The Terengganu Islamic Religious Council and Malay Customs (Maidam) has marked another milestone with its venture into the hotel business which is expected to generate good income for the agency.

Its Chief, Datuk Mazlan Hashim said Maidam would be joining forces with the private sector to set up two mid-level hotels for a total of RM54 million.

"The hotels will be established respectively as a budget hotel and wakaf hotel with both located in the heart of Kuala Terengganu city," he told reporters after the signing of a Memorandum of Understanding here today between Maidam and Argon Hotel (Trg) Sdn Bhd (AHSB) for the development of the budget hotel in Kampung Pelima.

The ceremony was witnessed by Chairman of the State Committee for Religion and Information, Khazan Che Mat. Maidam was represented by Mazlan while Agron Hotel was represented by its Managing Director, Abdul Razak Abdullah.

Mazlan said the hotel budget will be built close to the Payang market here at a cost of RM16 million. The six-floor hotel which is expected to start operations in 2013 will have 210 rooms with 60 superior rooms and 150 standard rooms.

It would have the usual facilities like swimming pool, seminar rooms, coffee house, car park and also offer Internet facilities.
Mazlan said the hotel would also offer job opportunities to at least 50 people, particularly to the children of Maidam staff.

He said the state government under the Economic Planning Unit saw the hotel development as important especially for the economic development of Terengganu.

At the same time, Maidam will be building the wakaf hotel for RM38 million and contractors have already started work on the three-star, 180-room hotel, Mazlan said.

Abdul Razak said Maidam had agreed to offer the building of the budget hotel to AHSB earlier this year under the build, operate, and transfer scheme system for a period of 35 years.

The cost of building will be fully borne by AHSB. During the 35-year period, Maidam will collect the rental on land amounting to RM8,000 per month as well as any fixed increments.

He said room rates at the hotel will not exceed RM100 per night and the target market included business travellers and tourists on transit to nearby islands like Pulau Redang, Pulau Perhentian and Pulau Helang Tengah. -- Bernama