KUALA LUMPUR: Berjaya Land Bhd (BLand) is buying a 75 per cent stake in Icelandair Hotels ehf for US$53.63 million (or RM222.03 million).
The acqusition included a put and call option on the remaining 25 per cent, BLand said in its filing to Bursa Malaysia today.
The Iceland deal will complement its existing portfolio of 19 city and resort hotels located in Malaysia, Vietnam, the Philippines, Japan, Sri Lanka, Seychelles and the UK, the company added.
Icelandair Hotels, which has an enterprise value of US$136 million (or RM558.96 million), operates 20 hotels across Iceland with a total of 1,811 rooms.
The hotel operator will also open a new 145-room hotel at Austurvöllur Square in Reykjavik’s Parliament district in collaboration with Hilton Hotels in 2020.
Its real estate is estimated at 17,738 sq m (or 1.78ha) and includes Hilton Canopy Reykjavik, Icelandair Hotel Akureyri, Icelandair Hotel Mývatn and Icelandair Hotel Hérað.
In 2018, the aggregate revenue of the Icelandair Hotels amounted to US$97 million.
Its aggregate earning before interests, taxation, depreciation and amortisation amounted to US$12 million.
Berjaya Group executive chairman Tan Sri Vincent Tan said he was pleased with the investment.
It was at a low entry cost, with an average cost/price of about US$75,096 per room, Tan said in a statement.
“We look forward to working with the Icelandair Group. I believe this investment represents good long term value for Berjaya Group,” Tan added.