David Chiu, Deputy Chairman and Chief Executive Officer of Far East Consortium International Limited Hong Kong, says that Far East will focus more on China in the coming months.

Local media report the company will be developing 4-star hotels in main cities in mainland China in the coming 18-26 months in order to have 2000-3000 new rooms in total in the area.

Far East plans to invest about RMB500,000 to RMB1 million into each hotel room, which should not be a heavy burden for the company which currently has a RMB1.5 billion fund and RMB300 million to RMB400 million cash turnover each year. In addition, Far East plans to have its hotel management subsidiaries listed separately, which may also raise RMB2 billion to RMB3 billion.

Far East Consortium has announced plans to acquire two hotels in Malaysia
this year and the transaction is expected to be completed between June and
July 2007. The company estimates that these two hotels will make profit from next year on. David Chiu says that their average investment for each room in
Malaysia was about RMB1 million.