The MAH predicted that hotel occupancy will exceed 60 percent in Q3 2022
According to CBRE Asia Pacific’s latest Kuala Lumpur Hotel Market Outlook & Prospects 2022 report, more than 3,000 new hotel rooms and hotel suites are slated to open in Kuala Lumpur this year. Also, between 2023 and 2025, 1,260 new hotel rooms will be available.
Asset quality, upside story, and buyer profile are crucial in obtaining sufficient funding in the current lending market for hospitality assets across the area. Financial institutions are expected to stay interested in participating in Malaysia’s hospitality sector’s growth trajectory as the economy and tourism industry improve this year.
The return of Singaporean visitors, which has historically been Malaysia’s largest market, accounting for an average of 46 percent of overall arrivals between 2015 and 2019, is likely to drive tourism recovery in 2022.
For more than a year, hotels, restaurants, casinos, golf resorts, entertainment centres, and sporting venues have been closed in the government’s and public health officials’ effort to minimize, and eventually stop, the spread of the coronavirus. These businesses acted promptly to reduce the impact on their operations, including cutting staff and costs, as well as turning digital, until they were given permission to reopen.
The Malaysian Association of Hotels (MAH) estimates that the industry lost MYR10 billion (USD2.3 billion) in revenues last year, which was an increase from 2020’s MYR6.3 billion (USD1.4 billion). Moreover, during the Movement Control Order in 2020, the industry lost approximately MYR300 million in revenue every two weeks.
The MAH predicted that hotel occupancy will exceed 60 percent in Q3 2022, which can be attributed to international visitors. Entry regulations have been simplified in contrast to last year’s, which may raise demand for tourism products, as reported by The Sun Daily.
A week after Malaysia reopened its borders after two years, it has been observed by hoteliers that local and international visitors are now willing to spend more on higher-end rooms when they travel.
CBRE Hotels associate director Teo Junrong emphasised that before the pandemic, tourists were more price-sensitive, but with safety now being their top priority, they are more inclined to spending a bit more to ensure their safety.
The Property Report editors wrote this article. For more information, email: [email protected].
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