KUALA LUMPUR (June 8): Radium Development Bhd (KL:RADIUM) is venturing into the hospitality sector by unveiling The Face Chancery Hotel at its upcoming integrated development in Ampang, Kuala Lumpur, expecting a RM20 million annual revenue contribution from the sector in the third year of operation.

The Face Chancery Hotel is part of the bigger Chancery development launched by Radium in 2023. The 51-storey project consists of 944 SoHo units and 145 hotel rooms, which will occupy levels 10 to 14. The project is slated for completion in 2028.

In the press conference on Monday, Radium group managing director Datuk Gary Gan Kah Siong said the company had invested RM135 million for the hotel, of which RM109.3 million came from the proceeds it raised from its initial public offering (IPO). The company launched its IPO in April 2023 and listed on the Main Market in May 2023.

“That is a significant allocation and it reflects a deliberate decision to build recurring income alongside our core property business. Property development is naturally project-based. Revenue comes in cycles. A hospitality component gives the group an additional income stream that strengthens long-term resilience and broadens how value is created over time,” Gan told the press.

He anticipated that the hotel operations would stabilise by the third year of operation. “With a projected occupancy rate of 55% to 65% for the first three years, it is projected to generate annual revenue of approximately RM20 million by the third year…Ampang continues to grow while branded hotel supplies remain limited in this corridor. The timing is right.”

The Face Chancery Hotel is a collaboration between Tradisi Emas Sdn Bhd, a wholly-owned subsidiary of Radium, and The Face Hospitality by The Face Hotels & Resorts Sdn Bhd. 

Under the partnership, Radium will be the hotel’s operator while The Face Hospitality is playing a consultant role.