Friday 21 August, 2020 TOP STORY E&O calls time on Kuala Lumpur serviced apartments Malaysia: Developer Eastern & Oriental Berhad (E&O) will cease operations of the 200-key E&O Residences Kuala Lumpur (EOR KL) next month, due to pressure from market disruptors and the Covid pandemic. LATEST NEWS If you missed our last newsletter....check out the stories below
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• While we have regularly reported on how the serviced apartment and extended stay sectors have proven relatively resilient during the pandemic, we can't shy away from the fact that many businesses are struggling, some have gone under, and more will undoubtedly do so.
The news that Eastern & Oriental, one of Malaysia's biggest and best known developers, has decided to call time on its well regarded E&O Residences Kuala Lumpur property is a warning that all is
And perhaps surprisingly, the company has admitted the property was struggling even before the pandemic, which was the final nail in its coffin.
"Over the past several years, EOR KL's viability as a business has been challenged by global economic uncertainties dampening demand while faced with intense competition from increasing supply of new serviced apartments in the capital, and unforeseen market disruptors in the form of online direct accommodation platforms. Most recently, the Covid-19 pandemic dealt the final blow to EOR KL's already struggling business," said a company spokesperson.
When the effects of the pandemic subside, the huge surge in serviced apartment supply in Asia will result in extremely competitive market conditions, in which only the strongest will survive.
• Don't forget to register for the next in our Urban Living webinar series, which takes place next Wednesday, August 26 at 14:00 BST, when we will be discussing:
Joining me will be: • Michael Goldin, director, NoiseAware • Peter Heule, CEO, Short Stay Group and Yays • Eliza Liepina, head of product and business development, alternative accommodations, • Francesca Howland, co-founder, Bimble
Click here to join hundreds of real estate and hospitality professionals for the no-cost session.
Future topics include: • Wednesday September 2nd, 4pm BST: Flex rentals - investing in innovation • Wednesday September 30th, 2PM BST: New real estate models and proptech investors SPONSORED BY RMS CLOUD • Wednesday October 7th 2PM BST: Investment: How to partially pandemic-proof your portfolio
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