Berita Harian, 7 April 2011 - Dijaya plans to build luxury hotel worth RM300 million

Berita Harian, 7 April 2011

10-storey W Hotel features 150 rooms and is ranked five stars

Dijaya Corporation Berhad (Dijaya), a local property developer, will develop another luxury hotel owned by leading hotel and leisure group in the world Starwood Hotels & Resorts Worldwide, Inc (Starwood), in Kuala Lumpur worth RM300 million.

The five-star hotel of the W brand will be constructed on a 0.48-hectare piece of land situated along Jalan Ampang near the renowned Petronas Twin Tower (KLCC).

Both the companies have signed a Memorandum of Understanding (MoU) yesterday to build the hotel, which is scheduled to start by the end of this year.

Commenting on the development, Managing Director of Dijaya, said that the luxurious and contemporary hotel will be a 10-storey building with 150 rooms.

“This project is in line with our company’s main goals in continuing with our heritage in innovation and at the same time to overcome the many and vast environmental challenges faced by the hotel and resort industry in the country,” he said at the press conference after the

MoU signing ceremony in Petaling Jaya yesterday.

At the ceremony, Dijaya was represented by their Group Chief Executive Officer, YBhg Tan Sri Dato’ Danny Tan Chee Sing, while Starwood was represented by their Regional Vice President Southeast Asia, Chuck Abbott. The signing ceremony was witnessed by the Minister of Tourism, YB Dato’ Sri Dr Ng Yen Yen.

Starwood now owns about 1,025 properties in 100 countries including Malaysia through renowned brands such as Sheraton, Le Meridien and Westin.

MD of Dijaya said it will also be developing a residential project estimated to be worth RM450 million on the hotel’s building structure that is scheduled to be completed in early 2016.

He said the 27-storey luxury residences has 350 residential units and each unit measures 700 to 1,600 square feet.

“The overall building structure includes a 10-storey hotel at the lower part of the building followed by another 27 floors for residences. It does not include other facilities such as the car park.”

“The estimated cost for the residential unit is expected to exceed RM1,600 to RM1,800 per square foot. We expect the Gross Development Value (GDV) of the serviced residences to be around RM650 million,” he said.

Commenting on the company’s long-term plans, he said they are undertaking a study to develop a three-star hotel in the future.