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Friday, April 24, 2009

Novotel Hydro Majestic Hotel put up for sale

Hotel operator and property developer Pulai Springs Bhd has put its two-year-old Novotel Hydro Majestic Hotel in Kuala Lumpur up for sale, sources say.

It is believed that the owners are asking an estimated RM200 million for the four-star 291-room hotel located along Jalan Kia Peng, a stone's throw from the iconic Petronas Twin Towers.

According to sources, Pulai Springs has received several offers for the hotel.

One source said that the Johor-based company had in fact identified a buyer. Pulai Springs officials could not be contacted for confirmation.

It is also unclear why it wants to sell the property. It is probably trying to cut debt. Its current liabilities, or what it needs to pay in a year, stood at RM193.6 million as at December 31 2008. In contrast, its current assets amounted to RM71.4 million.

Novotel Hydro Majestic is operated by France's Accor group.

Pulai Springs' main property is the Pulai Springs Resort in Johor. It also operates the The Pulai Desaru Beach Resort.

In the financial year ended December 31 2008, Pulai Springs' net loss widened to RM8.36 million on revenue of RM80.81 million.

Its resort and hotel division recorded net loss of RM4.69 million on revenue of RM67.36 million.

According to its 2007 annual report, Novotel Hydro Majestic contributed RM20.7 million in revenue.

Penang's Mah family, which runs Hydro Hotels Sdn Bhd, bought the abandoned hotel building and completed it.

It was sold to Pulai Springs for RM10 million in 2006. The price took into account the fair market value of the land and hotel of RM130 million and the total development cost of the hotel of RM120 million.

Pulai Springs was listed on the main board in December 2002.

By Business Times

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