| OVERVIEW A unique opportunity is available to discerning investors to own a 88-room boutique hotel in the center of Kuala Lumpur. The Bestotel will be sold in fully furnished and operating condition. A host of quality finishes, well-designed rooms and a modern aluminum clad and curtain glass facade will make this the hotel of choice for business travelers. The tremendous and significant transformations that are underway and planned for Jalan Ipoh in the vicinity of Bestotel, the phenomenal growth of the Malaysian economy after the Asian crisis and the booming tourist industry will bring excellent price appreciation in the medium term making this an exceptionally attractive investment. LOCATION Bestotel is an 88 room hotel with a host of quality finishes, well-designed rooms and a modern aluminum clad and curtain glass façade. It was valued at RM 16,500,000 in 1999. Bestotel is located at No. 368 Jalan Ipoh, on the northern side of Kuala Lumpur’s city center. It fronts onto the main road, and is the closest hotel to the Hentian Duta, drop-off point for Kuala Lumpur’s International Airport (KLIA) buses. Bestotel’s management has capitalized on this advantage by forming a strategic alliance with the Airport Coach (monopoly bus operator from KLIA) when marketing the hotel. The Bestotel is very well served by public transport including the Light Rail Transit System (LRT), the People's Rapid Transit system (PRT), the KTM electric train, which connect us to major centers in KL. Many routes of Intrakota buses pass Bestotel. The hotel is within walking distance to the most established business and retail centers of Kuala Lumpur, namely the Mall, Jalan Tuanku Abdul Rahman, Jalan Raja Laut, Jalan Tun Razak, Jalan Putra, the Mutiara Complex and golden triangle. For travelers driving to Kuala Lumpur from other cities in Malaysia or from Singapore and Thailand, Bestotel is highly accessible from several highways and the PLUS toll system. The new toll highway to Genting Highlands is just minutes away from the Bestotel. Access to Jalan Ipoh can be made via Jalan Tun Razak, Jalan Raja Laut, Jalan Pahang, Jalan Kuching through Jalan Segambut, Jalan Tun Ismail, Jalan Raja Muda Abdul Aziz, Jalan Perhentian and Jalan Sentul all of which are prominent city center roads of significant traffic. SITE REVIEW The site is strategically situated in the center of Kuala Lumpur’s buoyant and fastest growth area, Sentul, which is very well situated on the northern part of the golden triangle. In addition to the existing retail, tourist and business attractions of central Kuala Lumpur, there are many high-rise modern office blocks either completed or near completion along Jalan Ipoh that will generate good demand for hotel rooms. A hotel belt has developed along Jalan Ipoh. The Vistana Hotel, Dynasty Hotel, Grand Pacific Hotel, Innapan Moccis, The First Business Inn, the New Cloud Hotel and Hotel Bintang are just a few of the hotels now in operation. Directly across the road from the Bestotel is the main entrance to Sentul Raya, a 294-acre mega-project which is currently being constructed. Sentul Raya will, in addition to a massive residential development, there will be an international school, hypermarkets, eateries, and a substantial area of commercial and Exhibition space. Bestotel’s occupancy will grow even stronger by catering to the needs of Sentul Raya's new corporate and residential population. A sophisticated transportation terminal is also being developed around the already operating LRT station and KTM electric train station which are within walking distance to Bestotel. To accommodate the Sentul Raya mega-project, the Government has undertaken major works to beautify Jalan Ipoh and linked it by an overhead bridge to Jalan Duta which is the exclusive Embassy housing area and the bus terminal for buses serving the International Airport. The entire area will be further transformed and is seeing enormous growth with several sizeable office complexes in the works. Immediately behind Bestotel is the 23-storey condominium and an eight storey commercial building with various tenants. Important commercial centers near Bestotel include Hong Kong Bank, Public Bank, Mayban Finance, Phileo Allied Bank, BBMB Kewangan, Kompleks Batu, Malaysia Assurance Alliance Bhd., Wisma TCL, Wisma Tan Kim San, Ford Concessionaire, Mazda, UMW Toyota Motor, Citroen, SsangYong, Honda, Perodua, Mutiara Complex and SKF Malaysia to North East. To the South West (walking distance) is the Putra World Trade Center, the Pan Pacific Hotel, the Dynasty Hotel, the Mall (Yaohan), the Legend Hotel, the Grand Pacific Hotel, UMNO Bldg., the Sentul Police Station, IGB Plaza, Pekeliling Plaza, Bangunan Perkim, Bangunan MIC, Bangunan Bank Rakyat, Bangunan Hui Hong, Wisma Kota Mas, Kompleks Damai, the Federal and Capitol Cinemas (along Jalan Raja Laut), Vistana Hotel, First Business Inn and Innapan Moccis. The total land area of Bestotel is 5,220-sq. ft. (freehold) with 60’ frontage unto Jalan Ipoh and an access road at the back leading to a 620-unit covered car park. There exists a vacant plot of land immediately adjacent to Bestotel which can be purchased and annexed to the hotel with possibility of constructing private carparks, swimming pool and a pool side restaurant, a spa and additional hotel rooms. The site for Bestotel has high visibility from the busy Jalan Ipoh, Jalan Perhentian and from the Sentual Raya project. |
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| HOTEL FACILITIES As a well-decorated boutique hotel offering necessary amenities and good business support systems, and a convenient location Bestotel has had good occupancy since its opening and is expected to improve demand in the future. Bestotel has a well designed exterior façade with aluminium clad and reflective glass windows projecting a clean, modern business-like image. |
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| The lobby is covered with imported marble where our guests will find a conference room and a Business Centre equipped with a fast Pentium personal computer, colour printer, fax machine, scanner, zip drive and internet access. |
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| Safety deposit boxes, car rental services, concierge and foreign currency services are situated on the ground floor. |
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| TECHNOLOGY An investment in technology has given Bestotel an advantage over all other hotels in the same category and reduced our staffing costs. The hotel is equipped with a modern PABX phone system (Ericsson brand) and wireless internet access throughout the hotel. We have equipped every room with two telephone lines, one for voice and another for internet or data transmissions. The guests can request their own private fax in the room offering very high level of privacy for business travelers. This user-friendly PABX system supplemented with a call billing system automatically calculates and posts telecommunication charges to the respective guests or office folios. We have installed Room Master which is one of the best and fastest Front Office Management Systems running on windows platform. This system automates the night audit function, records and accounts. OTHER FACILITIES We have also installed a good fire fighting and fire alarm system which includes hose reel on all floors and smoke detectors in all rooms and a triple protection system in the kitchen facilities. Bestotel's only F&B outlet is the Super Buffet, which can seat over 118 PAX and caters for hotel guests and the booming population base nearby. The restaurant has a 40’ frontage unto the busy Jalan Ipoh, and has its own signage and identity which can serve Asian and Continental dishes at affordable prices. The restaurant is not currently operating and only serves breakfast. Today’s business travellers and tourists demand a comfortable bedroom and a good bathroom. Our bedrooms are all tastefully decorated and equipped with tea/coffee making facility, a mini-bar, television with in-house movies, orthopaedic designed high quality hotel grade mattresses and individually controlled air-conditioners. The shower area uses high quality Italian bathroom fixtures such as towel racks, soap dishes and toiletry shelf. Imported European faucets were used for aesthetic reasons, for water conservation and low maintenance. The bathroom walls are tiled from floor to ceiling with high quality Italian designed tiles. Large mirrors, a shell type wash basin and imported water-saving W/Cs with silent type siphonic jet flush complete the well lit bathrooms (energy saving lights) to satisfy guest expectation. The Bestotel has a total of 88 rooms some with queen-sized beds, some with two single beds and twelve rooms which are triple. Four rooms are currently used as administrative offices, housekeeping area and one as a prayers room. We have included a stand-by generator so that the hotel can sell its rooms and serve its guests in the event of a power supply interruption. Water storage reservoirs atop of the building and in the basement will serve the guest needs and that of the restaurant in the event of water cuts. Guests appreciate a touch of class. Our neo-classical custom designed wood furniture are compact, functional and beautiful. All public areas and corridors receive centrally broadcast music (CD and Tape and radio) with public announcement facility. We have an in-house laundry room equipped with a large washing machine, a clothes dryer and adequate shelving. Our laundry room enables the hotel to handle express guest laundry and hotel's cleaning cloths. Laundry services for bed linen and towels are contracted out. In the event of an interruption of services from the laundry contractor, the hotel is able to operate and manage its own laundry without interruption to guest services and sale of rooms. The staff shower room, two utility/storage rooms and public toilets (including two for the handicapped) are situated on the ground floor. The lower ground floor has an area of about 2,000 sq ft which is currently un-utilised. It can be converted to a health centre or a pub and bar or used for functions. The hotel regularly rents out this space for functions but owing to religious and ethical constraints, we have not activated a pub or bar or massage parlour. |
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| CHEAP TO OPERATE Extensive cost-saving features are found throughout Bestotel. We have planned and built the hotel to achieve very low maintenance cost, minimal downtime and high level of productivity that translate to superior profits. To name just a few cost saving features: • The hotel does not spend any money to generate hot water: our heat recovery system uses the waste heat from our air-conditioners to heat enough water for the hotel. At the same time our air-conditioners operate more efficiently and use less energy. This was designed in house. • Our air-conditioning system itself was designed to absolutely minimise power consumption. The multi-split systems simply use less electricity than any other system. And we only cool those rooms that are sold and occupied. When the guest leaves his room and removes his energy key tag, the air-conditioner also stops. • We have installed electricity saving key tag systems so that when a guest leaves the room, power supply is cut off to all lights, television and so on, except the mini-bar. All interior lighting is the energy-saving PLC type. • We have selected and installed parquet floors over the usual carpet for the bedrooms. Parquet floors are easier to maintain, faster to clean and do not need regular shampooing therefore removing the need for expensive loss of room sales during drying periods. And when carpets wear out, they must be replaced whereas parquet floors can be repolished at very low cost. Such flooring also looks and feels cleaner for the guests without absorbing smell. In tropical countries carpet is rarely a good idea. • We have four central vacuum systems which collect dust more effectively than traditional cleaners. Rooms can be vacuumed without a motor or ugly wires to pull along. Chambermaids only carry a vacuum hose and plug it into the wall socket to start suction. And the rubbish is emptied from the vacuum once in every four months instead of daily, which saves labour. • We used washable curtains and venetian blinds on all windows matching the distinctive copper colour of the façade of the hotel. These window coverings do not need to be sent for expensive dry cleaning: they can be wiped clean, they block the light for privacy and look good. • We installed a kitchen waste disposal system that grinds food waste and pumps it into the sewerage system with the kitchen wastewater. We pay only RM 150 per month for garbage disposal, fire hazards and garbage odours are minimised and the odour associated with kitchen refuse is mostly gone. • The front office and business centre are situated behind the reception counter for efficient control and work force minimisation. • Bestotel has an underground water storage tank: if city water pressure ever becomes low, our hotel will still have water! This is then pumped up to five water storage tanks on the roof and if any one water tank (hot or cold) is under maintenance, water can still be drawn from others. This avoids operational interruption, prevents loss of room revenue and maximises convenience to hotel guests. We do not have any pneumatic or pressurised water tanks that require expensive repairs and maintenance. Water pressure is guaranteed by gravity. • Our air-well is designed to keep 21% of guest rooms cool without the need for air-conditioning. • The entire hotel is operated with a workforce of about 18 people, a one to five labour-room ratio which is extremely low! Proof of the design. COST SAVINGS CREATE PROFIT These design elements have helped us remain profitable from the very day Bestotel opened. NO FRILLS CONCEPT The no-frills hotel has gained wide acceptance globally among tourists and business travellers alike. Asian and Middle Eastern travellers, the strongest markets to Malaysia, view price and a clean image as paramount in their choice of hotel. More than ever before tourists, businessmen, shoppers and middle managers are choosing good clean hotels that are reasonably priced over the more expensive five star properties. The Bestotel does away with multiple banquet halls, convention centres and competing F & B outlets. Instead we have focused on delivering one of each facility plus well-appointed rooms to serve the guests’ basic needs. Other facilities such as the business centre, excellent communication systems, mini-bars, the restaurant, our laundry, and money changer services will answer the common needs of all guests. The express hotel concept has good appeal in North America too. THE MALAYSIAN ECONOMY The Asian Development Bank in its report titled "Asian Development Outlook 2006" writes: "...the economy is likely to sustain its growth momentum, expanding by 5.5% this year [2006] and 5.8% next year [2007]....Over the period 2006–2010, annual economic growth is expected to average 5.5%, given the low investment rate. The Government has a strategy to diversify sources of growth, which involves a transition toward a more services-oriented economy. Health, tourism, retailing, information and communications technology, transport, and education are all targeted as important sources of future growth, as the industry sector becomes relatively less important. The official Vision 2020 plan, which aims to raise Malaysia to developed-nation status by the end of the next decade, has a more optimistic 7.0% growth rate target." The World Bank in its 2006 Country Brief report for Malaysia wrote: "In the past 30 years, Malaysia has successfully sustained rapid economic growth, curtailed high poverty rates, and reduced income inequalities. Strongly committed to growth, this culturally diverse country has also prioritized more equitable distribution of wealth, and has promoted a conflict-free environment among its numerous ethnic groups." The Malaysian Institute of Economic Research (MIER) announced: "The Malaysian economy remains stable with a growth of 5.3 per cent in the first quarter of 2006 (1Q06)." It forecasts that the 2006 growth rate will remain at 5.3%. C H Williams Talhar & Wong stated in its annual report titled: “WTW Property Market 2006” : "...interest shown by institutional investors / property funds both local and foreign in investment properties would provide the impetus and most likely compress yields further, as quality investment properties continue to be much sought after. Demand from REITs as well as other institutional investors would auger well for the property market (especially in the commercial sector) giving the investment market in the Klang Valley more depth." They anticipate that hotels in the Kuala Lumpur area will appreciate in value. To view their report, click here . They go on to say: "Despite the opening of new hotels and the raising of the room rates since January 2005, hotel occupancies have generally improved. Anticipating increasing tourist arrivals and further room rate hikes, the hotel sector is expected to continue to perform well in 2006." WHY INVEST NOW? 1- Tourist arrivals has grown from 10.58 million in 2003 to 16.43 million in 2005. Receipts from Tourist industry has increased from 21,291.1 million to 31,954.1 million. 2- The Malaysian currency remains undervalued according to the ADB. 3- Interest rates are still low. 4- Investor confidence has returned. 5- Property values are just beginning to rise. 6- The Sentul Raya development will transform the neighbourhood and push prices up. 7- Malaysia has excellent fundamentals and is one of the youngest nations in the world. 8- Prudent economic policies have put the economy on a rapid recovery process, which will bring rapid price appreciation for the property sector. A recent policy was the removal of duties on most branded items to make Malaysia the top shopping destination in the world. 9- Capital gains tax rates are low (zero percent if held for six years). THE DEVELOPERS Fundex Sdn. Bhd. is a Malaysian owned affiliate of the Canadian construction group Castleway Homes and is managed by experienced professionals and engineers. Well planned and fitted with high quality finishes this hotel is operationally simple. Few investments can offer better or safer returns and you are invited to study this opportunity further. TERMS OF SALE Sale price: RM 18,000,000 Negotiable (Approximately $5,100,000) Terms of payment: 10% Deposit on agreement 90% On hand-over of hotel The company may accept development land or income properties of equivalent value in North America or in Asia in exchange for the hotel. Expressions of Interest can be forwarded, in confidence to: Dr. Victory Email: fundex2@telus.net DISCLAIMER The information in this brochure has been compiled in good faith but is subject to change without notice. The information does not constitute a basis for any offer or contract of sale. No part of this document may be construed as a statement or representation of fact based on which a contract is created. Interested parties are advised to carry out their own independent investigation. Final finishes and inventory will be subject to terms of the Agreement of Sale and Purchase. Fundex Sdn. Bhd. and its agents can not accept responsibility for any error or omission in this brochure and may not be held liable for negligence or damages arising out of or in connection with this information package. Any liability for damages for any claim by potential investors arising out of, or in connection with this Information Package other than liability which is totally excluded by this clause, shall not exceed $1,000 whether or not such liability results from or involves negligence. |
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| Of course, our Business Centre is equipped with a fast Pentium personal computer, colour printer, high speed photocopier and fax machine. But we also have a scanner, zip drive and internet access which allows us to design and print small batch business cards, stationery and other documents for our business travellers at great margins. |