The four-star Cititel Penang, a 19-storey hotel along Penang Road in George Town, has been put up for sale at an asking price of RM163 million through an expression of interest (EOI) exercise. The hotel occupies three freehold parcels, Lots 832, 833 and 834, with a combined land area of nearly one acre.

Owned by Cahaya Utara Sdn Bhd, the 451-room hotel is managed by Cititel Hotel Management Sdn Bhd (CHM), the hotel management arm of IGB Bhd. Built in 1997, Cititel Penang has undergone various refurbishments over the years and remains a long-established hotel in the city centre.

The property is located within the George Town heritage enclave, with views towards the North and South Channels and the Penang Bridge. It is also within walking distance of Komtar and the UNESCO World Heritage Site core zone.

According to Rahim & Co Chestertons, which is handling the sale, the EOI exercise will close on Sept 30. The property is being positioned as a sizeable freehold hotel asset in a central George Town location, with potential for future value enhancement.

The proposed sale comes amid continued expansion in Penang’s hospitality sector. About 13 new hotels opened between August 2023 and 2025, adding more than 2,300 rooms, while around 10 hotels are currently under construction and another 11 have received approval.

The island has also seen several established hotel assets being refurbished or repositioned. Hotel Equatorial Penang in Bukit Jambul is undergoing refurbishment after being closed since 2021, while the former Penang Mutiara Beach Resort in Teluk Bahang is being transformed into the InterContinental Penang.

Other recent additions include the Penang Marriott Hotel and Marriott Executive Apartments along Gurney Drive, as well as new international brands such as Capri by Fraser, JdV by Hyatt and Galaxy Minyoun Penang.

For a potential buyer, Cititel Penang offers an established hotel operation on freehold land in a mature part of George Town, where opportunities for sizeable hotel sites in central locations are relatively limited.

ADVERTISEMENT

ADVERTISEMENT