GLOBAL UPDATE : DEVELOPMENT
Myanmar ’ s rising star
Terrace at the Chatrium Hotel
Royal Lake Yangon
Myanmar ’ s political opening brings the potential for hotel market expansion , but obstacles remain .
By Nathan Greenhalgh , associate editor
ISMYANMAR the next Thailand ?
The political reforms undertaken in 2011 by Myanmar ’ s ruling party have given rise to hopes that the country is finally opening for business after decades as an isolated pariah ruled by a military junta .
This spurred a 26 % increase in international arrivals to Myanmar last year , according to the government ’ s tourism board , with more to come — a new international airport in the new capital city of Nay Pyi Taw opened last December with the capacity for 3.5 million passengers . However , the improving political climate in Myanmar remains tenuous . The United States and European Union have eased sanctions on Myanmar , but not all have been eliminated , including investment bans . Also , violence among ethnic minorities remains an issue as well as a lack of a reliable transportation infrastructure outside of major cities . Nonetheless , Myanmar ’ s limited
supply of hotels is reaping the benefits of the newly discovered interest in the country with surges in ADR and RevPAR over the past year . The hotel stock is concentrated in the largest city and former capital , Yangon , and run by Asian hotel companies with a predominantly owner-operator management structure .
Pan Pacific Hotels Group , Singapore , has owned and operated the 267-room Parkroyal Yangon since 2002 and is looking to expand its presence there . “ We are optimistic about the future of the country and looking forward to the opportunities that will open up to us in Myanmar ,” says Patrick Imbardelli , Pan Pacific ’ s president and CEO .
Meanwhile , Parkroyal Yangon has seen a major improvement in performance , with a guest mix of 75 % business and 25 % leisure hailing predominantly from Singapore , China and Malaysia . “ We have seen occupancy grow from about 65 % to 70 % to 90 % in the last 13 months ,” Imbardelli says . Chatrium Hotels & Residences , Bangkok , owns and operates the 303- room Chatrium Hotel Royal Lake Yangon , which caters to business and leisure travelers primarily from the United States , United Kingdom , Japan , Thailand and Europe .
“ Our RevPAR in 2011 was 60 % higher than in 2010 . As for ADR , the increase was 50 %, and occupancy was up 15 %. We forecast this trend will continue ,” says Bhongbhichai Bhitakburi , the hotel ’ s general manager . “ There is an urgency for capacity planning to accommodate increasing demand , as there are less than 2,000 quality hotel rooms in Yangon and other cities , and landmark locations have yet to be developed .”
Also located in Yangon , the 47-room The Governor ’ s Residence , owned and operated by Orient-Express Hotels , has seen a sharp spike in demand among its leisure clientele , who are primarily from the United States , United Kingdom and continental Europe . “ The hotel is experiencing a strong performance , with January occupancy at 90 %, RevPAR at US $ 230 and ADR at US $ 256 . The outlook for 2012 remains strong ,” says Philippe Bissig , Orient-Express ’
12 HOTELS April 2012 www . hotelsmag . com