Myanmar-based tourism-focused company Memories Group is acquiring the 26-key Kayah Resort in Myanmar’s Loikaw from Wa Minn Group of Companies and Kun Naung Myint Wai for S$2.9 million (US$2.2 million), an 11-times multiplier on the hotel’s forecasted average operating profit from FY2019 to FY2021.
Kayah Resort is a 26-key boutique hotel located in Loikaw, Kayah State, a 10-minute drive from Loikaw Airport and an hour’s flight from Yangon. The boutique resort features 24 bungalows and two executive suites, as well as facilities and services including a swimming pool, restaurant, bar, function hall and airport transfers.
The SGX-Catalist listed company intends to upgrade and enhance the resort’s facilities and reposition it as an upscale resort under the group’s four-star Keinnara brand. Consequently, room rates are expected to be revised to generate better yield for its investment.
Serge Pun, executive chairman of Memories Group, expects the rebranding and enhancements to yield improved results such as a higher occupancy.
Kayah Resort is currently seeing occupancy rate of 60 per cent in the high season (between October and March), and 30 per cent in the low season (between April and September). Its gross operating profit was approximately US$220,000 for the nine-month period ended December 31, 2017.
Kayah Resort marks the group’s second acquisition of a tourism asset since its Singapore listing in January, expanding its presence to six of Myanmar’s most visited tourist destinations namely Loikaw, Hpa-An, Bagan, Inle Lake, the Mergui Archipelago and Yangon, Pun added.
Kayah State is known for its local tribes, scenic landscapes and attractions such as the Kyet Cave in Loikaw, the third longest cave in Myanmar.