CDL Hotels chief poised to step down

Tsang Jat Meng had pushed up profits from $1.5 million to $23 million. Picture / Fotopress

One of the oldest heads of a listed company in New Zealand is understood to be finally stepping down.

Tsang Jat Meng, managing director of CDL Hotels New Zealand and CDL Investments New Zealand, took the post temporarily - four years ago.

He has often made noises about retiring but sources close to the company say the formal hunt for his successor is under way.

Tsang - who admitted to being "on the wrong side of 70" two years ago - is expected to take over as CDL chairman once he steps down from management.

Independently wealthy, Tsang was appointed as managing director of CDL Hotels New Zealand, CDL Investments New Zealand and Kingsgate International in July 2001.

Under his tenure CDL hotel profits have risen from $1.5 million in 2000 to $23 million this year.

CDL, the country's largest hotel chain, is sitting on close to $100 million of cash following last year's asset sales in Australia.

Tsang will not say what the money will go towards - acquisitions, refurbishment of properties or a capital return to shareholders - but he says the company is always looking for opportunities.

CDL Hotels has a portfolio of 30 hotels in New Zealand which are owned, leased, franchised or managed under the Millennium, Copthorne and Kingsgate brands.

CDL Hotels New Zealand is a subsidiary of Millennium & Copthorne which operates hotels across the globe.