The latest study by professional real estate services provider Jones Lang LaSalle, reveals there are almost 1,000 international-standard hotel rooms that are now under construction and scheduled for completion in Yangon this year. The new supply represents a 65% increase from 2012 and will bring the total stock of international-standard supply to some 2,500 rooms by the year end.
“The Yangon hotel market has continued to experience a severe shortage of international-standard supply,” said Andrew Langdon, Executive Vice President, Hotels and Hospitality Group at Jones Lang LaSalle in Thailand. “Though the growth of new international standard supply in 2013 is substantial, it is from a low base and will fail to fulfill the strong growth of demand for quality hotel rooms in the city. International arrivals to Yangon have witnessed a significant increase over the past few years and are likely to rise further,” he explained.
This photo shows the Peacock Lounge of the Shangri-La Trader’s Hotel in Yangon, Myanmar. (Photo courtesy Shangri-La International)
International visitor arrivals to Yangon have grown rapidly achieving year-on-year growth rates of 25.9%, 21.7% and 55.7% in 2010, 2011 and 2012, respectively with 2012 witnessing 559,610 visitors.
“Visitor arrivals are expected to remain strong for the remainder of 2013 as many hoteliers in Yangon report bookings near full capacity for the coming high season during the final quarter of the year,” Langdon said.
On the supply side, statistics from Myanmar’s Ministry of Tourism show there are currently slightly over 9,100 hotel rooms in Yangon. Nonetheless, only 1,500-2,000 rooms meet international standards, according to Jones Lang LaSalle’s report.
The report also reveals that an additional 4,700 hotel rooms are planned for completion between 2014 and 2017. Out of this number, some 2,100 rooms are in projects that are now under construction.
Shangri-La, which operates the Trader’s Hotel, will open a Shangri-La Hotel in 2016, in addition to a Shangri-La Residence which will be opened later this year. Accor will open in the first quarter of 2014 the 366-room Novotel Yangon Max hotel in two towers while Hilton Hotels have signed a management agreement to manage the 300-room Hilton Yangon (in the mixed-use Centerpoint Tower) which is scheduled to open in mid-2014.