JLL’s Hotels and Hospitality Group said in its recently released Yangon Hotel Market Update that 4,518 rooms are expected to enter the city over the next five years, 95% of which is in the upscale and luxury segments.

According to statistics from Myanmar’s Ministry of Tourism, there were 9,163 rooms in Yangon as of June 2013. Out of these, only around 2,000 rooms are considered to be of international standard. “We see a strong opportunity for branded mid-scale hotels of international standard since the segment remains untapped, with the majority of future supply being concentrated towards upscale and luxury segments,” said the report. Occupancy for the upmarket hotels has been on the increase for the past five years, from 45.8% in 2009 to a record 80 in 2013, while ADR (Average Daily Rate) went up almost 300% from US$40 in 2009 to US$157 in 2013. As a result, RevPAR grew seven times to US$126 during this period. Despite a rise in room supply last year the upscale and luxury segments witnessed a 23.9% year-on-year increase in RevPAR. Occupancy rose 6%, and ADR 15%. “Due to supply additions planned in 2014 we estimate occupancy to remain stable at 80%, while ADR grows to US$173, up 10% from 2013, resulting in an overall RevPAR growth of 10% in 2014,” the update added. Properties going on line in the next few years include Novotel Yangon Max, Hilton Yangon and Novotel Inle Lake Myat Min in 2014; Pullman Yangon Myat Min and HAGL Hotel in 2015; and Pan Pacific Hotel and Daewoo Amara Hotel in 2016 JLL’s report also noted a limited number of international serviced apartments with no branded property currently operational in Yangon. (Pictured right: Sule Shangri-La Yangon, courtesy of Shangri-la,com) “Most of the existing unbranded apartments are currently running at almost full occupancy indicating a strong long-stay demand in the market.” it added. The Sebel Yangon Myat Min from Accor is expected to be the first internationally branded serviced apartment to enter the market in 2015. Other properties to open in Yangon include Shangri-La Residences (Phase 11) later this year; The Sebel Yangon Myat Min in 2015; Daewoo Serviced Apartments in 2016; Somerset Kabar Aye Yangon, HAGL Serviced Apartments, and Pan Pacific Serviced Apartments in 2018. Looking ahead, the report surmised: “Tourist arrivals to Yangon are expected to continue growing aided by the expansion of existing International Airport and construction of the new Hanthawaddy International Airport at Bago (80 km north of Yangon). The new airport is expected to start operations by 2018.”