Penang’s booming hospitality industry strengthens tourism and MICE growth

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PENANG’S hospitality scene is entering a new phase of growth with the opening of several new hotels across the island and mainland, showing strong investor confidence and growing tourism demand.

 

From international chains to boutique heritage hotels, the state’s hospitality landscape has become more diverse, boosting room capacity while supporting Penang’s tourism, Meetings, Incentives, Conferences, and Exhibitions (MICE) sectors.

 

State Tourism and Creative Economy Committee chairman Wong Hon Wai said the recent openings, ranging from budget accommodations to five-star hotels, highlight the vitality and potential of Penang’s tourism industry.

 

“These new hotels not only expand room supply but also cater to all types of travellers, from backpackers to luxury tourists.

 

“Some have adopted green architecture and local design elements, allowing guests to experience Penang’s unique culture and lifestyle through their stay,” he said.

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The addition of new hotels in Penang

Wong said the state’s progress toward becoming an International Convention and Exhibition City is being supported by the rise of global hotel brands such as Marriott and Ascott, which have elevated Penang’s hospitality standards.

 

“These brands provide premium facilities for major conferences, exhibitions and corporate events, reinforcing Penang’s position as a regional hub for business and tourism,” he added.

 

In George Town, the rise of boutique hotels has injected fresh life into the city’s heritage enclave.

 

“Many century-old shophouses have been restored, blending traditional craftsmanship with modern comforts.

 

“This ‘living in history’ concept has become a key attraction for international visitors, driving the trend of slow travel and cultural tourism,” Wong said.

 

He noted that these boutique stays often double as cultural spaces, hosting small events and workshops that promote local heritage.

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Wong said the flourishing hotel sector has created spillover benefits for the food and beverage, retail, creative and transport industries.

 

“The mix of international brands and locally inspired inns has made Penang’s urban image more diverse and refined, enhancing its global appeal,” he said.

 

Beyond George Town, Wong said the state government is committed to ensuring balanced development across both the island and Seberang Perai.

 

“In recent years, several new hotels have opened on the mainland. We’ve also encouraged more major events to be held there, such as the Penang Bridge International Marathon in Batu Kawan, which boosted local accommodation and dining demand,” he said.

 

Festivals such as the Seberang Perai Chingay Parade, Butterworth Fringe Festival, Nibong Tebal Festival and Kepala Batas Festival have also strengthened the mainland’s cultural and tourism profile.

 

 

On the other hand, (MICE) sector is also gaining momentum, supported by newly built facilities such as the Penang Waterfront Convention Centre (PWCC).

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Located near the Penang Bridge, the 10,443sq m venue has quickly become one of the state’s largest convention hubs.

 

“The launch of PWCC marks another major step in Penang’s transformation into a world-class convention city,” Wong said.

 

The centre has hosted several large-scale events, including the Amway Recognition Rally 2025, Public Bank’s 59th Anniversary Celebration, the Penang Green Summit 2025, WaterTech Asia 2025, K Beauty Expo Malaysia 2025 and K MediTech Expo Malaysia 2025.

 

Wong said the addition of PWCC complements other major venues such as SPICE Convention Centre, the upcoming Penang International Commercial City Centre (PICCA) in Butterworth, and hotel ballrooms across the state.

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Wong also said the twin engines of hotel and MICE development are driving Penang’s tourism expansion while ensuring benefits are shared statewide.

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Selected new hotels in Penang
1. Iconic Marjorie (Bayan Baru) – Open
2. lyf Georgetown Penang – Open
3. Holiday Inn & Suites Penang Prai, Juru Sentral – Open
4. Saturn Hotel by Qravel, George Town – Open
5. Citadines Connect Georgetown Penang – Open
6. Citadines Connect Cecil Georgetown Penang – Open
7. Citadines Tanjung Tokong Penang – Open
8. The Leith Hotel, George Town – Open
9. Penang Marriott Hotel, Gurney Bay – Open
10. The Millen Penang, George Town – Open
11. InterContinental Penang Resort, Seberang Perai – Open
12. Citadines Connect Bertam Georgetown Penang – Soft opening (2026)
13. JdV by Hyatt, The Light City – Planned
14. Penang Marriott Hotel Queens Waterfront – Planned
15. HARRIS Hotel Sunshine Penang, Air Itam – Planned
16. The Westin Penang, Gurney Bay – Planned
17. Galaxy Minyoun Penang The Light City Hotel – Planned
18. InterContinental Penang Resort, Teluk Bahang – Planned
19. Le Méridien Penang Airport Hotel, Bayan Lepas – Planned