Spanish hotel chain Melia has tied up with the Myanmar-based hotel property developer Hoang Anh Gia Lai Group (HAGL) through a hotel management contract signed on April 30, the Vietnamese company announced.
While the deal value was not revealed, HAGL-invested hotel in Yangon – Melia Yangon – will join Melia’s network of 20 five-star hotels around the world, and the deal will elevate the presence of both Melia and HAGL in the Southeast Asia region, the company said.
Melia Yangon is a new milestone for Melia’s development steps in Asia Pacific, said Melia Hotels International vice president Bernardo Cabot, adding that the new facility will promote the awareness of Melia brand in the region and is the door that opens to more areas in the country.
Meanwhile, HAGL cheif executive Vo Truong Son said, Melia, with its expertise and experience, will help us obtain effective operation within the hospitality industry.”
The hotel is part of the $550 million HAGL Myanmar Centre project, which has terminated partnership with Singapore-based lifestyle real estate and investment company Rowsley Ltd.
On February 11, HAGL reached an agreement to sell half of HAGL Land to the Singaporean investor for $275 million. HAGL Land is the mother company of HAGL Myanmar Co Ltd, which is the owner of the complex – the biggest in Yangon. During the course of executing the deal, real estate investment firm Rowsley had asked the Vietnamese group to allow its direct investment in HAGL Myanmar Co Ltd instead of indirect investment through purchasing shares of HAGL Land.However, due to high tax (40 per cent) imposed on capital transfer in the Burma market, Hoang Anh Gia Lai has declined the proposal, and the two sides have called off the validity of the deal.
With the prime location in downtown Yangon, Myanmar’s former capital city, in the midpoint between the international airport and the highway leading to the current capital, Melia Yangon is designed with 429 rooms, accompanied by the facilities of conference halls, restaurants, recreation and sports centres, among others.
The developer is Myanmar’s biggest foreign investor in the hotel and tourism sector. Meanwhile, this project is, in turn, HAGL’s largest overseas investment.
Founded in 1956 in Palma de Mallorca, Spain, Meliá Hotels International is one of the largest hotel chain in Spain in both resort and city hotels. The company currently operates more than 350 hotels in 35 countries and 4 continents under its brands: Meliá, Gran Meliá, ME by Meliá, Paradisus, Innside by Meliá, TRYP by Wyndham, Sol Hotels and Club Meliá.