Doors still open for the application of selected commercial developments in KL

KUALA LUMPUR (March 30): Although Kuala Lumpur City Hall (DBKL) has restricted approvals to develop new hotels, luxury apartments and office developments, the authorities will still allow applications for selected mixed commercial developments, said Federal Territories Minister Tengku Adnan Tengku Mansor.

“The hoteliers in Kuala Lumpur saw the occupancy rate dip by about 10% to 15% last year. The restriction is to help the hoteliers maintain their occupancy rate,” he said during a press conference after the signing ceremony between Harmoni Perkasa Sdn Bhd and Banyan Tree Hotels and Resorts today.

“The decreasing occupancy rate in the hospitality industry is happening all over the world due to dampened market sentiment. We are trying to restrict the application of office blocks, high-end apartments and new hotels – especially standalone hotels to curb the oversupply problem,” he explained.

However, he noted that there were no other five-star hotel applications that were approved recently, except for the Royale Pavilion Hotel by Banyan Tree.

The 12-storey Royale Pavilion Hotel, which offers 337 rooms, is slated to start its operation in 2Q2017.

The hotel will have a bridge that connects directly to the Pavilion shopping mall.

Tengku Adnan said the Federal Territories Ministry is looking at rebranding Kuala Lumpur into a destination for tourists who want to come to Malaysia.

Foreign investments and bringing in renowned hospitality brands will be great catalysts to attract tourists to the federal capital, he added.

Meanwhile, he said the authorities are still encouraging mixed commercial developments as there is still demand for commercial and office spaces.

DBKL had announced the freezing of applications for new hotels starting from Feb 24 this year until further notice as there are more than 900 hotels in Kuala Lumpur, which have heightened competition for tourists.

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