Yangon

Hotel Market Update

Market Snapshot l Hotels & Hospitality Group
May 2014

International arrivals grew 46.1% y-o-y from about 0.6 million

in 2012 to around 0.8 million in 2013.

YTD February 2014 statistics show a significant growth of

22.2% over the same period last year.

Annual Growth

Visitor Arrivals

YTD Feb-14

YTD Feb-13

2013

2012

2011

2010

2009

2008

2007

2006

60%
50%
40%
30%
20%
10%
0%
-10%
-20%
-30%

Annual Growth

2005

International visitor arrivals to Yangon, a sizeable portion

being leisure, have grown at a CAGR of 49.7% over the last
three years and a CAGR of 15.2% over the past ten years.

2004

900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0

2003

Demand

International Visitor Arrivals to Yangon

Number of Visitors

Yangon: 2014 & Beyond

Sources: Myanmar Marketing Committee / JLL

Source Markets (2013)

Thailand 14.5%
Others 36.1%

China 6.8%

Thailand, Japan, China and Korea are the top four source
markets for Yangon given their proximity and/or economic
co-operation.

Malaysia 4.7%
Korea 6.8%
UK 3.9%
Taiwan 3.8%
Singapore 4.8%

Japan 8.3%
USA 6.2%
France 4.1%

Sources: Myanmar Marketing Committee / JLL

Hotel Market Snapshot l Yangon, Myanmar

Hotels & Hospitality Group

Key Hotel Projects Under Construction

Supply

Project

Hotels
According to 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.

There are 4,518 rooms expected to enter the Yangon market

over the next five years out of which some 95% can be
categorised as international standard. Once operational, total
supply of international standard rooms in Yangon will more
than double.

Majority of the upcoming supply comprises of Hotels in the

upscale and luxury segments.

Serviced Apartments

Supply of international standard Serviced Apartments

remains limited with no branded property currently
operational in Yangon.

Pyay Road

366

4-star

2014

Hilton Yangon

Kyauktada

300

5-star

2014

Sedona Hotel (Phase-2)

Pagoda Road 420

4-star

2014

Novotel Inle Lake Myat Min Inle Lake

121

4-star

2014

Pullman Yangon Myat Min Inle Lake

300

5-star

2015

HAGL Hotel

Pagoda Road 480

5-star

2015

Pan Pacific Hotel

Shwedagon
Pagoda Road 348

5-star

2016

Daewoo Hotel

Inya Lake

5-star

2016

Total

150
2,485

Source: JLL Research

Future Serviced Apartment Supply

Project

Location

Keys Opening

Shangri-La Residences (Phase-II) Kandawgyi Lake 120

2014

Most of the existing unbranded apartments are currently

running at almost full occupancy indicating a strong long-stay
demand in the market.

The Sebel Yangon Myat Min

Inle Lake

100

2015

Daewoo Serviced Apartments

Inya Lake

200

2016

Somerset Kabar Aye Yangon

Pagoda Road

153

2018

The Sebel Yangon Myat Min from Accor is expected to be the

first internationally branded Serviced Apartment to enter the
market in 2015.

HAGL Serviced Apartments

Pagoda Road

1,800

2018

Pan Pacific Serviced Apartments

Pagoda Road

NA*

2018

Future Hotel Supply in Yangon

Number of Rooms

Rooms Rating Opening

Novotel Yangon Max

Total
Source: JLL Research

2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 Luxury

Upscale

Source: JLL

Location

Hotel Market Snapshot l Yangon, Myanmar

Midscale / Economy

2,373

A Tourism Master Plan for Myanmar was unveiled in June

2013 by the Asian Development Bank (ADB) in collaboration
with the Norwegian Government which disclosed 39 developments involving improvement of the Bagan river port and
initiatives worth USD 500 million that includes plans to grow
international visitor arrivals, improve tourism education and
identification of USD 44.5 million in new training and
partnerships.

We see a strong opportunity for branded midscale Hotels of

international standard since the segment remains untapped,
with the majority of future supply being concentrated towards
upscale and luxury segments.

Going forward, due to market seasonality trends, we

anticipate occupancy to stabilise at current levels while
growth in ADR will begin to moderate in the near future due
to an increase in supply.

Trading Performance

Ever since Myanmar embarked on its journey to Democracy

in 2011, Yangon has seen a remarkable improvement in
Hotel market performance as a result of lodging demand
outpacing supply.

Occupancy for the upscale and luxury segments increased

from 45.8% in 2009 to a record 80.0% in 2013, while ADR
went up almost 300.0% from USD 40 in 2009 to USD 157 by
the end of 2013. As a result, RevPAR grew over 7 times to
USD 126 during the five year period.

Despite supply additions in 2013, the upscale and luxury

segments witnessed a 23.9% increase y-o-y in RevPAR led
by a 6.0% increase in occupancy and 15.0% growth in ADR.

Due to supply additions planned in 2014, we estimate

occupancy to remain stable at 80%, while ADR grows to USD
173, up 10% from 2013, resulting in an overall RevPAR
growth of 10% in 2014.

200
180
160
140
120
100
80
60
40
20
0

2009

2010

ADR (THB)
Source: Market Research / JLL

2011

2012

RevPAR (THB)

2013

2014E

90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

Occupancy

ADR/RevPAR (USD)

Trading Performance Upscale and Luxury Segments

Occupancy (%)
E-Estimate

Outlook

The News
Key Recent Additions during 2013 and Q1 2014
Shangri La Residences (Phase I), 120 keys
Rose Garden Hotel (Phase I), 57 keys
Avenue 64 Hotel, 34 keys
Aung The Pyay Hotel, 35 keys
Sky Star Hotel, 119 keys
Major Renovations / Re-brandings
Sule Shangri-La (erstwhile Traders Hotel Yangon),
484 keys, opened in April 2014.
Best Western Green Hill (erstwhile Green Hill Hotel),
189 keys, opened in 2013.
Notable Management Agreement Signings
Novotel Inle Lake Myat Min
Pullman Yangon Myat Min
The Sebel Yangon Myat Min
Somerset Kabar Aye Yangon

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.

Hotels & Hospitality Group

About JLLs Hotels & Hospitality Group

JLLs Hotels & Hospitality Group serves as the hospitality industrys global leader in real estate services for luxury, upscale, select
service and budget hotels; timeshare and fractional ownership properties; convention centers; mixed-use developments and other
hospitality properties. The firms 300 dedicated hotel and hospitality experts partner with investors and owner/operators around the
globe to support and shape investment strategies that deliver maximum value throughout the entire lifecycle of an asset. In the last five
years, the team completed more transactions than any other hotels and hospitality real estate advisor in the world totaling nearly US
$36 billion, while also completing approximately 4,000 advisory, valuation and asset management assignments. The groups hotels
and hospitality specialists provide independent and expert advice to clients, backed by industry-leading research.

For inquires, contact:

Consulting and Research

Andrew Langdon
Executive Vice President
Thailand & Indochina
Andrew.Langdon@ap.jll.com
+66 81 844 2049

Investment Sales

Jonathan Ottevaere
Vice President
Thailand & Indochina
Jonathan.Ottevaere@ap.jll.com
+66 81 901 2901

Mike Batchelor
Managing Director
Investment Sales, Asia
Mike.Batchelor@ap.jll.com
+66 81 984 8970 (Bangkok)

www.jll.com/hospitality
COPYRIGHT JLL 2014. All rights reserved. The items in this publication have been compiled from the various sources
acknowledged. The information is from sources we deem reliable; however, no representation or warranty is made to the accuracy thereof.