Kuala Lumpur set to add 4,600 hotel rooms by 2028

This represents a three-year CAGR of 2.1%.

Kuala Lumpur's hotel market is set for a wave of luxury-led supply as approximately 4,600 new rooms are expected to enter the market between 2026 and 2028, according to JLL. This represents a three-year compound annual growth rate (CAGR) of approximately 2.1%.

The consultancy said around 60% of future supply will be concentrated in the luxury segment, helping lift industry pricing and average daily rates across the market. Kuala Lumpur's total hotel inventory stood at about 70,000 rooms at the end of 2025.

Hotel trading performance continued to improve as international visitor arrivals increased. RevPAR in the luxury segment rose 1.1% year-on-year in 2025 and stood 22.7% above pre-pandemic 2019 levels. By March 2026, RevPAR was running 5.7% higher than the comparable period in 2024, supported by stronger occupancy.

JLL expects tourism initiatives including the Visit Malaysia 2026 campaign to drive record visitor arrivals and tourism receipts, while growth in medical tourism is expected to further support demand in Kuala Lumpur.