Dato’ Seri Megat Najmuddin Datuk Seri Dr Haji Megat Khas
Chairman
Tradewinds Corporation Berhad

En Abdul Jabbar bin Abdul Majid
Chairman
Arena Target Sdn Bhd

Encik Amir Abdul Rahman
Chief Executive Officer
Arena Target Sdn Bhd

Mr A Patrick Imbardelli
Managing Director
InterContinental Hotels Group Asia Pacific

Ladies and gentlemen

Good morning.

Today, Tradewinds turns another exciting chapter as we continue to deliver on our promise made to our shareholders – to restructure and revitalise the group. We have four core businesses, of which the hotel business is the most well known due to its broad visibility.

Our heritage in the hotels sector in Malaysia is deep. Indeed, we are the largest hotel group and we were a pioneer in the five-star segment in Malaysia. This particular property has seen some historical events pass through its doors over the years.

Yet given our heritage, it in no way means that we should be content with what we have. We remain driven to continually grow our business.

We are committed to several actions to re-build our hospitality services capabilities: enhance branding through strategic alliances with international hotel management groups; undertake extensive refurbishing of existing properties, and revive our interest in emerging markets in the region.

Many of you already know the Mutiara brand well. We have an extensive network of hotel properties throughout the country under this brand. Over the years, this brand has built strong roots in our community, especially among tourists and travellers who yearn for Malaysian hospitality.

As we reviewed the group’s hospitality service offerings, we identified two distinct segments that our hotels and resorts business could be positioned – the value-for-money consumer, and the premium business or upscale independent traveller. We already have properties that cater to these two segments.

Today, our revitalised hotels and resorts business strategy will be further strengthened and reflect unique offerings for these customers.

In this regard, Tradewinds Corporation has undertaken an extensive search in the past one and a half years for a reputable international hotel company with a strong brand portfolio, global infrastructure and renowned hotel management expertise to partner with. And we are delighted to announce that we are partnering with InterContinental Hotels Group to manage our premium hotels. At the same time, Arena Target, our subsidiary, will continue to enhance our existing Mutiara branded properties to further meet the needs of its more value conscious customers.

This long-term partnership with IHG will see the introduction of two of InterContinental Hotels Group’s world-recognised brands – the upscale Crowne Plaza and the upper upscale InterContinental Hotels & Resorts - to our hotels portfolio. What this means is that two of our premium properties with their new international status, will be able to compete more recognizably in the international market, targeting international travelers at the same time attracting local business travel patronage.

The partnership will witness our two premium hotels – this one, the Mutiara Kuala Lumpur, and the Mutiara Beach Resort in Penang – being re-branded over the next few months. Mutiara Kuala Lumpur will be known as Crowne Plaza Kuala Lumpur, and Mutiara Beach Resort will be known as InterContinental Beach Report Penang. Both will be managed by InterContinental Hotels Group.

By adopting the brands of our strategic partner and elevating the brand visibility of these two hotels, we will be able to leverage on InterContinental Hotels Group’s global infrastructure, expertise, and extensive network to add more value to our properties. InterContinental Hotels Group is known worldwide for its excellence in service quality and standards. Therefore, we will have an added focus on skills development and training for our hospitality staff.

What this partnership brings is the powerful combination of global best practices in hotel operations and management, with the the best strategically located hotels in Kuala Lumpur and Penang, to give our guests a superior experience, whether for a business need or for pure leisure.

Let me be the first to say that we have a hugely challenging task ahead of us. The sector is highly competitive. About 20 per cent of Malaysia’s total hotel rooms are in the five-star category, and half of this category is in and around Kuala Lumpur. There are about 36,000 rooms in our urban centre. New hotels opening in the next few months here will add another 900 or so rooms.

Those challenges will drive us to work harder to enhance our KL and Penang-based hotels. They will drive our every strategy, every action, every touch-point with our customers to ensure a superior quality of service. We aim to set the benchmark for the local business class hospitality services sector – make our name synonymous with premium accommodation and enhanced business and meeting facilities.

To our partners and shareholders, let me first thank you for your continue faith and support in us. Let me further reiterate our commitment to deliver a product and service that will enhance value and deliver a return on your investment in us.

Thank you.