The Negri Sembilan Government has acquired full control of Allson Klana Resort, the most profitable hotel here, via an asset swap.
Mentri Besar Datuk Seri Mohamad Hasan said the state government had disposed of its interests in three companies – NS Townships Sdn Bhd, Arul Ikhlas Sdn Bhd and Advance Point Sdn Bhd – to Glen Glamour Sdn Bhd in exchange for the equity in Allson Klana Resort.
All three units are involved in the property sector, mainly in the Bandar Baru Nilai township.
“The state government had entered into several joint ventures with the private sector previously but made nothing out of it.
“We have given away plenty of land but do not even have control in any of these companies,” Mohamad said, adding that the state government was now in the midst of consolidating its assets via Mentri Besar Inc.
Before the asset swap, the state government held 30% equity in the hotel.
“When you have 20% or 30% equity share, you are in no position to make decisions. It is pointless to invest heavily when you cannot call the shots,” Mohamad told reporters after opening the AGM of Rantau Ex-Servicemen’s Association.
Asked if there were plans to change the name of the hotel, he said the state government was happy with the present arrangement.
“Since Allson is an established name, we have agreed to continue paying RM14,000 in monthly royalty,” he said, adding that there were no plans to make changes to its management either.
However, a management board that included state government representatives would be created, he said.
Asked if there were plans to upgrade the hotel to five-star status, he said Seremban did not need such a hotel for the time being.
“We already offer five-star facilities. If we upgrade now, we would need to fulfil certain conditions and this would cost a lot of money,” he said.
He said there were plans to build a hall, which could accommodate 2,000 to 3,000 people, next to the hotel.
“The hotel area is 12ha. Since we have many tourism projects in the state, this would be an ideal place to hold events,” he said, adding that trade exhibitions could also be held there.
Source : STAR
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