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VHG to Manage two more hotels

Value Group To Manage Two More Hotels
Thursday, July 28, 2005

By: Ayu Musa Kamal

VALUE Hospitality Group, a privately held company, has secured two new contracts to manage two hotels, one in Johor Baru and another in Sibu said its group general manager, Dennis Tan.

"The contract for Tropical Inn Hotel in Johor Baru was signed in May this year, while the contract for Everly Hotel in Sibu was signed last month," said Tan in an interview with Mail Money.

Tan said Tropical Inn and Everly Hotel are both owned by listed companies.

"Tropical Inn is owned by Harn Len Corp Bhd, while Everly is owned by Rimbunan Hijau Group Bhd," said Tan.

He added that being owned by listed entities ensures the strength of both hotels and its ability to expand and attract new customers.

Value Hospitality normally charges between 4 percent of the gross revenue or up to 10 percent of gross operating profit, depending on the size of the hotel.

"Tropical Inn Hotel is a three star hotel with 160 rooms while Everly, which is expected to be opened next year, has 225 rooms," said Tan.

He said Tropical Inn which will be under renovation anytime soon will be known as Prescott Inn in about 12 to 18 months time.

He added that Everly Hotel which is almost ready boasts a 1,000 seating banquet hall, six meeting rooms, a coffeehouse, a gym and a fun pub is expected to be more prominent in design and concept.

Value Hospitality currently manages eight hotels throughout Malaysia. It expects a 15 percent increase in profits with the inclusion of these two new hotels.

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