Yatu Lau Company Limited is contemplating partnerships with international brands for economic reasons, according to chairman Viliame Leqa. He indicated that such collaborations may be explored later but stressed that the company currently has no plans to outsource the management of its tourism properties.
Leqa responded to inquiries about the potential outsourcing by stating that this was new information to him. He affirmed, “At this stage, Yatu Lau Company Limited has no intention yet to outsource management of any of our current hotel properties to any overseas international brand.” However, he noted that the company might look into opportunities with international brands in the future if it proves beneficial for economic purposes.
He advised looking into the partnerships Fijian Holdings Limited and Fiji National Provident Fund have formed with multinational companies to better understand global business models. Presently, Yatu Lau is in an exploration phase and has not finalized its approach.
There are indications that a local tourism management operator may be in the running to manage the resort following preliminary discussions with Parkside Hotel Group.
The outsourcing of management to a global brand has raised concerns among local Yatu Lau employees, who worry it may lead to job losses.
An email from Yatu Lau’s chief financial officer, Indika Weerasekara, to executives, including Leqa, revealed that Parkside Hotel Group had submitted a more lucrative proposal to manage the Lagoon Resort.
Parkside Hotel Group (Fiji) claims operations in multiple countries, including the USA, UK, and several Asian nations, with Fiji listed as part of its operational portfolio.
According to the Registrar of Companies, Parkside Hotel Group Fiji was registered the previous year with two directors, one of whom is Viliame Rodan, who stated he had distanced himself from the company around two to three years ago, although his name remained linked as a director. Rodan mentioned that he currently works as a consultant to attract investors and had received a better offer in Dubai.
The letterhead of Parkside in a draft agreement suggests that the company was based at an address in London, which changed in 2022. Furthermore, records indicate that Parkside was dissolved in June of last year. The UK Companies House lists Pramod J Patel as the owner before changes to the company name in recent years.
Parkside claims affiliations with companies such as Air France and Disney, managing over two dozen properties.
The Lagoon Resort in Deuba is one of three tourism assets owned by Yatu Lau Company, which was established in 1972 by the late Ratu Sir Kamisese Mara as an investment initiative for Lauans. In 2007, it was restructured to allow non-Lauan members to invest as B Class shareholders.
Weerasekara’s internal correspondence highlighted that Parkside Hotel Group’s proposals for the Lagoon property were deemed more profitable. He emphasized his relationship with PJ Patel, Parkside’s VP, who has consistently expressed interest in managing Yatu Lau Holdings Company.
The conversation surrounding Parkside’s proposal continues as discussions on terms for Lagoon Resort management are set to advance.