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December 14, 2020

CDL to sell Copthorne Orchid Hotel & Resort Penang in Malaysia

CITY Developments Limited (CDL) has agreed to divest the Copthorne Orchid Hotel & Resort Penang in Malaysia for MYR75m (around $18.5m).

CITY Developments Limited (CDL) has agreed to divest the Copthorne Orchid Hotel & Resort Penang in Malaysia for MYR75m (around $18.5m).

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CDL’s wholly-owned subsidiary Millennium & Copthorne Hotels Limited (M&C) entered into the sale and purchase agreement with Berhad Malaysia-based Ivory Properties Group.

The transaction includes the 318-room Penang hotel, the freehold land that the hotel resides on, all fixtures, fittings, equipment, and tangible personal property.

The company said that the move is part of its strategy to extract value from its non-core hotel assets, streamline its portfolio and recycle capital amid the Covid-19 pandemic.

According to CDL, the sale of the Penang hotel is expected to lead to a pre-tax gain of S$9.2m next year.

It is said to be the group’s third non-core hotel asset divestment this year, a combined sales value of S$104.8m.

Earlier this year, M&C agreed to sell Copthorne Hotel Birmingham in the UK for £17.2m. The sale is expected to be completed in the third quarter of the next year.

It followed the sale of Millennium Cincinnati in the US for $36m.

Overall pre-tax divestment gains for CDL is said to amount to S$50.3m, of which S$23.9m is expected to be recognised next year.

London-headquartered M&C has been privatised by the group last year. It has a network of 66 hotels across Asia, Europe, the USA, and News Zealand under the Millennium Hotels and Resorts global brands. Seven of these are managed by third parties.

Additionally, M&C operates 79 hotels under franchise and management contracts.

The company said it is currently evaluating other unsolicited offers for its non-core assets. These offers may be subject to re-zoning and regulatory approval for change of use from hospitality, it added.

In 2011, CDL Hotels Holdings Japan, a subsidiary of M&C, announced £113m investment to expand its hotel portfolio with the opening of a new property in the Tokyo district of Ginza, Japan.

Related Companies

Free Report
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Find tourism opportunities in the ASEAN region

Do you want clear and detailed insight into one of the world’s most exciting and burgeoning tourism destinations? Read GlobalData’s Association of South-East Asian nations (ASEAN) destination tourism market report for an analysis of destination markets, infrastructure and attractions, main and emerging source markets, as well as risks and opportunities in the ASEAN region. This report includes:
  • In-depth analysis of the ASEAN countries as tourist destinations
  • Detailed analysis of the key source markets, trends, and issues
  • Leveraging of GlobalData’s datasets to explore trends related to international arrivals and spending, tourism segments, construction, airlines, and hotel developments
  • Analysis of the COVID-19 pandemic impact on visitation to the region
  • Projections for tourism’s recovery in the coming years
The report uses primary consumer survey response data to look at behavioral trends among travelers, both in the region and its key source markets, and offers SWOT analysis of the region as a tourism destination. Use this report to better understand the challenges and growth opportunities for tourism-related operators in ASEAN, and see if you can make the most of this prospering destination.
by GlobalData
Enter your details here to receive your free Report.

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