Kuala Lumpur hotel supply to grow by 11.4% this year

This is equivalent to over 5,600 new rooms.

By the end of 2023, Kuala Lumpur had a total of 49,359 hotel and serviced apartment rooms. In a report, JLL said a total of 1,865 rooms entered the market in 2023, all of which are either in the midscale or upscale positioning.

New hotels that opened in 4Q23 include the 513-room Four Points by Sheraton Kuala Lumpur and the 180-room Hotel Indigo Kuala Lumpur on the Park.

Here’s more from JLL:

Assuming that all projects materialise, supply is expected to grow by 5,636 rooms, or 11.4%, in 2024. The jump is attributed to multiple postponements and construction delays during the pandemic. Notable openings include the 471-room Kimpton Kuala Lumpur, 279-room Waldorf Astoria Kuala Lumpur and 560-room 8 Conlay Kempinski Hotel Kuala Lumpur.

Luxury RevPAR exceeds pre-pandemic levels

As of YTD December 2023, Kuala Lumpur luxury hotels have registered a revenue per available room (RevPAR) growth of 55.3% y-o-y. This growth is attributed to both occupancy, which grew by 20.1 percentage points (ppts) from 48.5% to 68.6%, as well as an average daily rate (ADR) growth of 9.9% to MYR 642.

The continued recovery in trading performance among the Kuala Lumpur luxury hotel sector has been driven by rising inbound tourism following improved flight connectivity in the region. By the end of the year, RevPAR had not only made a full recovery to pre-pandemic levels but had also reached new highs.

Outlook: Continued optimism in the market anticipated in 2024

The trading outlook for Kuala Lumpur remains bullish as exhibitions, conventions and other MICE events ramp up in Kuala Lumpur. The Kuala Lumpur Convention Centre is already poised to hold 20 conventions in 2024 and will draw 32,000 delegates from around the world, signalling that Kuala Lumpur remains a preferred destination for event planners.

However, at the current high ADR levels and with significant incoming supply in the near term, we expect RevPAR growth to moderate slightly going forward. Over the long term, Kuala Lumpur’s strengths as a strategic business hub and the government’s commitment to improving key infrastructure are expected to bolster investor confidence.

Note: Kuala Lumpur Hotels refers to Kuala Lumpur's luxury and upscale hotel market.

Also Read

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