Page 32 - ar2011

BUSINESS REVIEW continued
T he hospitality business continues to be
challenging in an increasingly competitive
market environment. Efforts initiated in
2010 to streamline the operations of Rendezvous
Hospitality Group (RHG) continued during the
year where ongoing reviews and continuing
improvement of operations were undertaken to
improve the performance of RHG.
The Hospitality division recorded a significantly
reduced loss of $8.5 million for FY2011, compared
with a loss of $44.2 million for FY2010. It achieved a
net proft of $0.9 million for 4Q2011, a turnaround
from a net loss of $20.4 million for 4Q2010. Revenue
rose 8% year-on-year to $157.8 million for FY2011.
This was mainly due to higher room rates and average
occupancy, improved operating performance, lower
corporate costs and fair value gains.
As of 2011, the Group owns, leases and/or manages
13 hotels strategically located across the Asia Pacifc
region currently operating under the “Rendezvous”
and “The Marque” brands.
REBRANDING OUR HOSPITALITY
NETWORK
In line with RHG’s strategy of growing its brand assets
into effective, effcient and sustainable platforms,
RHG announced in October 2011 that Rendezvous
Hotels and Marque Hotels will be amalgamated into
one Rendezvous brand catering to three segments
– Rendezvous Grand Hotel, Rendezvous Hotel and
Rendezvous Studio Hotel targeted at discerning
business and leisure travelers.
In line with this re-branding exercise, RHG will incur
capital expenditure for the refurbishment and upgrade
of selected properties within the group. The resulting
investment will enable the hotels to improve occupancy
and average room rates. Delivering an improved
HOSPITAL ITY
customer experience, coupled with higher room
rates and higher occupancy should lead to increased
proftability at the various hotels.
VALUE-ENHANCING REFURBISHMENT
PROGRAMMES
During the year, RHG also embarked on several
refurbishment projects to strengthen its existing
hospitality portfolio with value accretive enhancement
works and implementation of operational improvements
including upgrading the IT infrastructure within the
group to increase effciency.
Rendezvous Grand Singapore – Lobby
Rendezvous Grand Singapore
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