KUALA LUMPUR: Tropicana Corp Bhd is expanding beyond its core township development business into hospitality as it seeks to diversify its earnings base through recurring income and asset management initiatives. The property developer said the strategy will see internationally recognised hospitality brands integrated into selected developments to enhance project value, generate recurring revenue and reduce its reliance on traditional property sales. A key milestone is its partnership with Accor to launch Mercure Living Genting Highlands at Tropicana Grandhill in Pahang, which the companies describe as Malaysia's first Accor-branded condotel.
The project will form part of TwinPines Serviced Suites within Tropicana Grandhill, a 112-acre wellness-focused precinct in the 596-acre Tropicana WindCity township in Genting Highlands. Scheduled for completion in 2028, the RM1.06 billion development will comprise 1,443 fully furnished units and feature facilities including an all-day dining restaurant, executive lounge, heated swimming pool, fitness centre and multipurpose hall.
Tropicana said the project has achieved an 88 per cent take-up rate, while construction is about 30 per cent complete. Under the agreement, Accor will manage the property, providing hotel operations, rental management, international marketing and access to its global hospitality network. Tropicana managing director of marketing, sales and business development Ixora Ang said demand for professionally managed properties and income-generating investments had driven the collaboration. "By combining Tropicana's expertise in integrated township development with Accor's global hospitality platform, we are creating a distinctive branded residence experience that enhances lifestyle value.
"Mercure Living Genting Highlands embodies our vision of delivering future-ready communities that seamlessly integrate wellness, connectivity and quality living, while contributing to the continued growth of Genting Highlands as one of Malaysia's premier leisure and tourism destinations," Ang said at the signing ceremony on Wednesday. Tropicana group chief executive officer Dennis Ng said the company is adapting its business model to meet changing market dynamics and reduce its reliance on traditional property sales. "For more than four decades, Tropicana has established itself as one of Malaysia's leading township developers. As the market continues to evolve, we are equally evolving our business model to create a stronger and more balanced platform for long-term growth," he said. "Our objective is to complement our traditional development business with sustainable recurring income streams that enhance shareholder value while strengthening the competitiveness and resilience of our townships," he said.
Ng said the collaboration with Accor demonstrates how global hospitality partnerships can unlock new value from the company's developments and create professionally managed lifestyle assets that benefit homeowners, investors and the wider community. Accor said the project also supports its expansion of extended-stay accommodation in Malaysia. Chief operating officer for Accor's premium, midscale and economy division in Asia, Garth Simmons, said travellers are increasingly seeking accommodation that combines flexibility, comfort and local experiences. "As travellers increasingly seek accommodation that combines flexibility, comfort and authentic local experiences, we believe this development will be well positioned to meet those needs while contributing to the continued growth of Genting Highlands as a leisure destination," he said.
Accor's chief development officer for Asia, Andrew Langdon, said Genting Highlands continues to attract rising visitor numbers from both domestic and international markets, providing favourable long-term prospects for hospitality investments. He added that Mercure Living Genting Highlands is expected to become the largest Mercure Living development globally. Looking ahead, Tropicana said it is evaluating similar hospitality-led developments across its portfolio, including Tropicana WindCity in Genting Highlands, Lido Waterfront Boulevard in Johor, Tropicana Cenang in Langkawi and other future resort-oriented projects.
The company said it views hospitality as an extension of its township development strategy rather than a standalone business, with professionally managed accommodation, destination activation and lifestyle offerings expected to improve asset values, strengthen communities and generate sustainable recurring income. Tropicana said it will continue exploring partnerships with international and regional operators as it builds a more diversified real estate platform focused on delivering long-term value for customers, investors and shareholders.
Source: NST
