This article first appeared in The Edge Malaysia Weekly on February 17, 2025 - February 23, 2025

THE four-star Impiana KLCC Hotel is up for sale, according to industry sources. The Edge is given to understand that the 519-room hotel on Jalan Pinang in the Kuala Lumpur city centre had received offers of RM250 million to RM300 million but these fell far short of the owners’ target of above RM400 million.

“The hotel is old. It is at a great location but there are many challenges. The building needs full refurbishment. I do not think they will get the price [of above RM400 million],” a source says.

Another source familiar with the deal says the 1.5-acre land the hotel sits on is worth about RM170 million. “The selling price would be about RM330 million or slightly below RM600,000 per room. The hotel rooms are larger than the typical 270 sq ft to 300 sq ft. About 80% of the rooms are almost 400 sq ft in size. Rooms at Traders Hotel Kuala Lumpur by Shangri-La are about 400 sq ft,” the source explains. 

The Edge understands that the hotel comes with vacant possession. In other words, the new owner will be buying a 100% stake in the hotel and bringing in its own operator.

Impiana KLCC Hotel is owned by Heritage Lane Sdn Bhd (Heritage Lane). A CTOS search on Heritage Lane lists KLCC (Holdings) Sdn Bhd and Astaka Mekar Sdn Bhd as its top shareholders. According to Magma Group Bhd’s (KL:MAGMA) 2023 annual report, Magma has a 20% stake in Heritage Lane via its wholly-owned Astaka Mekar. Magma was previously known as Impiana Hotels Bhd and the name change was undertaken in December 2023. According to its website, Magma manages Impiana Hotel Ipoh, Impiana Hotel Senai, Impiana KLCC Hotel and WOLO Kuala Lumpur.

“The hotel is located in a prime area in Kuala Lumpur and this naturally will attract investors to look into the asset due to its location. The price range for four-star hotels is around RM500,000 to RM600,000 per room depending on their location, condition and the amenities,” Henry Butcher Real Estate Sdn Bhd director Long Shi Chuen tells The Edge. For Impiana KLCC Hotel to fetch its desired RM400 million price tag, it would have to be valued at about RM771,000 per room.

Enquiries by The Edge reveal that Savills Malaysia is the exclusive marketing agent for the sale of the hotel. When contacted, Savills Malaysia declined to comment.

Long says the hotel will require refurbishment, including using energy-efficient materials to make it a sustainable building, improving common areas to bring the design up to date and upgrading the amenities. However, the top priority is to upgrade the rooms.

“The sale of this hotel may be happening at the right time as the government is embarking on Visit Malaysia 2026. The various promotional programmes undertaken will lead to an increase in the number of tourists to the country and help hotel occupancy rates and, in the process, boost hotel values. Thus, the sale could attract more interest from potential investors,” he explains.

Long highlights recent hotel transactions in the area, including the sale of the 150-room W Hotel Kuala Lumpur by IOI Properties Group Bhd (KL:IOIPG) in December 2023 at RM270 million (RM1.8 million per room), Pavilion Real Estate Investment Trust’s (KL:PAVREIT) acquisition of Pavilion Hotel Kuala Lumpur at RM340 million (325 rooms at RM1.05 million per room) and Banyan Tree Kuala Lumpur at RM140 million (55 rooms at RM2.5 million per room) at end-December 2024, as well as YTL Hospitality REIT’s (KL:YTLREIT) purchase of Stripe Hotel for RM138 million (184 rooms at RM750,000 per room) in September 2023.

“Those, however, are five-star hotels. A recent transaction for a four-star hotel would be Swiss Garden Hotel at RM170 million. The hotel has a total of 310 rooms at RM548,000 per room,” Long points out, adding that the average occupancy for hotels in prime areas is about 70%. 

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