PETALING JAYA (April 30): Hotels that have been set up to open this year have all been postponed in light of the Covid-19 pandemic, said Malaysian Association of Hotels (MAH) CEO Yap Lip Seng.
Housing loan applications and approvals surged in 2019
KL residential transactions up 1.1% in 2019
Primary market sales improved amid fewer new launches
Sharp rise in Selangor serviced apartment overhang
Demand for warehouses up but industrial overhang continues to rise
Johor residential property transactions grew in 2019
Serviced apartment prices under pressure as supply surges
Penang reduced serviced apartment overhang by 50% in 2019
He also foresees a decrease of 30% to 50% in hotel room supply up to 2021, Yap told EdgeProp.my today in response to the hotel supply data in the 2019 Property Market Report released by the Valuation and Property Services Department (JPPH) yesterday.
The 2019 Property Market Report stated that 113 hotels (23,843 rooms) were in the incoming supply while there were 3,405 existing hotels across the country in 2019 offering some 267,290 rooms. There were also another 74 hotels (14,810 rooms) at the planned supply stage.
Citing MAH's recent survey, Yap said 15% of hotels in the country are expected to close permanently while another 35% will close temporarily indicating an immediate reduction of up to 50% in inventory.
“Hotels set to open this year are all postponed. Our estimate would be a reduction of between 30%-50% up to 2021. And the best-case scenario recovery by mid-2021 will drive re-openings,” Yap shared.
In 2019, the hotel sector contributed 24% to tourism receipts in Malaysia or RM20.67 billion.
“This amount would be reduced at a minimum by 60% to 70% for 2020. On the ground, a more serious concern is the economic spinoff from the hotel sector.
“Hotel earnings in theory would benefit up to another seven levels down the line, from employees to suppliers, vendors, service providers, local businesses and so on, which mean losses to the Malaysian economy would be high,” he said.
EdgeProp Malaysia will be hosting a virtual Fireside Chat titled "The Malaysian property market picked up in 2019! Could this be its last hurrah?" through Facebook Live on May 1 at 2pm.
Join us for more insights from Rehda president Datuk Soam Heng Choon, Rehda vice-president and Selangor branch chairman Zulkifly Garib and Rehda Johor branch chairman Datuk Steve Chong Yoon on the market outlook post-MCO!
Stay calm. Stay at home. Keep updated on the latest news at www.EdgeProp.my #stayathome #flattenthecurve
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