IOI Properties to bring Puchong's first international five-star hotel to RM12 bil IOI Rio City

PETALING JAYA (July 30): IOI Properties Group Bhd will bring Puchong's first internationally branded five-star hotel to its RM12 billion IOI Rio City development, as the property developer expands its investment property and hospitality portfolio to strengthen recurring income.

At the MoU signing on Thursday, the group said that it had signed a hotel operations and management agreement with Marriott International to develop the 324-room The Westin Puchong, which is targeted to open by the end of June 2030. The hotel will occupy the upper floors of a mixed-use tower within Rio City Town Centre Phase 1, complement the existing Four Points by Sheraton Puchong and serve as the hospitality anchor of the remaining 100-acre IOI Rio City master plan.

The project reinforces IOI Properties' strategy of building larger recurring-income streams from its investment property and hospitality businesses alongside its traditional property development operations.

Recurring income takes a bigger role

Recurring income has become an increasingly important contributor to IOI Properties' earnings as the group expands its portfolio of hotels and investment assets. Its Hospitality & Leisure portfolio currently comprises nine hotels with 3,075 rooms, and is expected to grow to 3,982 rooms by 2030 as The Westin Puchong, the 360-room W Singapore – Marina View and other projects in the pipeline commence operations.

IOI Properties group chief operating officer for property investment Chris Chong said The Westin Puchong would strengthen Bandar Puteri Puchong's position as an upscale business and leisure destination while supporting the group's long-term recurring-income strategy.

"The Westin Puchong will mark the arrival of the first internationally branded five-star hotel in Puchong, anticipated to open its doors by the end of June 2030," he said, adding that the hotel is expected to create about 220 jobs.

Chong said the combined contribution from the group's Property Investment and Hospitality & Leisure divisions increased to 52.8% in the first nine months of FY2026 from 15.2% in FY2021, reflecting the growing importance of recurring-income businesses within the group.

Marriott International vice-president for hotel development (Asia Pacific excluding China) Andree Susilo said the agreement reflects Marriott's confidence in Malaysia's hospitality market and builds on its longstanding partnership with IOI Properties, which already has nine Marriott-branded properties in operation and another under development.

Hospitality anchor for RM12 bil IOI Rio City

The Westin Puchong will serve as the hospitality anchor of IOI Rio City, the final development phase of the 930-acre Bandar Puteri Puchong township.

Planned over 12 years with a projected gross development value (GDV) of RM12 billion, the 100-acre mixed-use master plan is intended to transform the area from a local entrepreneurial hub into an international business centre.

Its key commercial components include IOI Mall Rio, a 5½-storey retail mall offering more than one million sq ft of net lettable area, a standalone 30-storey Grade A office tower, and The Westin Puchong, which will incorporate meeting and banquet facilities targeting corporate and meetings, incentives, conferences and exhibitions (MICE) demand.

Mixed-use precinct continues to expand

IOI Rio City is being developed alongside an established mix of residential, commercial and recreational projects within Bandar Puteri Puchong.

Existing developments include the 632-unit 2 Rio Residences, the 307-unit Boxwood Residences, Skyloft Avenue comprising 84 four-storey shop offices, and the 10.93-acre Town Park @ Bandar Puteri Puchong. Upcoming projects include Alyvia Residences, which will add 598 serviced apartment units, and The Cube Plus, a 77-unit shop office development that was fully sold during its launch phase.

The development is served by the Perindustrian Puchong and Bandar Puteri LRT stations, providing rail connectivity across the Klang Valley.

Backed by infrastructure investment

IOI Properties said it has invested more than RM90 million in infrastructure upgrades since 2016 to support the township's continued growth.

The works include upgrades to the main interchange, a flyover linking the Lebuhraya Damansara-Puchong (LDP) to Lebuh Puteri Puchong, underpasses into IOI Rio City and beneath the Rio City Interchange, covered pedestrian bridges, signalised crossings, new walkways and LED street lighting.

Chong said The Westin Puchong is targeting Green Building Index (GBI) Gold certification through eco-efficient materials, energy-conserving mechanical systems and operational waste management processes. The wider IOI Rio City master plan adopts a 15-minute city concept, with homes, workplaces, retail and leisure facilities located within walking or cycling distance.

The township plan incorporates dedicated cycling paths, landscaped public spaces and covered pedestrian links connecting major buildings with nearby LRT stations, supporting IOI Rio City's vision of a more connected, transit-oriented urban centre.

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