With the opening of The Langham, Kuala Lumpur set for 2027, the Malaysian capital is firmly top of mind for hotel developers, owners and operators.
The Langham, Kuala Lumpur will join a slew of luxury hotel developments that will see 1,970 rooms added in the pipeline, according to CoStar.
The Langham’s arrival is a sign of the times for the city’s ripening “as a gateway city in a thriving part of the world,” said Bob van den Oord, CEO of Langham Hospitality Group.
André Jacques, Langham’s regional director of sales and marketing in the Pacific, said Kuala Lumpur’s status as a major business hub in Southeast Asia and cultural melting pot makes it an ideal location for The Langham.
“Kuala Lumpur is a rapidly growing city and holds immense promise for the hotel industry, with its dynamic economies, cultural richness and expanding travel market,” he said.
The 198-room hotel is a joint venture between Langham Hospitality Group and Artisan Hospitality, a subsidiary of Singapore’s Oxley Holdings. The hotel will occupy the upper half of the Oxley Towers KLCC complex, which is under construction in the central business district’s Golden Triangle.
Growing luxury
Kuala Lumpur is gradually catching up with its urban neighbors in the Asia-Pacific such as Bangkok and Singapore in luxury hotel offerings. Other luxury hotels in the development pipeline include a Waldorf Astoria for 2026 and a Kimpton Hotels & Restaurants’ property in The Exchange TRX financial district in 2025.
“Luxury is in vogue in [the city] with a number of new openings,” said Matthew Burke, STR’s regional director for Asia-Pacific.
According to CoStar data through October, revenue per available room for Kuala Lumpur’s luxury hotels peaked in 2024 in August at 592.45 Malaysian ringgit ($133.64) in 2024, a 23.5% year-over-year increase. Average daily rate at Kuala Lumpur's luxury hotels peaked at 743.78 ringgit that same month. The city's luxury hotel occupancy dipped slightly in October of but hovered between 65% and 80% throughout the year.
In total, there are 6,209 hotel rooms across 20 properties currently under construction in Kuala Lumpur, with one third of them located in the luxury segment.
Investors are clearly ready to meet heightened demand for luxury hotels, even though several anticipated hotel openings are delayed, said Marina Bracciani, vice president of hotel research, Asia-Pacific, at business advisory JLL.
“The delays in openings have been mostly due to the pandemic and labor challenges. However, most of the future supply is being developed now, and we expect them to open in the next two to three years,” Bracciani said.
In early December, Malaysian real estate investment fund Pavilion REIT Management announced it planned to acquire two hotels in Kuala Lumpur for a total of 480 million ringgit.
Hilton is opening the 488-room Conrad Kuala Lumpur in 2026, four years after its initial scheduled opening. It also will be in the Golden Triangle district and part of a mixed-use development.
Increased tourism
Alexandra Murray, area vice president and regional head of South East Asia at Hilton, said Malaysia is “being energized by the rising appetite for intra-regional travel within Asia. Greater connectivity to neighboring countries and increased flight frequencies have been key in driving air traffic.”
A total of 18.4 million visitors came to Malaysia in the first nine months of 2024, thanks in part to the removal at the end of 2023 of visa requirements for Chinese and Indian travelers.
That was “a huge factor that pushed up the inbound,” said Velancia Teo, STR’s sales manager for South and Southeast Asia.
“The relaxation of visa policies contributed to over 2.2 million Chinese arrivals in Malaysia in the first eight months of this year, a staggering 160% increase compared to the same period last year,” Murray said. “We believe the city is poised to become a major hub for luxury travelers who are increasingly favoring distinctive and immersive experiences. Recognizing these long-term growth opportunities, we are focused on expanding the presence of our brands in the country to ensure that there is a brand for every traveler.”
Malaysia already represents Hilton’s second-largest portfolio in Southeast Asia, with 24 hotels across brands. Murray said the debuts its luxury Waldorf Astoria and Conrad brands is part of continuing expansion nationwide.
A weaker currency also is helping attract inbound guests.
Cleavon Tan, JJL’s senior vice president of hotel advisory and asset management, said despite short- to medium-term oversupply concerns in Kuala Lumpur's hotel market, the upswing in RevPAR and ADR for luxury brands will continue, particularly in the current business tourism climate.
“The hospitality sector’s robust performance is also significantly influenced by corporate demand. The resurgence of face-to-face conferences and major business events has led to increased occupancy in luxury hotels,” he said.
Tan also pointed to Malaysia Airports' efforts to enhance flight frequency and introduce new routes to Kuala Lumpur.
Langham Hospitality Group’s Jacques said government initiatives and the increase in airline capacity is “just the tip of the iceberg.”
“We see tremendous potential in not just Kuala Lumpur but in Malaysia,” he said.
Accor is another international hotel group with expansion plans in the country. Its hotel brands Sofitel, Banyan Tree and Pullman are already open there and soon Accor will debut its Grand Mercure brand in the first quarter of 2025.