GEORGE TOWN, Nov 8 — The state-owned Penang Hill Corporation (PHC) will be building two more hotels at the popular weekend getaway to cater to growing accommodation demands.

Penang Chief Minister Chow Kon Yeow who made the announcement today promised that their construction will be in accordance to the Penang Hill Special Area Plan.

"The first one to be built will be behind the Convalescent Bungalow on the hill,” he said in a news conference attending the Malaysian International Chamber of Commerce and Industry dialogue session on Penang 2030.

Chow said the architect is now drawing out plans for the hotel which is to comprise a five-storey building with about 200 rooms, but added that the state has yet to work out the financial model.

"We only did the masterplan layout but this project was delayed as part of the land was the forest reserve so we had to resolve this in the planning,” he said.

He said the hotel construction could be a public-private partnership project or private developers could build it and transfer it to the state.

"We will call for tender when the time comes, we have not work out the funding part yet,” he said.

He said the construction of the hotel is likely to start in 2019 but he will announce the actual commencement dates after holding a meeting on it.

The second proposed hotel will be located on the steep slopes of the valley along the coolie lines of the hill.

He said the PHC will need to conduct studies and look at safety issues in planning the second hotel.

Earlier, during the dialogue, Chow said PHC is also refurbishing five heritage bungalows on the hill that belonged to the state government.

He said Penang Hill is a popular tourist destination and the state government will put in revenue to upgrade facilities on Penang Hill.