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Hotel Royal to buy Kuala Lumpur hotel for $65 mil

Stanislaus Jude Chan

SINGAPORE (Feb 19): Hotel Royal announced Tuesday that its offer to acquire Royale Chulan Bukit Bintang Hotel and its business in Kuala Lumpur, Malaysia for 197 million ringgit ($65.4 million) has been accepted.

The 400-room, 4-star hotel is situated along Jalan Bukit Bintang, which Hotel Royal describes as “the Orchard Road of Kuala Lumpur”.

The group says the acquisition is in line with its initiatives to accelerate its growth through acquisitions.

It adds that the proposed acquisition will “add synergy” to the company’s hotel operations in Kuala Lumpur, where it also owns the 285-room Hotel Royal Kuala Lumpur.

The proposed acquisition will be financed by internal resources and bank borrowings.

Shares in Hotel Royal closed flat at $3.18 on Tuesday.