HotelsMag October 2012 | Page 12

The Archipelago JV
GLOBAL UPDATE : PROFILE

ARCHIPELAGO

SPREADS OUT

The Datai Langkawi , Malaysia
The new management company that operates the Datai in Langkawi has plans to expand two brands in Southeast Asia and beyond .
By Jeff Weinstein , editor in chief

Although it began in 2010 as one ultra-luxury hotel in Langkawi through Malaysian conglomerate Peremba , the Datai is now a brand born under the direction of industry veteran Franz Zeller via a new joint venture between Peremba and Destination Resorts , which has financial backing from Malaysia ’ s sovereign wealth fund , Khazanah Nasional .

Archipelago Hotels & Resorts is the name of the umbrella management company that operates the one existing Datai resort , as well as one-off luxury hotels such as The Saujana and Carcosa Seri Negara near Kuala Lumpur . Zeller , who was previously
The Archipelago JV
Destination Resorts , a subsidiary of Malaysia ’ s sovereign wealth fund Khazanah Nasional , invests in leisure , recreational , commercial and residential real estate . Current projects include premium hotels , residences , theme parks and golf courses in Malaysia — on the Desaru Coast and at Teluk Datai , Langkawi .
The privately owned Peremba
COO for Taj hotels and spent several years with Hilton International and Millennium & Copthorne , is also in the process of developing a more accessible luxury brand called Plantation Hotels & Resorts , as well as several more Datai hotels in Malaysia , the Indian Ocean , the Middle East , Australia , the Pacific and Europe .
While Archipelago has an asset-light philosophy , Destination provides the potential growth and business opportunities , in particular within Malaysia and Southeast Asia . In fact , Zeller says the second Datai hotel is set to open in early 2015 on the Desaru Coast in Malaysia .
Without going into serious details
Group of companies has a solid track record , both internationally and within Malaysia . It engages in the development , ownership and management of high-quality commercial interests and has an established track record of involvement within luxury / servicerelated businesses such as hotels , resorts and golf clubs , including the Datai Langkawi . about what is a strong pipeline for Datai , Zeller adds that Archipelago hotels will “ operate high-end luxury and deluxe city hotels , lifestyle resorts and residences in key gateway cities and unique destinations .” He does not anticipate adding more one-off hotels , but notes , “ There might be unique opportunities where the Archipelago ’ s management expertise can add value to a free-standing property that would not fit our brands .”
Zeller describes the fledgling Datai brand as unique and serene with iconic expressions and enriching experiences .
The deluxe , upper-upscale Plantation brand had not yet launched at press time , but Zeller says it will be rolled out in the near future with an emphasis on Asia , the Indian sub-continent , Indian Ocean and the Middle East . The flagship Plantation Desaru resort is expected to open in early 2015 , with other projects in the pipeline .
Despite some initial challenges of transitioning to a joint venture structure that slowed the rollout of the new brand , Zeller says the company as a whole has been performing well . “ We are optimistic for the remainder of the year , despite the economic slowdown in Europe and the United States ,” he says . “ Our strong focus and efforts in the Asian , Middle Eastern and Russian markets are paying off and producing positive results .”
10 HOTELS October 2012 www . hotelsmag . com