In a filing with the Singapore stock exchange, Hotel Royal said the purchase price had been revised and was reduced by 10% from the original price of RM197 million.

Hotel Royal chairman Pang Eng Fong said the agreement on the new revised priced was reached at on a willing buyer and willing seller basis after arm’s length negotiations and “after taking into account the prevailing market conditions and the market value of the hotel”.

News of the sale had caused a political controversy when it was announced in 2019.

Boustead had said that the sale was part of the Boustead Group’s overall plan to return to profitability by way of divesting non-strategic assets.

Royale Chulan Bukit Bintang has faced increased competition within the Golden Triangle of Kuala Lumpur as well as online platforms such as Airbnb, the company said.

“This resulted in its relatively low occupancy rate of 52% in 2018 versus the average occupancy rate of hotels within the Klang Valley of about 74%,” Boustead said.

The company said that a refurbishment exercise would also be needed for the ageing property to remain attractive and competitive.