McBride Returns To YTL Hotels
Opportunistic Malay powerhouse brings in new leader to grow portfolio beyond Southeast Asia.
By Jeff Weinstein, Editor In Chief -- Hotels, 8/31/2009 11:00:00 PM
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| James McBride |
Ten years ago when James McBride was leaving The Ritz-Carlton Kuala Lumpur and the YTL family, he and YTL Hotels Executive Director Dato’ Mark Yeoh had the obligatory conversation about doing something together again. Often nothing comes of those conversations, but when the call came last November to start discussions about the future of YTL Hotels, McBride says he knew the time had come. “We put a deal together and it is fascinating for me to be back,” says McBride, who left The Carlyle in New York City as regional vice president of Rosewood Hotels and Resorts to become the Singapore-based president of YTL Hotels in August. “To my colleagues in the business, I feel very fortunate to know where I am going and what I am doing. It is very exciting.”
With Kuala Lumpur-based parent YTL Corp. Berhad’s deep pockets and infrastructure and its recognition that now is the time to enhance the existing hotel portfolio’s value, acquire properties and expand its footprint outside Asia Pacific, no doubt McBride is excited about his prospects.
“Over the next 18 months, the downslide will continue and even though banks have taken assets, they are holding them and can’t release them due to valuations,” McBride says. “Over time, that will change and we will [look] at these. This is a three- to five-year window to take advantage and the reason for them to have me now.”
Global Aspirations
McBride says he would like to have a presence in major capitals of the world and for starters is interested in London, as YTL Corp. Berhad recently acquired a utility business there. He also wants to leverage his experience in the United States to fill in key markets like New York City, Los Angeles and Chicago. “In the U.S. and London, we would be looking for deluxe hotels that are cash strapped or in play, or properties that could be elevated into that market due to their location,” McBride says, adding that a joint venture that gives YTL a piece of a company or an acquisition of a brand that has lost its luster is not out of the question.
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| Villas in the treetops at YTL Hotels’ Pangkor Laut Resort. |
YTL brings a lot to the table in terms of resources as it started out as a construction company and has the expertise to renovate on its own, a great competitive advantage that helps keep costs under control. In fact, YTL has several hotel projects under development, including the old Westwood condominium building in Singapore, which is in the design phase of being converted into a hotel and residence. McBride says this project and others will be managed internally. “It won’t be put out to bid as a management contract,” he adds.
But McBride does not envision creating a brand. “I want to evaluate brands and see what makes the most sense for us to invest in and partner with,” he says. “Starting from scratch with a brand at this point is very challenging.”
Among other YTL projects under development at the moment include a parcel near the Petronas Towers in Kuala Lumpur; a 16-room resort in St. Tropez coming to market next summer; a spa village concept with growth potential currently being piloted and refined in Bali; and two islands under development in Sabah near Borneo with great beaches and diving lures.
Looking long term, McBride refers to YTL Corp.’s Managing Director Tan Sri Francis Yeoh’s vision of creating enclaves like St. Tropez around the Asia Pacific region to serve the super-rich with space for their yachts and jets. “They don’t exist in the region and there are areas in China, and Thailand that could work… One will happen in 20 years.”
Right now, McBride says he will hire a development person and work with the Kuala Lumpur-based operations team, including the newly hired Edwin Yeow, former vice president of marketing at Banyan Tree, to better market the existing portfolio (McBride says results are off 10% in 2009) and introduce the American market to the YTL portfolio. “I will be based in Singapore because 70% of what I will do is focused on growth and development,” McBride says. “I will meet with the hotel executive committee weekly, but I want to stay lean using the infrastructure in place and add just a few people to facilitate what I need.”
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