GreenTree expands presence in Malaysia, eyes Kuala Lumpur growth
KUALA LUMPUR: GreenTree Inns (GTI) Hotel Management Group, which operates over 5,000 hotels in China and nearly 200 properties across Japan, the Middle East, and Southeast Asia, is investing RM500 million over the next three years to expand in Malaysia.
"We plan to allocate RM300 million to RM500 million over the next two to three years, depending on finding suitable properties," said Alex Xu, the group's founder, chairman, and chief executive officer.
Xu added that GTI is in discussions with the Malaysian Investment Development Authority (MIDA) to accelerate its expansion in Malaysia.
The group is also collaborating closely with Holiday Villa Hotels & Resorts for its Malaysian ventures.
Xu said that GTI plans to open three hotels in Malaysia, targeting key markets such as Kuala Lumpur and Johor.
"Kuala Lumpur remains a primary focus due to its role as a business and tourism hub. It's the centre of all the action, and we're eager to operate more hotels in Kuala Lumpur and other metropolitan areas that attract diverse travellers," Xu said, following the announcement of the joint-venture partnership with Holiday Villa Hotels & Resorts.
As part of the partnership, GTI's first hotel in Johor Bahru is expected to open by 2026. This milestone marks the group's official entry into Malaysia and is made possible through a collaboration with Malpakat Group, the developer of GreenTree Hotel Johor Bahru, and the licensee of Holiday Villa Johor Bahru City Centre.
GTI's first investment in Kuala Lumpur, valued at around RM100 million, will see the rebranding of an existing property near the Petronas Twin Towers to a Holiday Villa Hotel, Xu said.
Xu further shared that GTI is considering expanding the Holiday Villa brand into existing markets such as the US and other parts of Asia as part of its long-term strategy.
"The collaboration between GTI and Holiday Villa is seen as a strategic fit, offering a cost-effective and efficient hotel management solution," Xu noted.
He expressed confidence in the partnership, highlighting Holiday Villa's rich hospitality heritage, experienced leadership, and expert management team.
Xu said the collaboration represents a long-term strategic alliance aimed at enhancing operational efficiencies by leveraging the combined expertise of both groups in hotel management.
"As we expand our presence in Southeast Asia, this collaboration with a brand that shares our commitment to service excellence and hospitality innovation is a natural fit. Holiday Villa's strong market positioning in Malaysia and beyond makes them an ideal partner," Xu said.
Holiday Villa Hotels & Resorts chairman Tan Sri Azman Shah Haron said the collaboration with GTI aims to accelerate the Holiday Villa group's expansion not only within Malaysia but also across Asean, China, and Middle Eastern countries.
He said the group is targeting key markets such as Riyadh, Bangkok, Cambodia, and the Philippines, where demand for quality hospitality services is growing.
"We currently operate 26 hotels across five countries, and we continue to expand. With GTI's support, we aim to have more hotels in the near future," Azman Shah said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
2 hours ago
- The Star
From shophouse to global hub: Malaysia's automotive journey
Asia's very first automotive assembly activities date back almost one hundred years. The pioneers in local assembly used to be Ford, when in 1926 was incorporated in Singapore as Ford Motor Company of Malaya Ltd. Operating from a small shophouse garage, it began with wheel-fitting and touching up early Model-T kits sourced from Ford England and Canada. A far cry from the state-of-the-art assembly plants that can push out thousands of units a month today. The first fully-fledged automobile assembly plant was set up in Singapore by Ford, with production facilities of completely knocked-down (CKD) vehicles. During the Japanese occupation, the plant was used to produce military trucks. In the post-war years, as newly independent nations began charting their economic futures, industrialisation – and with it, automotive manufacturing – became a natural focus. The Asean blueprint for development post-independence has been largely industrialisation-focused and began to look at reducing their reliance on imported vehicles. Over time, the most critical starting point is to upskill the talent, implement government policies and incentives, and build local infrastructure to support it. The automotive supply chain has grown tremendously, a spark that has ignited investments, skills development, and technology transfers – powering hundreds of thousands of livelihoods. As the supply chain became more embedded, global brands began to eye countries like Thailand, Indonesia, and Malaysia as suitable hubs for regional expansion. Initially manufacturing for the domestic market, post-war economies were flourishing, and mobility was an essential part of this growth. The following decades saw the automotive industry evolve organically, gradually increasing the local content component in alignment with national policies, attracting interest and investment from European and Japanese brands, who saw Asean as an attractive hub for regional expansion. The era of complex automotive supply chains Digitalisation, trading blocs, and supply chain-related technologies gave the world a massive boost when it came to regional integration. Cars were now being built with content from multiple countries, with each component being optimally sourced at the best quality and price from vendors across the region. This allowed for increasingly resilient supply structures, with better flexibility and scalability. Toyota, with its Toyota Production System, pioneered manufacturing and logistical processes that are emulated globally, optimising complex supply chains to clockwork precision. Today, your car could be designed in Japan, made in Malaysia, with tyres from Thailand, brakes made in Indonesia and seats from Vietnam – a truly Asian testament to integration – and Malaysia played the role of quiet architect. Working fantastically together, with each component coming together at the right time and in the right specification on the final assembly line. Domestic or export? Why not both? Export-oriented hubs that also serve the local economy are a great move forward. Jobs created, skills enhanced, technology infusion, and the local market gains access to more advanced cars – the economic benefits multiply. Whilst the world's leading car brands do not originate from Asean, the region remains a strong manufacturing base and a key source of growth, ensuring their significant and enduring presence here. The rise of xEV and China In more recent times, the rapid growth of electrification has shifted the technological focus, attracting big leaps in investment, technology, and upskilling. One cannot talk about electrification without mentioning China. China is integral to electrification. Supported by a thriving local economy, the country has been able to grow the local infrastructure exponentially in developing batteries, their component technologies, and raw material extraction and refinement, and is now the linchpin of critical technologies in the pursuit of a green future. It is a space that is rapidly evolving, too, as governments increasingly view energy transition as a matter of national security and critical industries. New iterations of batteries and platforms continue to leapfrog previously cutting-edge technologies. Can Asean keep up with this pace of evolution? While no one region can match China's scale overnight, Asean's opportunity lies not in direct competition – but in complementing the ecosystem. In a world of shifting alliances, agility and trust matter more than sheer volume. Supply chain interdependencies and geopolitical conditions will make alliances and partnerships a critical, if not essential, pathway to joint prosperity in the region. Asean member countries make up 670 million people, making it the fifth most populous region. Collectively, they produce around 4.5 million cars annually, making it the fifth largest sub-regional market. Global brands recognise the potential, catapulting Asean as a hub for manufacturing, exports, and component supply. Asean's generally trade-friendly policies also make it favourable for manufacturers looking to access markets they otherwise cannot. This cushions the impact of geopolitical tensions, like the tariff wars. Malaysia, Indonesia, and Thailand are well-positioned to capitalise. In the process of building these support networks for car brands, we continue to grow and flourish. Our talent pool, technology and training skills, research and development, and production capabilities continue to expand. From a humble shophouse to regional relevance, Malaysia's journey reflects the power of steady progress. And our future – built on talent, trust, and tenacity – is going strong.
The Star
4 hours ago
- The Star
Defensive play with selective bright spots
Partnership. double exposure image of investor business man handshake with partner for successful meeting deal with during sunrise and cityscape background, investment, partnership, teamwork concept MALAYSIAN real estate investment trusts (REITs) are poised for steady, if not spectacular, growth in the medium term, as monetary policy, economic uncertainties and sector-specific factors shape their fortunes. Although interest rates hold steady for now, analysts see room for opportunities, especially as the market eyes a potential rate cut later this year. Billed as RM9.73 for the 1st month then RM13.90 thereafters. RM12.33/month RM8.63/month Billed as RM103.60 for the 1st year then RM148 thereafters. Free Trial For new subscribers only
Malaysia Sun
9 hours ago
- Malaysia Sun
Economic Watch: ASEAN sees necessity to expand LCS to enhance integration, prevent external risks
HONG KONG, June 13 (Xinhua) -- During the 46th Association of Southeast Asian Nations (ASEAN) Summit concluded last month in Malaysia, leaders of the 10-member bloc agreed to expand and strengthen regional payment connectivity and promote local currency settlement (LCS). Adopted by the 46th ASEAN Summit, the ASEAN Economic Community Strategic Plan 2026-2030 pledged that ASEAN will "promote the use of local currencies to reduce the region's vulnerability to exchange rate fluctuations and external economic and financial shocks, and to lower transaction costs associated with cross-border payments." FAST STEPS FORWARD In 2021, Thailand and Singapore linked their fast payment systems, a pioneering move allowing people to make real-time, low-cost mobile payments using just the recipient's phone number. In 2023, ASEAN leaders adopted the declaration on advancing regional payment connectivity and promoting local currency transactions, eyeing leveraging local currencies for cross-border payments and establishing a task force to develop an ASEAN local currency transaction framework. Since then, progress by 2025 has been both significant and tangible, particularly through the Regional Payment Connectivity (RPC) initiative, said Tasawan Khao-uppatum, a senior researcher at Kasikorn Research Center in Thailand. The RPC has rapidly expanded from five founding central banks in 2022 to nine ASEAN members by 2025, and it aims to build seamless regional payment systems through cross-border QR code payments, especially for tourism and retail, and account-to-account transfers that enhance financial inclusion, particularly for small- and medium-sized enterprises (SMEs), Tasawan said. Now, many national systems have already been linked, including Thailand's PromptPay, Indonesia's QRIS, Singapore's PayNow, Malaysia's DuitNow, and full ASEAN-wide interoperability is expected by the end of 2025, according to the expert. "In practice, Thai consumers can now use QR code payments abroad in countries such as Japan, Cambodia, Vietnam, Malaysia, Indonesia, Singapore and some other places. Additionally, cross-border transfers with Singapore can now be done using mobile phone numbers." ENHANCE REGIONAL INTEGRATION As intra-regional trade is rapidly growing, promoting LCS through the QR code-based payment systems simplifies transactions for tourists, expatriates and small businesses, promotes financial inclusion, and boosts local economic development. SMEs can use the system to conduct international trade with lower transaction costs. In ASEAN, the adoption rate of digital payments, especially QR code payments, has grown significantly. Mohammad Faisal, executive director at the Center of Reform on Economics Indonesia, said that for Indonesia, cooperation in the implementation of local currency transactions has started since 2017 with Thailand and then followed by several other countries including Malaysia, Singapore, Japan, South Korea, and China. Faster and more interoperable payment systems support seamless trade, investment, and tourism flows within the ASEAN bloc, said Tasawan, adding that in 2024, 25 percent of Thailand's exports were settled in local currency Thai baht, up from 14 percent in 2010. "For instance, the growth of cross-border QR payment systems makes it easier for Thai tourists to spend abroad, particularly within ASEAN. The number of Thai travelers to ASEAN countries increased from 4.5 million in 2013 to 6.7 million in 2023. Likewise, the number of ASEAN tourists entering Thailand rose from 7.38 million in 2014 to 10.6 million in 2024," said Tasawan. Vice President of National Chamber of Commerce and Industry of Brunei Darussalam Haji Halim Saim said the LCS will enhance trade and investment as well as economic activities in ASEAN region and boost ties with financial institutions. MITIGATE EXTERNAL RISKS Analysts also believe that ASEAN's push for a framework for trading in local currencies will enhance its resilience -- by promoting financial integration and the use of local currencies, ASEAN aims to avoid the volatility in global financial markets and possible disruptions caused by geopolitical events. Referring to the change of U.S. interest rate in the past years, Faisal said that every policy that comes from the United States related to monetary policy often greatly affects the emerging countries, including ASEAN, because of the large use of the U.S. dollar by ASEAN countries' trade. Therefore, it is necessary to reduce dependency on the U.S. dollar to make the ASEAN currencies more stable. The benefit of building regional payment connectivity for ASEAN is to make the ASEAN currencies more stable, stronger and more resilient against external shocks or changes in the global economy. It can also encourage an increase in intra-ASEAN trade and investment, Faisal added. By settling trade in local currencies, emerging markets aim to reduce their exposure to exchange rate volatility and external monetary shocks stemming from advanced economies' policy shifts, said Tasawan, adding that this trend signals a decentralization of global financial power -- moving away from a reliance on the U.S. dollar and toward a more balanced system where multiple currencies play significant roles regionally and globally. Experts suggest that by decreasing dependence on the U.S. dollar, ASEAN can gain greater control over its economic future and lessen its susceptibility to U.S. monetary policy. The growing trend of emerging markets shifting to local currency settlements in international trade reflects their increasing needs and awareness to have a more stable global economy and a more balanced global economic order, Faisal said.
