Kuala Lumpur institutes ban against new hotels amid overcapacity

29 Feb 2016 by Clement Huang

An overcapacity of rooms in Kuala Lumpur has led the Malaysian capital to put a halt on issuing hotel licences until further notice.

Speaking to Star Metro, Kuala Lumpur mayor Datuk Seri Mohd Amin Nordin Abdul Aziz said: “There is an oversupply of hotel and office spaces in Kuala Lumpur now and we have been advised by the government to be strict on this, so we will not be giving any more development order for hotels until further notice."

The ban will apply to all types of hotel regardless of market segment. However, properties that have previously received planning permission but have not begun construction works will be unaffected.

With an existing pool of 939 hotels in Kuala Lumpur, of which more than 400 are designated as budget hotels, the mayor believes this will still be sufficient for the 12 million international tourists expected to travel to the city this year.

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Clement Huang

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