THE number of international standard rooms in Yangon is set to soar
within the next four years as brand-name hotel groups enter the as-yet
untapped Myanmar market, predicts Jones Lang LaSalle (JLL) Hotel Group
in its recent Myanmar Hotel and Tourism Report: Spotlight on Yangon publication.
While Myanmar’s Ministry of Hotels & Tourism counted 9,110 hotel
rooms in the city, JLL estimated that only 1,500-2,000 were of
international standard due to previous economic sanctions that kept
European and American hotel operators out.
However, the situation is set to change in dramatic fashion after
Myanmar’s government signed into law a new foreign investment ruling
allowing foreigners to own 100 per cent of a company (TTG Asia e-Daily, November 21, 2012).
According to JLL, the number of international standard rooms is expected to quadruple by 2017 to close to 7,000.
A large proportion of future supply will come from existing hotels
converting office space into guestrooms, such as in the case of
Chatrium, Traders, Strand and The Park Royal hotels, and hotels
reopening after years of lying dormant.
Hilton Worldwide has signed an agreement for a 300-room Hilton property (TTG Asia e-Daily, March 6, 2013);
Shangri-La Hotels & Resorts will open a Shangri-La Residence in
Yangon later this year and a Shangri-La hotel in 2016; Accor will debut
the 366-room Novotel Yangon Max in 1Q2014 (TTG Asia e-Daily, February 22, 2013);
while Best Western International has its eye on the midscale market
with the rebranded 189-room Best Western Green Hill Hotel (TTG Asia e-Daily, May 22, 2013).
Noted the report: “In light of the projected influx of demand over
the next two years and limited room supply of international standard in
Yangon, hotels have been aggressively renegotiating contracts with
travel consultants in an effort to increase rates.”
But it also cautioned: “While the growth in visitor arrivals, lack of
room supply and the allure of one of Asia’s last frontier markets can
lead to greater opportunities for early entrants, conducting business is
still very challenging given the lack of a transparent legal framework
and hence any investment carries a significant level of risk.”
source: TTG Asia
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