YTL to go hunting for quality assets in 2009

YTL has been approached by international hotel and resort owners with proposals to buy their properties, which are being studied now.

ENERGY, hotel and infrastructure conglomerate YTL Corp Bhd (4677) aims to buy under-performing hotels and resorts internationally and turn them around, despite fears that the global economic turbulence may worsen next year, executive director Datuk Mark Yeoh Seok Kah said.

"We have, in the last 10 years, successfully built a platform to where we are now. We are now entering a growth phase. Assets are getting cheap and there are a lot of opportunities to buy. Next year will be a hunting year followed by acquisition," Yeoh said.

Yeoh told Business Times in an interview in Kuala Lumpur recently that YTL has been approached by international hotel and resort owners with proposals to buy their properties, which are being studied now.

YTL, with its war chest of more than RM10 billion, is in a good position to pick up some quality assets at depressed prices following the global financial meltdown.

Yeoh said the group will acquire a few assets based on its cash flow position, and also, if the price is right.

"We are very comfortable in the luxury segment. Our current portfolio comprises resorts, city hotels and quality properties. Any acquisition will have to fit into the three segments," Yeoh said.

YTL, through its hospitality arm YTL Hotels & Properties (YTLHP) Sdn Bhd, is involved in both ownership and management of properties, comprising a collection of internationally renowned, award-winning resorts, hotels and spas.

YTLHP owns Cameron Highlands Resort, JW Marriot KL, Spa Village Resort Tembok Bali, Villa Tassana in Phuket, and Bray House, Berkshire in the UK. It has also stakes in Majestic Malacca, The Chedi in Phuket, Vistana Hotel in KL, Penang and Kuantan and Tanjong Jara Resort.

All the properties are managed by YTLHP, including Pangkor Laut Resort and The Ritz-Carlton KL, which are majority owned by the Yeoh family.

"If there are opportunities to enhance our chances in real estate gain, we will consider. We will look at opportunities worldwide on a global basis," Yeoh said.

Yeoh said opportunities are aplenty due to the current correction in the property market and also because banks are consolidating.

He said there is also a play in hotel assets now.

"Banks are coming around with value propositions. But we will look at markets that we are familiar with," Yeoh said, citing YTL's investments in Indonesia, Singapore, the UK, Thailand and Australia.

By NST