Majestic Hotel KL acquired by YTL REIT for RM380 million

YTL Hospitality REIT (YTL REIT ) has bought over the Majestic Hotel Kuala Lumpur from its parent company YTL Corp for RM380 milllion in cash.Manager of YTL REIT, Pintar Projek said upon completion of its latest deal, the five stars Majestic hotel will be sub-leased to the vendor for another 15 years, with an option to review for another 15 years.“The sub-lease arrangement will provide YTL REIT with a steady and secure income stream and is expected to be accretive to the Trust’s future distributable income and distribution per unit,” said the announcement.  The proposed acquisition is expected to be completed by the end of third quarter of 2017.  The 300-room hotel, which has a gross floor area of 57,722 square metres - recorded an occupancy rate of 60.1% for its the financial year ended 30 June 2016.The luxurious hotel is a total revamp from the old Hotel Majestic, which is a National Heritage Site where its colonial structures were built in 1932.The announcement also said that the hotel's Majestic Wing was substantially renovated, refurbished and re-opened as a 300-room hotel in December 2012 with the completion of the new 15-storey Tower Wing.Some well-known properties under the YTL REIT’s umbrella include two prime properties located at Golden Triangle, namely, the JW Marriott Hotel Kuala Lumpur and The Ritz-Carlton Kuala Lumpur.