KUALA TERENGGANU, MALAYSIA: The city's new multi-storey Felda Residence Hotel will not only cater to tourists but also serve as a convention and conference hub for Felda.

The RM26.5mil three-star hotel in Jalan Hiliran here started accepting patrons after its soft launch on Thursday.

Felda chairman Tan Sri Dr Mohd Yusof Noor said the hotel would serve the needs of 40 Felda subsidiaries and related agencies.

Outstanding: The Felda Residence Hotel in Kuala Terengganu.

"Each subsidiary forks out RM60,000 for conferences and other activities at other hotels and this adds up to an exorbitant sum.

"We are not worried about the occupancy rate as the Felda population is enough to ensure the hotel is full. The hotel will also help cut our expenditure," he said after the soft launch.

He said the hotel was situated at a strategic area and would be the city's latest landmark.

It has first-class banquet and meeting facilities, he added.

He said, in appreciation of Felda settlers, the hotel with 100 rooms would offer special rates for a certain period.

Dr Mohd Yusof said that children of Felda settlers nationwide would be given priority in regard to employment at the hotel.

It is the seventh in the chain of Felda hotels in the country.