Kuala Lumpur to see over 2,200 new hotel keys this year | Real Estate Asia
, Malaysia

Kuala Lumpur to see over 2,200 new hotel keys this year

One of the key openings will be the 527-room Parkroyal Collection.

There were no major hotel openings in Kuala Lumpur in the first quarter of 2022 as project delays and postponements persisted. 

According to data from JLL, a total of 2,240 keys are expected to enter the market for the rest of 2022, with the significant increase attributed to the backlog of openings from the last two years. Key upcoming openings include the 527-room PARKROYAL COLLECTION Kuala Lumpur, 210-room Pan Pacific Serviced Suites and 271-room Ascott Star KLCC Kuala Lumpur.

Here’s more from JLL:

International visitation reached a historic low in 2021, totalling just 134,728 which is a mere 0.5% of 2019 levels due to continued border closures. This was partially offset by a sustained pick-up in domestic demand since October 2021 when Malaysia officially lifted its interstate domestic travel ban. High vaccination rates also encouraged domestic travel despite the recent Omicron wave.

Despite a dismal 2021, there is growing optimism for a strong rebound in Malaysia’s tourism industry. This follows the recent reopening of international borders, since April 1st, 2022. Malaysia’s recent decision to remove COVID-19 testing for all inbound, fully vaccinated travelers is likely to provide a further boost to recovery in visitation.

RevPAR expected to see a strong rebound from 2021 lows

Revenue per available room (RevPAR) reached a record low of MYR 89 in 2021, which was just 21% of 2019 levels. As of YTD March 2022, however, RevPAR increased by 103.5% y-o-y to MYR 132, albeit the significant growth was also from a low base in 2021. Growth was driven by occupancy rates, which almost doubled from the same time last year.

On a month-on-month basis, RevPAR has been trending upwards since October 2021 when the interstate travel bans were lifted. With the reopening of borders and further easing of COVID-19 restrictions, we anticipate the rebound in international visitation to further drive the recovery in trading performance.

Outlook: Regional countries and domestic guests to drive recovery

Malaysia is anticipating two million international visitors and up to MYR 8.6 billion in tourism revenue in 2022 following the reopening of borders. The 1.6 billion MYR allocated for tourism initiatives under Budget 2022 is expected to help key tourism stakeholders cope with the expected rebound in visitation.

Initial recovery in 2022 will likely be driven by domestic guests and visitors from neighbouring countries, such as Singapore and Indonesia. The recent depreciation of the ringgit against major currencies has also improved travel affordability for international visitors, allowing Malaysia to better compete with other regional destinations, which have also reopened in recent months.


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


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