DoubleTree Resort by Hilton Penang Listed for Sale at RM250 Million

The DoubleTree Resort by Hilton Penang, a 316-room upscale beachfront property in Batu Ferringhi, has been put on the market through a tender exercise with an indicative asking price of RM250 million, The Edge Malaysia reported.

The Roof Realty Sdn Bhd has been appointed as the exclusive marketing agent for the deal. Group leader Alan Wong confirmed the appointment, saying the tender closes on 15 August.

At roughly RM791,000 per key, the asking price is in line with a recent comparable transaction in Penang’s hospitality sector. In 2024, Tropicana Corp Bhd sold the 199-room Courtyard by Marriott Penang to IOI Properties Group Bhd for RM165 million, which works out to about RM829,000 per room, according to Timmy Ho, managing director of hotel asset management firm Pragmatique Sdn Bhd.

Despite the comparable pricing, market observers suggest a more risk-adjusted figure for the DoubleTree Resort would sit between RM190 million and RM220 million. A 2018 valuation placed the property at RM240 million.

Ownership History Spans Three Decades

The resort has changed hands multiple times since it was first built. Low Yat Group originally developed the property in 1988 as the 350-room Ferringhi Beach Hotel. The Mah family acquired it in 2006 through Mister Phoenix (M) Sdn Bhd for RM43 million and rebranded it first as Hydro Majestic Hotel Penang and later as Hydro Hotel Penang.

Pinnacle Nexus Sdn Bhd, then a member of Cornerstone Partners Group, bought the property in 2014 for RM82 million. The company carried out extensive refurbishment and repositioned it under the DoubleTree by Hilton flag, making it Hilton’s first resort property in Malaysia.

A recent company search shows Cities Connect Sdn Bhd holds an 88.1% stake in Pinnacle Nexus, while RHB Trustees Bhd holds the remaining 11.9%. RHB Trustees is the major shareholder in Cities Connect as trustee for private wealth management firm Areca Capital, covering both the Areca Composite Bond Fund and Areca Dynamic Growth Fund 9.0.

The resort sits on approximately 122,000 sq ft of freehold land. The room count was reduced from 350 to 316 to accommodate on-site offices for the Hilton team, a spa, new room configurations and additional facilities. The property is said to maintain high occupancy.

New Hotel Supply Looms Over Penang

Incoming buyers will face intensifying competition from a wave of new international hotel openings on the island.

“New international hotel chains are entering the island. Among others, we have the JdV by Hyatt and Galaxy Minyoun coming into The Light City, many brands under Ascott have already opened and announced, the Wyndham marquee over the former Hotel Royal, The Westin Penang from Boon Siew Group, Le Meridien at Penang Airport, Radisson Blu in Batu Ferringhi, and the long delayed but eagerly anticipated InterContinental in Teluk Bahang,” Ho said.

“And that is only on the island. We haven’t even started on the mainland yet. The question is, will demand be able to keep pace with the upcoming supply.”

Airport Expansion Offers Hope

Ho believes Penang will likely achieve a second “peak” in tourism. The Penang International Airport expansion, expected to complete in 2028, will nearly double capacity to 12 million passengers per annum (MPPA) from the current rated capacity of 6.5 MPPA.

The airport has already exceeded its design limits. In 2023, it handled 6.7 million passengers at 104.3% utilisation. That figure rose to 7.6 million in 2024 (117.7%) and an estimated 8.31 million in 2025 (127.8%).

However, external risks remain. The Iran-US conflict has driven up energy costs, which could affect both long-haul and feeder flights to Penang, potentially deterring international guests. Rising energy costs and higher inflation rates will also squeeze hotel supply chains and utility expenses, particularly for ageing properties.

Penang also faces growing competition for medical tourism, long a stronghold for the island especially among Indonesian patients. Singapore and increasingly Thailand, with competitive pricing, cheaper labour and world-renowned hospitality, are vying for the same market.