PETALING JAYA: Upscale hotels in Kuala Lumpur and its surrounding areas continue to see steady occupancy rates, despite a slight increase in average room prices, according to a property survey.<\/p>\n
With the weaker ringgit seen as a welcome boost for the tourism industry, hotels in the city are expected to continue to attract new investments.<\/p>\n
\u201cWith the extensive new supply of branded residence market, more new hotel entrants are expected,\u201d CH Williams Talhar & Wong\u2019s (WTW) said in a report on the sector.<\/p>\n
The firm said occupancy rates remained stable particularly on upscale hotels.<\/p>\n
\u201cRoom rates still have room to grow as Kuala Lumpur is relatively low compared with neighbouring countries.\u201d<\/p>\n
An estimated 27.44 million international tourists visited Malaysia during Visit Malaysia Year (VMY) 2014, up 6% compared with 2013.<\/p>\n
\u201cThere was a slight drop on mainland Chinese tourist arrivals subsequent to the MH accidents.<\/p>\n
\u201cIn the second half of 2014, occupancy remained at 70% and average room rate was RM267, up 4% compared with previous review period. This is mainly driven by increasing tourist arrivals after numerous promotional activities by Tourism Malaysia in VMY 2014,\u201d it said.<\/p>\n
It said upscale hotels remained stable and outperformed except for three-star hotels dropped to 61%, likely affected by the decline in mainland Chinese visitors.<\/p>\n
\u201cAverage room rate increased 4% to RM267. Market observed marginal growth in room rate for most hotels due to increasing operation costs.\u201d<\/p>\n
Menawhile, WTW, in its property market report 2015, said hotel supply in the Klang Valley was 167 hotels (48,047 rooms) in 2014, up 6.2% compared with 2013.<\/p>\n
\u201cUp to 2018, there are 15 new hotel developments including 12 five-star hotels. The developments include St Regis, Harrods, Four Season Place and Fairmont Hotel.<\/p>\n
\u201cFairmont Kuala Lumpur is expected to open in 2017 with 750 rooms. Moving into 2015, the weakening of Malaysian currency made the country appealing as a low-cost travel destination, which will spur the demand of hotel rooms,\u201d the report pointed out.<\/p>\n
<\/p>\n
*The Star<\/p>\n","protected":false},"excerpt":{"rendered":"
PETALING JAYA: Upscale hotels in Kuala Lumpur and its surrounding areas continue to see steady occupancy rates, despite a slight increase in average room prices, according to a property survey. With the weaker ringgit seen as a welcome boost for the tourism industry, hotels in the city are expected to continue to attract new investments. …<\/p>\n