Amara Holdings JV looking to build $50 million Myanmar hotel

Real estate projects also on the horizon.

Singapore-listed Amara Holdings Limited announced that the Group has entered into a Memorandum of Understanding (MOU) to develop hotels and engage in other real estate projects in Myanmar, through the Company’s wholly-owned subsidiary, Amara Hospitality Capital Pte. Ltd. (AHCPL).

The counterparties of the MOU are Youth Force Hotel Co. Ltd. and Youth Force Construction Co. Ltd (collectively, YF), companies unrelated to the Group and incorporated in the Republic of the Union of Myanmar.

The first project that AHCPL and YF will collaborate under the MOU involves establishing a Joint Venture (JV) to develop and operate a hotel located in Dagon Township, Yangon, Myanmar. The proposed total investment is estimated to be about US$50 million.

The MOU is not a commitment to invest by the Group and the terms of the JV agreement to be entered into are subject to further discussions and negotiations between both parties.

Besides the JV, the Group will explore opportunities in the fast growing real estate sector in Myanmar with YF.

As its first project, the Group intends to build and operate a business hotel in Dagon Township, Yangon, Myanmar. This is part of the Group's expansion of the Amara chain of hotels across Asia, of which the Group currently has hospitality assets in Singapore, China and Thailand. It is also in line with the Group’s strategy of acquiring and investing in income-producing hospitality assets in the regional markets of ASEAN and Asia.

The Group believes in the opportunities presented by the opening of Myanmar, a country with over 60 million people and blessed with abundance of natural resources including natural gas and timber. As Myanmar reconnects with the world economy following five decades of isolation during military rule, hotels and hospitality products are potential businesses to be involved in, especially in an emerging frontier market like Myanmar. In addition, with its recent political and economic reforms, Myanmar is becoming a promising investment destination with immense potential to attract business travellers. Coupled with Myanmar’s rich cultural history and a booming tourism sector, hotels in Yangon are expected to enjoy healthy occupancy and room rates.

The Group will continue to look out for attractive business opportunities to further grow its hospitality portfolio geographically and to strengthen the "Amara" brand name.