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Myanmar Hotel market set for another record year in 2014

Latest report from JLL show huge opportunity for Hotel investors as tourism continues to boom


​​​​​​​​SINGAPORE, 20 May 2014 – The hotel market in Yangon is set to continue its record growth in 2014, following a 46 percent y-o-y increase in international visitor arrivals in 2013, according to the latest report from JLL. The Yangon Hotel Market Update highlights the huge opportunity present to investors and operators looking at the market as occupancy for the upscale and luxury segments increased from 45.8 percent in 2009 to a record 80 percent in 2013.

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.”

– ends –

Notes to Editors:

  1. Downloa​​d the full report

About JLL

JLL (NYSE:JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual fee revenue of $4 billion, JLL has more than 200 corporate offices and operates in 75 countries worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 3 billion square feet and completed $99 billion in sales, acquisitions and finance transactions in 2013. Its investment management business, LaSalle Investment Management, has $48.0 billion of real estate assets under management. For further information, visit www.jll.com.

JLL has over 50 years of experience in Asia Pacific, with over 27,500 employees operating in 80 offices in 15 countries across the region. The firm was named ‘Best Property Consultancy’ in three Asia Pacific countries at the International Property Awards Asia Pacific 2013, and won nine Asia Pacific awards in the Euromoney Real Estate Awards 2013. www.jll.com/asiapacific