iBilik, Malaysia’s largest online platform for booking room rentals and homestays, is reportedly set to take over the former Hotel Royal Penang along Larut Road in the heart of George Town.
The move is expected to inject fresh energy into the island’s hospitality and tourism scene.
Penang Hyperlocal spoke to several industry sources to verify this new development in the hospitality industry..
The Hotel Royal Penang, which ceased operations in November 2021,once stood as a familiar landmark for visitors to Penang. At one time it also operated under the Merlin Hotel Brand.
With 276 rooms and facilities including a coffeehouse, ballroom, lounge, swimming pool and gym, the hotel was a popular choice in its heyday for both holiday-makers and business travellers.
Its strategic location, just minutes from Komtar and surrounded by government offices, heritage streets and local eateries, made it a convenient base for exploring the island’s rich culture, food scene and UNESCO-listed historic core.
iBilik’s entry into this space could reflect a broader shift in travel preferences, where flexible, longer-stay and hybrid accommodation models are gaining traction among both domestic and regional travellers.
iBilik is popular with students and young professionals in major locations in Kuala Lumpur and Johor Bahru.
The revitalisation of such a sizeable property also comes at a time when Penang continues to strengthen its appeal as a top tourism destination, known for its street art, hawker cuisine and cultural festivals.
With iBilik already operating across regional markets including Singapore, Indonesia, Brunei and the Philippines, the potential redevelopment of the former hotel could position it as a modern, accessible hub for travellers seeking a more localised and community-driven stay experience, right in the cultural heartbeat of George Town.