Oriental to buy three Malaysian hotels from Loh family in RM411 mil deal

• The diversified group, which also distributes Honda vehicles in Malaysia, has inked agreements with Boon Siew Sdn Bhd, a company owned by the Loh Family, to acquire Bayview Beach Resort Penang for RM167 million and Bayview Hotel Georgetown for RM153 million. The third hotel, Bayview Hotel Langkawi, was acquired from the family’s Boon Siew Development Sdn Bhd for RM91 million.

KUALA LUMPUR (Nov 7): Oriental Holdings Bhd (KL:ORIENT) is buying three hotels in Malaysia for RM411 million in cash from its major shareholder, the Loh family, to expand its domestic hotel portfolio.

The diversified group, which also distributes Honda vehicles in Malaysia, has inked agreements with Boon Siew Sdn Bhd, a company owned by the Loh Family, to acquire Bayview Beach Resort Penang for RM167 million and Bayview Hotel Georgetown for RM153 million. The third hotel, Bayview Hotel Langkawi, was acquired from the family’s Boon Siew Development Sdn Bhd for RM91 million.

The price tags of the properties are at a discount to their respective values as ascribed by independent valuers, Oriental said in a bourse filing.

Oriental's executive chairman Loh Kian Chong has a direct 0.16% stake in the group, with an indirectly held 42.62% via the family's vehicles, Loh Kar Bee Holdings Sdn Bhd, Loh Boon Siew Holdings Sdn Bhd and Global Investments Ltd.

The acquisitions will boost Oriental's domestic hotel count from one to four properties, and expand and diversify its hospitality portfolio. Its sole domestic hotel contributed just 4% of its hotels and resorts segment’s revenue in FY2024. Globally, the group owns seven hotels.

Oriental plans to spend RM210.73 million to refurbish and renovate the hotels on completion of the acquisition. Of that, RM107.62 million will be to refurbish Bayview Beach Resort Penang, and rebrand it to ‘Ascott Batu Ferringhi Penang’.

For Bayview Hotel Georgetown, it plans to spend RM92.2 million on its facelift to rebrand it as ‘Oakwood Georgetown Penang’. Bayview Hotel Langkawi will get RM10.79 million for refurbishing, and be rebranded to ‘FOX Hotel Langkawi’.

The acquisitions, expected to be completed in the third quarter of 2026, are subject to approval from non-interested shareholders at an extraordinary general meeting to be held.

Shares in Oriental ended unchanged at RM6.82, valuing the group at RM4.23 billion.

As Penang girds itself towards the last lap of its Penang2030 vision, check out how the residential segment is keeping pace in EdgeProp’s special report: PENANG Investing Towards 2030.