Holiday Villa news. Property development is always on value creation.

Holiday Villa news. Property development is always on value creation.

This was also big news. The Holiday Villa Hotel in Subang stopped its operation on 1st October 2021. Everyone was saying how awesome the place was and sharing all the memories they had with the place. Some say they are sad that the Covid-19 has caused so many hotels to shut their operations. At the same time, we also have hotels which are expanding their offerings too. This is one recent article about Sunway Hotel Big Box

Actually, there’s a lot more to just hotels shutting down their operations yeah. Question is not the closure. Question is on WHAT the owner intends to do with the place. That’s the real WHY for the closure yeah. Every business is all about value creation. Property development is always on value creation.

Article in nst.com.my The Holiday Villa Hotel in Subang is no longer in operation since October 1, 2021. IJM Land Bhd, which owns the hotel, is said to be examining a range of options to boost the property’s value. The business resort hotel is situated on 2.75 hectares of landscaped ground on Jalan SS12/1, with views of the Subang Ria Recreational lake and park. Subang Medical Centre and Dorsett Grand Subang are both just a short distance away.

A source told NST Property, “Due to the current market conditions, IJM may not wish to sell the hotel at this moment because it will not receive a fair price. We anticipate that, rather than selling the asset to maximise its worth, IJM would examine other options for it.”

Holiday Villa Hotels & Resorts is a rapidly expanding company. It presently operates five hotels in Malaysia, with two more set to open soon, as well as 17 hotels in significant international markets such as Saudi Arabia, Qatar, Bali, and China. Please do read the full article here: Article in nst.com.my

Options are aplenty definitely

Hotel operations are based on recurring income. In other words, if it’s well maintained, the profits will be higher than the maintenance and operating cost and the owner will continue to earn profits year after year.

Property development, say a high-rise development would provide a bigger profit but it’s more of a one-off and the property developer would then need to use the profits to invest into something else for more earnings.

Transformation of a hotel operations into a mixed-development could maybe provide the best of both worlds but this is much harder to do and it may fail on both the fronts; residential part not many like and the commercial part, not many takers.

I am very sure the options are aplenty because this land in which Holiday Villa Subang is situated is definitely a prime piece of land today. Plus the fact that it is owned by IJM Land would definitely be helpful in having the financial muscle to do more. Let’s keep reading and see what happens next.

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