Malaysia's Archipelago undergoes reorganisation

Changes are afoot at Archipelago Hotels and Resorts, a Malaysian hotel management company launched last year, with its structure and directions in flux.

Speculation is rife that Archipelago will be disbanded, and that it may be integrated into Destination Resorts & Hotels (DRH), the company set up by Khazanah Nasional, the Malaysian government’s investment arm, with the specific aim of developing premier lifestyle destinations to enhance Malaysia’s tourism portfolio.

Khazanah completed a 51 per cent acquisition of Archipelago early this year, according to Eliena Ahmad Gaman, DRH director-corporate strategy. When asked if Archipelago and its team would continue to exist, she said: “It is still early days. We’re still trying to work with the management team and think through how to move forward with them. At the moment it is intact but there could be further changes.”

Contacted by the Daily, Archipelago’s managing director Franz Zeller would only say: “Archipelago Hotels and Resorts is undergoing an internal reorganisation exercise to better align its business focus. It is expected to announce an enhanced business direction in weeks to come.”

Eliena said the acquisition of Archipelago was a means to obtain the skill set in hotel management and operation.

“Malaysia as a destination has a lot of untapped potential and it requires an investor and player like us to help spur the growth. We felt that if we were going to be a key player in this sector, there was also a need to build up a management brand in terms of hotel services.”
-TTG Asia.