THE Berjaya group’s hospitality arm, Berjaya Hotels & Resorts (BHR), intends to expand aggressively in Asia in the next three to five years by building new hotels or through acquisitions.

BHR, a wholly-owned unit of Berjaya Land Bhd (BLand), is consolidating its existing portfolio of hotels, which could see a couple of them being sold.

BHR currently has 20 hotels offering 3,300 rooms — 17 are owned and operated by the group, while the remaining three are managed by a third-party hotel management firm.

“We are in an expansion mode. We will continue to put our footprint in Asia and ­explore untapped markets,” BHR’s CEO Hanley Chew tells The Edge.

“We are exploring a few offers and options for our expansion including acquisitions, taking over distressed properties or building on our own,” he says. He adds that if BHR were to acquire assets, it will consider if they can create synergy with the group’s existing hotels. No specific sum has been allocated for the expansion.

“We are also reviewing all our assets to see if we can value-add. If an asset does not create synergy, we will monetise it,” he says, adding that there are one or two assets overseas that may be sold.

Ten out of the 20 hotels under the group are based overseas. Three are in Vietnam, two in the UK, two in Seychelles, and one each in Sri Lanka and the Philippines. On Oct 15, BHR opened a hotel in Kyoto, Japan — The Four Seasons Hotel and Hotel Residences — which offers 123 hotel rooms and 57 hotel residences.

BHR’s performance has not been affected despite the slowing economy and keen competition. In the first six months ended Oct 31, BHR’s revenue grew 6% year on year to RM172 million. Its operating profit expanded by 11% to RM57 million. The growth came mainly from domestic operations as contributions from overseas assets remained somewhat stagnant. Chew attributes the improvement to greater operational efficiencies.

“We are expecting a strong second half even though some properties in Malaysia only operate for eight months,” Chew says.

BHR’s properties in Tioman Island and Redang Island do not operate during the monsoon season. BHR owns and operates The Taaras Beach & Spa Resort and The Redang Island Resort off Terengganu and the Berjaya Tioman Resort off Pahang.

For the financial year ending April 30, 2017, BHR expects to post revenue of more than RM300 million and an operating profit exceeding RM120 million.

On the performance of the existing hotels, Chew says the two hotels with the largest room count — Berjaya Langkawi Resort and Berjaya Times Square Hotel, Kuala Lumpur — are the major revenue contributors locally. Abroad, the two hotels in Vietnam — The Sheraton Hanoi and the InterContinental Hanoi Westlake — are the highest revenue contributors. Berjaya Times Square Hotel, which opened in 2003, offers 650 rooms while the 23-year-old Berjaya Langkawi Resort offers 412 rooms and suites.

The Sheraton Hanoi has 299 rooms and suites, while The InterContinental Hanoi has 318 rooms. These are the two largest overseas assets in terms of room inventory.

Further improvement is expected in FY2018.

“We are constantly improving the products and service standards of our hotels and resorts in Malaysia. I believe most of the top hoteliers would agree that improvement does not happen overnight. But we are progressing every day and making changes for the better. We strive to achieve better operational excellence, higher guest satisfaction and improved value for our properties,” Chew says.

Typically, the targeted clientele of BHR has always been the mid-range market.

“The good thing about the market is that it is minimally affected by external factors, be they positive or negative. Moving forward, we are improving our operational flow and distribution channels. To meet the demands of the millennials, we are going digital and will focus more on technology and social media,” Chew says.

While the Berjaya Hotel’s brand name has been used for many of its properties, BHR has recently introduced ANSA Hotels & Resorts and will open the first hotel under thelivingroom brand in 2018.

ANSA Hotels & Resorts’ target market is the business and leisure travellers who want stylish, fast and seamless hotel service. The thelivingroom brand focuses on the millennials who lead a trendy lifestyle. The Piccolo Hotel in Jalan Bukit Bintang has been rebranded Ansa.

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