Quote:
Originally Posted by Black Page
Your posts are always very informative. Thanks.
I have a comment though: both fixtures and fittings of Formosa are old and need a complete renewal, even after the recent remodeling.
If I want to start a new hotel, I would try to buy the naked building for a piece of bread, then invest in renewing most fittings. Only at that point, we can invest in fixtures and launch brand new Formosa 2 with credible chances to be one one of the best places to stay in Batam.
Because of COVID, maybe now the investment to buy the building can be small. It could be a long-term investment, for better times to come.
This is mainly my hope. What else could they do with the building? A mall??
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I believe that the chances to convert the existing building to a mall is unlikely to succeed due to the following reasons:
1) Centrepoint mall beside formosa was quite popular during the 90s and early 2000s. However the tenants there gradually move out of the mall until the building became deserted.
The main reason was because there was fierce competition from the largest mall in batam Nagoya Hill Mall which was built around that period (Year 2007) and it was so crowded and visited by many local people and tourist due to its strategic location. But partly also due to the trade mix in centrepoint mall not attractive enough.
Any new mall opening nearby must be prepared to compete with the hugh and popular nagoya hill mall.
Lucky Plaza business can sustain till now because their electronics / mobile phone (cewek used to call ha pay) was comparatively cheaper than nagoya hill mall shops.
2)The building owner may find it easier to look for another hotel operator to rent the existing building as the building is already equipped with all the rooms, structures, facilities, m&e services, etc.
On the other hand, to operate the building as a mall will require plans submission to authority for the change of use of the building and also very difficult to look for shop tenants at this covid crisis period.
In conclusion, my wish is the same as you. Hopefully in the near future, another hotel operator could take up the building (either rent or buy over) and start to operate like Formosa Baru. Recruit back all the formosa former staff including the massage/ktv/reception/restaurant staff and carry out some minor refurbishment to the rooms and that will be perfect.
Formosa location is centralised and unbeatable, makan place is a stone’s throw and can reach all the booking joints within walking distance. Travel Agency shop for buying cheap 2 way ferry ticket also nearby and many people like to use Formosa as a base to cheong too.
