KUALA LUMPUR (June 8): Radium Development Bhd has unveiled The Face Chancery Hotel, the hospitality component of its Chancery Ampang mixed-use development, marking the group’s maiden venture into the hotel sector.
Radium Development group managing director Datuk Gary Gan said Chancery is designed around the city’s needs.
“Kuala Lumpur does not slow down and its people increasingly look for convenience, flexibility, and services within a single address. That is why Chancery brings together hybrid SOHO units and a 4-star hotel within one development.
“The hybrid SOHO units offer the flexibility to function as either a residence or a business address, reflecting the changing ways people live and work today,” he said during his speech at the unveiling of The FACE Chancery Hotel at the Chancery KL Sales Gallery.
The hotel component includes food and beverage offerings aimed at improving convenience within the development.
“Anchoring the precinct is the lifestyle park, a shared space designed to foster community interaction and enrich the overall experience for residents, guests and visitors alike,” he said.
Gan added that the hotel business is a strategic move for Radium. It is estimated to cost RM135 million, with RM109.3 million from the group’s 2023 initial public offering (IPO) proceeds.
“That is a significant allocation, and it reflects a deliberate decision to build recurring income alongside our core property business. Property development is naturally project-based. Revenue comes in cycles. A hospitality component gives the group an additional income stream that strengthens long-term resilience and broadens how value is created over time,” he added.
He said hotel operations are expected to stabilise by the third year, with projected occupancy of 55% to 65%.
“It is projected to generate annual revenue of approximately RM20 million by the third year,” he said.
Slated to open in 2028, the hotel will occupy Levels 10 to 14 of the 51-storey tower, with 145 rooms across Super King, Queen, accessible, and connecting configurations.
Operator role and positioning of the hotel
The FACE Chancery Hotel will be operated by Radium subsidiary Tradisi Emas Sdn Bhd, with The Face Hospitality appointed as consultancy partner covering brand positioning, design planning, operational flow and market alignment.
The 4-star hotel will feature an all-day dining restaurant, poolside dining, infinity-edge pool, gymnasium and meeting rooms. Guests will also have digital check-in, smart in-room controls, and in-room hot and cold water dispensers aimed at reducing single-use plastics.
Radium said the appointment of The Face Hospitality was based on its strong performance in Kuala Lumpur and established market presence.
The Face Hospitality cluster general manager Jason S’ng said the project marks a bold entry into a highly competitive segment.
“Situated in the dynamic Ampang corridor, this project is well-positioned to capture both business and leisure demand within Kuala Lumpur.
“We are not just advising on a development. We are shaping its identity, defining its market position, and together with Radium, laying the foundation for long-term success,” S’ng said.
He said the collaboration brings together Radium Development’s strength in delivering developments and The Face Hospitality’s expertise in hospitality execution.
“To the project teams and consultants who have worked to bring us to this stage, we thank you for your dedication and professionalism. And as we look ahead, this is only the beginning,” he added.
The development includes hybrid SOHO units designed for residential and business use, a 10,000 sq ft lifestyle park as a shared community space, and pet-friendly features aligned with evolving urban lifestyle preferences.
The project is located about 500 metres from the proposed MRT 3 Tasik Ampang Station, which is expected to improve connectivity for residents, hotel guests and visitors.
Chancery is scheduled for completion in 1Q2028, with The Face Chancery Hotel targeted to open in the same year.
The SOHO units start from RM450,000, with built-ups from 500 sq ft, and the project’s gross development value (GDV) stands at about RM500 million.
Sales traction and buyer profile
Radium Development Bhd chief marketing officer Kenneth Khoo said sales are currently at about 40% to 50%. He revealed that about 10% of SOHO take-up is from foreigners, while the remaining 90% are local buyers.
Within the local segment, around 30% are investors, mainly from northern and southern regions such as Penang and Johor.
Scalability plans and future expansion pipeline
Gan said the collaboration could become a scalable model, with potential to replicate the hotel concept across future mixed-use projects if it proves successful, including a possible second or third Chancery hotel in other developments. The current focus is on the first hotel as a testbed before any expansion.
He added that while future developments are mainly concentrated in Kuala Lumpur, the group is also venturing into healthcare.
“The Group’s first hospital project is located in Ayer Keroh, which includes two phases: a hospital component and a second phase comprising residences and a hotel,” he told EdgeProp.
He said there is also potential to incorporate the Chancery hotel concept in Melaka.
S’ng said the five-year pipeline and planning will be supported through consultancy and marketing guidance, with a focus on positioning projects in both international and domestic markets, including identifying suitable market segments and partners.
“The collaboration is currently the first step with Radium Development, but future partnerships with other developers or hotel operators remain possible depending on demand,” he said.
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