Malaysia’s Oriental Holdings to seal RM411 million Penang, Langkawi hotel deals; partners Ascott for rebranding
The company plans to invest around RM211 million in refurbishment works beginning in 2026
[KUALA LUMPUR] Malaysia’s Oriental Holdings, a diversified conglomerate best known as one of the country’s largest Honda distributors, is deepening its partnership with Singapore-based lodging operator The Ascott Ltd as it moves to acquire three Bayview-branded hotels in Penang and Langkawi for RM411 million (S$128 million).
Oriental already works with Ascott on two properties abroad – Oakwood Bencoolen Singapore and Somerset Park Suanplu Bangkok – and the latest deal marks the extension of that partnership back into Malaysia, where the group is seeking to scale its hospitality footprint amid the post-pandemic tourism recovery.
It has signed agreements with Boon Siew and Boon Siew Development – companies owned by Oriental’s major shareholder, the Loh family – to acquire Bayview Beach Resort Penang (RM167 million), Bayview Hotel Georgetown (RM153 million) and Bayview Hotel Langkawi (RM91 million).
The three properties are being purchased below their independently appraised values, Oriental said in a Bursa Malaysia filing on Nov 7.
Oriental, listed on Bursa Malaysia with a market capitalisation of about RM4.3 billion, operates businesses across automotive distribution, plastics manufacturing, plantations, property investment, healthcare and hospitality in Malaysia, Singapore, Thailand, Indonesia, Australia, New Zealand and the UK.
Under the proposed arrangement, Oriental will assume ownership of the hotels while Ascott will continue as operator and manager, bringing the properties under its multi-brand hospitality portfolio.
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The acquisitions are subject to approval from non-interested shareholders at an extraordinary general meeting expected in the first quarter of 2026, with completion targeted in the third quarter of the same year.
To reposition the assets, Oriental plans to invest RM210.7 million in refurbishment works beginning in 2026, with the revamped hotels scheduled to reopen progressively by the first half of 2028.
Tapping Penang, Langkawi’s robust tourism
The 365-room Bayview Beach Resort Penang, fronting the popular Batu Ferringhi beach, will be rebranded as Ascott Batu Ferringhi Penang, marking the flagship Ascott brand’s first beachfront resort in Malaysia. Enhancements will emphasise curated guest experiences, arts-led interior touches and expanded wellness and events facilities.
The 340-room Bayview Hotel Georgetown is set to be rebranded as Oakwood Georgetown Penang. Located just a three-minute walk from the famous Cheong Fatt Tze Blue Mansion in the Unesco heritage district, the hotel will cater to the rising “bleisure” segment, offering apartment-style accommodation complete with kitchenettes and flexible workspaces.
The acquisition also includes the adjoining Wisma Boon Siew, a 15-storey office and showroom tower.
In Langkawi, the 282-room Bayview Hotel Langkawi in Kuah town will be repositioned as Fox Hotel Langkawi, targeting value-conscious travellers with contemporary, design-focused rooms. The property will continue to serve both leisure guests and the meetings and corporate market through refreshed banquet and event spaces.
Strengthening presence
In a separate media statement on Nov 8, Oriental’s chief financial officer Adrian Wong said the deal is intended to build recurring income and broaden the group’s presence in key tourism markets.
“If completed, our hotel portfolio in Malaysia will expand from one to four properties and our global portfolio from seven to 10… It enhances our geographical diversification and strengthens our foothold in Penang and Kedah,” he said.
Wong Kar Ling, Ascott’s chief strategy officer and managing director of South-east Asia, said the three hotels reflect the flexibility of Ascott’s brand architecture.
“From our first Ascott beachfront resort in Malaysia, to Oakwood’s appeal to modern business-leisure travellers, and Fox Hotels’ stylish yet affordable offering, this portfolio demonstrates our multi-typology approach to capturing different traveller segments,” she added.
Wong noted that with these additions, Ascott now counts over 50 operational and pipeline properties in Malaysia, spanning leisure, corporate and long-stay accommodation segments.
Ascott, headquartered in Singapore, is a wholly owned lodging business unit of CapitaLand Investment and manages more than 950 properties in over 40 countries. Its portfolio spans serviced apartments, hotels and co-living brands including Ascott, Citadines, Somerset, Oakwood and Fox Hotels.
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