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Myanmar: New Investment Law authorises first project led by Japanese hotel chain
The Japan-based Hotel Okura will open its first hotel in Myanmarwith the help of Japan’s government-private fund in 2020, according to the company’s press release dated July 28.
Construction of Okura Prestige Yangon will commence this year and is expected to complete by 2020. Okura Prestige Yangon will be the company’s first project in the country.
The building will cover 16,000 square metres and offer a total floor space of 92,000 square metres with eleven floors, according to information from Fujita Corporation and Tokyo Tatermono. The structure, located in the corner of Shwedagon Pagoda Road and Pantra Street in Dagon township, will involve office blocks, rental facilities, retail stores and a hotel, which will offer approximately 390 rooms.
For the operations and management of the project, Hotel Okura expects to sign a contract this month with a consortium of Japanese firms, including Fujita Corporation, Tokyo Tatemono, Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development (JOIN) and local company Yangon Technical & Trading, which is a subsidiary of Yangon-based Ayeyar Hinthar Holdings.
Hotel Okura Co operates hotels and runs lodging, food offering, hotel property management, and other services. The Tokyo-headquartered firm conducts hotel operations in Japan, South Korea, China, and have projects in the pipeline in the ASEAN region.
Fujita and Tokyo Tatemono added in their press release that the hotel is the first project to be granted investment permission under the new MyanmarInvestment Law. The investment project is an operation led by a framework of Japanese public-private partnership (PPP).
Public-private partnerships between a government agency and private-sector company can be used to finance, construct and operate projects, such as night markets and public road networks.
More international hotel chains are coming into Myanmar or expanding in the country.
Last month, The Myanmar Times reported that French group AccorHotels and Thailand-based LP Holding will open two hotels this year and one more in 2020. Among these three hospitality projects in the pipeline, two are in Mandalay and one in Yangon.
Meanwhile, US hotelier Hilton Worldwide Holdings Inc has plans to add three more hotels in the country.
Source: http://www.mmtimes.com/index.php/business/27111-new-investment-law-authorises-first-project-led-by-japanese-hotel-chain.html