Nikko Hotel to undergo extensive facelift
Posted on | March 27, 2007
By SHAREN KAUR
THE five-star Nikko Hotel in Kuala Lumpur is about to undergo an extensive face lift in August this year.The 30-storey hotel with 468 rooms, which is enjoying an average occupancy rate of 75 per cent, will undergo an upgrading exercise for 18 months, its first since it opened 10 years ago.
General manager Michael Borostyan said the work will be carried out in stages and the first few rounds will include investing some RM17 million.
Changes at the hotel include upgrading all its 154 deluxe rooms, adding three new function rooms to its existing 10, and relocating its business centre from the first level to the main lobby, making it more visible.
Borostyan said the final stage of the refurbishment will start next year and will involve expanding the club lounge and enhancing the club floor, upgrading the remaining rooms and six food and beverage outlets, re-landscaping the pool and garden area, and introducing a new spa treatment centre at the pool.
“We haven’t finalised the (investment) figures for the final round. We are working out on the design which we hope to finalise by April,” he told Business Times in an interview yesterday.
Borostyan said the major and final work would be upgrading the main lobby, by adding new furniture, fittings and artworks by the middle of next year.
As for the 97 rooms at the club floor, Borostyan plans to make them more contemporary, add new products and services with luxurious standards.
“We plan to hold more corporate functions and weddings here. We hosted 70 weddings last year and the target is to hold up to 80 weddings this year,” he said.
He added that the guest rooms will be designed to reflect a strong environment for conducting business.
Borostyan gave assurance that the hotel’s guests will not be affected by the refurbishment work.
“We expect our average occupancy rate to fall slightly to 69 per cent this year due to the exercise, but we will definitely be able to maintain our business revenue,” he said.
Nikko Hotel, which is owned and managed by privately-held MTJ Development Sdn Bhd, has forecast a 12 per cent growth in revenue this year compared with 8 per cent last year, helped by new room bookings and a rise in tourist traffic from the Middle East.
It is also planning to penetrate new long haul markets such as the US, Europe and Canada. Currently, most of its guests are from South Korea, China, Thailand, Singapore, Indonesia and Brunei.
The hotel, which expects equal contribution from its rooms and food and beverage outlets on a year-on-year basis, plans to also invest in staff this year.
“The key result in investing in staff is increased productivity and loyalty. As a five-star hotel, one key strategy to create competitive advantage is providing long-term staff who can serve customers better,” Borostyan said.
He added the hotel will aggressively market its brand globally and work with inbound operators as well as participate in international trade shows and tourism expositions to grow its business.
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