Hospitality sector supply unchanged at 2011 end

KUALA LUMPUR (Mar 1): During the fourth quarter (4Q), the total supply of 3-star and 5-star hotels in Kuala Lumpur stood unchanged from the previous quarter at 24,417 keys, while serviced apartments remained at 5,914 since the previous period.

According to a report by CB Richard Ellis (Malaysia) Sdn Bhd (CBRE), its last projections for the hotel industry estimated 3,996 new hotel rooms would be completed by end of 2014; however, some projects may be delayed.

The report also stated that higher Revenue per Available Room (RevPAR) were posted by 4-star and 5-star hotels, an increase in this quarter compared to the same period in 2010. Occupancy rates for 3-star, 4-star and 5-star hotels have improved in 4Q, posting 72%, 79% and 75% rates respectively. The occupancy rates for all three grades were up from 68% from the last quarter to 75% in 4Q2011.

Total stock of serviced apartments in Kuala Lumpur during 4Q2011 stood at over 5,900 in 32 developments, while the average occpancy rates at selected serviced apartments covered by CBRE was 72% in the same quarter. Average room rates 4Q2011 was RM277 per night. Total ongoing projects expected to be completed in 2012 could add 1,022 rooms to the market supply.

According to the National Key Economic Area (NKEA) lab for tourism, it identified shopping as a key draw for tourists. In promoting Malaysia as a duty-free shopping hub, the country is maintaining its target of 36 million annual visitors by 2020 with an estimated revenue of RM168 billion, up from 24.6 million tourists with revenue totalling RM56.4 million in 2010.

The Equatorial Hotel on Jalan Sultan Ismail — which closed on April 1, 2011 for redevelopment — will likely be upgraded for greater density, with plans for an additional office tower.

Banyan Tree Signatures Kuala Lumpur — which will open in 2015 — will house 441 units of private residence, 51 serviced residence and 50 hotel units in a 55-storey tower.

Sunrise Bhd has announced its plans for its new landmark project — dubbed Angkasa Raya — located across the Petronas Twin Towers. Angkasa Raya sits on the 1.6 acre  of site of the former Wisma Angkasa Raya, and will encompass 65 floors of Grade A office space, a luxury hotel with 200 5-star suites, 280 high-end serviced residences, signature retail space and three sky levels. The project will be launched in 4Q2012, and is expected to be completed in 2016.

Best Western Premier Dua Sentral — located in Kuala Lumpur Sentral — will provide 507 rooms to the market, although the launch date has been delayed from 4Q2011to 1Q2012.