Budget Hotel in Yangon MyanmarYangon Myanmar Budget Hotel
Burma Hotel Investments What budget do you need to open a Myanmar based hotel in Myanmar?
Whilst for most Myanmar financiers the new child has recently appeared on the Myanmar blogs, the fact is that since 2002 we have been helping international financiers to do businesses in Myanmar. Ten years ago you could buy an already built hotel in Myanmar for almost nothing. In fact, most hostels currently had a 40% capacity utilization and while the official room rate was $150 per room per day, you could sleep at 5* for $30 to $40 per room (the President's Suite).
Myanmar must now be one of the countries with the best capacity utilisation levels in the rest of the year, with an annual mean utilisation rate of 90%. For 5-star room prices, they are nearer from $250 per room per day and don't be amazed if the hotel calls you 3 nights before your flight to let you know that they have raised the room prices and you still want to be there?
If you bring 1500 new hotel rooms onto the open air every year, this will last for at least 10 years (with the exception of policy mishaps), as the number of arriving tourists will increase faster than the number of rooms available on the bus. In what kind of hotel should you be investing?
First, Myanmar is not a guesthouse fair. Myanmar's tourism is first and foremost business people and high-income travellers. In order to meet these needs, you want to open a four to five-star hotel and not a guesthouse. Second, a hotel abroad is going through the Myanmar Investment Commission's audit and I don't see it as a welcome inn venture.
Burma needs four to five storey accommodation and the guesthouse markets are crowded by locals. So, if you are a non-resident investment and want to make an investment in a hotel development in Myanmar, you need to buy a four-star hotel, not a guesthouse.
What is the investment needed to open a hotel in Myanmar? Property expenses are calculated using the fair value of an acquisition or sale of an item of real estate in Yangon. The hotel is being built on a Yangon site under development. It is a high quality service flat and not a hotel, but the price is very similar.
Four-star hotel, 4 storeys + 1 basement garage, 13 rooms per storey, equipment including 1 swimming pools area + fitness room + leisure + 1 hotelobby + coffeeshop / small bar & restaurant and a grand total of 51 rooms and the building share is approx. 70% rooms 30% area.
The following chart shows the distribution of cost for the projects.