How Wise Is This Felda Investment?
Felda Group Chairman Tan Sri Dr Mohd Yusoff Noor on Saturday said that Felda had acquired three floors in a 20-storey hotel in Mecca for the convenience of Malaysians while performing the haj or umrah in the Holy Land.He said the acquisition of the three floors was made after much considerations on the group's financial capacity.
"We have bought the rooms in the hotel according to our capability. What matters is the customer's satisfaction. We cannot afford to follow the other industrial players," he told reporters at the launch of the Felda Residence Hot Springs Hotel and Spa in Sungai Klah.
Mohd Yusoff said although the acquisition involved only three floors of the hotel, the returns from the investment was higher than what Felda had imagined.
He said the investment would also enable various Felda products to be promoted in Mecca through a display area which could be set up on one of the three floors.
Prior to this, Felda was reported to have invested RM200 million in the construction of a hotel and a restaurant in Mecca for the convenience of Malaysians while performing the haj or umrah.
A board member, Datuk Dr Ahmad Shukri Ismail was also reported as saying that the project was managed by Felda Global Venture, a subsidiary of the Felda Group, with the cooperation of the Pilgrims Management Board (Tabung Haji) and the Saudi government.
Both the hotel and restaurant, to be located in Bab Al Aziz, Mecca, was among Felda's biggest projects.
Meanwhile, Mohd Yusoff said about RM9 million had been spent to upgrade the facilities at the Felda Residence Hot Springs in Sungai Klah, comprising the construction of a 64-room hotel, a restaurant and a spa centre which was officiated today.
Since it was opened in December 2003, Felda Residence Hot Springs had received overwhelming response from all quarters with over one million tourist arrivals recorded so far. (Bernama)
***** Congratulations to Felda. With credit drying up for even mega businesses worldwide, Felda apparently is bucking the trend and daringly investing in the already visibly nervous, profit-challenged hotel industry. Holy cash cow Batman!
Labels: Business, Malaysia - General, Questionable Decision
posted by The Malaysian. at 11/23/2008 11:43:00 AM
3 Comments:
Very unwise move. Our cash rich entities have got their fingers burnt on numerous occasions and this one also seems destined to end up like the rest. What experience do the Felda administrators have? They'll get swallowed up by the local crocs in Mecca.
What are they up to?? Do they mean Felda is for muslims only??
What is the original purposes of setting up Felda? Where are the settlers? Who have gained from the schemes?
Can they perform outside the scope of business Felda is formed for??
its a captured market..money to be made. why u think the arab sheiks are demolishing historical sites to build hotels.
package for haj in hotels by tbg haji starts at 8k - 35k
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