PETALING JAYA (April 12): Knight Frank Malaysia has been exclusively mandated to sell the former Holiday Inn Resort, said the real estate consultancy firm.
Being one of the key resort hotels in Batu Ferringhi, the management of the Holiday Inn Resort has decided to close its door after 41 years of operation last year.
The iconic landmark joined a list of hotels in the area that has been devastated by the Covid- 19 pandemic and the movement control order.
The hotel is located along Penang's second most popular tourist spot - Batu Ferringhi Street, which overlooks the Straits of Malacca and the Andaman Sea further north.
In a statement today, Knight Frank Malaysia said the sale of the four-star freehold property will come with two separate buildings – Ferringhi Tower and the Beach Wing, which includes an additional 7.69 acres of development land.
“We are excited to have been appointed as this prime beachfront hotel has so much potential," said Knight Frank Malaysia capital markets executive director James Buckley.
Buckley added that the hotel is sold with vacant possession - allowing it to provide flexibility for the new owner to renovate and rebrand either as an owner-operator or under an international brand name.
"There is potential for the purchaser to create two hotels," suggested Buckley, who added that the Beach Wing could be used as a more upscale locale with a direct beach frontage while the Ferringhi Tower at the rear could provide more affordable offerings.
“There is also a tremendous opportunity when investing in the hotel to expand by virtue of the contiguous vacant lands. This is a rare chance given that most of the hotels along Batu Ferringhi have limited land for additional facilities,” said Knight Frank Malaysia Penang Branch executive director Mark Saw.
"As the Covid-19 vaccination progress ramps up in Malaysia and across the world, investors are becoming more optimistic about the hotel sector," he opined, before adding that people are very keen to have a holiday once interstate travel is lifted.
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