Image source: DoubleTree Resort by Hilton Penang FB

Penang’s hospitality sector could be set for one of its biggest investment deals this year, as the DoubleTree Resort by Hilton Penang in Batu Ferringhi has been officially put up for sale through a tender exercise with an indicative asking price of RM250 million.

The 316-room resort, situated on approximately 122,000 sq ft of freehold land, is widely regarded as one of the island’s established upscale hospitality assets. The tender exercise, handled exclusively by The Roof Realty Sdn Bhd, will close on Aug 15.

The property has undergone several transformations over the years. Originally developed by Low Yat Group in 1998 as the 350-room Ferringhi Beach Hotel, it was later acquired by Mister Phoenix (M) Sdn Bhd in 2007 and rebranded as Hydro Majestic Hotel Penang before becoming Hydro Hotel Penang.

In 2014, Pinnacle Nexus Sdn Bhd acquired the hotel for RM82 million and undertook an extensive refurbishment, repositioning it as the DoubleTree Resort by Hilton Penang — Hilton’s first resort in Malaysia. The redevelopment also saw the number of guestrooms reduced from 350 to 316 to make way for additional guest facilities, a spa, operational offices and upgraded room layouts.

While the RM250 million asking price values the hotel at roughly RM791,000 per room, market observers believe a transaction price in the range of RM190 million to RM220 million may be more realistic, citing its non-beachfront location despite its strong occupancy performance. The pricing is broadly comparable with the 2024 sale of Courtyard by Marriott Penang, which changed hands at approximately RM829,000 per room.

The sale comes at a time when Penang’s hospitality industry is entering a new growth phase. Several internationally branded hotels are either under construction or in the pipeline, including JdV by Hyatt at The Light City, Radisson Blu in Batu Ferringhi, The Westin Penang, Le Méridien Penang Airport and InterContinental Teluk Bahang, adding to an increasingly competitive market.

Nevertheless, industry players remain optimistic about the state’s long-term tourism prospects. The ongoing expansion of Penang International Airport, which will increase its annual passenger capacity from 6.5 million to 12 million by 2028, is expected to support future growth in visitor arrivals and strengthen demand for quality hospitality assets.

The potential sale of DoubleTree Resort by Hilton Penang is expected to draw interest from institutional investors seeking exposure to Penang’s tourism sector, while reflecting continued confidence in the island’s long-term hospitality market despite growing competition and evolving market dynamics.