Desaru Coast Expands Tourism Ambitions with Mandarin Oriental Partnership and New Investments

Luxury hospitality and regional connectivity key to next phase of growth at Malaysian coastal destination

DESARU COAST, Malaysia, June 5, 2025 — Desaru Coast is entering a new chapter in its evolution as a premier tourism and resort destination with a series of strategic developments aimed at attracting high-value travellers, luxury investors, and global events. Central to this growth is the announcement that Mandarin Oriental will take over management of one of the destination’s most iconic properties, marking the group’s first beach resort in Southeast Asia and its second in Malaysia.

Under its “Next Level” expansion agenda, Desaru Coast is poised to solidify its position in the Asia-Pacific tourism landscape through new branded resorts, premium marina experiences, and strengthened community initiatives. The growth strategy aligns closely with the Johor-Singapore Special Economic Zone (SEZ), enhancing cross-border tourism and investment flows.

Mandarin Oriental: A New Standard of Luxury

In a move that cements its luxury credentials, Desaru Coast announced the appointment of Mandarin Oriental to manage the beachfront resort designed by the late Kerry Hill. The rebranded Mandarin Oriental, Desaru Coast is set to officially launch in January 2026, with management commencing as early as June 2025. The property, which includes 40 upcoming branded residences, will offer bespoke services in wellness, hospitality, and coastal living.

YAB Dato’ Onn Hafiz Ghazi, Chief Minister of Johor, who attended the hotel management agreement signing, hailed the partnership: “There is no better brand to lead the reintroduction of this iconic beachfront resort property as we prepare for Visit Johor Year 2026.”

Mandarin Oriental Group CEO Laurent Kleitman added, “This represents a significant step in our strategic vision to bring our legendary service and crafted experiences to exceptional locations like Desaru Coast.”

Boost from Johor-Singapore SEZ and Investor Confidence

Desaru Coast’s proximity to Singapore, now further bolstered by its positioning within the Johor-Singapore SEZ, has played a critical role in attracting investors and tourists alike. The destination welcomed third-party investors in 2023 and is now entering a period of accelerated development.

Riyaz Group will introduce Dash Resort Desaru Coast and branded residences, while ECM Libra Group will deliver an Ormond-branded hotel. Minor International, the destination’s first foreign investor, is also reportedly eyeing expansion.

“The SEZ presents meaningful opportunities to embed Desaru Coast within a broader cross-border flow of talent, investment, and tourism,” said Dato’ Mohamed Nasri Sallehuddin, Chairman of Destination Resorts and Hotels.

Karina Ridzuan, Interim Group CEO of Destination Resorts and Hotels, added, “Strategic partnerships with reputable brands such as Mandarin Oriental and a diversified portfolio of events and programmes will drive sustainable growth and uplift communities.”

Marina Expansion and Global Events Calendar

Desaru Coast is also turning its attention to the global yachting community. A new partnership with Singapore’s ONE°15 Marina will bring premium marina facilities and curated sailing events to the Desaru Coast Ferry Terminal, set to open in September 2025.

Events like the Desaru Coast Multi Sport Festival presented by IRONMAN and the upcoming Ombak Festival – a cultural celebration expected to draw more than 8,000 visitors – are set to further position Desaru Coast as a magnet for international travellers.

Community Development and Future-Ready Talent

Beyond luxury tourism, Desaru Coast is investing in education and skills development. Ongoing school programmes are providing local students with tools for future success, and plans are underway to establish a Centre of Excellence in tourism and hospitality under the Johor Talent Development Council. The centre aims to nurture a skilled workforce to meet the growing demands of the region’s hospitality sector.

As Desaru Coast continues to evolve, its leadership is committed to shaping a destination that seamlessly blends luxury, community upliftment, and regional collaboration.