In 2020, Hotel Okura, the hotel chain based in Japan, will open its first hotel in Myanmar. The project will be the company’s first in Myanmar and will centre around the construction of Okura Prestige Hotel in Yangon.
Construction starts 2017
The Okura Prestige, Yangon will start construction later this year and has a completion date of 2020. The site will cover 16,000 square metres and the hotel will have a total floor space of 92,000 square metres across 11 floors. The structure will be located on the corner of Pantra Street and Shwedagon Pagoda Road in the Dagon township area of Yangon.
It’s planned that the site will include rental facilities, retail units, office units and the hotel, which will have 390 rooms.
It’s expected that the Hotel Okura will shortly sign a contract with a consortium of Japanese companies. These companies will oversee the management of the project and include Tokyo Tatemono, Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development, Fujita Corporation.
The consortium will also include local firm Yangon Technical & Trading, which is a subsidiary of Ayeyar Hinthar Holdings, also based in Yangon.
Myanmar Investment Law
The hotel project is the first to be given investment permission by the newly introduced Myanmar Investment Law. Its structure is an investment project operated by a public-private partnership (PPP). A PPP is a partnership formed between a private sector company and a government agency and can be used to construct, finance and operate various projects.
More hotel chains coming
This Japanese venture is one of a number of international hotel chains that are either arriving or expanding in Myanmar.
AccorHotels, the French hotel group, along with Thai based LP Holding will open two hotels later in 2017 and one in 2020. Two of these are based in Mandalay and one in Yangon.
In addition, Hilton Wordwide Holdings, the US based hotel chain, is planning to add three more hotels in Myanmar.