Local Chains Sitting Out Hotel and Travel Boom in Malaysia
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Naza Group of companies is best known for selling imported cars. But in November it made headlines announcing it would spend $231 million to build five hotels around Kuala Lumpur over the next five years. With three hotels already in its portfolio, Naza seemed on its way to becoming something that Malaysia's never had--a sizable homegrown hotel chain outside of the resort niche.
Not so fast. Last month Chief Executive S.M. Nasarudin told FORBES ASIA that Naza's plans have been scaled back to just two hotels, at a cost of $75 million. One will carry the Naza Talyya name, a brand that caters to the masses, and the other will be either a luxury or boutique hotel. He declined to explain why three hotels were dropped.
While Malaysian businesspeople are reluctant to build local hotel chains, big international brands such as the Mandarin Oriental, Nikko Hotels, Hilton and others have jumped into the market. The Hyatt and Four Seasons chains will open hotels in Malaysia in the next few years. A new Doubletree in Kuala Lumpur is expected to start accepting guests in May.
