Penang opens tender to restore Crag Hotel

GEORGE TOWN, May 26 — The once-popular-now-derelict Crag Hotel, which offers a breathtaking view of Penang island, may soon be restored to its former glory.

The Pakatan Rakyat  state government today reissued a request-for-proposal (RFP) to redevelop and run the famed hilltop heritage hotel.

The project had been opened for tender last year, but failed to take off due to financial and technical reasons, Penang Chief Minister Lim Guan Eng said in a statement today.

Lim said the new bid is “in line with the state government’s vision to create a unique and prestigious tourism product that will raise Penang’s profile internationally and transform Penang Hill as a destination for high-value tourists”.

He hopes the project will have a domino effect and create more jobs for local professionals in land-strapped Penang and, ultimately, generate more income for the state.

Lim added that the state is also looking to redevelop other under-used government land based on their potential.

Application forms can be downloaded from the official state government website from June 1. 

The forms must reach the state secretariat by August 30.

One of the earliest hilltop homes in Penang, The Crag, was originally a bungalow built by a Scot before being turned into a hotel in 1929.

It was run for a time by the Sarkies brothers, who also managed the seaside E&O Hotel and Singapore’s heritage Raffles Hotel. 

The Crag was also used as a location shoot for the 1992 film, “Indochine”, starring Catherine Deneuve. It is presently unoccupied.





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