Are convention halls still good investments?

For investors, the Covid-19 pandemic shook promises of stable long-term returns. Immigration counters were closed, foreign investors were locked down in their own countries and bustling streets once full of limousines and delegate flags were nowhere to be found.

As a result, convention halls stayed in the pitch black while their investors bled money. Now, three years on, the question is: Do convention halls still represent a viable investment?

Convention halls once promised the world, especially when Malaysia pushed its meetings, incentives, conferences and exhibitions (Mice) agenda. Stable long-term returns, large contracts, easily accessible booking calendars and perhaps even government backing for flagship events were part and parcel of the transactions.

As Malaysia works on rebuilding its business travel, combined with the booming local demand for event spaces, investors must continuously ask not just whether a hall exists but whether it can stay occupied.

Malaysia’s Mice initiative has managed to rebound strongly. According to the World Trade Centre Kuala Lumpur, the national Mice industry is projected to draw more than 25 million visitors and generate RM76.8bil in revenue over the coming years.

The surge is credited in part to Malaysia’s 2025 Asean chairmanship and the forthcoming Visit Malaysia 2026 campaign, which is going to boost both tourism and business events demand.

But first, the evidence.

Kuala Lumpur Convention Centre (KLCC) hosted over 60 major conventions and exhibitions as well as more than 70 corporate meetings. The venue celebrated its 20th anniversary in 2025 and had its calendars fully booked, with the total events in 2024 exceeding 1,600.

These numbers were the highest since 2014, drawing in some 1.34 million delegates. This generated an estimated RM1bil in estimated economic impact (EEI).

The Malaysia Convention and Exhibition Bureau (MyCEB) generated an estimated RM4.08bil in total economic impact for Malaysia in 2025, according to an update on Nov 21, 2025.

Its 2025 performance highlights included several key metrics. The EEI reached an impressive RM4.08bil. Additionally, the bureau secured 392 business events throughout the year, which contributed significantly to this economic impact.

The total number of delegates that attended the events was around 816,950, of which 261,054 were international participants. This influx of international delegates was projected to contribute approximately RM1.146bil in estimated expenditure, further boosting Malaysia’s economy.

From halls to integrated platforms

The renewed interest in Mice goes beyond just a general bounce-back. It is revealing some important changes in how business events are put together.

Venues are shifting from being basic rental spaces to more integrated platforms. They now feature hybrid-ready setups, advanced audio-visual and tech support and added services like food and beverage options, exhibitor assistance and vendor matchmaking.

Other features like smart infrastructure and conference rooms designed for hybrid events position a regular hall into a hub that connects industry, policy and commerce rather than just a piece of real estate.

This evolution is significant for investors because a convention hall is not merely about property investment but it is also a functioning business.

Revenue streams come from more than just rental fees. They include food and beverage sales, tech and AV services, sponsorships, exhibitor space and additional services like parking or concessions from partner vendors as well. High utilisation is key, because by having frequent events, diverse segments like corporate gatherings, exhibitions and weddings together with loyal clients, it provides consistent and sometimes lucrative cash flow.

Government vs private

In Malaysia, convention halls today fall into two main categories: government-backed large-scale centres and private or semi-private event halls and ballrooms. Each type brings its own unique strengths and challenges that can sometimes boggle green investors.

Government and large-centre halls are typically designed with scale in mind, featuring strict compliance regulations, large capacities and convenient access to transport and infrastructure.

These are often situated in major cities like Kuala Lumpur and Putrajaya. They benefit from strategic support at the national or state level, such as Mice marketing initiatives by MyCEB and tourism campaigns that attract international conferences, trade exhibitions and large-scale events.

These venues are much more likely to secure larger anchor clients like trade shows and government-sponsored events, which can lead to consistent bookings and long-term visibility.

However, they also come with much higher overhead costs related to maintenance, staffing, utilities and compliance, making profitability closely tied to a stable and predictable booking pipeline.

On the other hand, private and independent halls and ballrooms have the advantage of being more nimble and flexible.

They can host a diverse range of events, from corporate functions and weddings to pop-up exhibitions and training sessions. This fixes the issue of unstable revenues.

These spaces often have much lower overhead costs and can achieve higher margins, especially when they manage ancillary services like food and beverage, equipment rentals and staging in-house or through partnerships. However, their success is very dependent on efficient operations, top-tier marketing and the ability to consistently keep the venue filled and people laughing. Without strong management and a well-rounded event calendar, revenues can be unpredictable.

The risks

Investing in convention halls is not without its risks. Demand uncertainty remains a constant challenge as many organisations are still cautious about international gatherings due to visa complexities, travel expenses and ongoing health concerns.

Additionally, in the post-pandemic landscape, many events are actually shortening their durations. Reports show that four-day exhibitions are now often condensed into three-day formats to save costs, leading to reduced hotel stays and spending by attendees.

There is also a noticeable shift in client demographics, with local and regional clients being more prominent over long-haul international delegates. This can lower per-delegate spending.

Furthermore, to stay competitive, venues need to invest in hybrid-event infrastructure, like high-speed Internet and upgraded streaming capabilities, which further complicates their costs.

The verdict

With around 27 purpose-built convention and exhibition centres in Malaysia, competition remains fierce despite no new large centres slated to open soon. Prominent venues like the Malaysia International Trade and Exhibition Centre (Mitec), the largest convention centre in Malaysia, boast a total gross floor area of approximately 1.5 million sq ft, with about one million sq ft of flexible exhibition space.

So, are convention halls in Malaysia good investments right now? The answer is yes, but only if viewed as operating businesses rather than passive real estate opportunities.

Government-backed large-scale halls have an edge in attracting prestigious events and high-value clients but they come with higher overheads and dependencies on a steady flow of bookings.

Private and independent halls, on the other hand, offer flexibility and potentially higher margins per event but their success hinges on great management, a diverse range of bookings and fast-footed adaptability to changing market conditions.

The light at the end of the tunnel is getting brighter with rising Mice demand, supportive government policies, improvements in hybrid-event infrastructure and upticks in international travel. This tips the scales in favour of well-managed and strategically located halls.

The venues that will thrive will be those that seamlessly integrate property management, operations and genius marketing, ensuring they are busy year-round with a mix of events that cater to both local and regional audiences while capitalising on all potential revenue streams.

For investors, it is crucial to treat a convention hall not merely as a space to lease but as an actual business. The operational aspects such as utilisation rates, event diversity, ancillary spending, investments in hybrid-ready infrastructure and the quality of management all count.

With the right approach and lots of luck, convention halls in Malaysia can be an interesting though nuanced investment opportunity in the post-pandemic era.