Wednesday, January 17, 2007

Avillion Hotel sold for RM322m

KUALA LUMPUR: Reliance Pacific Bhd (RPB) and IJM Corp Bhd yesterday announced the disposal of Avillion Hotel in Sydney for A$115mil (RM322mil).

RPB group, which decided to sell the hotel to lock in gains from its investment, will realise a total gain on disposal of about RM14mil for its financial year ending March 31, 2007.
The Avillion Hotel in Sydney is a joint venture between RPB and IJM and opened in time for the Olympics in 2000.

“The sale of Avillion is timely, given the current high exchange rate. Furthermore, the reason-ably strong revenue growth of the hotel, attributable to high occupancy and credible average room rate, has translated to fair decent capital values at the time of sale,” said RPB CEO Datin Irene Gan in a statement yesterday.

RPB manages the hotel under its Avillion brand while IJM led the construction of the hotel.
Since the opening of Avillion Port Dickson 10 years ago, the Avillion chain today manages a total of six properties and RPB said it provided hotel management services to 22 hotels in Malaysia and Australia.

Gan said she expected the number of hotels under the Avillion brand to increase to at least 12 within three years, with the growth coming from management contracts, joint ventures or acquisitions.

The growth was possible as the group had a team of experienced hotel and marketing professionals nurtured through the past 10 years.

“It is a young brand that RPB took to the international market and has since gained much expertise in both ownership and hotel management models,” she said.

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