KUALA LUMPUR: The integrated Pavilion Kuala Lumpur development will culminate with a RM330 million five-star hotel — the Royale Pavilion Hotel — that will begin construction next month and is expected to be completed in June 2016.
The 329-room hotel is the last of the four major components of Pavilion Kuala Lumpur, which opened for business in September 2007. The three other major completed components are a retail mall, a 20-storey office tower, and two blocks of condos.
Royale Pavilion Hotel is owned by Harmoni Perkasa Sdn Bhd (HPSB) and designed by KL Pavilion Design Club.
“This is the first hotel that we own and operate. Like any other developer, we obviously have ambitions,” said HPSB director Lee Tuck Foo at the unveiling of the hotel yesterday.
Lee said funding of the new hotel will come from HPSB’s internal funds as well as bank borrowings.
Room rates have yet to be determined, but Lee said they will be competitive within the Bukit Bintang vicinity.
According to KL Pavilion Design Studio design director Tan Ping Han, the company targets occupancy rates to be modest in the short term.
“Through our research and looking closely with consulting firms, we are expecting the [occupancy rate] in the first year to be between 40% and 50%.”
Tan expects the rate to improve to 80% when operations have stabilised within three to four years.
Royale Pavilion Hotel will feature a banquet hall that can cater to 450 people, meeting facilities, leisure lounge, swimming pool and a gym and is primarily targeted at business travellers.
It is believed the development cost of the 329-room Royale Pavilion Hotel is comparable to The Westin Kuala Lumpur, which has a record of RM1 million per room, making it one of the most expensive hotel development projects in Kuala Lumpur.
This article first appeared in The Edge Financial Daily, on February 28, 2014.
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