KUALA LUMPUR (Oct 27): BBCC Development Sdn Bhd, the developer of the RM8.7 billion Bukit Bintang City Centre (BBCC) project here, is selling a 28-storey hotel block within the development to Miri-based Hass Holdings Sdn Bhd for RM290 million.

The hotel will be managed by hospitality group Hilton and branded as the first Canopy by Hilton hotel in Southeast Asia under a hotel management agreement signed between Hass and Hilton. The four-star hotel is scheduled to open in the fourth quarter of 2021.

Hass Group is involved in the palm oil industry, property development and hotel investments. BBCC Development and Hass signed a sale and purchase agreement today. At the same time, Hass also signed the hotel management agreement with Hilton.

BBCC Development is a joint venture (JV) comprising UDA Holdings Bhd, Eco World Development Group Bhd (EcoWorld) and the Employees Provident Fund Board (EPF).

UDA Holdings chairman Datuk Seri Dr Mohd Shafei Abdullah said the JV has reached another milestone in its journey of bringing the best in retail, entertainment and hospitality brands into the development.

"BBCC Development welcomes Canopy by Hilton to be part of our integrated development.

"I have no doubt that Canopy by Hilton has chosen the perfect project to introduce their latest brand to Malaysia," he said in the opening speech at the signing ceremony today.

Mohd Shafei said BBCC Development has all the right ingredients to become the nucleus of growth for Greater Kuala Lumpur, which aims to create an authentic urban experience.

Sitting on 19.4 acres, the BBCC project is a redevelopment of the former Pudu jail site, of which the entire project is targeted to complete by 2025.

BBCC Development is a special-purpose vehicle (SPV) set up to facilitate the project. EcoWorld and UDA Holdings hold a 40% stake each in the SPV, while the EPF has a 20% stake.

Meanwhile, with a portfolio of 14 world-class brands comprising more than 5,100 properties with nearly 838,000 rooms in 103 countries and territories, Hilton said the 456-room hotel will be a natural extension of the neighbourhood.

"Canopy by Hilton connect guests to the neighbourhood's numerous shopping, dining and entertainment options, allowing travellers to embark on a new kind of lifestyle experience in the destination," said Canopy by Hilton global head Gary Steffen.

BBCC Development chief executive officer Low Thiam Chin said Canopy by Hilton, Kuala Lumpur Bukit Bintang will be a great addition to the company's portfolio of lifestyle components.

"The entry of this globally renowned hotel group will further enrich the development's overall value proposition which aspires to offer its residents and visitors the best of Malaysian," he said.

He said BBCC Development will continue to generate keen interest from locals as well as global investors and look forward to announcing more key partnerships in the near future.

Following the ground breaking ceremony in June, the mixed development is on track towards the completion of Phase 1 — consisting of a retail mall, an entertainment hub, the Stride strata office tower, the Lucentia 1 and 2 serviced apartments and a hotel — by 2021.

Together with the hotel, BBCC Development is poised to deliver about 50% of the total build-up area of 6.7 million sq ft by 2021.

EcoWorld shares ended the morning session up 2 sen or 1.31% at RM1.55 today, with 1.1 million shares done, bringing a market capitalisation of RM4.56 billion.