Brisdale Hotel in Jalan Chow Kit, Kuala Lumpur is perhaps among the best budget hotels in town. Its location and facility are its main fatal attraction. Occupancy rate is always high, between 70-80 per cent on weekdays and 100 per cent during weekends and festive holidays.
That makes it a 'making money' entity, and of course whoever owns and runs it should be proud of such an achievement.
The rightful owner is none other the Selangor State Government through Kumpulan Perangsang Selangor Berhad (KPS).
It took over Brisdale International Hotel Sdn Bhd (BIH) under an acquisition deal in 2008 for the entire issued and paid-up share capital of the hotel, a wholly-owned subsidiary of Kumpulan Hartanah Selangor Berhad (KHSB) by Cash Band (M) Berhad (SBB), a 99 per cent-owned subsidiary of KPS for a cash consideration of RM10,000,000 (proposed acquisition).
It also in involved a proposed assumption and settlement of the debt owing by BIH to KHSB of RM43,000,000 by CBB in conjunction with the proposed acquisition (proposed debt settlement).
The Purchase Consideration for the Sales Shares was arrived at based on a discount to the net assets of BIH as at 31 December 2007 after adjusting for the revaluation surplus of approximately RM24.7 million arising from the market value of Brisdale Hotel.
That was ascribed by Messrs Raine & Horne International Zaki and Partners Sdn Bhd of RM55.0 million as at March 4, 2008 using the profit, comparison and cost method of valuation.
Its all a big 'family' business.
As how Penangites describe it 'pi mai, pi mai dok tang tu jugak'. Just take a big circle and it will bring you right to where you got started - everything is about Selangor.
However, that was done during the Barisan Nasional era, under Mentri Besar Khir Toyo.
After Khalid Ibrahim took over, Pakatan Rakyat is said to be taking full advantage of the Selangor 'ownership' by organising numerous functions - some they fully paid, some not - and that has brought about some domestic problems to the hotel management.
The hotel has been making money ever since and there is no way that it would go burst when all operational factors are taken into consideration.
But rumors are rife that Khalid's government was considering to sell it off to an interested party for RM120 million. Worst still, to a foreigner.
The Pakatan state government must have a bona fide reason for such a plan, if its true but I still think it will not be a wise move, considering how lucrative hotel business is nowadays, plus the key fact that the hotel is most sought by tourists.
Unless Khalid has the best reason to do so...something like investing the proceed into a better project for the rakyat.