TA Enterprise sees hotel earnings triple

KUALA LUMPUR: TA Enterprise Bhd's hotel sector earnings are expected to triple in financial year ending Jan 31, 2011 (FY2011), following recent acquisitions including 4-star hotel Swissotel Merchant Court Singapore, that received shareholder approval at an EGM on Nov 18.

For FY2009, hospitality operations contributed RM15.8 million in pre-tax profit or 11.5% and revenue of RM76.6 million or 17.4% to listed property division, TA Global Bhd that is being listed on Bursa Malaysia on Nov 30.

Post-listing, TA Enterprise with its 58.7% stake in TA Global would still be able to equity account for the division's earnings.

Other pre-tax earnings segments for the division are property development contributing 121.5%, and property investment and management contributing 12.9%, while credit and leasing contributed losses of 37.4% and 8.5% in losses came for other segments.

Swissotel that is being acquired for about RM635.8 million is expected to be injected into TA Global as soon as possible after the division's listing, TA Enterprise managing director and chief executive officer Datin Alicia Tiah told reporters after the EGM.