KUALA LUMPUR (Dec 23): ECM Libra Group Bhd’s (KL:ECM) 50%-owned unit OHG Services Sdn Bhd will pay Malaysia Airports (Sepang) Sdn Bhd RM29.9 million to extend its concession agreement to manage and operate a 'limited-service hotel' at the Kuala Lumpur International Airport (KLIA) for another 35 years.

Pursuant to the extension via a supplemental agreement with Malaysia Airports (Sepang), the expiry date of the concession will move from Jan 31, 2034, to Feb 11, 2069, the company said in a bourse filing. 

ECM Libra said the principal agreement of the concession agreement was originally executed between Malaysia Airports (Properties) Sdn Bhd and OHG on April 5, 2013. It was then novated to Malaysia Airports (Sepang) on Dec 12, 2023.

According to ECM Libra's annual report, OHG Services holds the concession to manage and operate the Tune Hotel KLIA2, and undertakes food and beverage operations in the same hotel. 

OHG is a 50:50 joint-venture company between ECM Libra and TP Real Estate Holdings Pte Ltd, a wholly owned unit of Singapore-listed Plato Capital Ltd.

ECM Libra executive chairman Datuk Lim Kian Onn is a substantial shareholder of Plato Capital, with 79.81% deemed interest. Separately, he owns a 13.39% direct stake in ECM Libra, and holds another 27.22% in the company via indirect stakes.

ECM Libra said the concession extension is expected to contribute positively to its future earnings over the extended period.

Aside from the Tune Hotel KLIA2, ECM Libra also operates other hotels, namely Tune Hotels in KLIA Aeropolis, Penang, Kota Kinabalu, Danga Bay, and Liverpool, as well as Ormond's The Chow Kit hotel.