Singapore - Real estate developer Oxley Holdings will launch a 207-room hotel and a 590-key serviced residence in Kuala Lumpur.
The hotel and the residence will be operated by AccorHotels under the So Sofitel brand.
Oxley and Accor entered into a memorandum of understanding in December 2014 on the deal, but a definitive agreement was entered into and announced only on Feb 5, 2016. Terms of the deal were not disclosed.
Oxley is in the midst of exploring a possible restructuring of its Malaysian property development business. The company said in August 2015 that among its options are a potential listing of the business on the Catalist board in Singapore.
In a January presentation, Oxley said that it is currently developing about 239,263 square metres of land in Malaysia.
Beyond the So Sofitel hotel tower, Oxley is also building the first Jumeirah hotel and residence in Kuala Lumpur, near the Kuala Lumpur City Centre.
The company also has hospitality, retail and commercial projects in Johor and Selangor.
In the half-year to Dec 31, 2015, Oxley posted a 150 per cent increase in net profit to S$81.1 million. That came on the back of a 72 per cent growth in revenue, to S$613.7 million.
The company said it was cautiously optimistic about prospects for the next 12 months. It cited the continuing impact of property cooling measures in Singapore, the health of the Singapore economy, recovery of the global economy, the economic and political climate in its various markets and currency fluctuations as key factors that will affect its performance.
Oxley reported S$3.19 billion of total unbilled contract value as at Dec 31, 2015.
This article was first published on Feb 17, 2016.
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