Are Some Hotels in KL Closing?

Some have claimed that 21 hotels are going to close down in KL. The rumour list goes like this:

1)         Swiss Garden Hotel – closing down March 31, 2019 for renovation
2)         Royale Bintang Bukit Bintang – up for sale. Closing down March 31, 2019
3)         W Hotel Kuala Lumpur – up for sale. Potential china buyer has been identified
4)         Sheraton Petaling Jaya – up for sale
5)         Grand Season Hotel – closed down
6)         Holiday Inn Glenmarie – rumored may close too
7)         KL Journal – up for sale
8)         Pullman Putrajaya – closing down for renovation
9)         Travelogue Hotel, 3 stars. aka Geo Hotel, 203 rooms, f/hold, RM130million
10)       Ibis Hotel, 3 stars, Jln Yap Kwan Seng, 684 rooms, 3 stars, RM500 million
11)       Renaissance Hotel, 5 stars, 912 rooms, f/hold, RM1. 2 billion
12)       Holiday Inn Express, 3.5stars, 386 rooms, f/hold, RM365 million
13)       G Tower, 5 stars, Jln Tun Razak, 32 storey commercial, f/hold, RM1. 2 billion
14)       TRX 5 Stars Hotel, 4 stars, 480 rooms, 26 storeys, complete by end 2021,                           RM1. 25 million per room key
15)       Four Points by Sheraton, 4 stars, Jalan Petaling KL, 4 stars, f/hold, 318 rooms,             opening in Apr 2019, RM 280 million
16)       Verdant Hill Hotel, 223 rooms, 4 stars, f/hold, 20 storeys, RM180 million
17)       Maya Hotel, Jln Ampang, 4 stars, boutique urban hotel, 207 rooms, f/hold,              RM 235 million
18)       W Hotel, 5 stars, Jalan Ampang, 25 storeys hotel, 150 rooms, f/hold, USD                100 million
19)       Four Season Mall, high end mall, KL, 6 storeys, f/hold, Robinson Shopping                     Mall as anchor tenant, RM550 million
20)       Colonial Beach & Spa Resort, 4 stars, 176 rooms, f/hold, RM 55 million
21)       Hotel Sentral Group (10 properties)

Not all of the above can be confirmed but Grand Seasons, KL will cease operations by end February 2019 owing to prolonged financial challenges and issues. The President of Malaysia Budget Hotel Association views the golden years for hotels was 2008 to 2012 and it has been downhill thereafter.

Tourism is a major revenue earner for Malaysia. According to Tourism Malaysia, total tourist arrivals has dropped 6.5 million from 25.9 million in 2017 to 19.4 million is 2018. Tourists are also spending fewer days in Malaysia. Inbound tourists  from China dropped 30-35% in October 2018. In addition, Airbnb-like accommodations have outpaced expansion in tourist arrivals. Coupled with that, increase in minimum wage and electricity tariffs have made hotel operations difficult to remain positive.

Perhaps, the Government through Tourism Malaysia (or the Ministry) need to re-strategise operational issues and come up with a solid blueprint for market development.

References:

1. Over 20 KL hotels claimed to be closing due to low tourists, www.feedme.com.my

2. As age catches up, Grand Seasons KL to halt operations, www.theedgemarkets.com