SUBANG JAYA: Hong Kong-listed Dorsett Hospitality International (DHI) Ltd is targeting passenger growth in Southeast Asia to boost its business as travel in Europe and the United States is still low.
Airlines in Southeast Asia are growing rapidly as the region continues to develop economically. Low-cost carriers are expanding and gaining market share, stimulating passenger demand with attractive fares and new routes.
At home, the opening of Kuala Lumpur International Airport 2 (klia2) in May next year is expected to help drive DHI's growth in existing and new markets.
Dorsett Hospitality, controlled by 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, China (Shanghai, Chengdu, Wuhan), Malaysia (Kuala Lumpur, Johor Baru, Labuan) and Singapore.
In Malaysia, the group operates five hotels - Grand Dorsett Subang, Dorsett Regency Kuala Lumpur, Grand Dorsett Labuan, Silka Maytower Hotel & Serviced Residences and Silka Johor Baru.
The Malaysian properties have a combined 1,407 rooms, compared to 1,149 in China and 285 in Singapore. Hong Kong has the highest number room inventory with 2,317.
"Southeast Asia is definitely a market we are looking at developing further. Mushroom growth is the key strategy for the group," Dorsett Hospitality senior vice-president of sales and marketing Philip Schaetz told Business Times, here, recently.
"Our focus markets will still be Hong Kong, China, Singapore and Malaysia,"
For the financial year ended March 31, Dorsett Hospitality 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.
According to Schaetz, Dorsett Hospitality is currently looking at aggressively expanding its presence in Southeast Asia.
The group is aiming to tap the leisure markets in Vietnam, Myanmar, Thailand and Indonesia, either by setting up hotels from scratch, or buying over existing buildings and converting them.
It is also eyeing management contracts in Southeast Asia, where it intends to manage hotels as a third party operator.
Outside of the Southeast Asia region Dorsett Hospitality is eyeing Australia as a bigger market, Schaetz said.
"We have a good mix of properties in the low-scale (three-star), mid-scale (four-star) and up-scale (five-star) range." Scheatz said.