Posted on May 23, 2026
Selangor Dredging Berhad (SDB) has entered into a long-term lease agreement for Hotel Maya Kuala Lumpur, seeking for a recurring rental income while reducing direct exposure to hotel operations.
SDB said its wholly owned subsidiary SDB Properties Sdn Bhd had signed a lease agreement with Kin Hotel KL City Centre Sdn Bhd for the hotel property and adjoining meeting and conference facilities at Plaza 138, Jalan Ampang.
The lease will commence on July 1, 2026, or a later mutually agreed date, for an initial term of 10 years with options for two additional five-year renewals.
Under the agreement, Kin Hotel will operate the property as a hotel and undertake related hospitality businesses.
SDB said the monthly base rent for the first five years of the initial term is fixed at RM750,000, rising to RM780,000 for the subsequent five years.
If both renewal options are exercised, the monthly rent will increase to RM830,000 for the first renewal term and RM880,000 for the second renewal term.
Based on the agreed rental structure and after accounting for a three-month rent-free period, the total base rent payable during the initial 10-year term is estimated at RM89.55 million.
Over the full 20-year period, the aggregate base rent could reach approximately RM192.15 million.
The agreement also requires Kin Hotel to undertake renovation, upgrading and repositioning works for the property, with a minimum capital expenditure commitment of US$3 million within 36 months from the commencement date.
The planned works are expected to include upgrades to guest rooms, lobby and public areas, back-of-house facilities, mechanical and electrical systems, as well as branding improvements.
SDB said the lease aligns with the group’s strategy to enhance the income-generating potential of its investment properties while preserving ownership of the hotel asset.
The arrangement will also allow the group to reduce its operational exposure to the hospitality business, including hotel staffing, licensing, maintenance and day-to-day guest services, which will be assumed by the lessee.
