PUTRAJAYA, Jan 30 — The Majestic Hotel in Ipoh, owned by the Railway Assets Corporation (RAC), will be redeveloped over the next three years at a cost of RM108.3 million.
The hotel, located near the railway station, has not been operational since mid-2010 but will reopen its doors in 2023 under a new name, Grand Majestic Hotel, as part of the Ipoh Railway Station development plan by RAC and the Perak government (via MB Inc).
Transport Minister Anthony Loke Siew Fook said the hotel’s refurbishment and redevelopment would be undertaken by Majujaya Hebat Sdn Bhd on a build-operate-transfer basis following the inking of the hotel lease and development agreement today.
He said RAC agreed to lease the building and hotel operations to Majujaya Hebat for 30 years with an optional extension of 10 years plus 20 additional years, subject to the terms and conditions to be discussed and approved by the Cabinet.
“RAC will receive RM45 million in return during the 30-year lease period, which will be reinvested in the railway sector such as by improving the stations. This is our long-term planning to ensure the rail system will continue to thrive,” he told members of the media here today.
Earlier, Loke and Perak Mentri Besar Datuk Seri Ahmad Faizal Azumu witnessed the signing ceremony. Signing on behalf of RAC was its general manager Azhar Ahmad while Majujaya Hebat was represented by director Patrick On Kok Kheng.
The luxury hotel, designed by Arthur Benison Hubback based on Moorish architecture, had operated from 1935 until its closure in 2010.
In his speech, Loke said with the Grand Majestic Hotel back in operation, there would be a huge impact on the use of public transport such as trains, taxis, e-hailing services and buses.
Meanwhile, RAC’s Azhar said besides managing and redeveloping the hotel, Majujaya Hebat would also upgrade areas in the Ipoh Railway Station’s vicinity.
He said the first phase of the hotel development, spanning 12 months, involved refurbishing the hotel and railway station while Phase Two involved the construction of a new block with an additional 200 rooms.
“The move to revive the Grand Majestic Hotel will enable RAC to remain financially stable, as RAC has ceased to rely on government funding for its operations since 2015.
“In addition, income generated from this activity will be used to upgrade the rail sector’s infrastructure, as our priority as the railway asset manager is to ensure that the infrastructure used by the public is in good and satisfactory condition,” he said.
Established in 1992, RAC is a federal statutory body under the Transport Ministry that is responsible for managing and administering railway assets. — Bernama
