CDL Hotels International intends to concentrate on achieving greater yield from its network of hotels in Asia and Europe, according to executive director Gan Khai-choon. Mr Gan said the group was cushioned from the anticipated oversupply of hotel rooms in the region in the next two or three years while it was well placed to benefit from the shortage expected in Hong Kong. CDL completed a placement and subscription transaction yesterday involving 140 million shares to raise $406 million. On completion of the transaction, controlling shareholder City Development and its subsidiaries will hold 51 per cent of the company. It has given an undertaking that it will hold not less than 51 per cent of the group unless permission has been granted. ''As far as oversupply goes this is something that affects certain areas like Bangkok. There are some areas in which oversupply is not expected to be a major problem,'' Mr Gan said. ''In Hong Kong, however, given the prohibitive costs of setting up, you have to be crazy to try and open a hotel that makes money right now in Hong Kong.'' The group books the value of most of its hotels at historical prices. ''The hotel group is looking to concentrate on building on our per room yield by adding value services in our hotels.'' CDL owns 79.6 per cent of the Grand Hyatt in Taipei and wholly owns Orchard Hotel in Singapore. In Hong Kong, it has an interest in Hotel Nikko. With a hotel in London, the group is looking to attract Asian business travelling to and from Europe.
