Friday, July 6, 2012

Selangor to sell off Brisdale Hotel?

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.

14 comments:

grandma said...

why must the sell a profit-making business?

absurd!

gogoon said...

brisdale hotel is located in a prime area, sir.

if selangor govt sells it off, they are a bunch of stupid politicians for not having a business sense at all.

i know there were some offers from locals and foreigners for it but still, its not a wise move.

penangan said...

salam tn,

kalau dia jual, maknanya ada la yang tak berapa kena dengan rancangan tu.

cuba agak2, apa dia?

lilly said...

u must be kidding!

no way that they will dispose such a good business, unless they are really out of their mind.

afterall, they cant do much with rm120m!

Anonymous said...

salam bro, cuba tanya dia, tanah kubur DIA pun nak jual gak ke,habis semua harta selangor DIA nak legokan.....

setia pada PKR said...

apa salah kalau diorang nak jual dan labur wang tu di sektor yang lebih beri untung?

itu hak mereka.

khalid bukannya bodoh macam korang. dia pakar pelaburan.

tu pun nak kena bagitau ke?

Anonymous said...

something must be wrong if they dispose the hotel after only 4 years acquiring it.

whats the agenda?

long john silver said...

its a usual practice, bro.

u buy a property, turn it around and make profit, then sell it off to acquire another.

if the transaction is transparent and the motive is good, why not?

Anonymous said...

good what.

they are smart people, not like u and your blogger friends who only know how to carry pm's balls!

funky kid said...

lepas ni, diorang jual apa je harta yang dikumpul dan dibeli oleh kerajaan barisan nasional sebelum ni.

lambat laun, dah takda lagi harta untuk dibanggakan oleh rakyat selangor.

haram jadah!

Halim Abdullah said...

Yes Sell it. Govt has no business in hotels or businesses per se. Take care of its people not be in business. Rule No 1. Leave business to entrepreneurs. Every clean govt. in the world practices the same. Look at Australia Canada Sweden Norway where govt's job isv to provide conducive business environment not get into business.

Anonymous said...

shameless if they do that!

Anonymous said...

Now, haven't people read that politics and businesses cannot mix? They will created conflicts of interests. My opinion is to sell; collect the taxes which should be what the govts have to do.

Anonymous said...

Guys....

Has anyone been to the hotel??i am no supporter of the opposition but the hotel SHOULD BE for sale.

Strategic? yess..in between chow kit & kg baru????

100% occupancy ....during peak season...there like a dozens of good hotels in kl....wud anyone in a sane mind want to stay in a hotel fronting chow kit road??? near kg baru....

rm120 mill...that is a bogus number la...if can sell form RM50 million also super lucky....get ur facts right before spreading these kinda news....

the hotel should be for sale...because:

1) very low occupancy
2) NOT strategically located