Crowne Plaza Penang Straits City opens, kicks off RM4.3b master development in Butterworth

• As the first Crowne Plaza in Penang, the 23-storey, five-star waterfront hotel features 343 rooms and suites, catering to increased business travel and foreign investment activity in the northern state.

BUTTERWORTH (Feb 18): Crowne Plaza Penang Straits City officially opened on Tuesday, marking the first completed phase of the Straits City waterfront master development in Butterworth, Penang.

The 40-acre mega project — co-developed by Singapore-listed Straits Trading Company Ltd and its 51.96%-owned Malaysia Smelting Corp Bhd (KL:MSC) — is positioned as a long-term urban renewal initiative aimed at transforming the historic Butterworth into a dynamic and inclusive “future city.”

The hotel’s launch is a significant step in revitalising the Singaporean diversified group’s land bank in Butterworth on the mainland side of Penang, Straits Trading executive chairman Chew Gek Khim said in her speech at the opening ceremony here.

"Make no mistake, this hotel is just the beginning — it serves as the gateway to our master development,” Chew said. With a gross development value of RM4.3 billion, Straits City would be the company’s largest project in Malaysia to date, she noted.

For Straits Trading, the hotel's opening marks the transformation of its legacy assets and land bank in Butterworth and is the beginning of a journey for Straits City.

“This development goes beyond infrastructure. Straits City is about shaping a thriving urban ecosystem where business, communities, and innovation come together, contributing to Butterworth’s long-term growth and vibrancy as a place to work, live and play,” she said.

As the first Crowne Plaza in Penang, the 23-storey, five-star waterfront hotel features 343 rooms and suites, catering to increased business travel and foreign investment activity in the northern state.

The Straits Ballroom can accommodate up to 800 guests, while additional meeting rooms cater to smaller events. Adjacent to the hotel, the multi-level Straits Galleria retail podium offers a mix of shops, dining options, and entertainment venues.

Located 27km from the Penang International Airport in Bayan Lepas, Crowne Plaza Penang Straits City is managed by multinational hospitality giant InterContinental Hotels Group.

The masterplan

The hotel and Straits Galleria are the first of 10 phases sitting on two plots of land owned by Straits Trading and Malaysia Smelting Corp. The entire development is expected to be completed in 2038.

The landmark project will integrate commercial, retail, and residential components, making it a key business and lifestyle hub in the northern region.

Straits City is designed “not only to meet the demands of today, but also the aspirations of future generations”, said Chew.

The mainland is home to more than half of Penang’s labour force — many who travel to the island to work — while making up over two-thirds of Penang’s land mass.

Incorporated in 1887, Straits Trading is a conglomerate-investment firm with operations and interests in resources, property, and hospitality.

Dual-listed on the Main Market of Bursa Malaysia and the Mainboard of Singapore Exchange, Malaysia Smelting Corp, meanwhile, is one of the world's top producers of tin metal and tin-based products, as well as a global giant in custom tin smelting.

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