Pg 147 - Berjaya Corporation Berhad

ceo’s reviewof operationsSun soaked beaches and modern tropicalchalets and suites await travellers atBerjaya Langkawi Beach and Spa Resort.HOTELS AND RESORTS DEVELOPMENTBerjaya Hotels & ResortsThe Berjaya Hotels & Resorts (“BHR”) Division profited from the generally positive businessenvironment, enhanced sales efforts, innovative marketing strategies and aggressivepromotional activities during the financial year ended April 2006.BHR’s occupancy rate increased by 9% and total revenue rose by 14% to RM241 millionfrom RM221 million in the previous financial year.Berjaya Times Square Hotel & Convention Center and Berjaya Langkawi Beach & SpaResort achieved a better performance with improved occupancy and average room rate.However, the resorts in Seychelles recorded lower occupancy and room rates due tostiff competition and a reduction in inbound flights by major airlines, which consequentlyresulted in a 12% decline in revenue.Overall, BHR did well and earnings before interest, depreciation and amortization (EBIDA)for the year under review improved by 20% to RM61 million. However, due to a one-timehigh provision for depreciation charge for operating equipment, operational profit declinedby 7.6% when compared to the previous financial year.Berjaya Tioman Beach, Golf and Spa Resort, Pahang.During the year under review, Berjaya Langkawi Beach & Spa Resort completed theconstruction of 102 new premier land and water chalets. Today, the resort boasts a totalof 502 rooms and continues to be the leading resort operator in Langkawi.The construction of an additional 112 rooms at the Berjaya Redang Beach Resort wasalso recently completed and opened for reservation in April 2006. A further 18 suitesare expected to be completed by end of the next financial year. In addition to its roomextension programme, the resort also unveiled a new spa facility by Ayura Spa, a renownedspa operator that provides similar facilities at the Berjaya Langkawi Beach & Spa Resortand Berjaya Tioman Golf & Spa Resort.Due to increasing pressures from high inflation rates that has caused a surge in rawmaterial and energy costs, BHR has been careful to remain prudent and focused oncost containment measures at all levels of operation as it continuously strives for higheroperating efficiency.A significant amount of investment is being channeled towards upgrading and replacingthe current computerized system to further improve and strengthen BHR’s operationalcapabilities. To date, a new Property Management System (PMS) has been successfullyimplemented at Berjaya Tioman Golf & Spa Resort and Berjaya Times Square Hotel &Every room at the exotic Berjaya Mahe BeachResort offers views of the timeless beauty ofthe Indian Ocean.12Annual Report 2006Berjaya Land Berhad (201765-A)