THE hospitality division of the Eastern & Oriental Bhd (E & O) group will get a shot in the arm with expansion plans of its flagship E&O Hotel in Penang and the addition of new facilities.

Having invested some RM200mil in two hotel properties – E&O Hotel and Lone Pine Hotel – the group may also consider bringing the E&O hospitality brand to Kuala Lumpur in the next three to five years.

E & O group corporate and investment director Eric Chan said although the group was not looking at building or buying new hotels, the expansion might be in the form of serviced apartments.

The 120-year-old E&O Hotel may see the addition of 120 hotel suites or serviced apartments on the annexe block of the 101 all-suite heritage hotel.

He said the buoyant tourism market and Penang’s popularity as a tourist destination augured well for the group’s hospitality division. E&O Hotel and Lone Pine Hotel are both renowned for their heritage attractions.

In 2001, after a major restoration and meticulous refurbishment that started in 1996, E&O Hotel reopened for business and today, boasts the largest average room size in Penang.

The group may also consider bringing the E & O hospitality brand to Kuala Lumpur in the next three to five years.

While retaining the hotel’s old colonial charm, the programme added more modern comforts and facilities, providing guests a window to both the old and new Penang. The hotel has since made it to the list of grand luxury hotels in the world.

Built by two Armenian Sarkies brothers, who also built The Raffles Singapore in 1887, the hotel has a rich heritage that is easily evident in the building design and ambience.

''We are proud that the E & O name carries a distinguished pedigree that began 120 years ago with the establishment of our flagship hotel in Penang.

''The hotel’s restoration and reopening in 2001 has brought elegance of a previous era back to modern Malaysia,'' said Chan.

According to E&O Hotel manager Mike Saxon, the E&O hotel brand carries the hallmark of timeless elegance, luxury and personalised service.

''It is the company's intention to nurture this reputation so that any future plans for expansion will be supported by an established E & O brand capital. We have set out to present Malaysian hospitality standards to the outside world,'' Saxon said.

E&O Hotel has a loyal customer base from both the corporate sector, particularly multinationals based in Penang, as well as international tourists.

In addition to the established clientele from Europe, the United States, Australia and Japan, the E & O Hotel team is acting on several fronts to capture new target markets, such as the growing number of tourists from the Middle East, Russia, South Korea and India.

For the financial year ended March 31, 2005, E&O Hotel registered a 34.4% increase in revenue to RM14.9mil, while average room occupancy rate rose to 70%. Repeat business contributed more than 35% to the overall revenue.

Meanwhile, revenue for the 50-room beachfront Lone Pine Hotel grew 13.8% to RM3mil.

''The history and prestige of the hotel is a unique draw that has been consciously nurtured. We go out of the way to heighten the experience of each valued customer who comes through our door, such as providing personalised butler service for every room,'' Saxon said.

Listed under the Penang Heritage Trail, the hotel is becoming one of the ''must-see destinations'' on the island.

Saxon said to garner greater exposure and bookings for the hotels locally and globally, E&O Hotel took part in the Penang state tourism promotions and worked closely with reputable in-bound tour operators and travel agents, including dotcom ones.

Source : The Star 2/1/2005