Kuala Lumpur hotel supply to increase by 7.9% in 2024

Eight new hotels are expected to enter the market in the second half of the year.

As of YTD June 2024, JLL data revealed that four hotels, representing 1,109 keys, had opened in Kuala Lumpur. Supply expanded by 2.3% as a result.

For the remainder of the year, 2,787 keys from eight hotels are expected to enter the market. Assuming that all projects materialise, supply is expected to grow by 7.9% in 2024.

Here’s more from JLL:

As of YTD June 2024, Kuala Lumpur hotels have registered a significant improvement in average revenue per available room (RevPAR), as occupancy rose in tandem with higher tourist demand and ADR remained elevated.

Hotel capital market in Malaysia was quiet in the second quarter as no major transactions were completed.

Outlook: Significant investment makes for improved air connectivity

The Malaysia Airports Group has made intensive efforts to enhance the country’s network connectivity, resulting in KL International Airport (KLIA) now serving 70 airlines, exceeding the pre-pandemic level of 69 airlines.

The Malaysian Aviation Commission has predicted 2024 passenger growth to be between 10%–25% higher than 2023. Airlines’ filled seat capacity for 2024 showed a 13% increase over 2023, boosted by visa-free entry for Chinese and Indian passengers.