KUALA LUMPUR: Advance Synergy Bhd’s (ASB) indirect 95%-owned subsidiary, Changshu Holiday Villa Hotel Management Co Ltd, has signed a lease agreement that will lead to the group operating a 143-room hotel in Shanghai under the Holiday Villa brand.
In a filing with Bursa Malaysia, the company, whose businesses range from hotel operations to property development, said the indirect unit would lease Block B of the Yu Tai commercial complex, excluding the mezzanine, second and third floors, from Shanghai Yutai Industrial Co Ltd for 16 years.
The hotel will occupy 11,417.75 sq m within the two-tower complex on Liu Shing Road.
“The building has been completed in the third quarter of 2015 but requires at least 12 months for hotel renovation and refurbishment from both lessor and lessee (Changshu Holiday Villa Hotel Management or its nominee),” ASB said.
Rent per year, excluding miscellaneous charges incurred by the lessee on water, electricity, telecommunications, gas etc, would range from about 3.5 million yuan to 7.4 million yuan (RM2.4 million to RM5.1mil) per annum.
ASB said the parties had mutually agreed that starting from the third year of the lessee’s business operation, the lessee would pay an additional 5% of the after-tax profit in relation to its hotel operation.
Source: http://www.thestar.com.my/Business/Business-News/2015/11/11/Advance-Synergy-to-operate-hotel-in-Shanghai/?style=biz
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