KUALA LUMPUR: YTL Hospitality REIT (YTL Reit) is on an expansion spree, both domestically in Malaysia and internationally, as it seeks to enrich its portfolio with top-tier hospitality properties.

The primary objective is to ensure sustained and lucrative income distribution for its unitholders while driving long-term growth in net asset value per unit.

Currently, YTL REIT boasts a collection of 10 hotel properties in Malaysia, featuring renowned brands like JW Marriott Hotel Kuala Lumpur, The Majestic Hotel Kuala Lumpur, and The Ritz Carlton Hotel Kuala Lumpur.

The recent acquisition of the Syeun Hotel in Ipoh, Perak, for RM55 million in cash marks another strategic move adding to its repertoire.

The four-star hotel offers 290 rooms, and is nearly five minutes on foot from the Ipoh Parade Shopping Complex.

The grand opening of the Syuen Hotel took place on October 24, 1993.

Reflecting a neo-classical theme in its design, the hotel's architecture pays homage to the finest elements of traditional Ipoh architecture.

It was reported that Syeun Hotel was the fourth hotel in Ipoh to shut down in 2020 due to the impact of the Covid-19 pandemic.

It was one of the most well-known hotels and among the oldest in Ipoh. It closed permanently on May 31, 2020.

According to Pintar Projek Sdn Bhd, YTL REIT plans to revamp the acquired property and reintroduce it under the AC Hotels by Marriott brand.

This transformation is expected to unlock significant value for YTL REIT, enhancing both its financial performance and market position.

Under a variable rental arrangement, YTL REIT will partake in the income generated from the property, leveraging its strategic location and accessibility to capitalise on positive growth prospects.

Pintar Projek is the manager of YTL REIT.

It said that the Board is optimistic about the property's potential to yield a growing income stream, further solidifying YTL REIT's standing in the industry.

The acquisition process involves Maybank Trustees Bhd, acting as the trustee for the REIT, executing a sale and purchase agreement with Syeun Hotel Bhd, the vendor.

Barring any unforeseen circumstances, the completion of the proposed acquisition is anticipated during the first half of 2024.