KUALA LUMPUR, Feb 18 — The operations of four Lembaga Tabung Haji (TH) hotels which has been transferred to the Ministry of Finance’s special purpose vehicle, Urusharta Jamaah Sdn Bhd (UJ), will continue under the new management without any downsizing.
The entire management and staff of the hotel chain, previously managed by the TH Hotel and Residence Sdn Bhd (THHR), will be taken over by UJ Property Management Sdn Bhd (UJPM), UJ’s wholly-owned subsidiary beginning April 1.
The four hotels, TH Hotel Kota Kinabalu, TH Hotel Bayan Lepas, TH Hotel and Convention Centre Alor Setar and TH Hotel and Convention Centre Kuala Terengganu, will remain as syariah-compliant hotels and will be renamed as Raia Hotel starting in April.
“Ninety per cent of THHR’s staff will continue to work in the Raia Hotel chain, while 10 per cent of the staff will be absorbed by TH Hotel Kelana Jaya.
“Additionally, 90 per cent of the staff will also receive contribution-based compensations for their service in THHR,” said TH and UJ in a joint statement today.
TH had issued the notice on the termination of operation of the four hotels yesterday.
Meanwhile, to complete the transfer of ownership, UJ had issued sukuk worth RM19.6 billion and paid RM300 million in cash.
It had also set aside funds for the upgrade of hotel facilities.
According to the statement, the transfer of the hotels was part of TH’s asset transfer exercise, consisting of 29 real estates, one unlisted company and equity holdings worth RM9.63 billion on the date of the transfer.
It said that the hotel chain takeover was part of TH’s restructuring and recovery plan, and was a necessary move by UJ to fulfil the government’s mandate to reduce government’s commitments.
“UJ plays an important role to ensure that the objective is realised and will continue its efforts to increase the value of assets under UJ’s portfolio,” it said.
UJPM will be headed by Hotel Seri Malaysia’s former managing director and chief executive officer Muhammad Solleh Ramli. — Bernama