Ascott International Management (Malaysia) Sdn Bhd, which has confirmed the opening of four new serviced residences, expects to see revenue to grow by between 10 per cent and 15 per cent year-on-year.
"We see annualised revenue growing between 10 per cent and 15 per cent over the next couple of years, as more properties open and more rooms come on board," said regional general manager for Singapore and Malaysia Tan Boon Khai.
Revenue this year from Malaysia, which includes five serviced apartments with a total of 705 units, is expected to be slightly shy of the RM50 million mark in the current financial year ending December 31 2011.
For the new openings, Ascott is looking to achieve a stable average occupancy of 80 per cent, with Citadines garnering an average room rate of between RM100 and RM200 while the Somerset brand could make more at above RM300 per night.
The group's properties generally achieve about 60 per cent gross operating profit (GOP).
GOP is the gross revenue from rooms, food and beverages, laundry or business centre minus the cost of operations (wages, electricity and amenities).
Also impressive is its employee to room ratio of just 0.4.
When asked about competition from Hyatt and the extension of Impiana KLCC that will see additional competition for the Ascott Kuala Lumpur, Tan said: "We are confident of maintaining, if not improve, the occupancy and room rate, not withstanding increased competition."
He said that Ascott is distinguished from a hotel room as the former is almost akin to a second home for a traveller.
The opening of the new hotel also forces the group to offer better value for money by improving its services.
"As we are an international brand, we are known for certain values and we will leverage on this, like specialised training," he said. - Business Times
