KUALA LUMPUR: Brickfields was a relatively quiet area until the opening of Kuala Lumpur Sentral (KL Sentral) in 2001.
In 1994, a consortium led by Malaysian Resources Corp Bhd (MRCB) was appointed to transform 72 acres of Kuala Lumpur's old railway marshalling yard into a modern transit hub within a self-contained urban development.
The consortium embarked on the KL Sentral mixed development project, which included Grade A and purpose-built office towers, residences, hotels, a mall, and Stesen Sentral.
The completion of KL Sentral's initial phases in early 2000 rejuvenated Brickfields and significantly increased property values.
The multiple rail connections at Stesen Sentral, including links to KL International Airport (KLIA) and KLIA2, had boosted the market value of all properties within its vicinity.
"Prior to the pandemic, Brickfields was one of the highest traffic areas, growing very quickly with lots of developments, especially budget to three-star hotels due to its very close proximity to KL Sentral, Malaysia's prime transit-oriented hub," said the head of property at The City Group, Balveen K.
"But what happened during COVID-19 was that many of these hotels couldn't sustain their business and had to sell. Now, these new building owners are starting to reopen and rebrand the hotels, which will provide a fresh new forefront to the Brickfields boutique and budget hotel scene.
"We are seeing a high demand for budget accommodations now, especially among solo travellers and couples. Additionally, the latest F&B entrants such as Roberto's and Lizzie by Lisette's at the Nu Sentral Mall signifies a growing confidence and spending power in Brickfields once again," she added.
Growth in transit hotel market
According to Balveen, Brickfields is witnessing a surge in the transit hotel market, driven by strong demand for capsule-style accommodations.
These compact, efficient, and budget-friendly lodgings offer travellers just enough space for sleeping, typically including basic amenities.
"The capsule hotel market is experiencing significant growth worldwide, making it a standout and forward-thinking segment in the hospitality industry, and we see this building up in Malaysia, especially in popular tourist spots," she said.
Balveen said that Brickfields will welcome its first capsule property, Space Hotel, this quarter.
Located on Jalan Thamby Abdullah and facing Nu Sentral Mall—Malaysia's first transit consumer lifestyle mall—the vibrant hotel will feature 106 capsules starting at RM60 per night.
When contacted, the manager and co-partner of Nasa Hoteliers Sdn Bhd, which operates the Space Hotel in Brickfields, noted the growing trend for capsule accommodations, especially among European travellers.
He highlighted that capsule hotels are generally more affordable than traditional hotels, making them appealing to budget travellers, business travellers, and those seeking short- to medium-term stays.
"The opening this quarter is timely as we are seeing a resurgence of tourists, particularly Europeans. Capsules are designed to maximise space efficiency, providing a compact sleeping area with essentials like a mattress, bedding, lighting, a power outlet, and a safe for personal belongings," he said.
He said that Space Hotel's prime location opposite Nu Sentral Mall offers easy access via buses, KTM and LRT trains, the monorail, and the express train to KLIA, making it highly convenient for travellers.
Additionally, Space Hotel boasts one of the few open rooftop spaces in Brickfields, spanning approximately 2,500 sq ft and facing Nu Sentral Mall. "We also have three retail kiosks in our lobby and are exploring partnerships with coffee brands and F&B operators to cater to hotel guests and the high footfall along Jalan Thamby Abdullah," he added.