Historical Performance and Key Developments
The market experienced a period of stable supply following the opening of the Grand Hyatt in 2012. However, a new wave of luxury hotels began entering the market after the opening of the St. Regis in 2016, followed by Four Seasons, Banyan Tree, Alila, and W Hotel in 2018. Future entries include Equatorial, Conrad, Kempinski, SO Sofitel, Jumeirah, Park Hyatt, and Regent over the next five years. 

Market Segmentation and Demand
Key areas of Kuala Lumpur, such as Bukit Bintang and KLCC, have attracted a larger supply of top-tier properties due to their appeal to high-end business and foreign leisure travellers. KL Sentral, being a primarily business-centric location, has captured significant corporate demand, further driven by a corporate shift in preferences. 

Performance Metrics (2014-2018) 

• Occupancy: Improved from 67% in 2015 to 71% in 2018.

• ADR (Average Daily Rate): Increased from MYR 497 in 2014 to MYR 556 in 2017, with a slight dip to MYR 548 in 2018.

• RevPAR (Revenue per Available Room): Grew from MYR 371 in 2014 to MYR 391 in 2018. 

Key Observations 

• Stable Supply Before 2018: Only one major addition (St. Regis) between 2012 and 2016.

• New Entrants in 2018: Four new luxury hotels opened, increasing competition and diversity.

• Rebounding Demand: A recovery in the corporate market post-2015 oil and gas crisis led to increased RND (Room Nights Demand) and occupancy rates.

• Rate Growth: Despite overall slow ADR growth (2.5% CAGR), significant ADR increases were seen in the KL Sentral market.

Location-Specific Insights 

• Bukit Bintang: Saw consistent occupancy and rate improvements, attracting both high-end leisure and business travellers.

• KLCC: Achieved the highest ADRs, catering to high-end corporate guests and leisure travellers. However, occupancy rates were impacted by declines in oil and gas sector demand in 2015-2016.

• KL Sentral: Outperformed Bukit Bintang in RevPAR by 2017, driven by strong corporate demand and a strategic location outside the city’s traffic congestion zones. 

Market Segmentation (2018) 

• Corporate: Bukit Bintang (26%), KLCC (31%), KL Sentral (29%)

• Direct FIT/OTA: Bukit Bintang (41%), KLCC (30%), KL Sentral (47%)

• Wholesale: Bukit Bintang (15%), KLCC (15%), KL Sentral (5%)

• MICE: Bukit Bintang (13%), KLCC (19%), KL Sentral (16%)

• Others: Bukit Bintang (5%), KLCC (5%), KL Sentral (4%)

Nationality Segmentation (2018) 

• Domestic: Bukit Bintang (27%), KLCC (19%), KL Sentral (26%)

• Other SEA: Bukit Bintang (17%), KLCC (16%), KL Sentral (21%)

• Other Asia: Bukit Bintang (17%), KLCC (20%), KL Sentral (15%)

• Americas: Bukit Bintang (12%), KLCC (6%), KL Sentral (10%)

• Europe: Bukit Bintang (13%), KLCC (17%), KL Sentral (15%)

• Middle East: Bukit Bintang (11%), KLCC (8%), KL Sentral (1%)

• Others: Bukit Bintang (3%), KLCC (14%), KL Sentral (12%)

Seasonality
Occupancy levels have stabilized in recent years due to a diversification in market and nationality mix. Corporate demand has seen recovery, contributing to more stable occupancy rates. Key leisure periods include March, August, and December, aligning with major school and public holidays. 

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