A third Cititel Express hotel is in the works. IGB Corp Bhd is planning the hotel in Penang, while construction on its second Cititel Express in Sabah is expected to commence later this year.

Cititel Hotel Management Sdn Bhd (CHM) managing director Datuk Eric H.K. Lim said that IGB is now sourcing for a suitable site in a commercial area in Penang.

"We want to locate the hotel in a tourist catchment area. The land should be at least one acre. We hope to kick off the project in another two years," he said.

According to Lim, there is presently a shortage of affordably priced three-star hotels in Penang and Cititel Express hotel should fill the gap.

Cititel Express is the company's second Cititel brand and it is scheduled to launch its first hotel in Kuala Lumpur today.