By ANNE GIBSON
After restructuring New Zealand's largest hotel chain, its Kiwi boss has stepped aside in a surprise move which has seen the Singaporean majority shareholders take control.
Lex Henry, managing director of CDL Hotels and its related companies, CDL Investments and Kingsgate International, told the stock exchange yesterday that he
would not renew his contract.
He has held the position barely a year after becoming a non-executive director in December 1998.
During his term he has spear-headed a major shakeup of the group, which has assets of $535 million and whose brands here include Millennium, Copthorne and Quality Hotels.
While the results for the first six months of this year are due soon, those for the 1999 year were mixed. CDL Hotels, while increasing revenue by 5 per cent, saw a 10 per cent decline in profits to $6.19 million as room yields fell on an oversupply of accommodation in Auckland, Wellington and Queenstown. That position was still continuing, the company said when it released the annual result in March.
Kingsgate International - 50.74 per cent owned - whose interests are mainly in Australia, substantially increased profits to $3.19 million after adjusting for a one-time gain. And 58.43 per cent-owned CDL Investments also saw a 53 per cent lift in profits to $5.12 million for the 1999 year.
Mr Henry said yesterday that he had been focused on a major restructuring of the group which included a branding strategy and a range of moves to increase yield and improve room occupancy rates.
Stepping into Mr Henry's place will be Singaporean Tsang Jat Meng, a non-executive director of the group.
CDL is controlled by CDL Hotel Holdings NZ, owned by Millennium & Copthorne Hotels in Britain, which in turn is controlled through Singapore's Hong Leong Group. The Singaporeans hold a 70 per cent stake in CDL Hotels NZ.
Mr Henry said he had yet to decide what to do next, but having worked as an investment banker, lawyer and diplomat, he had a variety of options ahead of him.
