Malaysia Airports launches Sama-Sama hotel brand

[Sandeep G 1]

JV dah mati....

http://www.thestar.com.my/Business/Business-News/2013/09/18/MAHB-ends-JV-deal-with-Atoz-Hospitality.aspx

 

So allow me to begin the jokes:

"Thanks for screwing us on this joint-venture!! ... SAMA-SAMA!"

 

What in the world... terrible management of resources and probably a quick-buck for some crony.

 

Who does Mr. Hans G Winses proxy for? and what a fantabulous website - http://www.atozhospitality.net/Pages/aboutus.aspx

 

Mr. RR Khoo is certainly a star! Wonder if they'll sell to Tan Sri TF and the Tune Hotels brand

[Ja Singh 2]

They should sell this hotels to accor group,novotel and ibis hotels!

http://www.accorhotels.com/gb/new-zealand-fiji/index.shtml

[V Wong 0]

Coincidentally I was searching for an overnight stay in KLIA transit hotel for an upcoming early morning flight. When I saw the rate that Sama Sama and Sama Sama Express charges, I cepat cepat lari (ran away in a hurry) ...

Edited September 19, 2013 by V Wong

[flee 5]

Well, they are building a new Ibis hotel in KL (Jalan Yap Kwan Seng). So Accor are definitely looking to expand here.

[Mohd Azizul Ramli 2]

JV dah mati....

http://www.thestar.com.my/Business/Business-News/2013/09/18/MAHB-ends-JV-deal-with-Atoz-Hospitality.aspx

 

So allow me to begin the jokes:

"Thanks for screwing us on this joint-venture!! ... SAMA-SAMA!"

 

What in the world... terrible management of resources and probably a quick-buck for some crony.

 

Who does Mr. Hans G Winses proxy for? and what a fantabulous website - http://www.atozhospitality.net/Pages/aboutus.aspx

 

Mr. RR Khoo is certainly a star! Wonder if they'll sell to Tan Sri TF and the Tune Hotels brand

 

The JV only lasted for 8 months (15 January - 18 September 2013).

 

So given the circumstances (a website that could not even get the font size standardises?), this is probably what the situation was:

• Atoz approached MAHB with business proposal of managing its hotel division.
• MAHB bought the proposal (whether because it is based on sound business judgement or 'forced'/'conned' as in many cases of Malaysian GLCs, it is up for speculation).
• Actual does not met proposal. A lost of RM 2.8 million within 6 months and a plunged revenues by a massive 18% as reported in MAHB's 1H 2013 financial statements.
• MAHB did not satisfy with the performance, decided to end the JV.
• JV usually did not last for just 8 months, so we could expect MAHB to pay a sum of penalty to Atoz for early termination of their agreement.

 

Regardless of whether MAHB got conned by Atoz or not, I hope it serves as a lesson to the former.

 

And the imminent course of action is to engage a globally well known brand to manage the properties.

[Mohd Azizul Ramli 2]

Termination details

RATIONALE FOR THE TERMINATION

 

The joint venture has faced issues due to the non-participation and withdrawal of a key individual in the management and operations of the JV Company. The said non-participation and withdrawal has resulted in KLAH issuing a notice of termination of the HMA to SSHM on 3 September 2013. As the HMA has been terminated, pursuant to Clause 13.4 of the JVA, KLAH issued a notice to terminate the JVA to ATOZ on 18 September 2013.

The termination of the JVA will not affect the management and operations of the Sama-Sama Hotels as necessary measures have been taken by the Board and Management to ensure there will be no disruptions to the same once the termination takes effect..

attachment_39044_1379499893.pdf

[Mohd Azizul Ramli 2]

Some interesting numbers contributed by Sama Sama hotels into MAHB's profit & loss statement:

 

 

For the period under review (1 Jan - 30 Sep 2013) the hotel segment went from a profit of RM 1.1 million to a loss of RM 10.5 million. This represents a variance of minus 1,051.22% !!! (a thousand percent drop, *faint*)

 

Speculation:

Since the drop in the revenue is an improvement versus minus 18% as reported during 1H2013, the loss of minus 1,000% would probably inclusive a huge sum of penalty payable to Atoz for the early termination of the JV.

[V Wong 0]

_{Siphoning off money in a profitable business so that it bleeds to death, Malaysian style. What's new?}