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t may be a public—and publicly-funded—university, but the University of Malta (UoM) has acquired a number of commercial interests over the years. These are grouped together under the Malta University Holding Company (MUHC), of which the size, scope, and profit is growing.

But until recently the situation was considerably different. The MUHC’s focus was originally largely geared towards one project: the University Residence in Lija, which was opened in 1994 and which primarily hosted international students studying at the UoM. Its accommodation business was expanded in 2011 through the acquisition of the Hotel Kappara, a short walk from the University campus.

Photo by Jean Claude Vancell

That was well and good, save for one consideration: it was not a profitable venture seeing as the group operated on a largely breakeven basis. CEO Joe Azzopardi, who joined the MUHC in 2012, explains that improving the financial performance of the University’s business arm has now become a priority.

Key to achieving this objective has been the MUHC’s endeavour to make the most out of its accommodation facilities, which were previously heavily underutilised. When Azzopardi started out, the Lija residence’s occupancy only averaged a modest 60%, while Hotel Kappara was virtually empty, with around just 20% of its rooms in use, but occupancy ratios have since increased to 85% and 72% respectively. The tennis courts and archery ranges at Lija are now also being rented out, and the residence is also being used to host private companies’ team-building events.

At the same time, however, Azzopardi saw the need to diversify. He strove to expand its other interests, including the Malta University Language School—focused on profitable English language courses but which also runs Maltese, Japanese, and Arabic-language classes. The school has seen its business pick up after shifting operations from Junior College to the University Residence, which helped it offer package deals to foreign groups.

The MUHC has readily taken up opportunities offered by University, including the management of vending machines on campus and photography and videography services during graduation ceremonies. Its portfolio includes training and consultancy services, the Campus FM radio station, and University-branded merchandise. All these initiatives—as well as a ‘constant effort’ to rationalise operational costs, as Azzopardi explains—have led to the MUHC registering a respectable profit before tax of €650,000 last year, with all indications pointing towards a similarly successful 2016. Gradual but consistent growth is key.

Azzopardi highlights another challenge that needed to be addressed: a seeming gulf between the MUHC and the UoM. He notes that ‘it seemed as if the two entities were ignoring each other.’ While still based at the Lija residence, the group has worked hard to reach out to the UoM, and as a result, is increasingly becoming ‘the first port of call for these quarters when UoM staff need help.’

Nevertheless, overlap between the two is kept to a minimum. For instance, while the MUHC does offer some training programmes, higher qualifications remain the UoM’s sole domain. And while it offers commercial consultancy, it does not involve itself in collaborative research between industry and UoM researchers. The University remains its biggest client and patron, while also providing strategic directions, but the MUHC operates as any other commercial company would, striving to pay regular dividends to the University while not benefiting from public funds.

This increasing closeness between the MUHC and the UoM, which owns it, is to be cemented through an ambitious project which will see the group move its operations to the main campus grounds. The UoM is building a University Residence and Community Centre with hundreds of beds. This will supplant the Lija facility.

The planned residence will be operated by private enterprise, reducing the MUHC’s involvement but significantly increasing the potential of its other operations, a shift in line with Azzopardi’s ultimate goal, ‘to reach a stage when I can safely say that the MUHC does not depend on any one client, activity, or officer—myself included—to survive and grow’.