Foreign Property News | Posted by Zarni Kyaw
Singapore-listed Memories Group has purchased a 15.3% stake in Strand Hotel International (SHIL) for $3.2m, according to a press release from the firm.
The shares will be paid up through the issuance of unlisted convertible bonds with a coupon rate of 5% per annum.
Memories Group executive chairman Serge Pun told Deal Street Asia the company is keen to continue its expansion plans in Myanmar and sees big potential in the country's tourism sector.
SHIL is a joint venture partner of the Directorate of Hotels and Tourism Development.
It holds 50% stakes in Myanmar Hotel International, which has the rights to develop, operate, and manage Yangon's Strand Hotel, Inya Lake Hotel, and Hotel G Yangon. SHIL also has an 80% interest in the Strand Cruise, together with GCP Hospitality Management.
"The assets held by MHIL have long term value creation potential. The acquisition is in line with our plans to own, develop and/or operate more hotels and lodges", said Memories Group CEO Cyrus Pun.
Built in 1901, 115-year old Strand Hotel in Kyauktada Township was renovated in 1989 and again in 2016, which allowed for updating the colonial-era luxury hotel with modern amenities like air conditioning and internet.
The Hotel G Yangon opened in September 2017 in the city's downtown, offering 85 rooms, a restaurant and bar, and retail. It is a modern "lifestyle hotel" under the GCP Hospitality brand.
Located in Yangon's Bahan township, the Inya Lake Hotel is a 185-key luxury property including an open-air swimming pool, a fully equipped gym, two tennis courts, four restaurants and bars, meeting areas, and catering.
Construction started in 1958 and the building was completed and opened in October 1962.
The Strand Cruise is a luxury cruise on the Ayeyarwady River, custom built in 2015. The 61m ship can carry up to 50 passengers in 25 cabins, and is modelled after the Strand Hotel.
Memories Group is a leading tourism company in Myanmar. It was set up as a spin-off of Yoma Strategic Holding's tourism assets as well as two other companies, followed by a reverse takeover of Catalist-listed SHC Capital.
The company began trading in January 2018. It has subsequently added a number of businesses.
Its tourism offerings currently include:
* Balloons over Bagan
* Burma Boating, a luxury yacht operator in southern Myanmar
* Bagan Land, a planned hotel for Nyaung-U (Bagan)
* Asia Holidays Travel & Tours
* Hpa-An Lodge, a 19-room hotel at Mount Zwekabin in Kayin State
* Pun Hlaing Lodge, a 46 room resort at Pun Hlaing Estate (under construction)
* Kayah Resort, a 26-room boutique resort in Loikaw, Kayah State
* Island development rights at Kyun Pila, Bo Ywe, and Nga Mann in Tanintharyi Region
* Awei Pila, a five-star hotel in Myeik Archipelago, opened in December 2018, with 24 villages
* Hotel Suggati, a 72-room hotel in Mawlamyine, opened in December 2018
* Awei Metta, a luxury urban golf resort in Yangon with 46 rooms, opened in 2019
Credit: Myanmar Real Estate
