This article first appeared in City & Country, The Edge Malaysia Weekly on August 4, 2025 – August 10, 2025
The youth division of the Real Estate and Housing Developers’ Association (REHDA) Malaysia held a study tour in Kuala Lumpur on June 25, visiting two hotels under the global hospitality company IHG Hotels & Resorts, as well as an independently owned hotel.
The three hotels were Holiday Inn Kuala Lumpur Bangsar in Menara Alfa Bangsar, the upcoming Kimpton Naluria Kuala Lumpur in Tun Razak Exchange (TRX) and Lloyd’s Inn Kuala Lumpur in Imbi.
The tour also featured three panel discussions, moderated by IHG senior development manager Emma Yap, City Motors Group director Foo Yit Loong and IHG senior director of development Shi’ai Liang. Each session had three panellists. Topics covered included the pros and cons of hotel branding, differences between franchise and management models, and the outlook for lifestyle hotels.
The panel discussions were held in Hotel Indigo Kuala Lumpur on the Park. The first panel featured Zerin Properties founder and CEO Previndran Singhe, Bank Pembangunan Malaysia Bhd head of coverage for social infrastructure Biing Wen Yin and Pokta Sdn Bhd director Jonah Sia as speakers. The second panel had Horwath HTL director Sen Soon Mun, Christopher & Lee Ong Malaysia partner and head of real estate practice Lee Hock Chye and Pavilion Hospitality director Adrian Ee as speakers. The third panel had Kulor Group co-founder Christopher Chua, Hotel Indigo Kuala Lumpur on the Park general manager Ashleigh Garside, and Hassell Studio managing principal Tulsi Grover as speakers.
Foo, who was also the tour’s organising chairman, said during the tour that its objective was to expose young developers to the hotel industry, connect with industry players and showcase the hotel management model of both branded and independently run hotels. The tour was also aimed at helping members gain insights on the operational, branding and development decisions in the hotel business.
“I hope [this tour] gives property developers, first-time and potential hotel owners more insights on what it really takes to run a hotel, the decisions to be made and the important factors to determine before really getting into the hotel business,” Foo said.
Tour highlights
The first hotel the group toured was Holiday Inn Kuala Lumpur Bangsar, which has 200 standard rooms and 20 suites across 43 floors. Facilities include a grand ballroom for 600, five meeting rooms and an open lobby lounge designed for co-working and social interaction. There is also Clover All-Day Restaurant for dining, an outdoor pool and a 24-hour fitness centre. In addition, there are workshop spaces for up to 70 guests, a 13-person boardroom and large-scale venues that can accommodate 250 to 300.
The second hotel was Kimpton Naluria Kuala Lumpur, slated to open in late 2025. The 26-storey, 466-room hotel was designed by Hassell Studio, a multidisciplinary architecture, design and urban planning practice with a presence in Australia, China, Singapore, the US and the UK. The concept of the design is to embody a balance of natural serenity and urban energy. The hotel will have five meeting spaces, a rooftop pool, buffet area and skyline rooftop bar.
The third hotel was the independently run Lloyd’s Inn Kuala Lumpur, which offers 110 rooms in 10 distinct types. Foo noted that some floors have lofts and smaller units, with a variety of units on the same floor. The hotel has a raw minimalist design with whitewashed walls and wooden fixtures.
Branding versus individually run
The first panel discussion, titled “To Brand or Not to Brand” and moderated by IHG’s Yap, explored the advantages and drawbacks of branded versus independent hotels, highlighting the strategic considerations behind each management model.
Zerin Properties’ Previndran highlighted that branded hotels typically command higher premiums and offer long-term value, especially for institutional investors planning their exit strategy.
“At this juncture, when someone asks me what my deciding factor is if I own or operate [a hotel], the most important thing is the long-term investment value. Everyone thinks the key to deciding to run a hotel individually or under a brand is about the occupancy rate or the operating cost. Actually, it’s more than that. We need to take into consideration the exit strategy, hotel evaluations and so on,” he said.
Meanwhile, Pokta’s Sia, an independent hotelier, said that branded hotels also come with disadvantages, and he chose to run an unbranded hotel for better local market responsiveness, vendor choice and greater flexibility in design and management.
“There are a lot more benefits to running a branded hotel, but it also comes with heavy investments, as you need to meet the brand standard with higher long-term maintenance costs and renovations. These extra costs go against our investment goal of maximising the returns of investment,” he said.
Bank Pembangunan Malaysia’s Biing noted that banks mostly look for predictable cash flows, with little focus on whether the hotel is branded or individually run. He highlighted, however, that branding typically provides the infrastructure that supports operational efficiency, with the help of loyalty programmes and revenue management systems to wider distribution channels.
“We are in the business of risk, so I fund predictability, and I hope that the business model works and we try to protect it. So, when it comes to hotels, I’m a bit agnostic between brand or individually run. It makes no difference; it’s all about the predictability of the cash flows,” he said.
The panellists concluded that independently run hotels allow owners to make quick decisions and have more control over the hotel’s concept and vision, while branded ones could boost their visibility and stability, depending on the location, goals and current market conditions.
Franchising versus management
The second panel discussion, titled “Franchise vs Management: Maximising Returns through the Right Agreement” and moderated by Foo, examined the key differences between the franchise and management models in hotel operations.
In a franchise model, the owner maintains operational control while adopting the brand’s identity. In contrast, the management model allows the owner to retain ownership while the brand handles day-to-day operations. While franchises offer more autonomy, both models still require adherence to brand standards and involve fees and oversight, including approvals for key hires and periodic audits.
A relevant point of discussion was the handling of long-term maintenance through Furniture, Fixtures and Equipment (FF&E) reserves. Horwath HTL’s Sen and Christopher & Lee Ong Malaysia’s Lee believed that although franchise agreements state that money needs to be set aside for FF&E, it is seen as an obligation, rather than a mandatory requirement.
“Some management and franchise contracts don’t require owners to invest in FF&E. So, it’s up to the owners. However, some owners may not want to put in that money, and the hotel [can become outdated and poorly maintained] and that affects the guest experience. They may not want to come and stay again,” said Pavilion Hospitality’s Ee, concluding the discussion.
All the panellists agreed that choosing between the franchise and management models depends on the owner’s desired level of control, risk tolerance and operational expertise. They also talked about strategies for hotel investors and highlighted common pitfalls, such as failing to reinvest in the property or lacking sufficient cash flow. Sen further emphasised the importance of selecting the right brand and location, noting that the performance of the hotel can be significantly influenced by the presence of similarly branded hotels in the area.
He said: “Look around your market area. Make sure there are no properties that compete with your hotel, be it franchise or management, because you’re going to cannibalise each other.”
These days, he added, many hotel companies operate multiple brands, some of which are quite similar, differing only in name.
“So, when you choose a brand, ensure that the brand is not represented in your market area. [If possible,] take on a fresh brand because they will bring in new demand,” he concluded.
Future of lifestyle hotels
The final panel discussion, titled “Vibes & Vision: The Future of Lifestyle Hotels”, was moderated by IHG’s Liang. The panellists highlighted the importance of a hotel’s concept and design, explaining how their unique approaches helped attract and retain guests.
“When working on lifestyle resorts, you have to create genuine emotions — not just clichés or fleeting ‘Instagrammable’ moments. We need to build stories and narratives within our hotel design,” said Chua, elaborating on his views on customer behaviour in the industry.
He said the success of a hotel’s design lies in its ability to create emotional connection with the guests, through immersive narratives and feelings rather than gimmicks and short-lived trends.
“When I begin designing, I first ask the owners and operators what they want to achieve with the resort,” he explained. The intention behind how guests should feel when they walk into the lobby and rooms naturally creates Instagrammable moments — without overdoing it. Adding too many elements can distract from the genuine emotions that define the lifestyle experience.
“I believe good design should be felt as you enter the lobby, not seen as something gimmicky,” he said.
As the study tour drew to a close, Rehda Youth emphasised the evolving nature of the hospitality industry, highlighting various strategies that young developers could adopt when managing their own hotels. Through the panel discussions, participants gained valuable insights into management contracts, branding, franchising and future demand for lifestyle hotels.
With Malaysia’s tourism and hospitality sectors continuing to grow, the tour aimed to equip young developers with the knowledge needed to meet market demands and compete alongside key industry players.