PETALING JAYA: TA Global Bhd is acquiring Four Points by Sheraton Bangkok for THB2.25 billion (RM299.93 million) cash.
The group told Bursa Malaysia that its subsidiary Siam Resorts Company Ltd had entered into a sale and purchase agreement on July 24 with Destination Resorts Co Ltd for the hotel purchase.
The hotel comprises a seven-storey building with 268 guest rooms. For the financial year ended December 31, 2018, it recorded a net profit of THB108.82 million (RM14.51 million), while its occupancy rate stands at 85.21%.
TA Global said the proposed acquisition will be funded by 40% internally generated funds and 60% external borrowings.
It expects the proposed acquisition will bring synergistic benefits to the group as it will further enhance its hospitality operations in major cities around the world and increase its existing portfolio of hospitality properties.
“The hotel operations of the company were the major revenue and profits contributor to the group’s revenue and profits in the past two years. Hence, the undertaking of the proposed acquisition is expected to strengthen the prospects of its core business activities.”
TA Global said the proposed acquisition will also complement the group’s corporate strategy to further expand its hospitality operations in Bangkok, Thailand.
