KUALA LUMPUR: Concorde Hotel Kuala Lumpur, linked to Singapore-based Malaysian tycoon Ong Beng Seng, is up for sale for nearly RM700 million, along with the adjacent land, according to sources.
If a buyer is found, the four-star, 581-room hotel located on Jalan Sultan Ismail is expected to be demolished to make way for a multibillion-ringgit integrated development.
Both the hotel and the land are freehold properties, covering a total of about 4.5 acres.
It is understood that Ong and his partners are considering cashing out to pursue other investment opportunities.
"Several investors have shown interest in redeveloping the site due to its prime location. However, the owners are not in a hurry to sell unless a very attractive offer comes through," a source told Business Times.
Originally known as the Merlin Hotel from 1957 to 1990, the Concorde Hotel has been a longstanding hospitality landmark in Kuala Lumpur, with its 'Dragon Court' Chinese Restaurant (now 'XIN Cuisine') being a popular dining spot for generations.
Facing increasing competition from new five-star hotels in the mid-1990s during Kuala Lumpur's economic boom, the hotel strategically renovated its upper floors into premium suites.
In a related move, Ong is also selling Concorde Hotel & Shopping Centre in Singapore, owned by Hotel Properties Ltd. (HPL) and other stakeholders, through a public tender.
Savills Singapore, the exclusive marketing agent, has set a guide price of S$820 million, equivalent to about S$1,801 per plot ratio (ppr) including balconies.
The valuation for the property at 100 Orchard Road is based on a proposed development mix of 40 per cent hotel, 40 per cent residential, and 20 per cent commercial use, with an additional S$213.1 million required to renew the lease for 99 years.
Completed in the mid-1980s, the hotel and shopping centre occupy a corner island site of about 99,623 square feet, with a zoning height limit of up to 10 storeys.
Jeremy Lake, managing director of Investment Sales and Capital Markets at Savills Singapore, suggested that interested buyers could submit an alternative outline planning application for a different usage mix.
He noted that although the site is currently zoned for hotel use, it is well-suited for a mixed-use, integrated development, pending approval from the Urban Redevelopment Authority (URA).
Concorde Hotel & Shopping Centre is open to foreign buyers, that includes Malaysians, with no restrictions on ownership. The public tender is set to close on October 16, 2024.