KUALA LUMPUR: YTL Hospitality REIT (YTL REIT) is set to expand its portfolio by acquiring Syeun Hotel in Ipoh, Perak, marking another milestone in its pursuit of top-tier hospitality properties.
The acquisition entails a cash transaction of RM55 million, underscoring YTL REIT's commitment to acquiring premier assets that promise sustainable income distribution and long-term growth.
Maybank Trustees Bhd, acting as the trustee for the REIT, formalised the purchase through a sale and purchase agreement with the vendor, Syeun Hotel Bhd. The move underscores YTL REIT's strategic approach to investment, targeting properties with promising potential both locally and internationally.
As part of the acquisition strategy, the property is slated for renovation and rebranding under the prestigious AC Hotels by Marriott brand, a move aimed at enhancing its value proposition. Once refurbished, the property will operate under a variable rental arrangement, allowing YTL REIT to capitalise on the property's income potential.
"Given the strategic location and accessibility of the property, we are optimistic about its prospects," remarked Pintar Projek Sdn Bhd, the manager of YTL REIT. "The property is expected to generate a steady income stream through the variable rental arrangement, thereby bolstering the financial performance of YTL REIT and its subsidiaries."
The proposed acquisition is slated for completion in the first half of 2024, subject to regulatory approvals and other customary conditions. With this addition, YTL REIT further cements its position as a leading player in Malaysia's hospitality sector.
YTL REIT's existing portfolio already boasts ten prestigious hotel properties across Malaysia, including renowned chains such as JW Marriott Hotel Kuala Lumpur, The Majestic Hotel Kuala Lumpur, and The Ritz Carlton Hotel Kuala Lumpur. With the addition of Syeun Hotel, the REIT continues to demonstrate its commitment to delivering exceptional value to its stakeholders while driving sustainable growth.