A CENTURY after it was first built as residences for British officials, the iconic 1926 Heritage Hotel Penang has officially entered a new era, underscoring how heritage preservation and adaptive reuse can strengthen Penang’s position as a leading cultural and tourism destination.
Officiating the grand launch of the restored property today, Chief Minister Chow Kon Yeow described the hotel as an example of the type of investment Penang hopes to attract, one that preserves the state’s rich heritage while creating jobs, supporting local businesses and enhancing the tourism industry.
The launch also marked the hotel’s centennial celebration, following a RM20 million refurbishment and its transformation under The Unlimited Collection by The Ascott Limited.
“I was here in September 2024 when we announced that this property would undergo a RM20 million refurbishment and be managed by The Ascott Limited. Today, I am glad to return and see the project completed.
“The outcome shows what can be achieved when we restore our heritage buildings and give them a new lease of life,” Chow said in his speech earlier.
Congratulating hotel owner Datuk Frank Koay, Ang Hock Guan, The Ascott Limited and everyone involved in the project, Chow said Penang’s heritage remains one of the state’s greatest strengths.
“As we continue to develop the state, we must also preserve the buildings and places that make Penang unique.
“I also welcome the partnership with The Ascott Limited under The Unlimited Collection by Ascott. It gives this historic property international exposure while preserving its heritage character,” he said.
Beyond conservation, Chow stressed that investments must deliver tangible benefits to the people.
“I am pleased to know that the hotel currently employs 27 staff members, with nine of them from Penang. I hope more Penangites will have the opportunity to work here as the hotel continues to grow.
“Investment must create jobs, support local businesses and strengthen our tourism industry,” he added.
The Chief Minister noted that while Penang continues to attract investment, the true value lies in its long-term impact.
“We often announce investments in Penang. Every announcement reflects investors’ confidence in our state, but announcements alone are not enough.
“What matters once again is whether these investments create jobs, support local businesses, generate opportunities for Penangites, and improve people’s lives.
“1926 Heritage Hotel Penang is a good example. It preserves our heritage, creates employment and strengthens our tourism industry. This is the kind of investment we want to see more of in Penang,” he said.
Touching on a practical concern, Chow also urged motorists, visitors and e-hailing drivers to avoid stopping or parking indiscriminately along Jalan Burma, saying such actions frequently worsen congestion in the area.
He also called on the Penang Island City Council (MBPP) to intensify enforcement around the hotel and surrounding commercial area.
“Good development must be matched with good traffic management,” he said.
Speaking to reporters afterwards, Chow said the successful restoration of the hotel highlighted the important role of private sector participation in preserving heritage assets.
He noted that the century-old property, owned by the Penang Development Corporation (PDC), was redeveloped through an open tender exercise.
“It is not solely the responsibility of the state or Federal Government; private sector involvement is extremely important.
“This is a PDC property, and through a tender exercise, the company was selected to refurbish and operate it as a hotel.
“On behalf of PDC, I can say we are extremely happy with the outcome. Hopefully, with the collaboration with Ascott, good management, strong promotion, healthy occupancy and positive guest feedback, this will become a very viable tourism product,” he said.
Chow added that the hotel launch forms part of a broader series of heritage and tourism initiatives taking place in Penang this week.
He noted that the Penang State Museum, housed in a Category One heritage building, is set to reopen after almost a decade of restoration, while the restored Fort Cornwallis will be officially launched by Prime Minister Datuk Seri Anwar Ibrahim on Saturday.
“We are upgrading our infrastructure, planting more trees and undertaking projects to present a sharper and clearer image of Penang to visitors.
“This is our contribution, both directly and indirectly, towards making Penang relevant, attractive and a destination to visit,” he said.
According to the Department of Statistics Malaysia, domestic tourism recorded 290.1 million visitors in 2025, an 11.5 per cent increase from 260.1 million in 2024. The positive momentum continued into the first quarter of 2026, with 74.7 million domestic visitors recorded, representing a 7.2 per cent increase year-on-year.
Located along Jalan Burma, the boutique hotel comprises 78 rooms and suites spread across 24 interconnected heritage link houses. Originally built in 1926 for British officials, the property has been carefully restored to preserve its distinctive Anglo-Malay architectural character while offering a contemporary urban resort experience.
Ascott Malaysia Country general manager Mondi Mecja said Penang continues to be one of the company’s key growth markets.
“Malaysia remains one of Ascott’s strategic growth markets, and Penang continues to stand out with its culture, heritage, creativity and international appeal.
“As travellers increasingly seek stays that connect them more meaningfully to a destination, The Unlimited Collection brings together hotels that celebrate local character, thoughtful design and authentic experiences.
“Together with our partners, we are proud to introduce 1926 Heritage Hotel Penang as a property that captures the spirit of Penang while reflecting Ascott’s commitment to delivering meaningful experiences around the world,” he said.
Besides accommodation, the hotel also houses Sensorium Wellness spa, Root House by Gen restaurant, The Heritage Collection by Daily Coffee, U-Bar, U-Shop and curated artworks by Penang-born artist Koay Shao Peng, further reflecting its commitment to showcasing local creativity and authentic Penang experiences.
Also present earlier was state Tourism and Creative Economy Committee chairman Wong Hon Wai.
Story by Kevin Vimal
Pix by Siew Chia En
Video by Darwina Mohd Daud