Freehold Batu Ferringhi beachfront site for sale at RM140mil — land approved for 722 keys, not a hotel

A freehold beachfront development site of approximately 3.344 acres (13,533 sq m) along Jalan Telok Bahang in Batu Ferringhi, Penang has been launched for sale by Expression of Interest at an asking price of RM140 million. Exclusive marketing agent Colliers announced the exercise on 18 August 2026; the EOI closes at 3.00pm on 30 September 2026.

To be clear about what is on the table: this is land, not an operating hotel. The commercial-zoned site carries an approved plot ratio of 5.0 and a maximum gross floor area of about 67,663 sq m. The current approved plans envisage a mixed-use scheme of 473 luxury serviced apartments and 249 five-star hotel rooms — 722 keys in total — with a designed gross floor area of roughly 54,042 sq m. A management agreement with an internationally renowned hotel operator has already been secured, though Colliers says a purchaser is free to keep it or pursue its own branding and operating structure. The operator has not been named.

The site sits on the same coastal stretch as Bayview Beach Resort, PARKROYAL Penang Resort, Shangri-La Golden Sands and Lone Pine Resort, and Colliers describes it as one of the few remaining sizeable beachfront commercial landholdings in Batu Ferringhi.

"Large-scale freehold development sites in Batu Ferringhi are exceptionally rare. The site's scale, commercial zoning, development approvals and beachfront access position it among the most compelling hospitality and lifestyle investments currently available in Penang," said Zoe Zhou, Director of Capital Markets and Investment Services at Colliers Singapore.

The maths

At RM140 million for roughly 145,665 sq ft of land, the asking price works out to about RM961 per sq ft — beachfront, freehold, with the density and approvals already in hand. Spread across the 722 approved keys, the land cost alone is about RM194,000 per key before a single pile is driven.

Not the DoubleTree — but read them together

This is a different asset from the DoubleTree Resort by Hilton Penang tender we covered in August. That is an existing, operating 316-room resort asking RM250 million (about RM791,000 a key) through The Roof Realty, with its tender closed on 15 August — and notably, it is set back from the beach. This one is bare beachfront land at RM140 million through Colliers, where the buyer still has to fund and build the 722 keys.

What is striking is that both have surfaced within weeks of each other. Two nine-figure hospitality offerings on the same Batu Ferringhi strip at the same time gives investors a live menu: buy income and renovate, or buy sand and build. How the two price outcomes land against each other will say a lot about where capital thinks Penang's tourism belt is heading.

Penang welcomed 8.76 million hotel guests in 2025, including 3.47 million international visitors, and the Malaysian Association of Hotels reports average weekday occupancy of about 70% despite new supply — rising to 90–100% at selected hotels during peak periods. Penang's growing medical tourism trade is also feeding demand for exactly the extended-stay, serviced-residence product this site is approved for.