MH disposes Four Seasons Langkawi to Saudi interests.

[Mushrif A 3]

Should help MH's cashflow issues....

 

 

Saudi’s Prince Al-Waleed buys MAS hotel and land for RM435m

 

Saudi Arabia’s Prince Al-Waleed bin Talal is acquiring Malaysian Airline System Bhd’s (MAS) hotel, retail business and several parcels of land in Langkawi for RM435 million cash.

 

In an announcement on March 1, MAS said it was selling its unit MAS Hotels & Boutiques Sdn Bhd (MHB) to Kingdom Langkawi BV as part of its strategic asset rationalisation exercise to dispose of non-core assets.

 

Kingdom Langkawi is linked to Prince Al-Waleed as it is an indirect unit of Kingdom Hotels Investments, which is affiliated to the Saudi prince. The Kingdom group’s core business is investment in hotels and resorts.

 

MAS said MHB provides hotel and lodging facilities and is also involved in emporium and boutique operations. It owns several parcels of land totalling 35.55ha in Langkawi, which includes a hotel and resort, valued at RM385 million.

 

MHB posted a net profit of RM1.23 million on the back of RM31.43 million in revenue for a nine-month period in 2005.

 

Proceeds from the proposed disposal would be used for its working capital and restructuring, and also to defray expenses of about RM7.9 million for the disposal.

 

It said the proposed disposal, to be completed by the third quarter of the year, would enable it to record a gain of RM62 million, translating into an improved earnings per share (EPS) of five sen.

 

The EPS figure was based on the RM435 million cash, net assets of RM365.08 million based on MAS’ audited accounts as at Dec 31, 2005, and the estimated incidental expenses of RM7.9 million.

 

 

[Hakan 2]

hmmmm, I can't not say to I like it that news it means Langkawi will be more crowded in near future.

[Alif A. F. 0]

And perhaps more flights also?

[Rozhan 0]

It is an obscenely expensive resort at RM1600-RM1700 per night. I think The Datai and The Andaman give better views of the sea compared to the resort at Tg Rhu. This is a case of 'Locals cannot manage, so sell to foreigners'. Now one piece of very scarce Langkawi commercial real estate will be foreign owned. What a shame!

 

 

 

[Mushrif A 3]

I don't know what you mean about locals cannot manage - management has always been with Four Seasons and will continue to do so. Four Seasons is already co-owned by Al Waleed interests, so this is just the management company taking over ownership of the property as well. In fact, this is a clean-up from MH's previous management where MH suddenly had hotels, yacht, Mastar bla bla bla

[Andrew Ong 1]

It is an obscenely expensive resort at RM1600-RM1700 per night.

 

Whoa, that's a quite expensive hotel to stay in

 

 

 

[KK Lee 5]

Whoa, that's a quite expensive hotel to stay in

 

If compared to similar resorts in Maldives, the room rate is cheap but Langkawi can’t attract premium clients like Maldives.