OPERATIONS AND MARKET REVIEW
SEDONA HOTELS INTERNATIONAL

Sedona Hotels International, the hotel management arm of Keppel Land, continues to build on its motto "Experience Sedona, where welcome is not just a word, it’s our philosophy", delivering the best in hospitality and comfort that Asia is well known for. It prides itself for its high standard of services and facilities, and strives constantly to achieve an optimum level of comfort and value for each guest.

Sedona Suites Hanoi, a 175-room serviced apartment located on the edge of West Lake, was presented the "Best Luxury Serviced Apartment, Hanoi" at the Guide Awards for two consecutive years in 2002 and 2003. The Guide Awards was jointly organised by Vietnam Economic Times magazine and the Vietnam National Administration of Tourism to give due recognition to outstanding hospitality service providers in Vietnam.

Despite the SARS outbreak in the first half of the year and a weak global economy, Sedona Suites Ho Chi Minh City and Sedona Suites Hanoi continued to achieve high occupancies of 94% and 87% respectively in 2003, levels of which were similar to the previous year’s. The two serviced apartments continue to be market leaders in Ho Chi Minh City and Hanoi despite stiff competition.

The philosophy of delivering only the best in Asian hospitality comes to life in each of Sedona’s hotels and serviced apartments across Asia.

In Myanmar, tourist arrivals were dampened by the SARS epidemic, the ongoing trade sanctions and weak economic conditions. However, the hotels’ performance were not significantly affected. Although revenue was lower, Sedona Hotel Yangon registered an increase in its gross operating profit for 2003 against the previous year through effective cost containment strategies. Sedona Hotel Yangon achieved a 65% occupancy for the 175 rooms in operation while Sedona Hotel Mandalay continued to attain higher than full occupancy for the 56 rooms in operation. The good performance for both hotels could be attributed mainly to the aggressive sales and marketing strategies that generated more demand from the regional leisure market as compared to weaker-than-expected leisure arrivals from the long-haul market segment.


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