Occupancy levels continue to weaken despite further reductions in the average daily rates. To gain leverage over the already stiff competition, Colliers advises hotels to continually differentiate and shape their offerings in line with the guests’ changing needs and expectations. Technology-focused services and features designed for business travelers are value-added essentials. Meanwhile, future projects should also veer towards modern quality mid-scale hotels. Basic hotel offerings but of cotemporaneous designs are attractive draws for both the fit and young travelers.

Colliers' Forecast at a glance:

Demand:
In the long term, Colliers sees positive demand prospects for the mid-tier hotels catering both to frequent business and independent travellers. 

Supply:
The total upper-scale hotel stock is expected to significantly grow in the next three years. In 2018 alone, Colliers expects the completion of almost 1,400 new units, the largest estimated annual addition recorded to date.

Occupancy Rate:
The citywide occupancy rate as of Q4 2017 reached the 43% mark, lower than Q3 2017. Further declines are expected given the strong supply pipeline forecasted for the immediate year.

Average Daily Rate:
In Q42017, the average price has further decreased by 26% YoY. Daily rates are likely to become more competitive as future supply becomes considerable in 2018.

Click here to download the Colliers International Myanmar: Yangon Upper Scale Hotel Quarterly Review Q4 2017.

For more information on Yangon or to discuss the Yangon Hotel property market phone or email Paul Ryan Cuevas from Colliers International Myanmar via the contact details below.

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