Heritage hotels in the heart of Penang

TWO well-known Penang-based companies — Public Packages Holdings Bhd (PPH) and Gan Chai Leng Sdn Bhd — are undertaking the development of three heritage hotel projects with an approximate development cost of around RM75mil at George Town’s central banking district, which will further boost the reputation of inner George Town’s World Heritage Site (WHS) status.

The plans for the three hotels have been submitted to the local authorities for approval.

PPH is undertaking the RM50mil development of the two hotel projects located at Church Street Ghaut, off Beach Street, which is popularly known as the central banking district.

Building blocks: The site of the two hotel projects that PPH plans to undertake at Church Street Ghaut.

The third hotel, a RM25mil heritage hotel project by Gan Chai Leng Sdn Bhd, is located at Victoria Street, off Beach Street.

PPH hotel project manager Tony Koay says the advantage of carrying out infill development work for heritage hotel projects was that one could maximise the interior of the buildings to suit the needs of modern business usage.

“A problem with restoring a heritage building for hotel usage is that the interior of such heritage buildings restricts the utilisation of space.

“We are doing two five-storey boutique hotels, of which one has a total built-up area of 9,451 sq metre (128,000sq ft), 120 rooms, a business centre, and meeting rooms, and 47 car park bays, while the other has a total built-up area of 2,517sq m (26,900sq ft) and 39 rooms,

“The architectural style for both hotels follows the design of late 19th and early 20th century port offices and warehouse buildings in George Town.

Restoration work: An artist’s impression of the PPH hotel project at Church Street Ghaut.

“We are targeting the upmarket tourists,” Tony says.

The cost per sq ft to develop a heritage hotel from scratch is about RM1,000 per sq ft, which is inclusive of finishings, says Tony.

The cost to restore a heritage building is around RM300 to RM400 per sq ft, depending on the quality of finishing use.

Both hotels, scheduled for operations in 2016, are located on a 0.6ha (1.5acre) land, which were previously occupied by godowns in the 19th and early 20th century.

The architectural style for both hotels follows the design of late 19th and early 20th century port offices and warehouse buildings in George Town. We are targeting the upmarket tourists. - TONY KOAY

PPH director Tommy Koay says the group invested in the projects because it saw the potential of heritage hotels in the central banking district after George Town received the WHS in 2008.

“We bought the 0.6ha land 15 years ago and have been waiting for the opportunity to start the right business.

“Last year we spent about RM97,000 to restore a 2,000sq ft heritage building located on the 0.6ha site for use as a vegetarian restaurant, which is now operating as Quay Cafe.

“As the business has received overwhelming response, we decided to proceed with the plan to develop two heritage hotels,” he says.

PPH is a main-board listed company specialising in manufacturing packaging products.

Meanwhile, Arkitek ZAA Sdn Bhd managing director Teoh Min Khean said the five-storey heritage hotel by Gan Chai Leng Sdn Bhd was an infill development project, which would be designed after late 19th and early 20th century colonial institutional buildings.

“The five-storey hotel, which has a built-up area of 4,300sq metre, will have 80 rooms and 148 car park bays.

“The project was in line with Unesco’s heritage guidelines.

“The architectural theme of both projects complements the other heritage buildings in inner George Town.

Inviting: The exterior view of Yeng Keng Hotel at Chulia Street.

“Both projects should help revitalise the tourism belt of inner George Town,” Teoh says.

Gan Chai Leng is one of Penang’s pioneering developers who developed the famous Chai Leng Park in Seberang Prai in the 1950s.

Another heritage boutique hotel-cum-commercial development project at the central banking district that is scheduled for opening in 2013 is the RM285mil Rice Miller Hotel & Residences, now undergoing development at Weld Quay, the heart of the banking district.

The project, a partial infill development and restoration project, comprises a 48-suite hotel, retail space with 17,000 sq ft of lettable area, two five-storey office blocks, and 99 units of city residences.

One of the well-known heritage hotels in George Town that inspired other heritage hotel restoration projects is the Yeng Keng Hotel at Chulia Street, owned by Datuk Ong Gim Huat of Hoo Kim Properties Sdn Bhd.

Splish splash: The pool view of Yeng Keng Hotel at Chulia Street.

Ong spent about RM5mil to restore the 150-year old heritage building into a 20-room heritage boutique hotel in 2009.

The hotel, which started operations in 2010, enjoyed an occupancy rate of about 70% in 2011.

“The renovation of the Penang International Airport, scheduled for completion in September 2012, should help to boost tourist arrivals in Penang and our hotel occupancy rate for this year,” Ong says.

One of the latest restoration heritage hotel projects that opened for business late last year is the Chong Tian Hotel at Rope Walk Road off the famous Campbell Street in inner George Town.

Local entrepreneur Seah Kok Heng says he spent RM3mil in 2008 to acquire three derelict, triple-storey shophouses located at Rope Walk Road.

“I invested about RM10mil to restore the heritage properties and furnish them with antique furniture and porcelains from Tang and Qing dynasties.

“At today’s market value, the hotel with the antiques should be worth around RM20mil.

“Since opening, our monthly occupancy rate is around 50% to 60%. Most of our customers come from Europe, China and Singapore,” he says. - The Star