MAHB terminates hotel JV with Atoz

MAHB terminates hotel JV with Atoz
Business & Markets 2013
Written by Chong Jin Hun of theedgemalaysia.com
Wednesday, 18 September 2013 18:34

KUALA LUMPUR (Sept 18): Malaysia Airports Holdings Bhd has terminated its joint venture agreement (JVA) with Atoz Hospitality Services Sdn Bhd to run and manage airport hotels.

In statement to the exchange today, MAHB said the "the joint venture has faced issues due to the non-participation and withdrawal of a key individual in the management and operations of the JV company".

MAHB's wholly-owned subsidiary K.L. Airport Hotel Sdn Bhd (KLAH) and Atoz owns 51% and 49% respectively in the JV firm Sama-Sama Hospitality Management Sdn Bhd (SSHM). The JV firm, set up on December 31, 2012, undertakes the operation and management of airport hotel brand under the “Sama-Sama Hospitality Group” banner.

Subsequently, KLAH and SSHM had signed a hotel management agreement on January 2, 2013 for the management and operation of the Sama-Sama Hotels.

"Further to our announcement dated 31 December 2012, the board of directors of MAHB wishes to announce that KLAH, a wholly-owned subsidiary of MAHB had on 18 September 2013, pursuant to the terms of the JVA, issued a written notice of termination to Atoz, to terminate the JVA with immediate effect.

"The termination of the JVA will not affect the management and operations of the Sama-Sama Hotels as necessary measures have been taken by the board and management to ensure there will be no disruptions to the same once the termination takes effect," MAHB said.