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Strong Outlook of Malaysian Economy Spurs Hotel Boom

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Thinkpad (AXcess News) Kuala Lumpur -A bullish outlook for the economy and tourism industry in Malaysia is fueling new hotel construction in Malaysia's capital city, Kuala Lumpur.

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Microsoft At least four new hotels are under constructionwith inner-city property prices surging for the first time since the regional economic crisis of the late 1990s.

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Laptop Computers The Four Seasons, Grand Hyatt, Traders and Novotel will soon tower alongside the newly-opened 335-room Impiana KLCC Hotel and Spa, said Ivo Nekvapil, chairman of MIHR Consulting that compiles data on the hotel industry.

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Laptop Computer Impiana KLCC, located just a short stroll from the twin towers, the world's second tallest building, has already begun constructing a second tower with nearly 200 more rooms to be completed later this year, he said.

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Desktop Computer The plans for more hotels in what is easily Malaysia's costliest piece of real estate come amid a rosy forecast for the economy and the tourism industry.

Notebooks "From the business perspective, the economy is on the growth path," said Research Inc (Asia) property consultancy managing director Lim Lay Ying. "Because of that, you have more people coming here for business trips."

Lenovo Economists forecast Malaysia's economy to grow by a 5.5 percent in 2006, fuelled by firm commodity prices and buoyant domestic demand.

Hard Drive Malaysia's central bank this week said it expects stronger growth for 2006, supported by a stable global economy and better demand for electronics.

Travelstar Analysts predictthat demand will continue to remain firm as room rates for top hotels here are low compared to the rest of the region, with top-class rooms going for half the price of their equivalents in Singapore and Hong Kong.

Gateway "Generally the new hotels that have come onstream, that are in the vicinity of the (tower complex), will do well as most tourists would like to be within walking distance of shopping centres and amenities," said the analyst.

Laptop Parts At least 23 high-end condominiums are also being constructed around the twin towers, including one plush development which features private swimming pools for each of its 94 units.

Software In two years, the price of top condos has doubled to more than 1,000 ringgit (269 dollars) per square foot, with luxury studios now starting at 500,000 ringgit -- enough to buy a four-bedroom family house in the suburbs.

Hard Drives Malaysia counts tourism as its second-largest foreign exchange earner and is hoping for a record 20 million tourist arrivals next year, up from 15.7 million in 2004.

Electronics Among the new projects competing for that business will be the Traders Hotel, near the new Kuala Lumpur Convention Centre, which Nekvapil said will have 571 rooms and is slated for completion by July 2006.

Canon The 286-room Novotel Hydro Majestic, located halfway between the twin towers and the popular Bukit Bintang shopping district, will be opened in October 2006.

Desktop Pc A 265-million-dollar, six-star Four Seasons hotel and apartment complex is being planned by Singapore hotelier Ong Beng Seng, in a joint venture with Sultan Sharafuddin Idris Shah of central Selangor state.

Desktop Computers A Grand Hyatt, located in the city's "Golden Triangle" business and hotel district, has been mothballed for some time and is likely to be ready in 2009.

Think Pad Besides the new hotels, existing properties in the capital have also been rebranded. Just a stone's throw away from the towers, the Hotel Maya has undergone a glitzy revamp to become a boutique resort.

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