Tabung Haji hotels fail to meet targets - audit report

The room occupancy rate of Tabung Haji hotel chain managed by TH Hotel & Residence Sdn Bhd (THHR) was only between 37 to 45.9 percent from 2016 to 2019, lower than the target of 50.9 to 61.7 percent.

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 percent 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 percent every year, it added.

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

"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.

The report said THHR also earned income from the rental of its halls and seminar rooms as well as food and beverage (F&B) business activities where the F&B showed consistent trends during the period, earning a total of RM8.03 million to RM8.42 million.

- Bernama