TH hotels fail to meet targets - Audit report

According to the Auditor General's Report 2019 Series 1 released today, the occupancy rate was based on the average number of rooms sold in its three hotels, namely TH Hotel Kelana Jaya (THKJ), TH Hotel Penang (THHP) and TH Hotel Kota Kinabalu (THKK).

"Throughout the period, the average number of rooms offered was 36,788 to 38,887 rooms a year. On the overall, THKK registered the highest occupancy of between 46 and 57 per cent compared to other TH hotels," it said.

Therefore, THKK became the largest contributor to TH hotel room rental income, exceeding its target by more than 70 per cent every year, it added.

According to the report, the highest occupancy rate for the three hotels was recorded in 2016 at 45.9 per cent, which was still lower than the target set at 61.7 per cent.

"This low achievement was due to unaggressive marketing, conditions of hotel premises and facilities as well as competition," said the report.

It added that the actual revenue derived by the three hotels throughout the period was between RM16.48 million and RM18.68 million compared to the target of between RM26.07 million and RM28.02 million.

--BERNAMA