MUI found a buyer for Corus Hotel KL, sources say

• It is learnt that MUI is fetching a price in the range of RM250 million to RM280 million for the four-star hotel that is a stone’s throw from the Petronas Twin Towers.

KUALA LUMPUR (Aug 7): Malayan United Industries Bhd (KL:MUIIND), or MUI, will be sealing a deal to sell Corus Hotel Kuala Lumpur to a publicly-listed property developer, according to sources.

It is learnt that MUI is fetching a price in the range of RM250 million to RM280 million for the four-star hotel that is a stone’s throw from the Petronas Twin Towers.

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MUI’s latest annual report lists the property with a carry value of RM287.69 million, as per a revaluation exercise in August 2022.

In a filing to Bursa Malaysia on Wednesday, MUI announced that trading suspension of its securities for Thursday pending the release of a material announcement.

Besides real estates, MUI owns and operates Metrojaya department store and its 44.7%-owned unit Pan Malaysia Corp Bhd (KL:PMCORP) owns the A&W’s franchise in Malaysia.

The 13-storey Corus Hotel Kuala Lumpur, a four-star 388-room hotel, sits on a 1.48-acre freehold plot along upmarket Persiaran Hampshire, Jalan Ampang. The hotel was previously known as Ming Court Hotel before it was rebranded to Corus Hotel in 2000 after MUI’s acquisition of Regal and County Hotels in the UK.

The disposal, if materialised, would continue MUI’s divestment trail.

Last December, MUI's listed subsidiary—MUI Properties Bhd (KL:MUIPROP) sold a 389.7-acre parcel of land near Port Dickson to Gamuda Bhd (KL:GAMUDA) via a 60:40 joint venture with Chin Teck Plantations Bhd (KL:CHINTEK) for RM424 million, cash. MUI holds a 60% stake in MUI Properties.

Other asset sales by MUI over the years included Pan Malaysia Holdings Bhd (PM Holdings), which owns a stockbroking and asset management business, as well as a holiday resort in Port Dickson.

The stockbroking and asset management business was sold to NewParadigm Capital Ventures Sdn Bhd for RM90 million in November 2023, while the listed entity PM Holdings was sold to the Lim Brothers of the Exsim group for RM36.7 million in March 2024.

The listed company was later renamed to Exsim Hospitality Bhd (KL:EXSIMHB) by the Lim brothers.

Besides Corus Hotel KL, its annual report shows MUI also owns the Corus Hotel Hyde Park in London with a carry value of RM932.54 million.

The family of Tan Sri Khoo Kay Peng holds a 43.26% stake in MUI. Kay Peng’s son, Andrew Khoo Boo Yeow, helms the group as CEO and chairman.

The group has been loss-making for more than a decade. Its net debts amounted to RM714.28 million as at end-March.

For the nine months ended March 31, 2025 (9MFY2025), MUI logged a net loss of RM58.33 million versus RM32.71 million in the same period a year earlier. Revenue was up 10.9% year-on-year to RM369.09 million from RM332.7 million previously, as gains in the property development and fast food chain segments offset declines in retail and hotel operations.

Shares in MUI ended at six sen on Wednesday, valuing the group at RM177.42 million.

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