KUALA LUMPUR, According to Value Hospitality Group, hotels in the country have tremendous
untapped profit potential. Malaysiaâ€™s first and only hotel turnaround specialist
added that local owners have not been able to tap the full benefit of their properties
due to efficiency standards and sentiments.
The Group recently added another feather to its cap with the achievement of a successful
turnaround exercise of the Karamunsing Hotel in Kota Kinabalu, Sabah, which resulted
in a net improvement equivalent to RM1.8 million per year.
The Karamunsing Hotel was making a gross operating loss of approximately RM50,000
a month since it opened its doors in late 1997 when Value Hospitality was appointed
to manage and turn around the hotel in May 2000.
Value Hospitality met the conditional challenge of improving the hotelâ€™s gross
operating profit by RM100,000 per month within six months by not only accomplishing
this task within a shorter period of time but also by a greater margin.
As a result of the successful turnaround exercise, the 4-star 200-room Karamunsing
hotel underwent a name-change and is presently known as the Beverly Hotel.
Dennis Tan, general manager of Value Hospitality said, â€œ With the introduction
of new marketing programmes in the first month of our management, we raised the
occupancy rate from 49 to 70 per cent. As a result, the hotel has surpassed the
estimated industry occupancy rate in Kota Kinabalu by 10 to 15 per cent thanks to
increased customer support.â€
Value Hospitality owes its 100 per cent success rate to a management system that
is both organic and result orientated in terms of conducting a thorough appraisal
of the hotel operations with a view to assess service standards, cost reductions
and revenue improvements. This is accompanied with a detailed implementation plan,
management re-training, operational controls and monthly reporting standards.
Productivity programmes implemented at the Karamunsing Hotel have given rise to
improved staff performance and productivity. The average staff contribution in sales
more than doubled to RM4,800 per month by July 2000. The staff were also able to
reap the benefits of this increase in productivity as their service points doubled
as a result.
In addition to improved staff morale and a notable reduction in guest complaints
due to improved service standards, there was also a significant reduction in the
hotelâ€™s operating cost thanks to an energy saving programme.
The subsequent name-change to Beverly Hotel has also given the establishment the
mark of a Value Hospitality-managed hotel. Since the name-change, clients from the
business sector who have stayed at other hotels managed by the Group have also shown
their support of the Beverly Hotel in Kota Kinabalu.
Established in 1990, the Group currently manages a stable of four, three and two-star
hotels in the nation and overseas. Some 500 professionals are employed in six of
these properties. The Groupâ€™s expertise also extends to hotel design, construction
management and investment advice.
Other properties currently managed by Value Hospitality include the Beverly Hotel
in Bintulu, Sarawak; the Prescott Hotels in Bongawan (Sabah), Klang (Selangor) and
Bukit Mertajam (Penang); as well as the Value Inn in Kuala Lumpur.