![](\"http:\/\/i1.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2016\/01\/kuala-lumpur-hotel-market-1024x680.jpg?fit=1024%2C680\")
\nA dozen luxury hotels will enter the market before 2021<\/p>\n
\nA dozen luxury hotels will enter the market before 2021<\/p>\n
Kuala Lumpur\u2019s hotel market has had a tough 2015 with a drop in occupancy levels and a declining arrivals rate, but it is bracing itself for further turbulence in 2016 as a slew of new luxury supply is expected to enter the market in the next six years, reveals a\u00a0new joint study from C9 Hotelworks and Horwath HTL.
A dozen luxury hotels will enter the market before 2021 Kuala Lumpur\u2019s hotel market has...<\/p>\n","protected":false},"author":1,"featured_media":585,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-584","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property-news"],"jetpack_featured_media_url":"https:\/\/i1.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2016\/01\/kuala-lumpur-hotel-market-1024x680.jpg?fit=1024%2C680&ssl=1","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-9q","jetpack-related-posts":[{"id":782,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/what-the-new-year-has-in-store-for-indonesias-key-hotel-markets\/","url_meta":{"origin":584,"position":0},"title":"What the new year has in store for Indonesia\u2019s key hotel markets","date":"January 5, 2016","format":false,"excerpt":"\r Bali and Lombok have reportedly struggled with occupancy rates\u00a0in the last 12 months Long considered as\u00a0one of Southeast Asia\u2019s\u00a0most treasured tourist destinations, Bali over the years has attracted local, regional and international visitors to its beautiful shores and well-developed infrastructure. 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\nAfter performing solidly in 2014 with occupancy rates sat at over 70 percent, the Malaysian capital\u2019s hotel segment\u00a0spluttered as the fallout of the two Malaysian Airlines tragedies and the global slump in oil prices caught up with it.
\nMore: Cooling measures likely to continue in Malaysia
\nArrivals declined\u00a0by 9.4 percent, year-on-year,\u00a0in the first semester\u00a0of 2015, while arrivals from China declined a full 12 percent in the year to June 2015, although the Mainland still remained as the third biggest source market.
\nThe average daily rate (ADR) has been relatively stagnant over the past couple of years, just growing around the rate of inflation, which the report attributes to the relatively aged facilities in Kuala Lumpur\u2019s market limiting the price growth potential and the lack of new luxury brands attracting top tier visitors.
\nThis latter issue is about to be tackled head-on as an unprecedented 12 new luxury hotels are scheduled to enter the market between now and 2021.
\nSource: Horwath HTL
\nInevitably, this slew of new supply is expected to trigger a further short term decline in occupancy levels.
\nAverage room rates, however, should start to rebound and grow at a healthy pace as the new supply is believed\u00a0to position their room rates aligned to their product and brand standards \u2013 they won\u2019t be artificially discounting rates just to fit in with the rest of the market.
\nMore: Why the Kuala Lumpur market is on the cusp
\nThis should bring up room rates all over the city as luxury hotels in Kuala Lumpur generally set the barometer for the market as a whole; the middle and lower tier hotels will then position their own room rates with a certain gap behind them.
\nOther efforts are being made to increase the attractiveness of the city and hotel market for both leisure and business travellers.
\nThe Kuala Lumpur International Airport will be greatly expanded into a economic hub for logistics and aerospace development, as well as leisure and recreational facilities over the next 15 to 25 years.
\nThe city\u2019s infrastructure is also being improved in line with Malaysia\u2019s Economic Transformation Programme and Kuala Lumpur Master Plan, including a high speed rail link built between the capital and Singapore, which will reduce travel time between the cities to just 90 minutes.
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\nImage is\u00a0by\u00a0WarzauWynn\u00a0and used under a Creative Commons licence
\n
\nSource : property-report.com
\nRead more…Will KL\u2019s new luxury supply revive the city\u2019s spluttering hotel segment?<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"