Besides Cyberview Resort & Spa, there are no other hotels in Cyberjaya currently, right? So Citadines will be the first?

I hope it will really kick off. Not sure what was Tony Fernandez eyeing though when he choose Cyberjaya. Up until today, I don't see a real sexy magnet that will make Cyberjaya a tourist destination. Thus, why have hotels there? From what I know, most MNC's have their own service apartments for their expats from overseas, be it short term or long term. It's not scenic at night and most big events are at Putrajaya, such as the International Fireworks Competition and also events hosted at Putrajaya International Convention Centre.

The only thing that I can think at the back of my head is the annual convocation ceremony, a few nights when families of the graduates will book rooms at the hotel till its fully occupied.

Anything else I'm missing?

There is already a Tune Hotel outlet at LCCT itself, and it's walking distance (less than 1km away). There are 200+ rooms there.
As for KLIA, there is Sama-sama Hotel and also Concorde.

And within 10km radius from KLIA & LCCT, you have more than 10 hotels/motels at Sepang town.

Thus, I don't think the target market for hotels in Cyber are the air travelers.

When one has a direct stake in a project/development, surely one will dig out all positive news regarding it and would want to fully believe in it...Well, who wants to be on the wrong side of things anyway? :-)

There is no doubt that they will surely be some expats travelling to KL. But how will the occupancy rate for hotels in Cyberjaya be? That we will have to wait and find out.

I do have some investment in Cyberjaya as well, and as much as I want it to prosper, I need to be realistic of the chances of that happening, without being bias to any of the external factors that might affect the outcome.

Don't think they will be interested to acquire back after a certain period. This comes from experience as I am currently in the IT hospitality business. For the projects that I handle, hotel management companies usually sign a long term contract with the building owners to manage the place. Same like what we have here, where Ascott will manage the hotel, on a 5+5 year contract that they sign with the individual unit owners.

Even for existing or refurbished units, the hotel management company won't acquire but rather, sign lease contracts with the owners. There are a few examples of serviced residence within the city centre, or to be specific, near KLCC and also along Jalan Bukit Bintang, where I have projects that are based on such practices.

RM900+psf is indeed on the high side. Can easily back calculate to see the feasibility. Assuming a 6.5% GRR from the price of RM470k. That will yield RM31k per year, or around RM2,600 per month. Based on the current hotel/resort pricing of Shaftsbury Residence, Primera Business Suites, Pullman Putrajaya and Putrajay Mariott, a reasonable price will be RM230/night upon launch. Assuming a decent occupancy rate of 60%, that will be 0.6 x 30 days x RM230 = RM4,200.

The gross profit is RM1,600. If you calculate the housekeeping maintenance, electricity bill, hotel/resort maintenance(sinking fund), staff salary, sales & marketing and others, nett profit will be really low and not much.

Doesn't look like a solid, sustainable plan, to be honest.

Actually, my pricing of RM230/night is for the 527 sqft unit. Shaftsbury 600sqft unit is going for RM250. So I guess RM230/night for the 527 sqft unit will be fair. Again, I'm assuming this Ascott at Cyberjaya will be a 4* hotel, if it's a 5* hotel on par with Pullman and Shangri-La, then rates will be higher for sure.

My whole point of doing the financial modeling was to show that it is rather quite hard to be profitable from the given current pricing. Customers are buying at a high premium and the price that they are paying might include the rental yield too. Possibly a fair price is RM750psf but developer is giving it to buyers at RM900psf.

Might be a little tough to flip upon completion as the property is only limited to rental/investment purpose.