Hilton Garden Inn North – formerly the Cititel Express – and Hilton Garden Inn South – formerly the Hotel Empress – on Jalan Tunku Abdul Rahman, Kuala Lumpur, was sold for RM240 million by Singapore’s Royal Group in August – barely three years after it had acquired the properties, reported The Edge Malaysia.

The 532-room properties were sold to Thailand-listed Strategic Hospitality Extendable Freehild and Leasehold Real Estate Investment Trust (SHREIT) at the equivalent RM451,128 per room, earning Royal Group a profit of RM65 million after deducting its initial investment and refurbishment costs.

Industry experts and observers were surprised and impressed by the quick disposal at an attractive price.

“The cautious stance among local investors and the weakening ringgit have prompted foreign investors from Singapore and Thailand to come in. Local developers will not pay so high [a price],” Rahim & Co director Robert Ang told the financial weekly.

He drew comparisons to the 203-room Geo Hotel in Kuala Lumpur near the Central Market which was sold for S$27.5 million or RM410,296 per room to SGX-listed ICP Ltd a year ago.

In an announcement to The Stock Exchange of Thailand, SHREIT said Colliers International Thailand had valued the hotel at RM257 million.

Royal Group, via Knights Bridge Avenue Sdn Bhd, acquired Cititel Express from IGB Corp Bhd for RM37 million in December 2015.

Knights Bridge Avenue’s shareholders are Royal Group Capital Pte Ltd (50%), Power Rich Investment Pte Ltd (25%) and NMM Pte Ltd (25%), while its directors are Bobby Hiranandani, Asok Kumar Naraindas, Naraindas Gangaram and Phang Lee Kah.

Asok, also known as Asok Kumar Hiranandani, is ranked by Forbes as Singapore’s 21st richest person with a net worth of US$1.6 billion, while Bobby is his son.

Earlier in September the same year, Royal Group’s Gateway Legend Sdn Bhd acquired Hotel Empress – which is a stone’s throw away from the Cititel Express – from Malaco Mining Sdn Bhd for RM45.5 million.

Gateway Legend Sdn Bhd’s stakeholders are Royal Group Capital Pte Ltd (50%), Power Rich Investment Pte Ltd (25%) and Indosing Pte Ltd (25%), while its board of directors also comprise Bobby, Asok, Naraindas and Phang.