REPOSITIONING: To be operated by Starwood, the new hotel promises world class standards.
Penang’s bustling hospitality market is set to welcome another distinguished brand with the launch of Four Points by Sheraton in August this year. Local property developer Plenitude Berhad which owns the existing 220-room Tanjung Bungah Beach Hotel is expected to complete renovations at the hotel which will turn it into a Four Points by Sheraton Hotel by August. The hotel has been closed since July last year to facilitate the conversion which is estimated to cost RM35 million.
Starwood Hotels & Resor ts Worldwide, Inc., one of the leading hotel and leisure companies in the world will be operating the hotel. The hotel operator sees conversion of existing hotels as a new growth channel for Starwood worldwide.
“Conversion is exciting and the Four Points by Sheraton Penang conversion highlights our ability to quickly reposition existing assets in a cost-effective manner,” said Matthew Fry, Senior Vice President, Acquisition & Development, Asia Pacific, Starwood Hotels & Resorts.
“Many well-located but under-branded hotels represent enormous repositioning potential, and we have developed a conversion-friendly strategy, backed by Starwood’s powerful platform, for existing hotels to meet both owner and guest demand,” said the Starwood senior vice president. Starwood currently manages 11 hotels and resorts in Malaysia spanning Kuala Lumpur, Langkawi, Kota Kinabalu, Sandakan and Kuching.
‘Colour and energy’
“We are delighted to be partnering with Starwood, a world renowned brand, on this particular project. Their reputation and professionalism in managing world-class hotels and resorts will certainly bode well in lifting the asset value of our property,” said Elsie Chua, Executive Chairman of Plenitude. Chua added that Four Points by Sheraton will add colour and energy to the hospitality industry in Penang and contribute to the growth of their business in Penang. Chua was speaking during a signing ceremony between Plenitude and Starwood last Friday.
Increased returns
The chairman added that prior to its closure for renovations, Tanjung Bungah Beach Hotel had an estimated occupancy rate of between 50 and 60 per cent with an average room rate (ARR) of RM130. With the hotel’s complete transformation and the Four Points by Sheraton brand offerings, she has high expectations that both the occupancy rates and ARR will improve to give good returns.
Some of the new hotel’s offerings will include two food and beverage venues, a specialty restaurant, a bar, 984 square feet of meeting space spanning over three venues, swimming pool, fitness centre as well as the Starwood Preferred Guest (SPG) programme, one of the industry’s leading guest loyalty programmes. By Khairul Khalid
Source: New Straits Times