First Achievement in the Expansion of the Company's Outreach to a Higher Margin Sector
GUANGZHOU, China, Oct. 9 /Xinhua-PRNewswire/ -- China World Trade Corp. (OTC Bulletin Board: CWTD) today announced a hotel, management and renovation contract between its newly established hotel management subsidiary and Lakeview Hotel Nanchang Company, Limited.
Under the agreement, China World Trade Corp. will be in charge of the hotel renovation work of Lakeview Hotel Nanchang, a four-star hotel opened in 1996 with a total of 302 guestrooms and suites and located on the Huxin Island, Nanchang, Jiangxi Province of China. Effective September 2007, China World Trade Corp will be responsible for the management of the renovation work on Lakeview Hotel Nanchang and for ensuring its re-opening before Oct 2008. China World Trade Corp is further requested to provide consultancy services to Lakeview Hotel in the areas of human resources planning, marketing strategy, general administration and personnel training, in order to walk Lakeview through its first two months after the re-opening.
The agreement will be executed through a newly established subsidiary of China World Trade Corp -- the CWT Hotel Management Limited ("CWT Hotel") -- to receive management fees paid by installment.
"This is encouraging progress for China World Trade Corp., to divest ourselves of a low gross margin travel businesses to focus on the higher margin business & hospitality services sectors, which are expected to experience increased growth over the next decade as China increases its visibility as a global business market and tourist destination," said Mr. Raymond Tse, Chief Development Officer of China World Trade Corp. "In 2007, we have eliminated the lower-margin and price-sensitive travel services division. Leveraging our business clubs and travel services experience, we launched CWT Hotel in August 2007 to focus ourselves as a hotel management services provider. This agreement with Lakeview Hotel will prove to be a promising start under this strategic move."
About China World Trade Corp.
China World Trade Corp. (OTC Bulletin Board: CWTD) ("CWTC") is a leading provider of business, hotel management and investment & consultancy in China. The Club and Business Center Division is devoted to provide business meeting venues, travel & support services to domestic and foreign entities seeking to do business in China's key trade cities. CWTC's hotel management division, CWT Hotel, focuses on high margin hotel management and development support services and provides hotel renovation and management project services. The investment & consulting services division provides technology and infrastructure expertise and investment to China-based development projects in key cities. More information about China World Trade Corp is available at http://www.chinawtc.com .
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For more information, please contact:
Investor Relations Officer
Tel: +86-20-2886-0608
Email: ir@chinawtc.com
