Harry’s set to open boutique hotel by April

Source : Straits Times – 15 Oct 2009

HARRY, of the world-famous Harry’s Bar, is going places.

Well, Harry never existed. But the chain of pubs created in his name by an American expat and his friends in 1992, is diversifying to open a boutique hotel here next year and two gourmet coffee cafes.

It is also taking its pub chain abroad, with Vietnam the first stop.

The company, Harry’s Holdings, hopes to continue growing the business, which is fast reaching saturation point in Singapore.

The firm’s chief executive Mohan Mulani said at a media briefing yesterday that the firm will open The Club in Ann Siang Road by late April next year.

The 22-room hotel will operate out of four converted shophouses that used to house the offices of Batey Ads.

Harry’s is leasing the property for an initial five years, with an option to renew for another three five-year terms.

In all, it is spending about $3.5 million to transform the property into The Club, boasting a rooftop skybar, the first Espressamente illy cafe in Singapore, a terrace bar and a tapas corner.

The second Espressamente illy cafe – Harry’s has the Singapore franchise for the Italian coffee chain – could open at another hotel in Mohamed Sultan Road.

He said room rates at the hotel – designed by Ministry of Design, which did the stylish New Majestic Hotel in Chinatown – are expected to be about $250.

The hotel will generate one-third of The Club’s revenue, and food and beverage the rest, he said. ‘We’re going to leverage on this (The Club) to expand around the region… in Jakarta, Bangkok, Hanoi, Ho Chi Minh City.’

‘We’re reaching the end of expansion for Harry’s, which is why we are launching the hotel and catering business.’

The plan is to open at least one Harry’s bar in Vietnam by late next year and to take The Club overseas by 2011, he said.

In Singapore, the firm will launch five more bars and five new Mirchi’s Kebab Factory outlets in the next 12 months.

Harry’s has 25 bars, four restaurants, a night club and a catering business. The growth has been fast and furious.

Early on, Harry’s Bar at Boat Quay gained global notoriety when ‘rogue trader’ Nick Leeson hit the headlines over the collapse of Barings Bank. He had been a regular patron of the bar.

Mr Mulani, also a regular, bought into the business in 1993 taking full control in 1994. He waited until 2003 to open a second bar. ‘I was busy doing textile trading then but the business kind of evaporated during the Asian financial crisis,’ he said.

With no other business to distract him, he focused on growing Harry’s bar.

Harry’s is already listed on the Phillip Capital OTC (over-the-counter) market but hopes to move to Catalist by March or April next year, said Mr Mulani.

The company has been planning its move to the Singapore Exchange’s second board Catalist to increase trading in its shares and help finance its expansion.

He had said early last year that he was looking to move Harry’s to Catalist by June last year. But the plan was derailed by the global financial crisis.

Yesterday, Mr Mulani said Collins Stewart will be Harry’s sponsor.