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Originally Posted by Black Page
Can you elaborate further? Why this means no more hotel? Selling the assets may not mean that the new investor could launch a new hotel, a.k.a. Formosa Baru?
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I presume that when they said selling of the hotel assets were actually referring to the movable assets like sofa, dressing table, king/single beds, towels, TV, wifi router, fridge, table lamp, toiletries, gym equipment, KTV systems, dining table and chairs, kitchen utensils, electrical appliances, etc.
However those non-movable items aka fixtures & fitting like central air-con, bathtub, carpet, timber floor, furnishings will not be sold.
I think that if the investor who bought the assets wanted to take over the operation of Formosa 2.0, he would have signed a rental lease with the building owner. However nothing was mentioned about the contract agreement between the two parties.
Therefore there could be a possibility that the investor bought the assets and then sell the items to other hotel operators to make a profit.
Quote:
Originally Posted by Black Page
Nobody can take this thought out of my mind, that the Taiwanese boss saw the future before others, and because of COVID closed everything to save his money.(
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Taiwanese boss has signed a lease agreement which expires in Year 2021 with the owner of the building who was a Batam Chinese businessman .
He was an intelligent man who has the foresight about what covid -19 will bring to the economy therefore fast hand fast leg make a quick decision to "run road" to Taiwan to see if he could borrow some funds from his friends. But the result turn out to be negative and he had no choice but to give up Formosa and probably sacrificing his rental deposit placed with the owner.
If there was no covid-19, his business could have been able to sustain. He has 105 employees and lets say every month average salary per employee was 8 juta, then he will need to pay them 840 juta = S$84k per month
His overhead per month to run the hotel will be:
Employee salary (lucky no need pay cpf in batam)
Utility bills
Building rental
Vehicles installment
Petrol
Tax
Food & Drinks
Toiletries
Laundry
Maintenance cost for M&E equipments like pump, lifts parts, air-con service, lightings, etc
Over the years, he has invested the following:
Renovation of the rooms
Provide wifi service in all rooms
Enlarge the space at king massage
Tea story
Since Formosa Hotel has 110 room and lets say take the average of $70 per room per night. (some room cheaper, some more expensive)
He would have earned $70 x 110 rooms x 30 days = about S$230K per month. But that is provided that the occupancy rate is 100%..
However if covid 19 plus low season had caused the occupancy rate to fall below 50%, doubt that the business can sustain..
