Prime beachfront development site in Penang’s Batu Ferringhi hits market for RM140 mil
The rare large-scale site and strong tourism occupancy may support developer interest in Penang’s hospitality and serviced-residence segments, potentially expanding high-end accommodation supply.
A 13,533 sq m freehold beachfront commercial site in Batu Ferringhi is offered at RM140 million, with approval for an integrated development of up to 722 keys.
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A beachfront development site in Penang, Malaysia, is up for sale via an expression of interest (EOI) exercise. The prime freehold plot, located in Batu Ferringhi, has an asking price of RM140 million ($44.1 million).
Colliers, the exclusive marketing agent for the asset, said the commercial plot has been approved for redevelopment into an integrated landmark of up to 722 keys, comprising hospitality, serviced apartments and wellness amenities.
The 13,533 sq m (145,669 sq ft) site is located along Jalan Telok Bahang, within a coastal corridor anchored by established names such as Bayview Beach Resort, Parkroyal Penang Resort, Shangri-La Golden Sands and Lone Pine Resort.
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It has a plot ratio of 5:1, and a maximum gross floor area of 67,663 sq m.
Under the proposed redevelopment, the mixed-use site would have a gross floor area of approximately 54,042 sq m, comprising 473 luxury serviced apartments and 249 five-star hotel rooms.
Colliers said the sale also comes with a management agreement with an internationally recognised hotel operator, though buyers would have the flexibility to retain it or pursue an alternative branding and operating structure.
“Large-scale freehold development sites in Batu Ferringhi are exceptionally rare,” said Zoe Zhou, director of capital markets and investment services at Colliers. This positions the site as one of the most compelling hospitality and lifestyle investments currently available in Penang.
The site is expected to benefit from Penang’s continued growth as a tourism, healthcare and advanced manufacturing hub. The state welcomed 8.76 million hotel guests in 2025, including 3.47 million international visitors, according to Tourism Malaysia data.
Additionally, the Malaysian Association of Hotels reported average weekday occupancy of around 70% — rising to 90% to 100% during peak periods — even as new hotel supply enters the market.
Colliers added that Penang’s growing profile as a medical tourism destination is further fuelling demand for extended-stay accommodation and serviced residences.
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The EOI exercise will close at 3pm on Sept 30.