Kuala Lumpur’s hotel market is poised for significant growth in 2025, with an expected addition of 2,261 keys, bringing the total hotel stock in the city to 40,892 keys. This growth follows a 1.4% year-on-year (YoY) increase in hotel room stock in Q4 2024, which reached 38,631 keys across the 3-Star, 4-Star, and 5-Star hotel segments.
Key Market Insights from Savills Report
The increase in hotel supply in 2024 was mainly driven by the 4-Star and 5-Star hotel segments, which saw a 1.8% rise, totaling 31,005 keys in Q4/2024. This addition was mainly from two new hotel completions: Imperial Lexis Kuala Lumpur (5-Star: 272 keys) and Courtyard by Marriott Kuala Lumpur South (4-Star: 278 keys).
The 3-Star segment remained stable with no new hotel completions, contributing 7,626 keys.
2025 Outlook: Growth and Competition
The hotel stock in Kuala Lumpur will expand by 5.9% in 2025, adding 2,261 keys to the market. This will consist of 630 keys in the 4-Star segment and 1,631 keys in the 5-Star segment.
The competitive landscape in the hotel market remains intense, with further expansion expected. By the end of 2027, an additional 1,001 keys are projected, resulting in a total of 41,893 keys and a YoY growth of 2.4%.
Drivers of Growth
International hotel chains such as Hyatt, IHG, Hilton, and Accor are significantly contributing to this expansion, alongside the entry of new brands like Langham, all of which are strengthening their presence in Kuala Lumpur’s hospitality sector.
Conclusion
With a robust pipeline of hotel developments and strong demand in Kuala Lumpur’s growing hospitality market, the city is set to remain a major destination for both leisure and business travelers. The influx of new keys in 2025 and beyond underscores the ongoing investment in the sector, driven by global hotel brands and an evolving hospitality landscape.
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