Hong Kong, Sydney Hotels Combine As PPK

<B>Hong Kong, Sydney Hotels Combine As PPK</B>

By Judy Jacobs

Hong Kong-based Century International Hotels has signed an agreement to merge with Plaza Kemayan Ltd., a Sydney-based company that holds the master license for the Asia/Pacific region for Park Plaza International Hotel. Following the merger, PPK will manage 35 hotels in eight countries in Asia/Pacific.

"We believe the most effective way to grow our business and compete head on with our major competitors is by aligning ourselves with a strong partner with established brands and a good distribution," said Brian Deeson, Century founder and chief executive. "We believe we have found this opportunity with PPK."

The Park Plaza International system owns, manages and/or franchises more than 100 properties in more than 20 countries around the world. Although no decision has been made on a name change for the merged company, it will manage all Century and Park Plaza/Park Inn hotels in the Asia/Pacific region covered by PPK's license. "The merger will give us a wider distribution with the Australian base and the five park Plaza Hotels there, plus access to their worldwide marketing and distributions systems," said Deeson.

PPK's chairman Don Larkin expects that Century's strength will support his company's continued Asia/Pacific expansion plans. "The two brands complement each other well, with Century's outstanding presence in Southeast Asia and Park Plaza's strong representation in Australia," he said. The companies intend to maintain their existing hotel brands. "We see branding as Park Plaza being four-star, Century three-star and Park Inn two-star," Deeson added.

The merger will allow the new company's development plans to accelerate. "We are looking at doubling to 70 hotels within three years, and in addition to the countries in which we are both operating, we will be looking at North Asia in particular--Taiwan, Korea, Japan and major cities in China," Deeson said.

In the meantime, Century International already has several new hotels in the works, two of which have opened in the past few weeks and another to open early next month. The first of these, the Century Roxy Park Hotel Singapore, the company's first venture into the island nation-state, opened Sept. 28 on Singapore's East Coast.

"Century Roxy Park Hotel will position itself as the preferred choice for business travelers in the rapidly developing East Coast area of Singapore," said Mark Simmons, Century's group director of sales and marketing. "With a traveling time of only 12 to 15 minutes from Changi Airport and the new Changi Expo Center, the hotel will become a popular choice for convention/exhibition delegates as well." The 463-room Century Roxy Park includes 66 serviced apartments and two Royal Club executive floors. All rooms have high-speed Internet access. The hotel's conference facilities can accommodate up to 450 attendees.

Meanwhile, the next property to open, the 152-room Watergate Century Hotel Shenzhen, began accepting guests early this month in the heart of Shenzhen's financial district. "Shenzhen (located just over the border from Hong Kong) is one of China's fastest growing cities and the gateway to Hong Kong," Simmons said. "Shenzhen has developed its own financial sector on the back of the Shenzhen Stock Market from which the Watergate Century Hotel is a short walk. Shenzhen remains the key link between Hong Kong and the mainland, both geographically and economically."

This economic link will be what drives business to the new Watergate hotel. "We are expecting approximately 60 percent corporate traffic," Simmons said. "The hotel also will cater to the small meetings market, with facilities catering for up to 50 people."

Close on the heels of the new Shenzhen hotel, the company plans to open the Century Inn North Point in early November in Hong Kong's North Point, a rapidly developing business and commercial district on Hong Kong Island. "It will be Century's third hotel in Hong Kong," said Simmons, "and is positioned as a full service, budget property. The rooms are compact, but all facilities expected in an international managed hotel are to be found.