Dorsett: klia2 will help drive group's growth [New Straits Time (Malaysia)]
(New Straits Time (Malaysia) Via Acquire Media NewsEdge) KUALA LUMPUR: HONG Kong-listed Dorsett Hospitality International (DHI) Ltd says the opening of Kuala Lumpur International Airport 2 (klia2) will help to drive growth for the group's operation in existing and new markets.
DHI, which is controlled by Malaysian tycoon Tan Sri David Chiu, owns, operates and manages 18 hotels under the brand Dorsett Hotels, D.Collection Hotels and Silka Hotels in Hong Kong, Shanghai, Chengdu, Wuhan, Kuala Lumpur, Johor Bahru, Labuan and Singapore.
According to its senior vice-president of sales and marketing Philip Schaetz, DHI's growth strategy includes expanding its hotel management business and establishing brand presence in key destinations in Asia, Australia and continental Europe.
Schaetz said the opening of klia2 is very much in line with the group's growth strategy as it would help to increase room occupancy.
DHI has a total of 5,158 rooms under operation. Between January and July this year, the occupancy rate for its hotels in Malaysia, Singapore and China has been between 55 per cent and 65 per cent.
For hotels in Hong Kong, the average occupancy rate for the period was 93 per cent, Schaetz said.
"The airport will be catering to a crowd that primarily could not travel so frequently. Low-cost airlines bring something else to the market that stays with us. AirAsia and AirAsia X are also helping by accelerating growth in the industry by serving a market that never existed before," Schaetz said in an interview here recently.
The RM4 billion klia2, which is the extension of the KLIA, is the world's largest purpose-built terminal for low-cost carriers.
klia2 is slated to open on May 2 2014, replacing the low-cost carrier terminal currently in operation. It is expected to serve 45 million passengers annually.
DHI, a unit of Far East Consortium International, has been riding on passenger growth at KLIA to maintain a high occupancy rate for all its properties in Asia.
For the financial year ended March 31, DHI posted a net profit of HK$647.4 million (RM277.22 million) on revenue of HK$1.15 billion. Its net operating margin was 43.3 per cent.
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