The former Holiday Inn Resort in Batu Ferringhi, Penang is being marketed subject to offers, says Knight Frank Malaysia executive director of capital markets James Buckley.
Knight Frank Malaysia has been appointed as the exclusive agent for the sale of the four-star freehold hotel with two separate buildings — Ferringhi Tower and Beach Wing — and includes an additional 7.69 acres of development land with views of the Andaman Sea.
The hotel, which overlooks Batu Ferringhi beach had been greatly impacted by the Covid-19 pandemic and the Movement Control Order.
Hong Kong-based Harilela Group through its unit Asia Garden Sdn Bhd announced last year that it will close the hotel by June 30, after 41 years of operation.
Established in 1959 and wholly-owned by the Harilela family, The Harilela Group is a private firm involved in hotel development and management across Hong Kong, China, the Far East, Europe, and the US.
Buckley said Holiday Inn Resort has a lot of potential and the firm is excited to have been appointed to sell this prime beachfront property.
He said the property is sold with vacant possession and there is great flexibility for the new owner to renovate and rebrand either as an owner-operator or under an international brand name.
"There is potential for the purchaser to create two hotels, creating a more upscale hotel with direct beach frontage at the Beach wing and a more affordable offering at the Ferringhi Tower to the rear," he said in a statement.
Buckley said as the Covid-19 vaccination progress ramps up in Malaysia and across the world, investors are becoming more optimistic about the hotel sector.
"People are very keen to have a holiday and we expect resorts to benefit greatly as soon as interstate travel is lifted," he said.
Knight Frank Penang executive director Mark Saw said there is a tremendous opportunity when investing in the hotel to expand by virtue of the contiguous vacant lands.
"This is a rare chance, given most of the hotels along Batu Ferringhi have limited land for additional facilities," he added.
Just over a month ago, Knight Frank was appointed as the exclusive agent to help with the sale of Hilton Garden Inn North (formerly, Cititel Express) and Hilton Garden Inn South (formerly, Hotel Empress) on Jalan Tunku Abdul Rahman in Chow Kit, Kuala Lumpur.
Hilton Garden Inn North and Hilton Garden Inn South have a combined 532 rooms. The properties are owned by Singapore's Royal Group, which acquired them from IGB Corp Bhd in December 2015 for RM37 million.
Buckley had previously told NST Property that the sale of Hilton Garden Inn North and Hilton Garden Inn South is by private treaty.
He also said that instead of setting an asking price for the hotel, the firm is marketing the property "subject to offers".
When contacted, Buckley said that the Hilton Garden Inn is still available and that Knight Frank is in discussions with several groups.