Formosa International Hotels Corp (晶華國際酒店集團), Taiwan’s largest listed hotel operator, is in talks to take over the Taipei City Club (台北聯誼會), a company official said yesterday.
“We have reached an initial agreement to take over the banquet and restaurant business of Taipei City Club, but the members and gym are not part of the deal,” Ellen Chang (張筠), Formosa Hotels’ public relations director, said by telephone.
The club is on Minsheng E Road near Songshan Airport, and the increased number of direct flights to China has drawn bankers and others engaged in commercial activity, she said.
Negotiations are still ongoing, and the new operation is not expected to open until after Lunar New Year, Chang said.
The 15-year-old Taipei City Club is located in the basement of the Hontai Building (宏泰大樓). Owned by Hontai Construction (宏泰建設), the club has facilities including banquet halls, restaurants, a sauna and a gym.
Chinese-language media reported yesterday that it might close for good tomorrow because of huge losses, with membership shrinking from a peak of 2,200 to the current 1,400. Clients reportedly have to fork out NT$180,000 to NT$680,000 for membership and a monthly fee of NT$3,800.
Some 160 employees at the club already failed to receive paychecks starting from September. The club lost money for the first time last year, with reports saying the losses amounted to NT$50 million (US$1.54 million).
A number of members who had already bought dining vouchers for the club raised concern yesterday over whether their vouchers would be valid if the club changes hands.
“In the deal with Hontai Construction, we didn’t talk about taking over the dining vouchers. Hontai should resolve all outstanding issues before handing the club over to us,” Chang said.
Many clubs in Taiwan, including Taipei City Club, have changed from exclusive, members-only clubs to include non-members, a public relations firm’s general manager said on condition of anonymity. Her company rented a hall at Taipei City Club some five years ago to hold media events.
“These club houses have to turn to outsiders to explore other revenue sources when membership is stagnant or when the economy doesn’t fare well,” she said.
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