New Star Rating System Implemented at Malaysian Hotels

On June 1, Malaysia’s Ministry of Tourism and Culture introduced a new hotel classification and rating system, that has been judged fairer and more accurate than the previous classification according to hoteliers and professionals in tourism.

The new classification houses categories of city hotels, highland hotels, island/beach/lake/river resorts, innovative hotels and boutique hotels. The previous system implemented a rating based only on city hotels with many criteria fitting only properties located in urban centres with a business travel activity. Many hoteliers complaint in the past that the former star-rating attribution put island- and hill resort hotels at a disadvantage.

The new classification simplifies requirements adapting criteria to the hotel’s location. Location and the hotel’s surrounding now determine rating criteria such as executive lounge or floor, a swimming pool, the number of restaurants, etc…

Hotel supply in Malaysia reached 4,817 properties representing a total of 309,369 rooms.
For 2017, HVS Consulting reported in a recent snapshot over Malaysia that another 98 hotels are due to be completed until 2021, representing an additional 25,537 classified rooms. According to the consultant cabinet, Upscale and Upper Upscale hotels entering will account for 46% of total room supply for the considered period, while this segment will dominate the new room supply with a share of 53%. However, the share of budget and economy accommodation will diminish as they are almost no important project to add supply in that segment from 2017 to 2021.