PETALING JAYA: Boustead Holdings Bhd is disposing of its Royale Chulan Bukit Bintang Hotel in Kuala Lumpur to Singapore-based Hotel Royal Ltd for RM197mil cash.
In a statement, a spokesperson from Boustead said its wholly owned subsidiary, Boustead Hotels & Resorts Sdn Bhd (BHR), had accepted an offer from Hotel Royal.
“There are two Royale Chulan hotels in Kuala Lumpur – Royale Chulan Bukit Bintang and Royale Chulan Kuala Lumpur – which are within close proximity to and competing with each other.
“As such, the group has decided to consolidate and focus on Royale Chulan Kuala Lumpur to better capture the market.
“Royale Chulan Bukit Bintang offers good prospects, given its strategic location in one of the prime tourist areas and hotel belts of the city centre. With this attractive offer price, we are of the view that this is the right time to dispose of the hotel.”
The hotel is located on two parcels of freehold land measuring 34,326 sq ft. Boustead said the sale consideration was reached on a willing seller-willing buyer basis.
“The letter of offer is subject to terms and conditions including an exclusive period of one month to conduct the necessary due diligence on Royale Chulan Bukit Bintang, and the execution of the sale and purchase (S&P) agreement within this period.”
It added that the Singapore Stock Exchange-listed Hotel Royal had paid a sum of RM3.94mil, being the 2% earnest deposit of the disposal consideration, as part of the terms of the letter of offer.
“In the event that the S&P agreement is not executed for any reason, the earnest deposit shall be refunded in full to the purchaser within 14 days from the date of the purchaser‘s written demand to BHR.
Did you find this article insightful?