By Sharen Kaur
sharen@nstp.com.my
JOHOR Corp (JCorp) is considering selling some of its hotel assets and reinvesting the money to drive earnings from its hospitality business.
“We are harvesting our investments to selfsustain in our business and not burden our parent.
If there are opportunities to sell one property and buy another, we will do it,” he said in an interview with Business Times.
Muhamad Mazlan said JCorp Hotels had received a private investor’s offer who wants to buy Selesa Port Dickson for about RM50 million.
It expects to sign a firm deal by early nextyear, he added.
“As for some of our other properties, we are still evaluating all the offers. They are all profitable businesses. It is just a matter of which asset we want to sell.
“Our ultimate aim for the expansion of our brand is to own hotels in Kuala Lumpur. We are currently eyeing a few properties in Kuala Lumpur.
“Kuala Lumpur is a good market where the hotel occupancy and average room rate currently exceeds 60 per cent and RM250, respectively,” he said.
On its expansion into other states, Muhamad Mazlan said the deciding factor will be market demand and tourists arrival.
Meanwhile, Muhamad Mazlan said the company has no plans for now to go overseas.
“After the financial crisis in 1997, we decided to consolidate our operation and focus only on Malaysia,” he said.
JCorp Hotels, formerly knownas Kumpulan Penambang (Johor) Sdn Bhd, had co-owned several hotels in Australia and Switzerland in the 1990s, through its 50:50 joint venture with Hotel Grand Central Group.
It exited the markets in early 2000, selling its stake to Grand Central to fund local expansion.
JCorp also owned a boutique hotel in London but decided to harvest its investment in the property after receiving a favourable offer from an investor.
JCorp Hotels & Resorts Sdn Bhd,the hospitality arm of the Johor state’s investmentcompany, had received several offers and is eyeing properties in Kuala Lumpur, a senior executive said.
JCorp Hotels owns and manages five properties in Johor namely The Puteri Pacific Johor Bahru, Persada Johor International Convention Centre, Sibu Island Resort, Selesa Johor Bahru and Selesa Pasir Gudang, and one in Negri Sembilan, which is Selesa Port Dickson.
JCorp Hotels deputy chief executive officer Muhamad Mazlan Ali said the six properties are now worth between RM550 million and RM600 million.
JCorp Hotels owns and manages five properties in Johor namely The Puteri Pacific Johor Bahru, Persada Johor International Convention Centre, Sibu Island Resort, Selesa Johor Bahru and Selesa Pasir Gudang, and one in Negri Sembilan, which is Selesa Port Dickson.
JCorp Hotels deputy chief executive officer Muhamad Mazlan Ali said the six properties are now worth between RM550 million and RM600 million.
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“We are harvesting our investments to selfsustain in our business and not burden our parent.
If there are opportunities to sell one property and buy another, we will do it,” he said in an interview with Business Times.
Muhamad Mazlan said JCorp Hotels had received a private investor’s offer who wants to buy Selesa Port Dickson for about RM50 million.
It expects to sign a firm deal by early nextyear, he added.
“As for some of our other properties, we are still evaluating all the offers. They are all profitable businesses. It is just a matter of which asset we want to sell.
“Our ultimate aim for the expansion of our brand is to own hotels in Kuala Lumpur. We are currently eyeing a few properties in Kuala Lumpur.
“Kuala Lumpur is a good market where the hotel occupancy and average room rate currently exceeds 60 per cent and RM250, respectively,” he said.
On its expansion into other states, Muhamad Mazlan said the deciding factor will be market demand and tourists arrival.
Meanwhile, Muhamad Mazlan said the company has no plans for now to go overseas.
“After the financial crisis in 1997, we decided to consolidate our operation and focus only on Malaysia,” he said.
JCorp Hotels, formerly knownas Kumpulan Penambang (Johor) Sdn Bhd, had co-owned several hotels in Australia and Switzerland in the 1990s, through its 50:50 joint venture with Hotel Grand Central Group.
It exited the markets in early 2000, selling its stake to Grand Central to fund local expansion.
JCorp also owned a boutique hotel in London but decided to harvest its investment in the property after receiving a favourable offer from an investor.
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