Visitor arrivals to Malaysia surge by 8.1% Y-o-Y

• As of YTD August 2025, Malaysia welcomed 17.8 million foreign arrivals, an increase of 8.1% compared to the previous year.
• A significant portion of visitors came from short-haul, regional markets, such as Singapore, Indonesia, China and Thailand, following visa exemptions for key markets.

Upscale and luxury hotel projects dominate future supply

• As of September 2025, four new hotels opened, adding 1,214 rooms to the market. The new openings were primarily from upscale/luxury international brands.
• For the remainder of the year, we expect three more new hotels totalling 1,042 rooms to open, increasing the key count by about 5.0% Y-o-Y.

Kuala Lumpur’s hospitality sector is seeing significant new investment, particularly in the luxury and lifestyle segments

• As of YTD Q3 2025, Malaysia’s Y-o-Y deal volume increased significantly, highlighting the positive investor sentiment in the market.
• Coupled with strong fundamentals, investors are increasingly optimistic of the market and now seek to capitalise on the attractive capital values in the Malaysia Hotel Market.

Outlook: Strategic investments in tourism expected to elevate Malaysia’s status as a premier travel destination

• Bolstered by government initiatives, like Visit Malaysia 2026, the market outlook is positive, with robust growth projected for the coming years.
• The overall Malaysian hospitality market is projected to grow substantially. Revenue is expected to reach MYR 1.52 billion in 2025, increasing to MYR 2.64 billion by 2030.