The 4 hotels will operate as usual and remain Shariah-compliant under the new name of Raia Hotel from April 1
by SHAZNI ONG / pic credit: www.thhotels.com.my
FOUR Lembaga Tabung Haji (TH) hotels will continue to operate without staff termination as a result of the operational takeover by Urusharta Jamaah Sdn Bhd.
TH and Urusharta Jamaah verified this in a joint statement yesterday and said the operations of the hotels transferred from TH to Urusharta Jamaah will continue under the latter’s wholly owned subsidiary, UJ Property Management Sdn Bhd (UJPM).
The four hotels involved are TH Hotel Kota Kinabalu, TH Hotel Bayan Lepas, TH Hotel & Convention Centre Alor Setar and TH Hotel & Convention Centre Kuala Terengganu.
“UJPM will take over the operations of all four hotels, previously under the management of TH Hotel and Residence Sdn Bhd (THHR), beginning April 1.
“The hotels are part of the assets transferred to Urusharta Jamaah, which include 29 real estate assets, 106 equity holdings and an unlisted company, in exchange for two tranches of sukuk totalling RM19.6 billion and RM300 million in cash payable to TH,” it said.
The fuss came after a THHR internal circular notice regarding the hotels ceasing operations went viral earlier, with former Prime Minister Datuk Seri Mohd Najib Razak highlighting the matter on his Facebook post, among others.
UJPM is a unit of Urusharta Jamaah, a special-purpose vehicle of the Ministry of Finance.
UJPM was established as one of the measures to ensure the continuity of existing staff’s employment and hotel operations, as the transfer of the hotels’ assets to Urusharta Jamaah in December 2018 did not involve the hotels’ management and staff, TH and Urusharta Jamaah said in the statement.
“Under the new management, the hotels will operate as usual and remain Shariah-compliant under the new name of Raia Hotel from April 1.
“Urusharta Jamaah has also provided funds to improve the hotels’ facilities and service quality. Urusharta Jamaah also assures that these hotels can still be used during the pilgrimage season as done previously,” it said.
The statement added that no THHR staff will be terminated as a result of the operational takeover. “About 90% of THHR staff
will continue to work in the Raia Hotel network, while 10% of the hotel staff will be absorbed by TH Kelana Jaya. In addition, 90% of the staff involved will also receive consolation based on the contributions made during their THHR service period.
“TH will continuously see that the welfare of its staff and the continuity of their careers are well taken care of,” it said.
The statement also said the takeover of the hotels’ services and operations by UJPM is part of TH’s recovery and restructuring plan, and is a necessary step in order to meet the government’s mandate to reduce its commitment.
“Urusharta Jamaah plays an important role in ensuring that this objective is met and will always strive to grow the value of the assets under the Urusharta Jamaah portfolio.
“TH and Urusharta Jamaah hope that Malaysians will give their full support to the new management who will be operating the four hotels. In essence, Urusharta Jamaah will enhance the image of these hotels through rebranding, facility upgrades and optimising efficiency,” it said.
UJPM will be led by Muhammad Solleh Ramli, who has extensive experience in hotel management and was a member of the board of Proassets Management Sdn Bhd, a management company of Hotel MS Garden in Kuantan, Pahang.
“He has also served as MD/CEO of Rangkaian Hotel Seri Malaysia Sdn Bhd and has played a pivotal role in the success of improving the financial performance and image of the company,” the statement said.