Serviced office and residence specialist The Nomad Group Bhd has taken over the management of the Tanjung Bungah Beach Hotel in Penang as part of a branding exercise.
The hotel will be renamed The Nomad Penang after a facelift to raise its rating to four stars from three.
The hotel will be renamed The Nomad Penang after a facelift to raise its rating to four stars from three.
The property is set to undergo a RM2 million refurbishment exercise, which will see it being transformed to cater for a market mix of business travellers and the information technology-savvy, The Nomad Group chief executive officer Hew Thin Chay said.
"We have a five plus five-year contract to manage the hotel. We plan to reposition it towards a new market segment," Hew told Business Times. The hotel is owned by Plenitude Bhd.
"We are in Penang to establish a network and have a branding presence," Hew said.
The 200-room hotel enjoys 80 per cent occupancy and garners an average room rate (ARR) of RM100 a night.
Currently, most of its business comes from the low-yielding sector, such as through travel agencies.
Hew is confident that repositioning the hotel will work in its favour, especially since it is located close to the island's city centre.
He described the hotel as "a city hotel with a beachfront", noting its position along Jalan Tanjung Bungah, which is between George Town and Batu Ferringhi.
The hotel has already seen an improvement since The Nomad Group took over its management in March this year. Occupancy has touched 90 per cent and the ARR is RM110.
The Nomad Group expects to make a net profit of RM300,000 in the first year of operating the hotel.
Hew expressed his optimism that occupancy will be as good and its ARR can reach RM120 after the upgrade is completed early next year.
The Nomad Group is also managing the The Nomad SuCasa serviced suites in Kuala Lumpur and is in the process of acquiring the Novotel Kuala Lumpur City Centre.
By Business Times (by Vasantha Ganesan)
"We have a five plus five-year contract to manage the hotel. We plan to reposition it towards a new market segment," Hew told Business Times. The hotel is owned by Plenitude Bhd.
"We are in Penang to establish a network and have a branding presence," Hew said.
The 200-room hotel enjoys 80 per cent occupancy and garners an average room rate (ARR) of RM100 a night.
Currently, most of its business comes from the low-yielding sector, such as through travel agencies.
Hew is confident that repositioning the hotel will work in its favour, especially since it is located close to the island's city centre.
He described the hotel as "a city hotel with a beachfront", noting its position along Jalan Tanjung Bungah, which is between George Town and Batu Ferringhi.
The hotel has already seen an improvement since The Nomad Group took over its management in March this year. Occupancy has touched 90 per cent and the ARR is RM110.
The Nomad Group expects to make a net profit of RM300,000 in the first year of operating the hotel.
Hew expressed his optimism that occupancy will be as good and its ARR can reach RM120 after the upgrade is completed early next year.
The Nomad Group is also managing the The Nomad SuCasa serviced suites in Kuala Lumpur and is in the process of acquiring the Novotel Kuala Lumpur City Centre.
By Business Times (by Vasantha Ganesan)
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