The Meg drove E&O's six-month revenue, says its chief

Eastern & Oriental Berhad (E&O) says a significant portion of the company's revenue for the six months ended September 30, 2022 (1H2023), came from the sale of The Meg in Penang.

The Meg, which marked the first project in Andaman Island Off Gurney Drive, features two blocks of 35-storey serviced apartments with an estimated gross development value of RM650 million.

It consists of 1,020 residential units (built-up areas ranging from 567 sq ft to 897 sq ft) with innovative layouts designed to suit young executives and new families, and 14 retails units.

The Meg's strong take-up rate of more than 80 per cent since the company began previewing in January 2022, is a reflection of both the team's ability to produce the correct product for the market and the strategic position of Andaman Island Phase 1, said its managing director Kok Tuck Cheong.

"This increases our conviction to launch more projects in Penang in the near future. We are encouraged and would launch more exciting projects in Andaman Island," he said in a statement today.

Compared to 1H2022, E&O's first-half revenue increased to RM171.5 million from RM60.4 million.

Kok claimed that E&O Hotel's performance is also soaring to pre-COVID levels thanks to both leisure travel and business travel, where MICE activities are reportedly booming.

He said the company's hospitality segment continued to improve, with greater occupancy rates and average room rates resulting in higher revenue for 1H2023, in light of the solid tourism sectors in Malaysia and the United Kingdom.

The segment's revenue increased by 897.6 per cent in 1H2023, from RM4.1 million (1H2022) to RM40.9 million.

According to the company's filing to the stock exchange, the increase in income is mostly attributable to the easing of travel restrictions for domestic and foreign tourists and the reopening of E&O Residences in January 2022.

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