KUALA LUMPUR, Feb 19 — Boustead Holdings Bhd is set to dispose of its Royale Chulan Bukit Bintang Hotel for RM197 million after it accepted an offer from Hotel Royal Limited, a Singapore-based company.
Wholly owned subsidiary, Boustead Hotels & Resorts Sdn Bhd, accepted the offer.
“There are currently two Royale Chulan hotels in Kuala Lumpur — Royale Chulan Bukit Bintang and Royale Chulan Kuala Lumpur, which are both within close proximity to and competing with each other.
“As such, the group has decided to consolidate and focus on one hotel, namely Royale Chulan Kuala Lumpur, to better capture the Kuala Lumpur market,” it said in a statement.
It said Royale Chulan Bukit Bintang offers good prospects, given its strategic location in one of the prime tourist areas and hotel belts of Kuala Lumpur’s city centre.
“With this attractive offer price, we are of the view that this is the right time to dispose of this hotel,” it added.
The sale consideration was reached on a willing-seller-willing-buyer basis.
It also said Hotel Royal Limited is being granted an exclusive period of one month to conduct the necessary due diligence on Royale Chulan Bukit Bintang, and execution of the sales and purchase agreement within this period. — Bernama