HK’s Far East Consortium to open RM80m hotel in KL in July

Posted on | March 11, 2007

by The Edge

Hong Kong-based Far East Consortium International Ltd (FEC) is expanding its hotel business in Malaysia and is planning to open its RM80 million hotel in Kuala Lumpur in June.

Co-chairman and chief executive officer, Tan Sri David Chiu said Main Tower Hotel Kuala Lumpur, was developed by Malaysia Land Properties Sdn Bhd (Mayland). Chiu is also a major shareholder of Mayland.

Chiu said the Main Tower Hotel would be the FEC’s third hotel in the country after the Sheraton Subang and the Dorsett Regency in Kuala Lumpur. Main Tower Hotel, built on a 0.4-ha of land along Jalan Munshi Abdullah, would have 200 rooms and 300 service apartments.

“We are very bullish on the hotel industry in Malaysia and we would like to acquire more hotels in the country,” he told reporters after the official handover of Sheraton Subang to FEC.

On Mayland, he said the company had projected total sales in the next 12 to 18 months to be RM1.3 billion from the launching of five properties in Kuala Lumpur and Johor Bahru in the coming months.

FEC acquired the Sheraton Subang Hotel and Tower in Subang Jaya last year for RM120 million and Chiu expects return on investment in seven years.

FEC, which runs a hotel chain in China and Hong Kong, purchased the Sheraton Subang last September from MAA Bancwell Trustee Bhd’s special purpose vehicle, Jeram Bintang Sdn Bhd.

Faber Group Bhd had previously owned the Sheraton Subang but injected it and a number of other hotels into Jeram Bintang in September 2004 as part of a debt-restructuring scheme.

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