Kuala Lumpur’s hotel scene is set to expand significantly this year, with seven new properties expected to launch, adding a total of 2,520 rooms to the city’s hospitality inventory, according to a report by JLL.

The report highlights that luxury and upscale hotels are leading the supply growth in the capital, reflecting continued investor confidence in the high-end travel market. The increase in supply coincides with Malaysia’s broader tourism push ahead of the Visit Malaysia 2026 campaign.

“Furthermore, investments into new mega-infrastructure projects with a hospitality component have been announced, such as the Golden Triangle and Palace of the Golden Horses, which will drive supply in the medium- to long-term,” JLL stated.

Despite a muted hotel capital market since 2024—with no major transactions recorded—owners are reportedly holding onto assets, anticipating an upturn in tourism.

The report also noted a minor market correction in trading performance, with luxury RevPAR dropping by 3.1% year-on-year, driven by a 3.8 percentage point dip in occupancy.

While global economic uncertainty may pose headwinds, the Malaysian government is optimistic that its aggressive tourism promotion strategy will attract 35.6 million tourists by 2026.

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