Le Meridian KL Buys Off Hilton KL for RM497 million

Katsumi Tada, Japanese billionaire recently sold off his prised premium-class Hilton Kuala Lumpur Hotel (Hilton KL) in KL Sentral for ¥13.7 billion (RM497 million) to the owner of the hotel right next to it, the Le Meridien Kuala Lumpur.

(photo by Mapio.net)

Le Meridien is owned by a company founded by Tada in 1974, Daito Trust Construction Co Ltd. However, Tada is said to have cut ties with Daito in 2011. Despite the acquisition, it is still unclear whether Daito will assume any of the debts from Daisho Asia Development (M) Sdn Bhd (owner of the hotel).

The Edge reports that according to the latest available financial performance for the financial year ended 31 December 2015, Daisho Asia had RM45.98 million (mn) of accumulated losses and RM375.69 mn in liabilities, of which RM91.65 mn were current.

Hilton KL raked in a revenue of RM151.09 mn in financial year 2014 (FY14) and RM150.16 mn in FY15, with a net profit of RM6.18 mn and a net loss of RM45.49 mn, respectively.

Daito, on the other hand, accumulated losses that stood at RM64.89 million in FY16 and total liabilities were RM285.43 mn, of which RM42.23 mn were current liabilities. In FY15 and FY16, Le Meridien made RM90.83 mn and RM100.44 mn, respectively.

Hilton International has been operating Hilton KL since its opening under a 15-year contract. However, the management contract will come to an end in 2019.

 

Source: The Edge

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