Asiaworld Plaza Hotel (
"We may close the deal and sign a contract with Six Continents Hotels within next two months," said Monica Feng (
The news is positive for Asiaworld, which is burdened with a reputation for dated decor, poor employee relations and questionable management practices.
Established in 1983 on the crossroads of Tunhwa N Road and Nanking E Road, the hotel is owned and operated by Asiaworld International Group (
The deal may end up with Six Continents Hotels running the day-to-day operations while Asiaworld Group would retain ownership, Feng said. She refused to further elaborate on the financial details of the proposed plan.
UK-based Six Continents Hotels currently oversees more than 3,200 hotels in nearly 100 countries and territories globally. Under its umbrella are several renowned brands including Inter-Continental, Crowne Plaza, Holiday Inn, Holiday Inn Express and Staybridge Suites.
Taipei's Rebar Crowne Plaza (力霸皇冠飯店) on Nanking E Road already has a 10-year alliance with Six Continents, while its management rights remain in Rebar's hands.
Conversely, Linsen N Road's Imperial Inter-Continental Taipei (
"Once the collaboration is finalized, we will be the only hotel in Taiwan managed by Six Continents Hotels," Feng said.
Last year, the cash-strapped Asiaworld Group reportedly was unable to make interest payments on two massive debts: NT$400 million owed to the Chung Shing Commercial Bank (
The liquidity crisis forced the hotel to delay paying salaries to employees for several months.
For well over a decade employees have complained of delayed or reduced monthly salaries.
According to Feng, as early as April the company resumed regular monthly pay, but for salaries still unpaid from January to March this year, the company said it plans to pay up by the end of this year.
Talks of a new manager bringing in international standards raised the hopes of employees.
"Most staff are very happy to learn the news ... finally the hotel has an opportunity to be reborn," Feng said.
If everything goes as planned, the next stage would be to refurbish the aging complex and recruit more management professionals.
One market watcher hailed the alleged deal as positive news.
"This is a good news for Asiaworld ... we know the company has been in trouble for a while," said Chen Lieh (陳烈), general secretary of International Tourist Hotel Association of Taipei (台北觀光旅館公會).
"This transition will make the firm more stable and restore some employees' confidence," he said.
According to the Tourism Bureau under the Ministry of Transportation and Communications, Asiaworld Plaza Hotel reported sales last year of NT$1.06 billion, a 30 percent drop over the NT$1.5 billion sales the previous year.
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