Deep Dive

In 1957, Lim Foo Yong embarked on building the first Merlin Hotel in Kuala Lumpur to commemorate Malaya independence. Completed in 1959, the hotel quickly became one of the most prominent landmarks in the capital, serving as a hub for high level business engagements and social gatherings.

In 1963, Merlin Hotels was formally established as a holding entity and subsequently listed in 1964. The listing provided access to capital markets, enabling the group to expand its footprint and position itself as a leading luxury hospitality brand in Southeast Asia.

From 1971 to 1972, Lim faced structural limitations inherent in the hotel industry, particularly its capital intensive nature and dependence on prime land. To overcome this, he entered into a merger with Faber Union, a company linked to a prominent business family with substantial land holdings. The merged entity, Faber Merlin, gained control of approximately 260 acres of land in Kuala Lumpur, which became the foundation for the Taman Desa development.

In 1973, the global stock market downturn exposed financial vulnerabilities within the group leadership. Leveraged positions taken in Singapore led to liquidity pressures, forcing the disposal of key assets. Among them was the Singapore Merlin Hotel, which was eventually acquired by United Overseas Bank through its property arm United Overseas Land and later repositioned under a new brand.

From 1980 to 1985, continued capital requirements from property development led to further asset divestments. The Hong Kong Merlin Hotel, located in a prime district, was sold to The Kadoorie Family, owners of Peninsula Hotels. The site was redeveloped into The Kowloon Hotel, marking the loss of another flagship asset.

In 1983, Chan Sek Keong entered the corporate structure via Multi-Purpose Holdings Berhad, gradually accumulating control. By 1984, he had secured a dominant position and aimed to leverage the group asset base for further expansion.

In 1985, the Pan Electric crisis disrupted regional financial markets and led to the downfall of key corporate figures involved in leveraged trading. The fallout triggered financial instability within Faber Merlin, pushing the group into restructuring and eventual control shifts.

From 1991 to 1993, the new leadership deprioritised hospitality operations in favour of sectors aligned with infrastructure and development policies. The flagship Merlin Hotel in Kuala Lumpur was sold and rebranded as Concorde Hotel Kuala Lumpur, effectively ending the brand presence in its original home market.

In the early 2000s, residual assets associated with the Merlin brand were gradually redeveloped. YTL Corporation acquired a former Merlin property in Cameron Highlands and transformed it into Cameron Highlands Resort, repositioning it as a boutique luxury destination with a distinct colonial theme.

In 2015, Faber completed its corporate transformation by merging with Opus Group and Propel, rebranding as UEM Edgenta. This marked its full transition into an asset management and infrastructure services group, with no remaining ties to its hospitality origins.