Thursday, October 05, 2006
[RealEdge] BT : Pontiac Land to expand its hotel business
| Published October 5, 2006  | |||
| Pontiac Land to expand its hotel business It has plans to operate over 30 hotels and resorts
By ARTHUR SIM
(SINGAPORE) Singapore hotels giant Pontiac Land Group is waking up and has plans to double the number of its own hotels very soon.
The group already has $1 billion worth of hotels including the Ritz-Carlton Millenia, Conrad Centennial and The Regent Singapore, making up 25 per cent of its $4 billion property portfolio. Currently under construction is a hotel on Sentosa costing $250 million, and Pontiac director Kwee Liong Tek says the next hotel will be in Bali, costing about $100 million. As part of Pontiac's expansion plans into the hotel industry, it also announced yesterday that it has entered into a 50:50 joint venture with a US hotel management company headed by former Ritz-Carlton president Horst Schulze to form West Paces Hotel Group Asia. Through this company, Pontiac has even bigger plans to operate over 30 hotels and resorts globally in the next five years. Of these, at least 15 properties will be in Asia, a region which could see the company operating around 25 hotels and resorts in the next 10 years. Pontiac is not likely to develop all these hotels, but Mr Kwee did say the group would develop and own selected sites and consider others through joint ventures. Sites being considered now are Phuket, Shanghai, Hong Kong and the UAE. Explaining Pontiac's shift into hotel management, Mr Kwee said it was becoming more difficult to find 'an operator' for its properties. 'That's why it seemed like the natural thing to do,' he added. Refering to its upcoming Bali project for instance, he said that all the big names like Four Seasons and Ritz-Carlton were already there. West Paces Hotel Group Asia will be headquartered in Singapore and its key brands will be the new Capella Hotels and Resorts and Solis Hotels and Resorts. Mr Kwee also said that there was a potential to build a 'branded service residence' out of the new company. Already with the Capella Singapore at Sentosa, one of the unique selling points will be that in addition to the luxurious 110 villas and suites, 60 guests can choose to live in the resort for up to 20 years. Rates have not been fixed yet but Robert Warman, executive vice-president and chief operating officer of The West Paces Hotel Group, said: 'We are prepared to consider different rates for the long-staying guests.' Normal daily rates could start from US$500 per night. Although Mr Warman explained that the villas and suites would in no way be structured around a time-share framework, he did say that some of its future hotels could have a 'co-ownership' component. Mr Kwee said he believed there would be demand for the long-stay accommodation. 'There are people in their 50s and 60s who have sold their homes and do not want to put their money into buying a new property,' he added. Indeed, some future guests may be former home owners at Pin Tjoe Court at Ardmore Park, which Pontiac bought through a collective en bloc sale in September for $201 million. Asked if this might be converted into a Capella 'branded service residence', Mr Kwee said: 'They are definitely for sale.' Of its existing property portfolio, he said: 'Whatever we have now, we plan to keep as long-term investments. | |||
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