This 29-story expansion effectively doubles its capacity, adding 420 room and projected to be completed in Q42015, amidst a surge in increased tourist and business arrivals.
The Sedona Yangon was among the first few international hotels established in Myanmar, opening in 1996 with 366 rooms. This latest expansion will cater to rising demand for hotels in Myanmar, as it attracts a growing number of businesses, foreign investments and tourists keen to explore the relatively untouched nation.
Myanmar’s economy grew 6.4 per cent in 2014, an increase from the 5.5 per cent seen in 2013. This was attributed to the rise in foreign direct investment (FDI) capital flowing into Myanmar.
The Myanmar Ministry of Hotels and Tourism expects 4.5 million tourist arrivals in 2015, double the 2.04 million in 2013. According to data shared by Tiger Mine Ventures, tourist arrivals in Myanmar have seen a consistent, year-on-year growth from 2003 to 2012. The only impact of the 2008 global financial collapse was to curb the growth slightly.
Ang Wee Gee, CEO of Keppel Land, commented on the deal, saying: “As Myanmar is expected to enter a phase of sustained economic growth, the property market in Yangon is poised to deliver healthy performance. We are excited about the opportunities to grow with Myanmar as it opens up and attracts more businesses and foreign investments, as well as tourists.”
In addition to this, Keppel Land is also developing a Grade A Yangon office building aimed to be 23 storeys tall. The office component of a mixed development called Junction City is being built in collaboration with Shwe Taung Group as a joint venture. An investment of $47.4 million has been made by Keppel Land in this latest asset. Completion is forecast for 1H2017.
Ang explained this project as “Fill(ing) the gap for Grade A office space in Yangon’s central business district. By contributing to Myanmar’s business and tourism communities, the two key drivers of the country’s growth, Keppel Land is reinforcing its commitment to move into the future with Myanmar.”