The hotel market in Yangon is set to continue its record growth in 2014, following a 46% year-on-year rise in international visitor arrivals in 2013, according to the latest report from international consulting firm JLL.
Centrepoint Towers Hotel, a US$100 million joint venture between Thai company L P Holding and Myanmar’s Ministry of Hotels and Tourism, opened last year. (Bangkok Post file photo)
In its report, the company sees huge opportunities for investors in the market as occupancy rates for upscale and luxury segments increased from 45.8% in 2009 to a record 80% in 2013.
The strong demand for international standard accommodation, which is predominantly driven by visitors from Thailand, Japan, China and Korea, is currently outpacing supply with less than a third of Yangon’s 9163 rooms considered to meet international standards
Despite this, there are signs that the imbalance is being addressed with 4,518 rooms expected to enter the market in the next five years, of which 95% will be international standard.
Andrew Langdon, an executive vice president for JLL’s Hotels & Hospitality Group said over the past 12 months, the company saw a number of International hotel operators, including Accor and Hilton, take advantage of these conditions with key projects slated to open later in the year.
Occupancy for the upscale and luxury segments increased from 45.8 percent in 2009 to a record 80 percent in 2013 with the revenue per available room (RevPAR) also dramatically increasing, growing more than 7 times to USD 126 over the past five years.
Due to the increase of supply planned for 2014, occupancy for upscale and luxury segments is set to remain stable at 80% throughout the year, while average daily room rate is forecast to be US$173, up 10% from 2013