haven, it will be a win-win situation,” Badman says.

The Best Western brand began operations in Malaysia in 2005 and Asia will be its growth market. The group manages and operates 165 properties in Asia and the Middle East. It operates in 80 countries and territories globally.

By The Star

Ninth Tune Hotel in Malaysia opens

KOTA BARU: Barely three years after the inception of Tune Hotels, a total of one million people have stayed in its 12 hotels locally and abroad, confirming that it is one of the fastest-growing hotel chains in the region.

Tune Hotels chief executive officer Mark Lankaster said the limited service model offers value for money.

“We always listen to our guests and strive to meet their needs and expectations.

“Recently, we removed the RM10.90 administration fee across our entire chain.

“Guests now only pay for the room,” Lankaster told reporters after the soft launch of the 12th Tune Hotel here on Sunday.

He added Tune Hotels enjoy a 95% occupancy rate on any given day.

The opening of the Kota Baru hotel brings Tune Hotel properties in Malaysia to nine, the last hotel was opened in Bintulu on Jan 3.

Three other Tune properties are located in Kuta and Legian in Bali and one in London.

Lankaster revealed that by the end of next year, a total of six hotels woud be built.

“The Kota Baru hotel completes our framework to cover the northern, southern, central, eastern and western regions of the country and from next year we would be concentrating on building hotels beyond Malaysian shores,” he said.

By The Star

Tune Hotels to expand chain

TUNE Hotels is confident of expanding its hotel chain to more than 40 in the country and abroad by the end of next year, group chief executive officer Mark Lankester said.

At least one hotel will be opened every month from September to add to the existing 12 under its name, including two in Bali and one in London.

Lankester said the new hotels would be coming up in Indonesia, the Philippines, Thailand, Australia and the United Kingdom, beside expanding locally.

"Locally, we have covered the central, northern, southern, eastern and western parts," he said after the soft launch of the latest Tune Hotels in Kota Baru on Sunday.

Lankester said it would invest substantially for the new hotels as the development cost for a hotel in the country averaged from RM15 million to RM20 million.

In London, he said, the cost could rise to RM70 million for a hotel.

On Tune Hotels Kota Baru, he said it cost the company RM20 million to develop the 173-room hotel which was completed in 11 months to usher in the New Year.

It was built in a partnership with property company HLK Group, which established HLK Ventures Sdn Bhd to exclusively develop the hotel.

"As our sister company AirAsia is doing well with its flights to Kota Baru, it is a natural extension for Tune Group to come to Kota Baru," Lankester said.

"The opening of Tune Hotels here is also an acknowledgement of the increasing importance of Kota Baru as a travel and tourist destination with vibrant commerce and business sectors."

Lankester said although the hotel chain was targetted at leisure travellers who accounted for about 70 per cent presently, it was drawing an increasing number of guests from the business sector.

"Business organisations need their people to travel all over the country but to keep down their costs, they are putting up at Tune Hotels," he said.

On a related note, Lankester said Tune Hotels had eliminated administration fees for room reservation across all of its hotels effective from January 5.

"As we open more hotels, we have become more cost efficient. We have found that the fees are no longer relevant and the savings will be passed on to our guests," he said.

By Business Times

Naim to develop RM300m mixed project in Kuching

SARAWAK-based Naim Holdings Bhd (Naim), a property developer and construction group, will develop prime land in Batu Lintang, Kuching, into the state's biggest comprehensive mixed development project, costing more than RM300 million.

Managing director Datuk Hasmi Hasnan said the proposed development would be sprawled over 13.597ha and be completed over 20 years.

The project will comprise a four-storey shopping mall with basement car park, office tower block, hotel tower, a 36-storey office tower with basement and elevated carpark, showroom, 18-storey condominium block and a 27-storey high-rise apartment.

"We will incorporate a water theme park, a roof garden and incorporate plenty of greeneries so as to come out with a development that is eviromental friendly and one that the local populace can enjoy and benefit from," he said.
The project will be developed on a joint venture basis between Naim, Sarawak Mosque Welfare Trust Board and Tabung Baitulmal Sarawak.

The three parties signed a memorandum of understanding to facilitate the venture witnessed by Chief Minister Tan Sri Abdul Taib Mahmud.

Hasmi said Sarawak Mosque and Tabung Baitulmal will each have a 15 per cent equity in the project venture while Naim would hold the remaining 70 per cent.

"We estimate employment for more than 2,000 people in the project," he said, without disclosing, when the construction will begin.

By Bernama

UCSI plans RM1.13b expansion drive

DIVERSIFIED firm UCSI Group plans to spend up to RM1.13 billion to expand its business and education-based operations over five years, its chairman Datuk Peter Ng said.

The group, which operates the UCSI University, is in the midst of developing three five-star hotels in Kuching, Kuala Lumpur and Bandar Springhill in Port Dickson, Negri Sembilan.

Ng said in Bandar Springhill, UCSI is planning to build a university medical centre on 13.9ha with investments of RM500 million, besides a RM200 million resort hotel and convention centre.

Bandar Springhill is also where UCSI University's main campus will be located.

"Initially, the medical centre will hold 400 beds and will expand to 1,000 beds," he said, noting that it will feature state-of-the-art technology and a hostel for nursing students.

The resort hotel and convention centre, meanwhile, are being built on a 5.6ha site comprising a 17-storey hotel with 319 rooms.

Ng said the hotel will feature nine restaurants and eateries with indoor and outdoor seating, a sandy beach, a full-service spa, a roof garden, four meeting rooms, conference and seminar rooms, function hall and grand ballroom.

A 14-storey residential block for students with 390 rooms will be built next to the hotel.

"These projects are expected to be completed by May 2012," Ng said after unveiling the expansion plans at UCSI University's 25th anniversary celebration in Kuala Lumpur yesterday.

Also present was UCSI University chancellor Tan Sri Abdul Rahman Arshad.

Ng said UCSI University is committed to strengthening Malaysia's position as an international tourist destination.

"To ensure the success of the university medical centre, we have to be involved in health tourism," he said.

He said at present, Malaysia's health tourism was still low, with revenue of RM350 million recorded in 2010.

Ng said this was due to lack of hospitals involved in the niche market.

Apart from the two projects, UCSI is also setting up an international school in Bandar Springhill costing RM50 million whereby the project is due for completion by year-end.

Others include UCSI CityIsland Hotel in Kuching worth RM180 million, a RM200 million UCSI tower and hotel in Cheras and an office building in Cyberjaya.

"We are funding all of the projects via internal funds, disposable of fixed assets and borrowings," Ng said.

The government recently appointed UCSI University to lead a national initiative to help the country achieve its goal of becoming a high-income nation by 2020.

The university will chair the hospitality and tourism discipline cluster (Entry Point Project 10), one of the 131 projects under the Economic Transformation Programme.

By Business Times

Guocoland to launch Damansara City 2 by Q3

GUOCOLAND (Malaysia) Bhd hopes to launch its RM1.9 billion flagship development, known as Damansara City 2, in the third quarter of this year, an official said.

The property arm of the Hong Leong group will build the integrated development in Kuala Lumpur's Pusat Bandar Damansara, over a 2.2 million-sq-ft area.

It will comprise two office blocks, a 300-room hotel, a 260-unit serviced apartment block and a retail centre.

"We hope to launch it, hopefully, in the third quarter. The gross development value is not really firmed up yet, but it could be between RM2 billion to RM2.5 billion. We're selling only the serviced apartments," managing director Yeow Wai Siaw told Business Times yesterday.
He said work on the project could start immediately once all approvals were obtained. He is targeting for the project to be completed in about 30 to 36 months.

The project by Guocoland was first announced by Prime Minister Datuk Seri Najib Razak yesterday. It was one of 19 projects he unveiled under the government's Economic Transformation Programme.

Guocoland's share price gained 11 sen to RM1.35 in the stock market yesterday.

By Business Times

Sino-Saudi plan for 7-star hotel

BEIJING: Beijing authorities plan to build a "seven-star hotel" modelled after Dubai's Burj Khalifa - the world's tallest building - in a US$1.3 billion (US$1 = RM3.07) joint project with Saudi Arabia.

The hotel will be erected in western Beijing's Mentougou district some 30 kilometres from the Chinese capital's centre, the state-run Beijing Morning Post said in a Thursday report, quoting a local parliamentary meeting.

A district official, who declined to give his name, confirmed the project and its price tag in comments on Friday.

He said that the Saudi side was expected to foot the entire bill but he refused to provide other details, such as why such an expensive project would be located in the underdeveloped rural area.

The Beijing Morning Post said the building's design would be patterned after the 828-metre Burj Khalifa's distinctive slender, tapering design, but did not say how tall the planned structure would be.

The "seven-star" classification is not officially recognised internationally, as no formal body awards ratings above five stars, but there are a handful of luxury hotels around the world that still use the distinction.

Dubai's Burj Al Arab is one such establishment, and in Beijing, the Pangu 7 Star Hotel built near the 2008 Olympic stadium also claims the rating.

By AFP

Three awards for hotel

Proud moment: One World Hotel director of rooms Kenneth Perreau receiving the award from editor of Expatriate Lifestyle Magazine Matt Bellotti.

One World Hotel, Petaling Jaya, has managed to bag three awards at the recent Expatriate Lifestyle magazine’s Best of Malaysia Travel Awards 2010.

The awards’ results were announced in the October 2010 issue. The hotel’s management said it was honoured and proud to have won these highly prestigious awards which were voted by hundreds of thousands expatriates living in Malaysia.

One World Hotel received an Excellence Award in Best City Hotel category, Zuan Yuan Chinese Restaurant was awarded the Excellence Award for the Best Hotel Restaurant category while Thann Sanctuary Spa was recognised as the Best City Spa.

For the past four years, Expatriate Lifestyle magazine had their readers cast votes for their favourites in the Best of Malaysia Awards — an annual travel and hospitality awards. It is a form of recognition and gratitude to efforts in offering the best in meeting with international standards and expectations.

This year’s voting has been exceptional with increased number of votes compared to 2009.

One World Hotel is the only independent hotel in Petaling Jaya to have won the Best City Hotel Award for the second consecutive year. These awards have certainly endorsed the hotel’s position as the leading five-star hotel in Selangor and a tribute to One World Hotel for

providing the highest standards of services and facilities to guests.

Its general manager Ho Hoy Sum said the hotel staff’s steadfast commitment to excellence and consistency in standards earned them these prestigious awards and winning the Best City Hotel award for consecutive years was indeed an inspiration to motivate them further in their commitment to excellence and to ensure that guests receive only the very best service from the hotel.

By The Star

China plans US$1.3b 'seven-star hotel'

BEIJING: Beijing authorities plan to build a "seven-star hotel" modelled after Dubai's Burj Khalifa -- the world's tallest building -- in a US$1.3 billion joint project with Saudi Arabia.

The hotel will be erected in western Beijing's Mentougou district some 30 kilometres (18 miles) from the Chinese capital's centre, the state-run Beijing Morning Post said in a Thursday report, quoting a local parliamentary meeting.

A district official, who declined to give his name, confirmed the project and its price tag in comments to AFP on Friday.

He said that the Saudi side was expected to foot the entire bill but he refused to provide other details, such as why such an expensive project would be located in the underdeveloped rural area.

The Beijing Morning Post said the building's design would be patterned after the 828-metre (2,717-foot) Burj Khalifa's distinctive slender, tapering design, but did not say how tall the planned structure would be.

The "seven-star" classification is not officially recognised internationally, as no formal body awards ratings above five stars, but there are a handful of luxury hotels around the world that still use the distinction.

Dubai's Burj Al Arab is one such establishment, and in Beijing, the Pangu 7 Star Hotel built near the 2008 Olympic stadium also claims the rating.

The announcement of the Mentougou project comes at a time when China is attempting to crack down on high-end developments and use more land for affordable housing, amid general discontent over soaring property prices.

By AFP

Cahya Mata unit in RM380mil JV to build hotel, apartments

PETALING JAYA: Cahya Mata Sarawak Bhd, through 51%-owned subsidiary CMS Land Sdn Bhd, has signed a joint-venture agreement to build, own and manage a four-star hotel and service apartments at the Kuching Isthmus in Sarawak.

It told Bursa Malaysia yesterday that it had signed the agreement with Premier Cottage Sdn Bhd (PCSB), Boulevard Jaya Corp Sdn Bhd (BJSB), Hikmat Majusama Sdn Bhd (HMSB) and Isthmus Developments Sdn Bhd (IDSB).

The building, comprising 381 hotel rooms and 96 service apartments, will cost about RM380mil, including outfitting, furniture, fittings and equipment, but excluding financing costs and contingencies.

IDSB, which will undertake the development, will finance it via a combination of share issuance, borrowings from banks or financial institutions, as well as advances from the joint-venture partners, except CMS Land, totalling up to RM50mil.

CMS Land will inject two parcels of vacant land in Kuching, totalling 4.25ha with a lease period of 99 years expiring in 2109 to IDSB for a total consideration of RM10mil to be satisfied via the issuance of 10 million new shares in IDSB, which will undertake the hotel development, at their par value.

Based on the audited financial statements as at Dec 31, 2009, the net book value of the land was approximately RM5.106mil. The land has not been income generating and thus no profit is attributable to the land, it said.

CMS Land will eventually own 10.3% in IDSB, while PCSB, BJSB and HSMB will hold 50.5%, 19.6% and 19.6% respectively.

CMS Land will subscribe for 300,000 new RM1 shares in IDSB, while PCSB, BJSB and HSMB will subscribe for 5.05 million new shares, 1.96 million new shares and 1.96 million shares respectively.

Building works for the hotel is expected to begin in the first quarter of 2011 and completed by December 2013.

CMS Land is the land owner and property developer for the Kuching Isthmus development project, which is intended to become Kuching's new central business district.

It is a proposed mixed commercial and residential development project that includes convention and exhibition centre, transport hub, tertiary educational institutions, marina and other housing/commercial developments.

By The Star

Cahya Mata unit in apartments, hotel deal

CAHYA Mata Sarawak Bhd's 51 per cent unit has formed a joint venture with four parties to help it build, own and manage serviced apartments and a four-star hotel in Kuching Isthmus in Sarawak.

CMS Land Sdn Bhd will have a 10.3 per cent stake in the joint venture company.

The other parties are Premier Cottage Sdn Bhd, Boulevard Jaya Corp Sdn Bhd, Hikmat Majusama Sdn Bhd and Isthmus Development Sdn Bhd.

By Business Times

KL site for Accor's largest hotel in S-E Asia by rooms

COME July 2011, Malaysia will house Accor's largest hotel in Southeast Asia by rooms.

French hotel operator Accor, which operates brands like Sofitel, Novotel, Mercure and Pullman is opening a 513-room five-star hotel in Bangsar, Kuala Lumpur.



General manager Patrick Sibourg said that the hotel, the Pullman Kuala Lumpur Bangsar, will also become the flagship for the Pullman brand in Southeast Asia.

In a recent interview with Business Times, Sibourg said that the hotel will be the third Pullman brand in Malaysia after Kuching and Putrajaya.

Based on the room configuration and the success of the Pullman brand here, the group decided to adopt this brand to target the business crowd.

It hopes to woo both the domestic and the foreign corporate businesses, especially those who visiting offices within a twenty-minute driving radius of the hotel.

Being a hotel that focuses on business, it also has a ballroom with a 1,400-capacity and ten meeting rooms.

"The performance of Hilton Sentral, Le Meridien and Hilton Petaling Jaya shows the growing confidence in the market here," Sibourg said.

"We expect to have a 60 per cent occupancy and an average room rate of RM320++ by the end of December 2012," he added.

Sibourg hopes to see occupancy rise by between 2 and 3 per cent each year.

The hotel will have some seven restaurants, cafes and bars. Since it will also be big on meetings, the hotel expects to have some 500 staff.

Revenue split from room and food & beverage is expected to be equal.

Sibourg anticipates gross operating profit to be about 30 per cent in the first year of operation.

Pullman has a 12-year contract with the developer Cygal Development Sdn Bhd. The hotel will be located in Tower 3.

Cygal Bhd (which has changed its name to Sycal Ventures Bhd) started the construction of the building in 1995 but was stalled during the 1997/1998 economic crisis.

Telekom Malaysia Bhd bought Tower 1, Plaza Cygal in early 2005, and later that year TM bought Tower 2 from the owners.

By Business Times

Ireka secures RM232m office, hotel project in KL

KUALA LUMPUR: IREKA CORPORATION BHD has secured a RM232.74 million contract for the proposed offices and hotel development in Kuala Lumpur.

It said on Friday, Nov 26 its unit Ireka Engineering & Construction Sdn Bhd had received a letter of intent from Transmission Technology Sdn Bhd for the project.

Ireka said the project involved architectural and mechanical and electrical works for basements and the 13-level podium and also the 27-storey and 37-storey office towers.

Earlier, it announced net loss of RM87,000 in the second quarter ended Sept 30, 2010 compared with net profit of RM2.13 million a year ago after accounting for the share of loss in Aseana Properties Limited.

Revenue rose 21% to RM108.02 million from RM89 million and it recorded loss per share of 0.08 sen compared with earnings per share of 1.87 sen.

For the first half, revenue rose 11.5% to RM209.736 million from RM174.610 million mainly due to higher volume of construction works being completed during the period.

At the pre-tax level, it recorded a pre-tax loss of RM2.868 million, as compared to a pre-tax profit of RM5.789 million in the previous corresponding period.

“The loss is after accounting for the share of loss in Aseana Properties of RM7.503 million and also a mark-to-market loss for share investment in Kinh Bac City Development Shareholding Corporation of RM1.986 million. Excluding these two items, the Group’s pre-tax results would be positive at RM6.613 million,” it said.

By The EDGE Malaysia

InterContinental to make debut in Malaysia next year

SINGAPORE: The InterContinental hotel brand will make its entry into Malaysia on Feb 1, 2011, when it replaces the current Nikko Hotel Kuala Lumpur.

In a statement yesterday, InterContinental Hotels Group (IHG) said the 473-room Nikko Hotel in Jalan Ampang would take the name InterContinental Kuala Lumpur.

IHG Asia Australasia managing director Jan Smits said IHG was excited to bring the InterContinental brand to Kuala Lumpur.

He said the hotel market in Malaysia had the potential for long-term growth, especially in view of the country's target of 36 million tourist arrivals by 2020.

Smits said Kuala Lumpur was a key regional destination and Malaysia was one of the few South-East Asian countries that saw an increase in visitor arrivals in 2009, a trend that had continued to-date this year.

Thomas Lee, director of the hotel's owning company MTJ Development Sdn Bhd, said with the InterContinental brand, the hotel would be able to capture an even greater share of the growing number of visitors to Kuala Lumpur, one of the most visited cities in the world.

The statement said the hotel was slated to embark on a 30-month refurbishment, which would take place in three phases.

Currently, there are 170 InterContinental hotels operating globally in more than 60 countries, including 50 in Asia Pacific.

In Malaysia, IHG also operates Crowne Plaza Mutiara Kuala Lumpur, Holiday Inn Kuala Lumpur Glenmarie, Holiday Inn Resort Penang and Holiday Inn Malacca.

With the recent signing of the Holiday Inn Express in Kota Kinabalu, IHG will have all its key brands operating in Malaysia when the Holiday Inn Express debuts in the market.

By Bernama

'80pc SetiaWalk occupancy by Q1 2012'

SP Setia Bhd expects the occupancy rate at its boutique lifestyle development project, SetiaWalk, to increase to 80 per cent from 60 per cent when it opens its doors by the first quarter of 2012.

Spanning 8.32 hectares of prime land fronting Jalan Puchong, SetiaWalk offers an eclectic mix of retail offices, serviced apartments, dining delights, a boutique hotel and entertainment centre.

SetiaWalk, with a gross development value of RM1 billion, has a gross floor area of 2.3 million sq ft and a net lettable area of 2.4 million sq ft.

"There will be more exciting things to look forward to at SetiaWalk, one of them being the proposed light rail transit station opposite our project," said its divisional general manager, Wong Tuck Wai, at the ceremony to welcome three anchor retailers of its entertainment centre.

"We welcome TGV Cinemas, Celebrity Fitness and Superstar Karaoke as our business partners," he said.

Wong said the last anchor tenant would be the Chinese restaurant chain and the name was expected to be revealed soon.

SetiaWalk targets its retail offices to open for business in April next year with the entertainment centre operational by December 2011.

Meanwhile, the company said as part of its continuing efforts to ensure the success and vibrancy of SetiaWalk, it would provide pre-leasing services to match owners of the retail offices with the right tenants.

"A dedicated pre-leasing team has identified a list of potential suitors and matched with the buyers to ensure an exciting tenancy mix and add value to the entire development," it said.

Superstar Karaoke's consultant-cum-operations manager, Richard Law, said the outlet at SetiaWalk would be its fourth nationwide and it would occupy about 12,000 sq ft and offer a touch screen song-selection system.

TGV Cinemas chief operating officer, Kenny Wong, said the cinema would have nine cineplexes with 1,900 seats.

Celebrity Fitness would occupy two levels of 22,000 sq ft in total, said its managing director of Malaysia Kwangho Choi.

SetiaWalk, which can be access via Lebuhraya Damansara-Puchong and Persiaran Wawasan, has also managed to attract retailers such as Starbucks, BMS Organics, STADT German Cuisine, Ponytail Salon, Hock Hua Tonic, Bata and La Primavera.

By Bernama

Budget hotels urged to shape up to thrive

Malaysia's budget hotels will not have much of a future if they do not improve their facilities and services as foreign rivals are about to make their presence felt.

Come 2012, foreigners are expected to be allowed to operate budget hotels in the country, said Malaysian Budget Hotel Association (MBHA) vice-president for training and research Mohamed Hassan Hamzah.

"Our local budget hotel owners need to be more innovative in terms of marketing and promotion to ensure their survival," he said.

Mohamed Hassan cited the proposed liberalisation of services trade tabled in the middle of last year during the Asean Framework Agreement on Services.

Under the proposal, foreigners will be able to own up to 30 per cent of a budget hotel in the country by 2012 and 49 per cent in 2015. It involves one-and two-star hotels. However, this has yet to be decided.

There are about 6,000 budget hotels in Malaysia.

"Currently, only 1,500 budget hotels are registered with MBHA, and the number ought to rise," Mohamed Hassan told reporters at a press conference in Shah Alam recently.

The budget hotel business here has huge growth potential as Malaysia is a major tourism destination in the world.

Under the Economic Transformation Programme, the government has big plans to develop the industry further.

"If we want tourists to come to Malaysia and stay at our budget hotels, owners can help by providing good facilities and services."

Mohamed Hassan observed that budget hotels here are normally 50 per cent to 60 per cent full during weekdays and could be fully occupied on weekends. Although occupancy rates have risen, many will not survive if they do not upgrade their services.

Tourism is the country's second highest earner, after manufacturing, accounting for 12.3 per cent of the economy last year.

By Business Times