Myanmar Hotel Market Poised for Another Record Year in 2014 Following a 46% Increase in Visitors
May 21, 2014 9:30am
The strong demand for international standard accommodation, which is predominantly driven by visitors from Thailand, Japan, China and Korea, is currently outpacing supply with less than a third of Yangon’s 9163 rooms considered to fit the criteria of International Standard. Despite this, there are signs that the imbalance is being addressed with 4,518 rooms expected to enter the market in the next five years, of which 95 percent will be international standard – more than doubling the supply in Yangon.
Andrew Langdon, Executive Vice President, Thailand and Indochina, JLL’s Hotels & Hospitality Group commented, “Ever since Myanmar embarked on its journey to Democracy in 2011, Yangon has seen an incredible improvement in Hotel market performance as demand continues to outpace supply. Over the past 12 months we’ve seen a number of International hotel operators, including Accor and Hilton, take advantage of these conditions with key projects slated to open later in the year.”
Occupancy for the upscale and luxury segments increased from 45.8 percent in 2009 to a record 80 percent in 2013 with RevPar also dramatically increasing, growing more than 7 times to USD 126 over the past five years. Due to the increase of supply planned for 2014, occupancy is set to remain stable at 80 percent throughout the year, while ADR is forecast to be USD 173, up 10 percent from 2013.
Mr Langdon continued, “Recently unveiled plans from the Asia Development Bank coupled with the expansion of the existing international airport and the opening of a new airport near the City in 2018, means we don’t expect any let up in the growth of tourist arrivals to Yangon. With the majority of future supply concentrated towards upscale and luxury, this presents a strong opportunity for the mid-scale brands where the market remains relatively untapped.”
“Looking forward to beyond 2014, we expect occupancy to stabilise at current levels while a continued increase in supply will see ADR starting to moderate. The future remains bright for the Myanmar hotel market and opportunities await for investors and operators who are willing to take them.”
Tags: jones lang lasalle,
Contact: Rachel Smylie
+65 6424 3771
Casablanca’s Hospitality Market Is Largely Dependent on Business Travellers, and Has Relatively Limited Hotels in the Luxury Segment, Says JLL
How Africa’s Hotel Market is Entering a New Chapter
Australia, the Apple of Chinese Investors’ Eye
JLL's Hotel Investment Outlook Predicts Global Hotel Sales to Reach 8-Year High of US$68B in 2015
Brazil Beckons Tourists, but Can Hotels Keep Up?
Hilton Worldwide Signs Agreement for Five Hilton Hotels & Resorts Properties in Myanmar
Figures for Q1 2014 Show 155% Hike in London Hotel Investment Market According to Jones Lang LaSalle
St. Petersburg, Russia Hotel Market Update - 2013 Results and 2014 Forecast from Jones Lang LaSalle
"2014 Top Trends for UAE Real Estate" Outlined in Jones Lang LaSalle Report
EMEA Hotel Investment Volume to Grow by 20+% to $16 Billion in 2014 Forecasts Jones Lang LaSalle
Moscow Hotel Market Update: 2013 Results & the Forecast for 2014 Shows Little Upward Market Trend
Moscow Hotel Market to Double in 5 Years; 13,000 New Rooms Could be Delivered by 2018
Global Hotel Investment Sentiment Survey Shows Positive Trading Expectations for EMEA Hotels
Real Estate Implications of a Successful Bid for Dubai to host World Expo 2020
EMEA Hotel Transaction Volumes Up 50% in First 9 Months of 2013 According to Jones Lang LaSalle
Investment Volume for Select Service Hotels Increased 145% Through August 2013; 2014 Outlook Robust
The Resort Sector Makes a Comeback After a Facelift Accounting for 18.4% of Investment Transactions
Hotel Transaction Volumes in Asia Up 145% Y-O-Y as 2013 Forecasts Continue to Surge
Kiev, Ukraine Hotel Market Update - H1 2013 Results Reported by Jones Lang LaSalle
Hotel Transaction Volumes in Asia Strongest Since 2008 According to Jones Lang LaSalle Report
Please login or register to post a comment.