YTL Hotels is planning to further expand its portfolio of its AC Hotels by Marriott chain in Malaysia as well as abroad, as reported by BusinessTimes.
YTL Hotels is the hospitality arm of Malaysian conglomerate YTL Corporation.
YTL Hotels executive director Datuk Mark Yeoh told the publication: “From the YTL perspective, we have the exclusive rights for the AC brand in Malaysia, given by Marriott International, so we can look into expanding this portfolio.”
YTL Hotels signed a master development agreement with Marriott International to transform three properties into AC Hotels in September 2019.
The move was followed by AC Hotels’ addition to YTL Hospitality Reit, which has 15 hotels and resorts across Malaysia, Australia and Japan.
In 2020, the AC Hotels by Marriott brand debuted in Malaysia by opening three properties in Penang, Kuala Lumpur and Pahang, marking the brand’s foray into the Asia-Pacific region.
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The AC Hotel Kuala Lumpur Titiwangsa was the first hotel to be launched, followed by the openings of the AC Hotel Penang Bukit Jambul and the AC Hotel Kuantan City Centre.
These hotels were formerly operating under the Vistana brand and are now owned by YTL Hotels.
Last week, in a stock exchange filing, YTL Reit said it plans to raise rental rates for the three hotels by 11% as well as renovate the properties to increase their values.
The company has entered three supplemental lease agreements with the leaseholder of AC Hotels, which are expected to take effect by the first quarter of next year.
The signing will increase the annual rental amount to RM2.7m ($0.58m) per year.
In exchange, YTL Reit will pay the refurbishment cost of the three hotels, which is RM38.5m ($8.22m), funded by borrowings.
The renovation of the three hotels will be done by Syarikat Pembinaan Yeoh Tiong Lay.