Proposed five-star hotel in Queensbay Development in Bayan Lepas

In four years time, a five-star hotel with an international convention centre is set to be built by the CP Land group in Bayan Lepas of Penang Island.

The group's executive director Datin Jane Yeo said the proposed hotel will be the second one built by the company within its waterfront 'Queensbay' development in Bayan Lepas, following the opening of its RM130 million Eastin Hotel Penang.

"The (Penang) chief minister (Lim Guan Eng) has been encouraging us to build a convention centre here," she told reporters after Yang diPertua Negeri Tun Abdul Rahman Abbas officiated at the opening of the 328-room business hotel, Eastin Hotel.

Present was CP Group's executive chairman Datuk Tan Chew Piau and the hotel's manager Mary Ann Harris.

Yeo said the proposed hotel will form part of the 30ha Queensbay masterplan, of which 14ha has so far been developed.

The Eastin Penang is the second hotel of the Eastin Hotel chain, following the Eastin Hotel Petaling Jaya.

Yeo said in expanding the Eastin brand of hotels, the CP Group is looking at managing and entering into joint ventures overseas.

"We would like to carry the Eastin brand abroad and are waiting for the right fit," she added.

Harris said since its soft opening in November 2009, the hotel has been enjoying an average occupancy of 78 per cent.

The CP Group began operations in 1972, with interests in cons-truction, telecommunications and hospitality.

The company is responsible for the revival of the failed Bayan Bay project.

The development, helmed by Bayan Bay Development Sdn Bhd in a joint venture with the Penang Development Corp, stalled in 1998 as a casualty of the Asian financial crisis. CP Group signed an agreement with Bayan Bay Development to take over the project in 2003.

Yeo said the overall development cost for the Queensbay development so far had hit the RM1 billion mark.

"We should be launching Parcel 4 of the project, comprising high-end condominiums, by the end of this year or early 2011," she said.

Yeo also said that for the component of the project, which was set to feature waterfront homes, the company is making changes by changing its density.