Prescott Inn Hotels.pdf

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VALUE H OSPITALITY

Head Office: M-2-16, No.60, Jalan Sri Hartamas 1, 50480 Kuala Lumpur, MalaysiaTel: (60) 3-6201-8338 Fax:(60) 3-6201-3883

Website: www.vhhotels.com • E-mail: [email protected] Hotel • Prescott Hotel & Inn • Value Inn • at-ease

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CONTENTS

1 VALUE HOSPITALITY .......................................................................................................... 2

1.1 What do we do? .......................................................................................................................... 2 1.2 Awards & Recognition ............ ............ ............. ........... ............. ............ ............. ........... ............. . 3 1.3 Our Philosophy: ............ ........... ............. ............ ............. ............ ............ ............ ............. ........... 4 1.4 Our Mission ............ ............ ............. ............. ........... ............. ............ ............. ........... ............. ..... 5 1.5 Who are we? ............................................................................................................................... 5

2 ENTERING THE HOTEL BUSINESS AND MAKING MONEY ........... ............. ............ ... 7

WHAT CAN WE DO FOR YOU ?..................................................................................................................... 7 2.1 Hotel Design and Management ............. ............ ............. ........... ............. ............ ............. ........... 7 2.2 Hotel Management ............ ........... ............. ............ ............. ........... ............. ............. ............ ....... 7 2.3 What do we do for franchisees? ................................................................................................. 7

3 FOR EXISTING HOTEL OWNERS ...................................................................................... 9

WHAT CAN WE DO FOR YOU TO INCREASE YOUR PROFIT ? .......................................................................... 9

3.1 Increasing Hotel Occupancy and Revenue.................. ............. ............ ............. ........... ............. . 9 3.2 Productivity and Yield Improvements ...................................................................................... 10 3.3 Hotel Management ............ ........... ............. ............ ............. ........... ............. ............. ............ ..... 11 3.4 Engineering Capabilities............. ............ ............. ........... ............. ............. ............ ........... ........ 12 3.5 Information Technology Driven Strategies ........... ............. ........... ............. ............. ............ ..... 13 3.6 Hotel Profit Improvement......... ............. ............ ............. ............. ........... ............ ............. ......... 14

4 HOTEL BRANDS OF VALUE HOSPITALITY ................................................................. 15

4.1 Everly Hotel & Suites ............ ........... ............. ............. ............ ............ ............ ............. ............ . 15 4.2. Prescott Hotel .......................................................................................................................... 15 4.3. Prescott Inn .............................................................................................................................. 15 4.4. Value Inn .................................................................................................................................. 16 4.5. Homestead Inn .................. ........... ............. ............ ............. ........... ............. ............. ............ ..... 16

5 CURRENT ACTIVITIES AND EXPERIENCE .................................................................. 17 5.1 Consultancy and Feasibility Studies ........................................................................................ 17 5.2 Own Hotel Development .......................................................................................................... 17 5.3 Active Management Contracts ...................... ............. ............ ............. ........... ............. ............ . 17 5.4 Hotel Under Development ........... ............ ............. ........... ............. ............. ............ ........... ........ 17 5.5 Sales Representative Office ...................................................................................................... 17 5.6 Hotel Turnarounds ............ ........... ............. ............ ............. ........... ............. ............. ............ ..... 17

6 RESUME OF MR. DENNIS TAN ....................................................................................... 20



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1 Value Hospitality

1.1 What do we do?

Value Hospitality is in the business of providing cost-effective solutions for the

design, construction supervision, management and profit improvement ofhospitality businesses. We also provide investment analysis and advise for thehospitality industry.

Value Hospitality's range of activities include:a. Hotel Design.b. Food and Beverage Outlet Design.c. Franchising of Hotel Products of Value Hospitality.

1. Everly Hotel & Suites ~ An International Deluxe Class hotel / 4 star2. Prescott Hotel & Inn ~ An International Class hotel / 2-3 star3. Value Inn ~ An International Class limited service hotel / 2 star4. Homestead Inn ~ A Budget hotel / 1 star

d. Franchising of Food and Beverage Outlets.1. M&D’s - Restaurant.

e. Productivity and Yield Improvements.f. Hotel and Golf Course Management.

Our hotel products are: -1. Everly Hotel ~ An International Deluxe hotel / 4 star.2. Everly Suites ~ An International Deluxe all-suite hotel.3. Prescott Hotel ~ An International Class hotel / 3 star.4. Prescott Inn ~ An International Class budget hotel / 2-3 star.5. Value Inn ~ An International Class limited service hotel / 2 star.6. Homestead Inn ~ A Budget hotel / 1 star.

g. Hotel and Food & Beverage Profit Improvement.



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1.2 Awards & Recognition

As a result of implementing our internal audit systems and controls and our highcommitment towards quality and customer service, we are proud to acknowledge thata number of Hotels under the management of Value Hospitality have garnered thefollowing awards and recognition:

1. Prescott Inn Kuala Lumpur – Medan Tuanku was a finalist in the Kuala LumpurMayor’s Tourism Award 2011.

2. Prescott Hotel Klang was awarded the 2008/2009 Malaysia Tourism Award for‘Best Hotel Services” (Winner).

3. Prescott Metro Inn Kajang, also managed by Value Hospitality, was nominated asa finalist in “Best Hotel Services” for the 2008/2009 Malaysia Tourism Award.

4. Everly Resort Hotel Malacca was awarded 2008/2009 Malacca Tourism Awardfor “Excellence in Hotel Services” (Resort, Winner).

5. Beverly Hotel Kota Kinabalu was a finalist in the 2009 Sabah Tourism Award for“Excellence in Hotel Services”.

6. Everly Resort Hotel Malacca (formerly Riviera Bay Resort Malacca) wasshortlisted as a finalist for the “Excellence in Hotel Services” (4-Star Resort) for2006.

7. Prescott Hotel Klang (Prescott Hotel Sdn Bhd) was one the two finalists of theAnugerah Pembangunan Sumber Manusia Berhad 2006 in the category of smalland medium employers (Service Sector).

The Anugerah PSMB was introduced in 1993 in recognition of employers who

excel at human resource development. The Hotel was awarded the Certificate ofAppreciation.

8. Prescott Metro Inn Kajang (Laju Jaya Sdn. Bhd.) was shortlisted as a ProductivityAchiever for the Productivity Award 2005 by the National ProductivityCorporation (NPC).

NPC’s tenet is to raise Malaysia’s economic growth and maintain industrial andbusiness competitiveness. The Award is given in recognition of business andproductivity management excellence among Malaysian industries.

9. ParkCity Everly Hotel Bintulu was awarded “Excellence in Hotel Services” (4-Star City Hotel) by Tourism Malaysia for 2004.

10. Beverly Hotel Kota Kinabalu, another hotel managed by Value Hospitality then,was one of the 3 finalists in the same category (“Excellence in Hotel Services, 4-Star City Hotel) for 2004

11. Rajah Court Hotel, Kuching won the Prime Minister’s Award for Excellence inIndustry for the Budget Hotel category in 1993 (whilst under the management ofValue Hospitality which was previously known as Value Inn).



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1.3 Our Philosophy:

We are a firm dedicated to creating Value for Money for owners and customers.

Our operating philosophy is best described by our Credo: -

1. We provide the best service to our customers.2. We strive for excellence in performance.3. We respect every individual.4. We maintain and up-grade a positive working environment.

We pride ourselves in our ability to provide the best service to our customers with the“right” level of staffing. Our service program starts with forecasting the arrivals of ourcustomers and ensuring more than adequate staffing level to ensure excellent service.We align our staffing levels with customer arrival patterns, to ensure that prompt serviceis provided to the customer.

Unlike many hotels, we believe in manning each hotel with adequate staff to a level

where each employee is producing eight hours of solid work. In most hotels today,staffing levels are kept at full compliment, where staff will only be fully utilised in thevery few times it is necessary during the year. The result is low productivity, with staffon standby 60-70% of the working shift. Staffs are also cross-trained so that onedepartment staff can help another department during the short peak periods. In this way,we can confidently say that we average about 100% more productivity than ourcompetition.

We also care about our staff. With higher productivity, each staff earns more per personper month, as the service charge received per person is much higher. Therefore staffmorale is higher than other hotels.

Such an efficient staffing level cannot be achieved without high level strategic planning,

and governance, coupled with proper training, motivation and control, across the staffpopulation. This forms the backbone of our successful organization.

As a Hotel Management company, we provide Value for Money to our customers. Wedo not promise what we cannot deliver. However, we deliver on all promises. Thisresults in a climate of trust with our customers and therefore repeat business andreferrals.



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1.4 Our Mission

Our mission is to contribute to the success of our clients by providing prompt andexcellent design, management and training services that are Value for Money.

Our advice on the investment in the Hospitality Industry is based on profitability andreturn on investment criteria in order to protect the interest of the investor.

We carry out these services with pride in a conducive and friendly atmosphere. Whenmistakes occur, we apologise and take prompt corrective action.

Our people are our greatest assets and we invest in their education, development andgrowth.

We will accomplish our mission through our collective action, building on our sharedideals and integrity in an atmosphere of mutual respect and support .

1.5 Who are we?

The people behind Value Hospitality are:

1. Mr. Dennis Tan B.Sc. and M.Sc. in Industrial Engineering.

Mr. Tan has been in various businesses during his working life. In 1988, herepresented a group of investors in taking over “The Prince” Hotel, Kuala Lumpur,and up-graded it from a 3-star hotel to a 4-star hotel, the “Park Avenue” Hotel. Thehotel was then sold to the Melia Group. This turnaround and upgrade made RM40million in profits for the investors in a period of 1½ years. A qualified consultant inthe management field, Mr. Tan, on top of managing Value Hospitality, conducts all

management training in the company. Mr. Tan is a specialist in ManagementInformation Systems. He specialises in productivity improvements and is veryfocused on customer satisfaction.

2. Mr. Martin GerberMBA in TQM

Mr. Gerber, a Swiss national, has been in the hotel industry since 1974. He hasworked in the kitchen in various restaurants and Hilton hotels around the world. Heis a specialist in the cook chill method in the kitchen.

Mr. Gerber specialises in European cuisine in Value Hospitality. As a specialist inthe cook chill method, he is on the leading edge of cooking technology. With ashortage of chefs in the kitchen, the trend is towards the cook chill method of foodpreparation.

3. Mr. John Augustin B.A. in Hotel Management

Mr. Augustin has been in the hotel industry since 1981. He has worked in the salesdepartment of various resort hotels and his last assignment was as Director of Salesof Holiday Inn, Penang before joining Value Hospitality. He has been General



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Manager of various hotels under Value Hospitality since then, both from the pre-opening stage of the hotels to the conversion of existing hotels from different brandsto the Value Hospitality brand of hotels.

In Value Hospitality, Mr. Augustin specialises in sales especially in conjunctionwith travel agents both in Malaysia and around the world for the promotion of allValue Hospitality properties.

4. Ms. Cindy Lim Diploma in Purchasing

Ms Lim was in the music field and is a qualified pianist and organist. She is aqualified music teacher and examiner.Prior to joining Value Hospitality, she held positions as Purchasing Manager, DiscoManager and subsequently the Advertising and Promotion of the Hotel and Outletsat the “Park Avenue” Hotel.

In Value Hospitality, she handles purchasing, co-ordinates all musical activities andplans advertising strategy and promotional activities.

5. Ms. Monica LouisDiploma in Hotel Management, “Les Roaches” Switzerland

Monica did her training in F&B in Switzerland in fine dining and at Bistro inZurich, Switzerland. Being a hotelier, she is passionate about employeedevelopment, quality standards and customer satisfaction. She is trained in TQM,Customer Satisfaction, Six Sigma and holds a certificate in ManagementDevelopment.

Monica has 20 years of working experience in the hospitality industry, both in localand international hotels at managerial level including the Equatorial Hotel, Hilton,NPC and ParkCity Everly Hotel Bintulu. At present she is the General Manager forthe Klang Valley properties of the Value Hospitality Group.

6. Mr. Lau Hon WanBachelor of Information Technology

Mr. Lau is in charge of Group IT responsibilities and was instrumental in setting upvarious ERP programs in the company that simplify job tasks and allows thecompany to track the performance of service staffs. He also installed the LotusNotes system for the group.

7. Ms. Lalitha PanjaseramGraduate Member of the Institute of Chartered Secretaries & Administrators (ICSA

UK), LLB University of London (External), Certificate of Legal PracticeLalitha started out with Value Hospitality as a management trainee in HumanResource and later Front Office, before going on to pursue her legal qualification.She was called to the Malaysian Bar in September 2004 and has since joined ValueHospitality again – this time looking after human resources and legal matters.



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2 Entering the Hotel Business and making moneyWhat can we do for you?

2.1 Hotel Design and ManagementFor those who have decided to proceed with a hotel or resort project havingestablished its feasibility, we provide Hotel Design and Technical Assistance duringthe pre-opening period and subsequent management of the hotel. This service is to beco-ordinated with appointed professionals especially the architect and the interiordecorator.Our services include the review of layout and designs of: -

1. Hotel2. Room and Floors.3. Food and Beverage Outlets.4. Recreational Facilities.5. Public Area.

6. Service Area.

All these designs will be made to cater to the identified market and the pricingestablished in the feasibility study.

After the opening of the hotel, we will manage it for the owners.

2.2 Hotel ManagementWe manage hotels under management contracts. As part of our managementresponsibilities we cover the following areas: -

The design of Marketing, Human Resource and Operational strategies that will bringout the best in each hotel. These strategies will be presented for approval by owners.

1. The maintenance of high operating standards of the hotel.2. Recruitment of a General Manager and close supervision of his performance.3. Establishment of administrative and control procedures in all departments of

the hotel. To ensure that such control procedures are adhered to.4. Ensure that the hotel is maintained at an agreed upon standard.5. Recruitment, training and supervision of staff to a satisfactory standard.

2.3 What do we do for franchisees?

Our services for franchisees include:1. Site evaluation.2. Hotel design.3. Manager Training.4. Quality Inspections a minimum of four times per year.5. Group Advertising and Promotion.6. Group Sales Representation.7. Central Reservation System (under planning).



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Hotel Brands of Value Hospitality available for franchise:1. Everly Hotel & Suites ~ An International Deluxe Class hotel.2. Prescott Hotel ~ An International Class hotel.3. Prescott Inn ~ An International Class budget hotel.4. Value Inn ~ An International Class limited service hotel.5. Homestead Inn ~ A Budget hotel.6. Win Inn ~ A Hard Budget hotel.



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3 For existing Hotel OwnersWhat can we do for you to increase your profit?

3.1 Increasing Hotel Occupancy and Revenue

The cheapest form of advertising in the hotel industry is word-of-mouth testimonyfrom satisfied hotel guests. While media advertising can generate business in theshort run for a hotel, such campaigns can be costly, and may not be sustainable overthe longer term. At Value Hospitality, we are very focused on achieving repeat andreferral business. Typically, within 12-18 months of management, 40% of business atValue Hospitality hotels is generated by repeat or referral guests.

On the whole for 2010, a total of 99.21% of our guests surveyed throughout the groupwill recommend us to their friends. This consistently high percentage reflects ourability to deliver exceptional service to our guests.

Hotels: PIMTKL PHK PMIKPrescottHotels &

Inns

Number of Surveys 1,587 2,929 3,375 7,891

% Will recommend friends 98.66% 99.62% 99.76% 99.56%

Hotels: PEHB PEHM ERHM EverlyHotels

Number of Surveys 4,937 3,849 5,043 13,829

% Will recommend friends 97.60% 98.76% 95.28% 99.03%

A few strategic points for increasing occupancy levels:

1. Initially through some media advertising, and block selling of rooms to tour agentsfor group travel. We have already established programs with most major travelagents throughout Malaysia.

2. Over the next 12-18 months, focus on corporate and repeat / referral clientele, toincrease average room rates, reduce advertising costs, and reduce reliance ontravel agents.

3. During that period, we will increase business generated through our Singapore

sales representative office, and activate cross-selling programs with other ValueHospitality hotels.

4. This business is built up by an emphasis on mistake-free execution of service, inrooms, food & beverage, and especially in seminar / conference packages. AtValue Hospitality hotels, response time to customer needs is very swift, creatinghappy customers, eliminating complaints, and creating repeat / referral business.

5. All guest complaints at all Value Hospitality hotels are documented through aninternal e-mail reporting system (Lotus Notes). Immediate review and follow up



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is undertaken at hotel and head office levels for customer recovery, and this in turngenerates more repeat / referral business.

6. The results after 12-18 months are: a hotel occupancy of 10% or more above localmarket occupancies, an average room rate that is at or higher than room rates ofcomparable hotels in the market, and a significantly reduced marketing and sales

cost, as a result of repeat / referral business.Depending on specific hotel needs, we can consider affiliation with an internationalCRS (central reservation system) such as Utell or SRS. However, these affiliationsare very costly, and typically only benefit hotels in gateway cities such as Singaporeor Hong Kong.

As empirical evidence of the performance of Value Hospitality hotels, take theproperties below, and observe the occupancies achieved in all hotels managed by usfor a competitive year like 2010 which saw the opening of many new hotels and whenthe average hotel occupancy stood at 58.0% (Economic Report 2010/2011 – Ministryof Finance Malaysia):-


Inns

Rooms Available 50,735 57,305 37,128 145,168Room Sold 43,182 37,071 30,761 111,014Occupancy % 85.11% 64.69% 82.85% 76.47%A.R.R. 90.50 90.10 105.90 92.35RevPAR 77.03 58.29 87.74 70.62


Rooms Available 82,125 60,955 97,752 240,832Room Sold 49,164 43,791 60,466 153,421Occupancy % 59.86% 71.84% 61.86% 63.70%A.R.R. 172.36 120.79 131.70 141.61RevPAR 103.18 86.78 81.46 90.21

3.2 Productivity and Yield ImprovementsFor current owners of hotels we offer the following services:

1. Evaluation of hotel operations to assess cost reduction and revenueimprovement.

2. Implementation of plan.3. Monthly reporting to measure performance.4. Management training.



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We are able to manage hotels with 50% less staff than comparable hotels in theindustry.

Productivity PIMTKL PHK PMIKPrescottHotels &

Inns

No. of Rooms 139 157 102 398

Ave. no. of staff/month 27 42 44 113

Productivity (RM) per staff/month 13,854 8,776 8,632 9,945

G.O.P. (RM) /staff/month 6,231 3,627 2,669 3,884

Productivity PEHB PEHM ERHM EverlyHotels

No. of Rooms 225 167 268 660Ave. no. of staff/month 141 109 155 405

Productivity (RM) per staff/month 8,969 7,350 7,373 7,922

G.O.P. (RM) /staff/month 3,265 1,420 1,658 2,153

Our current staffing levels are: -

Hotel Rating No. ofRooms

No. ofStaff

Staff /Room

Comment

Everly Hotel, Bintulu 4 star 225 141 0.63 With LaundryEverly Hotel, Miri 4 star 167 109 0.65 With LaundryEverly Resort Hotel Malacca 4 star 268 155 0.58 **Prescott Hotel, Klang 3 star 157 42 0.27 **Prescott Inn, KL 3 star 139 27 0.19 **Prescott Inn, Kajang 3 star 102 44 0.43 **

** All work is done by hotel staff except laundry, which is contracted out.

3.3 Hotel Management

We also offer our management services to hotel owners. Our services include:

1. Staff recruitment and training. We are able to operate hotels at 50% staffing levelsof comparable hotels in the industry.

2. Corporate Plan Review of the feasibility and positioning of the Hotel and all Foodand Beverage outlets.

3. Setting up of operational and financial systems and control.4. Capital Expenditure Planning.5. Control and reporting of performance on a monthly basis.



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Example effect of staff reduction for a 100-room basis hotel: -

Staff /Room

TotalStaff

Competitor Staffing 1.0 100Value Hospitality Staffing 0.5 50Less by 0.5 50

Average cost per month RM 800Monthly savings RM 40,000

Average Room Rate RM 100No. of Room to sell/month 400

No. of Rooms per night 30 days/month 13.33 rooms/ nightExtra occupancy % to sell 13.33%

Average Room Rate RM 100Max. Revenue per month 100 rooms 300,000

Occupancy 70%Revenue for the month RM 210,000

Monthly savings RM 40,000Increase in GOP % 19.05%

The result of our marketing, operations and efficiency programs is that all our hotels areprofitable even in a competitive year like 2010.


Inns

Total Rev. (RM) 4,551,017 4,436,115 4,553,542 13,540,674G.O.P. 2,047,031 1,833,662 1,408,002 5,288,695G.O.P. % 44.98% 41.33% 30.92% 39.06%


Total Rev. (RM) 15,170,897 9,621,320 13,694,983 38,487,200G.O.P. 5,523,077 1,858,418 3,079,545 10,461,040G.O.P. % 36.41% 19.32% 22.49% 27.18%

3.4 Engineering Capabilities

Utilities costs feature as the next highest after payroll costs in the operations of ahotel. At Value Hospitality, we have developed a capability in identifying and re-engineering utility consumption to significantly reduce the impact of such costs. Thisalso serves another VH goal, which is to be as “Green” as possible. By reducing



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carbon emissions, and not wasting nature’s reserves, we are helping to preserve ourenvironment. The key areas include:

1. Air-conditioning. We re-examine the sizing of the air-conditioning capacity,(typically over specified by engineers), and recommend optimal sizing and type ofair-conditioning plant. There can also be a reduction in air-conditioning, if certainparts of the building can be shaded if exposed to excessive heat from the sun (e.g.concrete flat roofs, large atriums / windows, etc.), or if certain floors can be closedoff during periods of low occupancy. There are also opportunities to use heatrecovery methods to supply free hot water to the entire hotel (as is the case inPrescott Hotel Klang).

2. Electricity. Are the lighting requirements in both rooms and public areasoptimised from an aesthetic, as well as from an electricity consumptionviewpoint? Is the source of electricity the most appropriate for the needs of thishotel, i.e. high tension vs. low tension? To further control consumption, separatemeters are used in each restaurant, in public areas, and on floors with hotel rooms,to budget, measure and hold certain departments within the hotel accountable forthe respective consumption of electricity.

3. Water. A similar strategy to monitoring electricity consumption is employed forwater consumption, with the use of meters in critical areas. The specification oflow volume toilet cisterns and lower pressure showers in guest rooms, andpressure activated taps in public toilets can have a long term impact on waterconsumption. Preventive and responsive maintenance of bathrooms and publictoilets also reduce a significant amount of waste or leakage of water. Anotherpossible area for water conservation is the storage and recycling of rainwater forlandscaping use (as is the case in Prescott Hotel Klang).

There are many other areas for improvement, and we take a holistic approach to re-engineering utilities consumption in a hotel without compromising guest comfort.This results in significant and sustainable cost savings, which will have a full and

immediate impact on profitability.

3.5 Information Technology Driven Strategies

At Value Hospitality, we are very focused on using the latest cost effectivedevelopments in information technology (IT). We keep abreast of new technologyand innovation and determine which can best apply to VH’s strategies and objectives.Below are five key examples of the use of such IT strategies:

1) Management Information System (MIS) on Lotus Notes.- Probably the only hotel management company in the world to develop such a

comprehensive MIS.- To assist in communication, monitoring and control of hotel operations.- In addition to e-mail, customised MIS is set up with reporting formats that all

executives are expected to use on a daily, weekly and monthly basis.- For example, immediately after daily morning briefing among department

heads, a report is filed on computer.- Each department also submits weekly reports, filling out specific information,

both quantitative and qualitative, that are stored in the hotel’s main computer.



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- Such information includes hotel occupancy, daily room revenue, F&Brevenue, accounting and housekeeping reports, banquet business and revenue,etc.

- This information is exchanged with the main computer at our head officedaily.

- Key executives at head office have access to this database, even whentravelling.

- In this way, we are able to monitor and measure performance of all hoteloperations instantaneously, on a regular basis, from any given location.

2) Internet Presence- Value Hospitality has a comprehensive website ( www.vhhotels.com ) that

highlights all its properties, and their respective facilities.- Used as a marketing tool for increasing room revenue, with the on-line

reservation inquiry function, and also for the recruitment of new staff.

3) Online Booking System- Value Hospitality manages its own online reservation system,

PremieReserve.com.- Guests are able to book rooms online through the hotel’s website and all

reservations can be paid online.- Front Office staff are trained to allocate rooms and manage yield effectively

on a continuous basis.

4) e-HR System

5) Customer Relationship Management Database

We continue to monitor the IT landscape for the latest technologies available to ourindustry, and are developing systems that will allow us to take advantage of suchopportunities as they become available and affordable.

3.6 Hotel Profit Improvement

For hotels that are operating at a loss or high cost we offer the following:1. Review of all operations of the hotel.2. Evaluate which business to close down, which business to continue and

execute the plan.3. Recruit necessary staff.4. Train and motivate staff.5. Prepare recovery plan and ensure its execution.



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4 Hotel Brands of Value Hospitality4.1 Everly Hotel & Suites

A Deluxe HotelThis product caters toward:

a. Top and middle management of large corporations.b. Top management of small corporations.c. Senior government officers.d. Luxury minded family travellers.

Product:a. Room size of 30-32 sq. m. for hotel, and 40-50 sq. m. for

suites with mini-bar, bathtub and shower.b. Convenient location visible from highway.c. Pricing US$45-80 per night.d. There is a theme restaurant on site.e. Banquet hall and meeting rooms to cater for seminars.f. A lobby cafe, which may be opened 24 hours.

g. Bar / fun pub.

h. Swimming pool.i. Gymnasium / health centre. j. Business centre.

4.2. Prescott HotelAn International Class Hotel

This product caters toward:a. Middle management of large corporations.b. Top management of small corporations.c. Government servants.d. Budget conscious family travellers.

Product:

a. Room size of 28-32 sq. m. with bathtub and shower.b. Convenient location visible from highway.c. Pricing US$30-50 per night.d. There is a theme restaurant on site.e. Banquet hall to cater for seminars.f. A lobby cafe, which may be opened 24 hours.g. Swimming pool.

4.3. Prescott InnAn International Class Inn

This product caters toward:a. Middle/Lower management of large corporations.b. Middle management of small corporations.c. Government servants.d. Budget conscious family travellers.

Product:a. Room size of 26-28 sq. m. with shower.b. Convenient location visible from highway.c. Pricing US$25-35 per night.d. Restaurant within walking distance or in house.e. Seminar halls to cater for seminars.



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f. A lobby cafe, which may be opened 24 hours.

4.4. Value InnAn International Class Limited Service Hotel

This product caters toward:

a. Lower management of large corporations.b. Middle/Lower management of small corporations.c. Mid-Lower level Government servants.d. Limited budget family travellers.

Product:a. Room size of 24-26 sq. m. with shower.b. Convenient location visible from highway.c. Pricing US$15-30 per night.d. No restaurant on site but one within 100 metres.f. A free continental breakfast will be provided.

4.5. Homestead InnA Budget Hotel

This product caters toward:a. Salesmenb. Supervisory level staff of corporations.c. Lower Level Government Servants.d. Limited budget travellers.

Product:a. Room size of 18-24 sq. m., two-twin/double beds with

shower.b. Convenient location.c. Room Pricing US$ 12.5-20 per night.

d. Hawker stalls and/ or restaurant within 100 metres.



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5 Current Activities and Experience

5.1 Consultancy and Feasibility StudiesValue Hospitality has conducted consultancy and feasibility studies for over 100

hotels projects throughout Malaysia and the region.

5.2 Own Hotel Development1. Prescott Hotel Klang, a 158-room 3-star hotel with one restaurant and banquet

hall in Klang, Selangor.

5.3 Active Management Contracts1. Prescott Hotel, Klang - 158 rooms, 1 restaurant, banquet hall and swimming pool.2. Everly Hotel, Bintulu, Sarawak, a 225-room deluxe hotel - 1 restaurant, 1 fun pub,

1 cafe, 1 ballroom, 5 function rooms, gymnasium, swimming pool and 1 businesscentre.

3. Prescott Inn, Medan Tuanku, Kuala Lumpur, 139 rooms, 1 restaurant, 1 loungeand meetings rooms.

4. Prescott Metro Inn, Kajang, Selangor 102 rooms, 1 coffee house, 1 Chineserestaurant and meeting room.

5. Everly Hotel, Miri, Sarawak, a 161 rooms deluxe hotel – 1 restaurant, 1 lounge, 2ballrooms, 4 functions rooms, gymnasium, swimming pool and 1 business centre.

6. Everly Resort Hotel Malacca, 388 suites hotel (one, two and three bedroomsuites), 1 coffee house, 1 lounge, 1 ballroom, 1 pub, 10 function/meeting rooms,gymnasium, tennis courts and a swimming pool.

5.4 Hotel Under Development1. Everly Putrajaya – 382 rooms, 1 restaurant, banquet hall seating 1000, 14 function

rooms, 1 café, 1 fun pub, gymnasium, swimming pool and executive lounge.

5.5 Sales Representative OfficeKuala Lumpur - Value Hospitality represents all Value Hospitality hotels coveringthe Travel Agents, Groups Sales and Corporate Sales accounts in Malaysia.Singapore – We have a sales-representative stationed in Singapore covering theTravel Agents, Groups Sales and Corporate Sales accounts in SingaporeKuching – We have a sales-representative stationed in Kuching covering the TravelAgents, Groups Sales and Corporate Sales accounts in Kuching.

5.6 Hotel Turnarounds1. Holiday Inn, Miri (renamed Everly Hotel) Miri, Sarawak

Holiday Inn was handed over to our management on the 2 nd of January 2003. The

hotel consists of 161 rooms, 1 Coffee House, 1 Lounge, 1 Chinese restaurant, 1pub, 2 ballroom, 3 function rooms, 1 Gym and swimming pool. The hotel wasoperating at a profit level of RM 8,000 per month average for the previous 5years. By the 2 nd month we had turn around the hotel and in the first full year ofoperations we made a GOP of RM 500,000 despite the Iraq war, SARS andcharging out about RM 200,000 in required maintenance. In the 2 nd year ofoperations we made a GOP of RM 1.5 million. The hotel was renamed Everlyhotel and is under our management.



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2. Metro Inn (renamed Prescott Metro Inn) KajangMetro Inn was handed over to our management on August 2003.

3. Katari Hotel (renamed Prescott Inn), Medan Tuanku, Kuala LumpurKatari Hotel was handed over to our management on the 1 st of December 2002.

4. Karamunsing Hotel (renamed Beverly Hotel), Kota Kinabalu, SabahKaramunsing Hotel was handed over to our management on the 1 st of May 2000.The hotel consists of 200 rooms, 1 Coffee House, Lobby Lounge, Banquet Halls,Gym and Swimming pool. The hotel was running at a monthly operating loss ofRM 40,000 per month. By the second month of our management June 2000 theG.O.P. has improved to RM 80,000 and by July 128,000 per month, animprovement of RM 160,000 per month equivalent to RM 1.92 million per year.The hotel was renamed Beverly Hotel.

5. Sunway Hotel, ShenZhen, ChinaSunway Hotel, ShenZhen was handed over to our management on 16 th June 1999.The hotel with 236 rooms, 1 Western restaurant, 1 Chinese restaurant, 1 Karaoke,1 Heatlh Centre, 1 Bar and Banquet Halls was managed by Allson before theirservices were terminated and the owner managed the property themselves forabout 6 months. The hotel was making a monthly gross operating loss of aboutRMB 250,000 per month. By September 1999, the hotel started making money isnow averaging a gross operating profit of RMB 140,000 per month. This meansan improvement of RMB 390,000 per month.

6. Rajah Court Hotel, KuchingRajah Court Hotel (formerly known as Ferritel) in Kuching was turned around byour company. The hotel, originally with 36 rooms, 1 restaurant and 1 lounge wasmanaged by a hotel management company utilising 64 persons. We took over themanagement in December 1990 and managed the hotel with 26 persons. With theincrease to 100 rooms we are manning the hotel with 48 persons. All otherbusinesses in the hotel were re-evaluated and productivity increased resulting inthe Gross Operating Loss of about RM15,000 per month turning into a GrossOperating Profit of about RM10,000 per month.

7. Park Avenue Hotel, Kuala LumpurOur General Manager, Mr. Dennis Tan was instrumental in negotiating thepurchase of "The Prince" a 3-star hotel in Kuala Lumpur, Malaysia for a group ofinvestors from Hong Kong in the spring of 1988 during the slump in the HotelIndustry in Malaysia. He was the C.E.O. of the hotel which was renamed "ParkAvenue Hotel" and was completely in charge of the operations of the hotel. Thehotel was turned around into a 4-star hotel and subsequently sold for RM97million in June 1990 realising a profit of RM37 million on a paid up capital ofRM25 million (a return of 150% on the capital).

Among the many strategies implemented in the hotel, the following are worthmentioning: -1. The positioning of the hotel to be a businessman hotel and the improvement of

service standards to achieve a higher room rate.2. The relocation of the coffee shop to the lounge premise and the increase of

monthly revenue from RM70,000 to RM150,000 within 2 months.3. The relocation of the Chinese restaurant and the change of the concept to

increase revenue from RM28,000 per month to RM145,000 per month within3 months.



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4. The restructuring of the Banquet business into a profit centre with completeautonomy reporting to the CEO. The revenue was increased from RM60,000to RM240,000 within 10 months.

5. Personally investigating and communicating with guests who complained,taking immediate corrective action and ensuring customers satisfaction. By sodoing, employees knew that all complaints would be investigated. This createda more careful environment with service improving tremendously, leading torepeat customers.

6. The installation of productivity and guest response measurements to ensurehigh guest service and reliability.



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6 Resume of Mr. Dennis Tan

Name: Dennis C. Y. Tan

Year of birth: 1947

Race: Chinese

Sex: Male

AcademicQualifications: B.Sc. in Industrial Engineering,

Purdue University, Indiana, U.S.A. 1968M.Sc. in Industrial Engineering,Purdue University, Indiana, U.S.A. 1969

Work Experience: With Socoil Corporation Berhad since it's inception in 1971.1970-1971 Plant Manager, built first plant.1972-1989 Director/General Manager.Responsible for setting up various businesses during the period.Includes Consumer Products, Speciality Fats, Oleochemical,Financial Leasing, and Construction businesses.

In a personal capacity been involved in the following businesses: -Travel agency, computer hardware and software agencies, tradingcompany and property development.

1988-1990 C.E.O. of Pudu Sinar Sdn. Bhd. owner of Park AvenueHotel in Kuala Lumpur. Was instrumental in turning around the hoteland selling it after the turnaround. The hotel is currently known asMelia Kuala Lumpur.

1990-current, Group General Manager of Value Hospitality.

Activities: 1976-82 Vice Chairman of Palm Oil Refiners Association ofMalaysia (PORAM)

1982-1983 Chairman of Palm Oil Refiners Association of Malaysia(PORAM)

1977-80 Member of the Rules Committee of National Institute ofOilseeds Products USA (NIOP)

1980-84 Member of the Board of Directors of National Institute ofOilseeds Products USA (NIOP)

1976-80 Founding Board Member of the Palm Oil Registration andLicensing Authority (PORLA)

1980-84 Founding Board Member of the Kuala Lumpur CommodityExchange



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1981-1986 Member of the Programme Advisory Committee of PalmOil Research Institute of Malaysia (PORIM)

Certified in: Kostisk PAPI, Personal and Preference Inventory.

Adizes Institute, Los Angeles, California. Certified consultant inManagement Diagnosis, Corporate Mission, and Strategic Planning.

Quality Circles, Total Quality Control.

Interactive Management Skills.

Speaker: Regular speaker on management, subjects covered: -

1. Corporate Turnaround.2. Management Information for the Commodity Trading Business.3. Improving management techniques in the Service Industry.4. Managing the Mid-Market Hotels.5. Financial and Feasibility Study for Property Development.6. Management & Operational Performance Issues of

Budget/Medium sized hotels.7. Case study on design and development of a budget hotel.8. Valuation of hotels.

Prescott Inn Hotels.pdf

Documents

Transcript of Prescott Inn Hotels.pdf