Boustead to dispose Royale Chulan Bukit Bintang Hotel for RM197mil

KUALA LUMPUR: Boustead Holdings Bhd (BHB) via its wholly-owned subsidiary Boustead Hotels & Resorts Sdn Bhd (BHR), will dispose its Royale Chulan Bukit Bintang Hotel located in Kuala Lumpur for RM197 million.

BHR today accepted an offer from Hotel Royal Ltd, a Singapore-based company, for the hotel disposal.

“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,” a spokesperson from BHB 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,” BHB spokesperson further said.

The sale price was reached on a willing-seller-willing-buyer basis.

The Letter of Offer is subject to terms and conditions, amongst them, an exclusive period of one month to conduct the necessary due diligence on Royale Chulan Bukit Bintang, and the execution of the sales and purchase agreement within this period.

Source : NST