Is Mara’s hotel heading for a RM84m bailout?

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Is Mara’s hotel heading for a RM84m bailout?

KUALA LUMPUR, March 5, 2025: The Public Accounts Committee (PAC) says Mara must turn around the financial position of Premiera Hotel & Resorts Sdn Bhd.

The PAC urged Mara Incorporated (Mara Inc) to implement a recovery plan for the hotel in KL to reduce its accumulated losses of RM84.1 million in 2023 to RM0.8 million in retained earnings.

No News Is Bad News reproduces below a news report on Mara’s financially ailing hotel:

Recovery plan needed to cut RM84mil losses for Premiera Hotel, Mara Inc told

FMT Reporters

-05 Mar 2025, 12:38 PM

The Public Accounts Committee says the agency must take decisive action to turn around the financial position of Premiera Hotel & Resorts Sdn Bhd.

The Public Accounts Committee raised concerns last November over Mara Inc’s management of assets, particularly its real estate ventures.

PETALING JAYA: The Public Accounts Committee (PAC) has urged Mara Incorporated (Mara Inc) to implement a recovery plan for Premiera Hotel & Resorts Sdn Bhd (PHKL) to reduce its accumulated losses of RM84.1 million in 2023 to RM0.8 million in retained earnings.

In a follow-up report on the management of Mara Inc, tabled in Parliament today, PAC said the agency must take decisive action to turn around PHKL’s financial position.

The report followed a parliamentary hearing on Jan 22, where senior officials from Mara Inc, Mara Corp, and the rural and regional development ministry provided updates on the action taken in response to PAC’s recommendations.

PAC raised concerns last November over Mara Inc’s management of assets, particularly its real estate ventures, after significant losses due to previous financial mismanagement.

“PAC reminds the rural and regional development ministry, Mara, Mara Corp, and Mara Inc to ensure that all ongoing and future projects generate high net profits,” its chairman Mas Ermieyati Samsudin said in a statement today.

She said the committee also urged Mara Inc to settle its debts in an orderly manner, in line with the company’s debt settlement plan.

Beyond PHKL’s financial recovery, Mas Ermieyati said PAC advised Mara Inc to continuously review and improve its standard operating procedures (SOPs) for property leasing to align with market conditions.

“The committee reminded Mara Inc of this matter, despite the company already having SOPs for leasing and collection in place and enforcing compliance with them,” she said.

PAC also noted Mara Inc’s efforts to develop a comprehensive property valuation policy, and reminded the government agency to ensure strict compliance after obtaining board approval.