READY IN 2016: Site of former Mutiara Burau Bay Resort to be redeveloped into deluxe-standard hotel
TRADEWINDS Corp Bhd (TCB) is planning to redevelop the site of the former three-star Mutiara Burau Bay Resort in Langkawi in a project that will cost hundreds of millions of ringgit.
Business Times has learnt that plans are being drawn up to build a deluxe-standard hotel that will boast more than 200 rooms and 60 villas.
The project is expected to break ground next year and completed in two years.
"Negotiations are currently on-going between TCB and an established international hotel management chain to run the new resort when it is completed," a source said.
TCB had previously operated and managed Mutiara Burau Bay for the Langkawi Development Authority (Lada) but has since entered into an agreement with the authorities to lease 14ha for 81 years, from 2013 to 2093, for RM34.7 million.
It is also learnt that the redevelopment project may include a 6ha site on an island off the current site called Anak Burau.
On Langkawi, where TCB is said to have a 80ha landbank, of which less than 20 per cent is developed, the company also owns luxury boutique hotel The Danna and the five-star Meritus Pelangi Beach Resort and Spa.
TCB also owns and manages Perdana Quay at Telaga Harbour, which currently includes a commercial precinct.
Last month, TCB announced plans for its Perdana Quay integrated development at the site, which will involve the development of some 60ha, believed to cost RM1 billion.
Besides TCB's expansion plans, the island is also expected to see the entry of several luxury brand hotels.
Starwood Hotels and Resorts, whose presence in Langkawi now is via The Westin Langkawi Resort and Spa, Sheraton Langkawi Beach Resort and Four Points by Sheraton Langkawi Resort, is said to be opening a St Regis luxury hotel on Pantai Beringin.
The Tanjung Santuary Langkawi, meanwhile, has been closed for refurbishment and is believed to be rebranded into a luxury Ritz-Carlton property.
Meanwhile, little is known on the progress of the proposed five-star resort at Teluk Datai by Teluk Datai Resorts Sdn Bhd, an investee company of Khazanah Nasional Bhd.
In 2010, Teluk Datai Resorts signed a heads of agreement with Shangri-La Hotels (M) Bhd for the establishment of a joint-venture company (51 per cent to be owned by Teluk Datai Resorts) to develop a five-star resort there, which would later be managed by Shangri-La International Hotel Management Ltd under the Shangri-La brand.
A check on Shangri-La Hotels and Resorts website, however, does not list the Langkawi property as part of future developments for the hotel chain between 2013 and 2018.