Yangon currently has over 3,800 four-star and five-star hotel rooms and prices have dropped by 7 per cent compared with the same period last year, according to a quarterly review by Colliers International.
Since the completion of the Melia Hotel a year ago, the number of luxury rooms has remained at 3,875. However, for the remainder of the year, four sizeable projects are anticipated, collectively representing about 1,100 rooms
This included the Lotte Hotel and Serviced Apartments opening this month with 300 rooms. The Pan Pacific Hotel at Junction City, Pullman Yangon and Sheraton Hotel are scheduled to finish in 2017.
Kempinski will soon take over one of the city’s largest colonial-era buildings along Strand Road and is expected to finish the project in the second quarter of 2018. Marriot International is planning to open a hotel on Sule Road around the same time. The review said about 4,000 hotel rooms would be added over the next three to four years.
On average 52 per cent of rooms were occupied in the first quarter of 2017 and lower than 40 per cent in the second quarter. Occupancy fell between June and September in the rainy season, increasing market competition. Colliers suggested that hotels needed to attract more customers by targeting business travellers, travel agents and affluent individual visitors.
Average charges fell to US$111, down by almost 7 per cent compared with last year, and further price falls were anticipated, according to the report.