> Quick view: Labuan doesn't have a huge hotel scene, but its handful of real, currently-trading properties cover everything from a 5-star business hotel to no-frills town lodgings near the jetty.
Why Labuan needs its own hotel guide
Labuan, Malaysia's only Federal Territory outside Kuala Lumpur and Putrajaya, is best known for duty-free shopping, its WWII war memorial, and ferry links to Brunei and Menumbok in Sabah. What it isn't known for is a big hotel scene — most travel sites recycle the same handful of names, and at least one of those names belongs to a hotel that hasn't taken a guest in years.
The clearest example is the Billion Waterfront Hotel (formerly Waterfront Labuan Hotel & Spa) at No.1, Jalan Wawasan. It still appears on Agoda, Traveloka and half a dozen other booking aggregators with room descriptions and "2026 deals," but the 94-room, four-star property opened in December 1994 has been closed for roughly a decade and is now in the hands of a Receiver and Manager. *Daily Express* reported a fresh tender to sell it with a closing date of 25 March 2025, and a follow-up report noted the hotel still went unsold. It is not a place you can book a night in, whatever the OTA listing says — so it isn't on this list.
We checked each remaining property's own website or official Facebook/Instagram page this run rather than trusting old blog posts, and dropped anything we couldn't confirm is still trading. What's left is a working shortlist across three areas: the uptown business district around Financial Park, Tanjung Batu, and the town centre near the passenger jetty.
Business & International-Standard Hotels
1. Dorsett Grand Labuan
Labuan's only 5-star hotel, located in the uptown business district on Jalan Merdeka directly opposite the Financial Park, about 5km from Labuan Airport. Rooms range from Deluxe up to suite categories with city or harbour-facing balconies, and the hotel runs its own restaurants, pool and gym. That Merdeka Promo 2026 this page once carried closed its booking window on 20 August 2026 and is over. The offer that replaced it on the hotel's own deals page is the Limited-Time Friday & Saturday Stay Offer, valid 24 July–31 October 2026: a Deluxe Room at RM320 nett room-only, or RM360 nett with breakfast, bookable for Friday and Saturday nights only, and bundled with 15% off food and beverage, 10% off spa treatments, early check-in from 11am and late check-out to 3pm (both subject to availability). That offer ends on 31 October. For stays after that, the hotel's longer-running deal is Dorsett Grand Labuan 3 Wishes, valid to 31 December 2026: book a Deluxe Room for at least two nights and choose three of five perks — daily buffet breakfast for one, 10% off laundry, 10% off food at Victoria's Brasserie, Lobby Lounge and in-room dining, a bottle of homemade cookies on departure, or free entry to Labuan Museum. Celebrating? The Birthday Package (1 October–31 December 2026) starts at RM488 nett with a decorated room, a 0.5kg cake and breakfast for two. Reservations: +60 87 422 000 or info.labuan@dorsetthotels.com.
2. Tiara Labuan Hotel
A resort-style property on Jalan Tanjung Batu, about 1.5km from Labuan town and a 10-minute drive from the airport. Its 88 rooms are configured as apartments, suites and villas, each with a private balcony and kitchenette — geared more toward longer stays than a standard hotel room. The property runs three restaurants, a poolside bar, and a sauna/steam room. It has its own website (tiaralabuan.com) and an active Facebook page; the front office is on +60 87-414 300.
Mid-Range Stays Near Financial Park
3. Lazenda Hotel
Located within the Lazenda Commercial Centre (Block C & D), a short walk from Financial Park and the Labuan Museum. Its 172 rooms span Standard, Deluxe and Superior categories in the main building, with Lazenda Suite, Junior Suite and Executive Suite rooms in a separate block. The hotel runs its own Mortar Cafe and Pestle Restaurant, plus function rooms and a ballroom for events, and offers airport/ferry terminal transfers. Its Facebook page is posting into late October 2026 — the current offer is a RM10 slice of the chef's daily cake with coffee or tea at Zing on 7th (Level 7, dine-in, 10am–2pm and 6pm–10pm). Reservations: +60 87-580 800.
Town-Centre & Budget-Friendly Hotels
4. Hotel Labuan Point
A 128-room hotel on Jalan OKK Abdullah in the centre of Labuan town, made up of 90 Superior Twin Rooms, 34 Deluxe King Rooms and 4 suites. It is a plain, functional place rather than a resort, and its value is the address: you can walk from here to the town attractions and the duty-free shops.
5. Mariner Hotel Labuan
A budget-oriented hotel on Jalan Tanjung Purun, about 2km from Tanjung Batu Beach, with 60 rooms across twin, double and family configurations, a restaurant serving American, Cantonese and Chinese food, and 24-hour front desk. Its official Facebook page was still posting in September 2026 (a new lunch set at Mariner Coffee House); reservations are on 087-418 822 or 017-837 3822.
6. H&H Hotel Labuan
A no-frills town hotel at Lot U0386, Jalan Bunga Anggerik, in Labuan's main town near the passenger jetty and surrounded by duty-free shops and restaurants — useful if you're arriving or leaving by ferry. Rooms are Standard (queen bed) and Family (queen + single beds) configurations. Its Facebook page hasn't been updated since 2020 and it shows no online booking rates, but its Google Maps listing (4.1 stars from 97 reviews) has guest reviews from mid-2026, so it is still taking guests. Call +60 87-420 200 for rates.
7. SkyGlobal Hotel
The cheapest bed here: a small budget hotel with 47 air-conditioned rooms, family configurations included, about a 4-minute walk from Labuan Museum and under 10 minutes on foot from Financial Park. Check-in 2pm, check-out 12pm. It has no site of its own, so book it through the usual online travel agents.
Getting to Labuan (and to your hotel)
If an older guide tells you to take the ferry from Kota Kinabalu, check again. The direct KK–Labuan passenger ferry has been suspended since 1 April 2026, and no restart had been announced as of mid-October 2026. The two ways in are now:
- Fly: KK–Labuan flights still run and are the fastest option. Labuan Airport is about 5km from Dorsett Grand Labuan and around 10 minutes from Tiara Labuan Hotel.
- Menumbok ferry: get to Menumbok (Kuala Penyu district) by road, then take the short crossing to Labuan. You land at the town-centre jetty, within walking distance of H&H Hotel and Hotel Labuan Point.
If you're heading on to Brunei, the Labuan–Muara ferry also leaves from town. Lazenda Hotel is the one hotel here that advertises its own airport and ferry-terminal transfers.
What We Left Out
We dropped Billion Waterfront Hotel (ex-Waterfront Labuan Hotel & Spa) for the reason set out at the top: the 94-room property at No.1 Jalan Wawasan has been closed for around a decade and sits with a Receiver and Manager, with a sale tender that closed 25 March 2025 and reportedly failed to find a buyer. Booking aggregators have simply never taken the listing down. We also checked but dropped Century Mahkota — every result for that name pointed to a property in Melaka (Malacca), not Labuan; it appears to be a name mix-up with no matching Labuan hotel. We also couldn't verify a "Kim Hoi Hoi Hotel" or a standalone "Sabindo Square Hotel" in Labuan — the latter appears to be a shopping/commercial area name near Labuan Times Square rather than a specific hotel, and neither turned up an operator website or an official social page this run. Micasa Hotel in Labuan town is real and currently listed on OTAs, but we couldn't confirm an operator-run website or an active official Facebook/Instagram business page this run, so it's left out pending stronger verification. Finally, the Labuan International Sea Sports Complex is a sports venue, not an accommodation provider — travel sites list nearby hotels (several of which are already on this list), not rooms at the complex itself.
