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KUALA LUMPUR (July 1): Tropicana Corp Bhd is expanding its business model beyond township development as part of a broader strategy to diversify its revenue streams through hospitality, recurring income and asset management initiatives.
Tropicana has outlined plans to strengthen earnings resilience by integrating hospitality offerings into selected developments within its portfolio.
A key component of this strategy is its partnership with Accor to introduce Mercure Living Genting Highlands at Tropicana Grandhill.
The project is described as Malaysia's first Accor-branded condotel and will be integrated into TwinPines Serviced Suites within Tropicana Grandhill, a 112-acre wellness-focused precinct located in the 596-acre Tropicana WindCity township in Genting Highlands.
Tropicana Group CEO Dennis Ng said at the press conference following the signing ceremony at Tropicana Golf & Country Resort with Accor, that the collaboration forms part of the group's efforts to complement its traditional property development business with additional recurring income streams.
"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.
Ng said the company sees hospitality as an extension of its township development strategy, with professionally managed hospitality assets contributing to the attractiveness and long-term value of its developments.
The Mercure Living Genting Highlands project is scheduled to open in 2028. With a gross development value (GDV) of RM1.06 billion, the development will comprise 1,443 fully furnished units and feature facilities including an all-day dining restaurant, executive lounge, multipurpose hall, heated swimming pool and fitness centre.
Tropicana said the development has achieved an 88% take-up rate to date, while construction progress has reached 30%.
The project will be managed under Accor's hospitality platform, providing owners with access to rental and leasing management services, the group's reservation network and the ALL — Accor Live Limitless loyalty programme.
Tropicana managing director of marketing, sales and business development Ixora Ang said the partnership was driven by demand from buyers seeking professionally managed properties, rental income opportunities and long-term ownership value.
“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.
She added that homeowners at Mercure Living Genting Highlands will be automatically enrolled as Gold members of the ALL loyalty programme, which offers benefits across Accor's global hotel portfolio.
Tropicana also indicated that the hospitality-led development model could be expanded to other projects within its landbank, particularly in destinations with tourism and lifestyle appeal. Locations identified for potential future opportunities include Genting Highlands, Johor and Langkawi.
Supporting the group's diversification efforts are its digital platforms, T360 and T Journey. According to Tropicana, T360 provides property owners with access to management services, maintenance tracking, facility bookings and loyalty programme benefits, while T Journey offers rental management services and curated travel and lifestyle experiences through strategic partnerships.
"Mercure Living Genting Highlands represents an exciting opportunity to expand our extended-stay offering in Malaysia through a collaboration with one of the country's leading developers.
“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,” said Accor Asia chief operating officer (premium, midscale and economy division) Garth Simmons.
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