Kuala Lumpur hotel supply to grow by 1.6% in 2023

A total of 1,685 keys are expected to be added to the market this year.

Kuala Lumpur had a total of 48,404 hotel and serviced apartment rooms by the end of 2022. As of YTD September 2023, JLL data revealed 1,172 rooms have entered the market, 70% of which were opened in 3Q23.

The three new hotels are the 161-room Ibis PJCC Petaling Jaya, the 250-room Hyatt Place KL Bukit Jalil and the 406-room Renaissance KL Hotel & Convention Centre.

Here’s more from JLL:

The year will conclude with one more hotel opening, bringing the total openings this year to 1,685 keys, which represent a 1.6% y-o-y growth. The last hotel opening this year will be the 513-room Four Points by Sheraton KL City Centre, which is redeveloped together with the new Renaissance KL Hotel & Convention Centre from the previous 1000-key Renaissance Kuala Lumpur.

Strong recovery in occupancy backs robust trading performance

As of YTD September 2023, Kuala Lumpur luxury hotels have registered a revenue per available room (RevPAR) growth of 72.3% y-o-y. This growth is attributed to both occupancy, which grew by 23.9 percentage points (ppts) from 43.1% to 67.0%, as well as an average daily rate (ADR) growth of 10.9% to MYR 627.

Luxury hotels in Kuala Lumpur have continued to ramp up in occupancy while holding rates steady, which has led to strong RevPAR growth that outperformed 2019 levels by 1%. This was supported by a strong base of domestic corporate demand as well as a steady recovery in leisure demand.

Outlook: Occupancy gradually closing gap with pre-pandemic levels

Weighed down by slower global economic growth, Kuala Lumpur continues to anticipate pent-up leisure demand from the return of Mainland Chinese tourists to mitigate slowing corporate demand from around the region.

Nonetheless, the recovery outlook for Kuala Lumpur remains bullish as exhibitions, conventions and other MICE events ramp up in Kuala Lumpur. The Kuala Lumpur Convention Centre is already poised to hold 20 conventions in 2024 and will draw 32,000 delegates from around the world, signalling that Kuala Lumpur remains a preferred destination for event planners.

Note: Kuala Lumpur Hotels refers to Kuala Lumpur's luxury and upscale hotel market.

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