Malaysia Airlines sells Four Seasons to Saudi prince

KUALA LUMPUR - MALAYSIA Airlines has sold its luxury Four Seasons Hotel on the tourist island of Langkawi to a firm controlled by a Saudi royal tycoon for RM435 million (S$189.3 million).

The sale is part of the airline's restructuring plan, the carrier said on Thursday, days after reporting a net loss of RM136.4 million for 2006.

Under the deal, a wholly owned subsidiary of Prince Alwaleed bin Talal's Kingdom Hotel Investments (KHI) will buy the hotel from a unit of Malaysia Airlines.

It will also take up a RM364.1 million debt owed by the unit to MAS, which will earn RM62 million from the sale.

Billionaire Prince Alwaleed, a member of the Saudi royal family, co-owns the luxury Four Seasons hotel chain with Microsoft chairman and founder Bill Gates.

The prince was ranked No. 5 on the Forbes 2005 list of the world's richest people, and has an estimated fortune of US$23.7 billion (S$36.2 billion).

His sprawling interests include hotel properties worldwide and stakes in the Fairmont and Movenpick hotel chains and investments in Citigroup, Time Warner and Apple Computers, according to KHI's website.

Analysts yesterday welcomed the sale as a positive step for the airline, which embarked on the turnaround plan a year ago after suffering massive losses of US$1.14 billion for 2005.

Last year, the loss-making national carrier disposed of its headquarters and other buildings as part of the restructuring exercise, which has also seen it axing unprofitable routes.

Its 2006 result was smaller than expected, and it has forecast a net profit between RM50 million and RM90 million for this year.

AGENCE-FRANCE PRESSE