Sunway group invests RM875m to boost hospitality unit

PETALING JAYA: Sunway Bhd's hospitality division Sunway Hotels and Resorts is investing RM875 million to facilitate a three-year redevelopment and extension plan to its hotels across Malaysia, Cambodia and Vietnam.

The plan, which began this year, is expected to be completed in the second quarter of 2018.

The group's property development division managing director Sarena Cheah said the investments include RM530 million for new assets and RM345 million for refurbishment and expansion of existing hospitality assets.

The new assets include the four-star Sunway Pyramid Hotel West in Sunway Resort City. With a gross development cost (GDC) of RM380 million, it opened on Feb 19.

The second asset is the Sunway Velocity Hotel in Kuala Lumpur East with a GDC of RM150 million and slated to open in the third quarter of 2017.

"This reinvestment is the largest expansion plan for the group's hospitality division.

"We will have 3,500 rooms in South-East Asia with 3,200 rooms in Malaysia by 2018, where 80% are within integrated townships to support the nation's tourism industry," she said at a media briefing in Petaling Jaya on Thursday.

Cheah said six hospitality divisions will also undergo enhancement works, including a RM125 million major refurbishment for the four-star Sunway Pyramid Hotel East.

She said the hotel will be closed temporarily from Thursday for the  10-month refurbishment work and will open in the first quarter of 2017.

On future expansion plans, chief executive officer and group general manager of Sunway Hotels and  Resorts, Albert Cheong, said it is looking to open a new hotel in Iskandar Malaysia, Johor.

"We are still going through the conceptual details as we have about 1,800 acres (728ha) of land there, about three times the size of Sunway Resort City.

"Certainly there will be more plans that include entertainment outlets as it is close to Singapore," said Cheong. - Bernama