Yeoh Siew Hoon visits Kuala Lumpur and finds a city truly on the move following the closing of one sordid political chapter. New hotels are opening and there is talk of new sites being made available for development.

I arrived in Kuala Lumpur the day Anwar Ibrahim was freed.

As soon as the news headline flashed across the screen onboard the KLIA Express – the high-speed train service between the airport and city – I heard excited muttering and chattering among the passengers.

In the last six years – that's how long Anwar has been in prison – no one could have missed the news of the imprisonment of Malaysia's former Deputy Prime Minister on charges of sodomy and corruption.

"That's good news," said one foreign businessman to his friend, seated across the aisle from me.
"Why?" asked his friend.

"Because it will bring back confidence from our investors," said the foreigner.

And so, the newspapers over the next two days were saturated with coverage over Anwar's release. Was a deal made?

Will Anwar return to politics? Which camp will he join? Does this mean the judiciary is fully independent of government?

Question after question was raised. But one thing was for sure – Anwar was to fly to Munich to have back surgery. The former rising political star has had to live with pain for the last six years in prison.

The mood was especially jubilant among the business community. Business commentators call it a "positive milestone".

Columnist Karim Raslan, writing in Singapore's Today newspaper, said, "Mr Abdullah (Malaysia's Prime Minister) understood from day one that Malaysia needed to resolve the dilemma posed by Mr Anwar's continued detention. In allowing the legal process to move ahead unimpeded, the prime minister signaled two things: The importance of his reform agenda – especially the independence of the judiciary – and closure to a series of events that nearly overwhelmed the nation six years ago."

Since he took office, Prime Minister Abdullah Badawi has worked hard to project a pro-business image to the international world.

You can feel the optimism in the city. Kuala Lumpur's hotels, once languishing, are reporting healthy occupancies and stronger room rates – although levels are still way below other Asian capital cities. But in a city sagging with room oversupply, that was to be expected.

But business travelers are returning to Kuala Lumpur, and hoteliers are also reporting pick-ups in banquet and food & beverage takings.

There is also renewed activity in the hotel sector. The Westin has finally opened after years of delay.

The Hilton Kuala Lumpur has also opened, after a three-year absence from the city, as has Le Meridien, its first in Malaysia.

Both are located side by side at KL Sentral, the transportation hub of Kuala Lumpur.

InterContinental Hotels Group recently sealed a deal with the Pernas International Holdings (now renamed Tradewinds Corporation) which will see the group put the InterContinental brand on the Penang Mutiara resort and the Crowne Plaza on the former Hilton which later became the Mutiara when Pernas had dreams of managing its own hotels.

Two years ago, Pernas launched its own brand, Mutiara Hotels & Resorts, and declared its intention of managing its own hotels.

The change of heart may have taken some quarters by surprise but was not wholly unexpected.

Setting up a management company to run its own hotels takes more investment and courage than most owners realise. In addition, an eager suitor such as InterContinental which has long eyed a hotel in Kuala Lumpur for its higher tier brands is hard to turn down.

Putting the Crowne Plaza brand on the Mutiara will happen fairly soon – the hotel has undergone extensive refurbishment. But it may take a while before the Penang Mutiara meets InterContinental standards.

InterContinental's managing director Patrick Imbardelli has set a date of either late this year or early next year for the rebranding of the resort.

Now speculation is rife as to the fate that awaits the Istana Hotel in Kuala Lumpur, which is also owned by Pernas and is currently managed by Meritus Hotels & Resorts. Meritus was managing the Penang Mutiara until Pernas took it back.

Sources say the Istana may well be rebranded the InterContinental as the next chapter in the recent deal. However a lot of money would have to be pumped into the Istana product which is looking decidedly lackluster compared to its newer and refurbished competitors.

It is believed the deal also comes with several Holiday Inns in the pipeline.

The Grand Hyatt (which remains incomplete) is still up for sale to the highest bidder. Renewed interest in the Kuala Lumpur hospitality sector may well see it find a buyer although it's been up for sale for quite a while.

Meanwhile, it is understood the site of the former Pudu Prison is up for grabs for re-development.

As far as I am concerned, it has two factors going for it – a great location and a great history.

Imagine the stories you could spin from a hotel located on the site of one of the country's biggest and most notorious prisons…

The SHY Report
A regular column on news, trends and issues in the hospitality industry by one of Asia's most respected travel editors and commentators, Yeoh Siew Hoon.

Siew Hoon, who has covered the tourism industry in Asia/Pacific for the past 20 years, runs SHY Ventures Pte Ltd. Her company's mission is "Content, Communication, Connection". She is a writer, speaker, facilitator, trainer and events producer. She is also an author, having published "Around Asia In 1 Hr: Tales of Condoms, Chillies & Curries". Her motto is ‘free to do, and be'.

Contacts: Tel: 65-63424934, Mobile: 65-96801460

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