NINETY-five per cent of the 4,518 rooms coming on stream in Yangon within the next five years belongs to the upscale and luxury segments, leaving a gap at the mid-tier level.
JLL’s Hotels and Hospitality Group said in its Yangon Hotel Market Update released this month that there were about 2,000 international standard rooms in Yangon as of June 2013.
Stated the report: “We see a strong opportunity for branded midscale hotels of international standard since the segment remains untapped, with the majority of future supply being concentrated towards upscale and luxury segments.”
Despite an increase in room supply last year, the upscale and luxury segment saw a 23.9 per cent year-on-year rise in RevPAR. Occupancy rose six per cent and ADR, 15 per cent.
The hotel sector is unlikely to slow in the year ahead, with JLL forecasting occupancy to remain at 80 per cent while ADR jumps 10 per cent to US$173 even in the face of growing supply.
Properties debuting over the next few years include Novotel Yangon Max, Hilton Yangon and Novotel Inle Lake Myat Min in 2014; Pullman Yangon Myat Min and HAGL Hotel in 2015; and Pan Pacific Hotel and Daewoo Amara Hotel in 2016 (TTG Asia e-Daily, May 19, 2014).
Yangon also faces a dearth of serviced apartments, with JLL noting that most unbranded apartments are running at close to full occupancy.
The Sebel Yangon Myat Min by Accor is expected to be the first internationally branded serviced apartment in Yangon. Other properties to open in Yangon include Daewoo Serviced Apartments in 2016; Somerset Kabar Aye Yangon, HAGL Serviced Apartments, and Pan Pacific Serviced Apartments in 2018.
Tourist arrivals to Myanmar are expected to continue growing at the same breakneck speed, especially with thze expansion of the main airport and construction of Hanthawaddy International Airport (TTG Asia e-Daily, August 28, 2013), said JLL’s update.
