Singapore company ICP Ltd has put Travelodge City Centre, located near Central Market in Kuala Lumpur, up for sale as part of a strategy to become asset-light, the Edge reported today.
The hotel formerly known as Hotel Geo Kuala Lumpur was purchased for RM85.5 million from Geo Metal Sdn Bhd in September 2017.
It was upgraded to the standards of the Travelodge brand in November last year.
An information brochure on the sale of the asset sent to potential purchasers cited by the Edge said that real estate agency Knight Frank is the exclusive marketing agent.
ICP did not respond to enquiries from the business weekly about the planned sale and Knight Frank declined to comment.
The Edge citing ICP’s annual report for its financial year ended June 30, 2019 (FY2019), released on Oct 10, said the group is adopting an asset-light strategy to expand its hotel business under the Travelodge brand.
“Save for the investment in Travelodge Central Market, the group’s focus is on third-party hotel management and there are no plans currently to enter capital-intensive acquisitions,” non-executive chairman Aw Cheok Huat said in the annual report. He retired from his post on Oct 29.
The Edge quoting a source said that the sale forms part of ICP’s exit strategy following its aggressive investments over the past few years and a means to raise funds.
According to the brochure, the property in Jalan Hang Kasturi is a freehold, international branded, select-service mid-scale hotel with 199 rooms, 26 parking bays and 5,000 sq ft of street frontage retail space.
It was “comprehensively refurbished and renovated in March, providing modern, affordable accommodation for tourists with minimal future capital expenditure required by any purchaser”, the brochure adds.