KOTA TINGGI (June 5): Destination Resorts & Hotels Sdn Bhd group of companies (DRH) has announced the entry of Mandarin Oriental as the latest hotel operator at its Desaru Coast resort development, located in Johor.

Desaru Coast is a 4,000-acre resort development that is being developed by Desaru Development Holdings One Sdn Bhd — a subsidiary of DRH. DRH is the subsidiary of Khazanah Nasional Bhd. 

The property, formerly operated as One&Only Desaru Coast, officially joined the Mandarin Oriental portfolio this month. The hotel is currently named The Sireya and will be rebranded as Mandarin Oriental Desaru Coast in January 2026.

“We will continue to evolve the property, [and] to propose new experiences in dining, wellness, accommodation, services and entertainment,” said Mandarin Oriental Hotel Group group chief executive Laurent Kleitman at the signing ceremony held at Desaru Coast on Thursday.

In addition, Mandarin Oriental will add 40 branded residences units as part of Mandarin Oriental, Desaru Coast, for people to purchase. “This is important because, while a hotel is nice, having people actually living here or coming often gives the destination a different feel. We need visiting guests and travellers, but having people who actually live here brings a different atmosphere to the resort,” Kleitman told the press. However, further details of the branded residences are not yet available, as it is still in the planning stage. 

Besides Mandarin Oriental’s entry, DRH is also working on its growth plan for Desaru Coast, and one of its targets is to double its keys by 2027. Currently, the resort development holds about 800 keys.

This goal will be supported by the introduction of Dash Resort Desaru Coast, a branded residences development by Riaz Group, and an Ormond branded hotel by ECM Libra Group Bhd (KL:ECM). These projects are pending approval, and are expected to break ground this year. 

Desaru Coast will also be bolstered by the Johor-Singapore Special Economic Zone (JS-SEZ), as the area has been identified as one of the flagship areas, said Johor Menteri Besar Datuk Onn Hafiz Ghazi during his speech in Thursday’s ceremony. Onn Hafiz added that it is the right time to invest in Johor, as the state is also upgrading its infrastructure. 

“The federal government has allocated RM5 million to ensure that the JS-SEZ areas, including Desaru (are equipped with world-class infrastructure). We’ve started widening the North-South Highway, upgrading the Senai-Desaru Expressway, and the Rapid Transit System is expected to be operational by early 2027,” he shared.   

Onn Hafiz added that the state government is also focused on developing human capital to ensure JS-SEZ’s success. “We’re collaborating with Johor Talent Development Council and working closely with the hotel industry to ensure our workforce is well-trained.”

Meanwhile, DRH chairman Datuk Mohamed Nasri Sallehuddin said DRH will continue to strengthen Desaru Coast’s position as a key travel destination.

“Desaru Coast began in 2011 as a bold vision by Khazanah, driven by the belief that the south-eastern coastline could be reimagined as both an international and tourism for the state and country, while delivering lasting value to local communities. More than 10 years on, with continued support from Khazanah, our ambition remains unchanged, as we continue to strengthen the destination’s value and position Desaru Coast on a global stage,” he said. 

Today, Desaru Coast has four hotels (The Westin Desaru Coast Resort, Hard Rock Hotel Desaru Coast, Anantara Desaru Coast Resort & Villas, and The Sireya), as well as The Els Club Desaru Coast, Adventure Waterpark Desaru Coast, Desaru Coast Conference Centre, and the Desaru Coast Ferry Terminal.

DRH also continues to explore alternative ways to enhance its appeal by partnering with Singapore-listed SUTL Enterprise Ltd’s ONE°15 Marina to operate wet and dry berths at Desaru Coast Ferry Terminal, and hosting Ombak Festival — a music, arts and culture festival with a line-up of international artists.