Maldives property could add to Keong Hong’s recurring income

(Oct 2) The Mercure Maldives Kooddoo Resort was launched to great fanfare on Sept 25, despite already being in business for a month. In attendance were Maldivian president Abdulla Yameen Abdul Gayoom, the Maldivian ministers for tourism and economic development, and members of parliament. Representing Singapore were non-resident ambassador to the Maldives Chua Thian Poh and Keong Hong Holdings CEO Ronald Leo.

The 68-villa mid-scale resort is attached to an airport, with the hotel’s entrance within walking distance of the planes. Kooddoo airport, which was built by Keong Hong in 2011, is a 50-minute flight from the capital city of Male. Leo expects Mercure Maldives Kooddoo to start turning a profit after a year of operations, or even sooner. He estimates the resort could contribute US$2 million ($2.7 million) a year to Keong Hong’s pre-tax earnings. He says, “We are in a segment that I think is going to do very well.”

Keong Hong is also building a more upscale resort on an island 15 minutes away by speedboat. The 120-villa Pullman Maldives Maamutaa Resort is scheduled to open in early 2019. Meanwhile, the company recently extended the Kooddoo airport runway to accommodate large private jets. Previously, planes landing there were predominantly Dash 8-300 turboprops carrying 50 passengers operated by Maldivian, the national airline.

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