The Palace Hotel is located in the Malaysian State of Sabah, a land rich in dense rainforest, powdery beaches, lush paddy terraces and water buffaloes and a culture filled with myth and traditions. Mount Kinabalu, South East Asia's highest peak, lies in the state.

The hotel blends old architecture with modern facilities. A mere 15 minutes drive from the airport, the hotel stands majestically on a hill, overlooking the hustle and bustle of the city on one side and a serene mountain view on the other.