Malaysian opening to reap rewards?

The name Swiss-Belhotel International (SBI) may not ring a bell with most Malaysians, but it's soon likely to. This Hong Kong-based hotel management company is to open its first Malaysian property by the end of next year, with 1,800 rooms.

SBI is also in talks with developers that will lock another 1,000 rooms under its management by the end of 2011.

Given the anticipated openings, Carlos Velho, SBI's Director of Projects and Developments for Malaysia, expects the country will be the most profitable contributor to the group in two years time.

It's also expected to create up to 2,500 jobs in the Malaysian hotel market.

The group's major Asian contribution for profitability currently comes from Indonesia.

SBI manages 26 hotels in 13 countries. Another 26 are under development. "We are negotiating for openings in Johor, Sarawak, Penang and Langkawi," Velho said, with the group close to signing all deals.

The new projects are four- and five-star properties with an average 300 rooms which are slated to open between 2011 and 2012.

SBI was founded in 1986 by Peter Gautschi, former Executive Vice President of Hong Kong's The Peninsula Hotel Group, for whom he worked for 30 years. But evidently he had his sights on broader ambitions than going into competition with the established hotel brand.

Today SBI comprises Swiss-Grand (for five-star and boutique brands) and Swiss-Belhotel (for four- and five-star brands).

In more recent years, the group created its Swiss-Inn and Swiss-Express brands for two- and three-star operations.

The confirmed openings in Malaysia are the Golden Palm Tree Sea Villas and Spa, Swiss-Belhotel Mont Kiara Suites and Residences, Swiss-Belhotel Kuantan and Grand Swiss-Belhotel Kota Kinabalu.

Different approach to management.

Comprising a number of industry specialists, the company has been able to offer management in all aspects of the business - hotels, serviced apartments, club and golf operations, including operational and project management as well as co-ordination, marketing, sales and public relations, technical and financial services.

SBI's approach contrasts with other Asian and most international hotel management companies, aiming to consult more actively and rigorously with property owners.

An increasing number of owners wants to be fully informed on the day-to-day operations of their hotels, serviced apartments, clubs and restaurants, in which they expect to extract annual profits.

This approach has tended to be discouraged by other hotel management companies, whose policies have been to stamp their own particular brand of management and marketing on an operation, free from "outside" interference, according to SBI.

In SBI's estimation, the standard hotel management contract regularly used in the industry doesn't necessarily encourage owners, management and hotel personnel to move up the value tree and complement management with investment.

SBI's watchword is "management through partnership" and in 2007 it formed an alliance with Swiss International Hotels in Zurich.

from Norrosmawati Jalil, Kuala Lumpur Office