The Peninsula Hotel project was shelved due to the political situation in Myanmar and economic difficulties in Hong Kong, where the majority partner is based. - Eleven Media/ANN
YANGON: The Peninsula Hotel project in downtown Yangon has been shelved, according to a report by Nikkei Asia.
Peninsula Hotels, a luxury hotel group, was planning to build a US$130 million hotel in Yangon.
The decision was made due to the political situation in Myanmar, and all investments in the project have been written off, the report said.
Regarding the shelved project in downtown Yangon, the board explained that the development work for the project is still on hold and the prospects for Myanmar’s tourism market remain uncertain, the report said.
The project will be halted and a loss of HK$160 million (estimated US$20.51 million) will be recorded, the report added.
The group that was planning to build the project is also facing economic difficulties in Hong Kong, with the property market and purchasing power in Hong Kong declining, it said.
The Peninsula Hotel project, which was planned on the site of the former Yangon Railway Headquarters, is a joint venture between Singapore Stock Exchange-listed Yoma Strategic Holdings, Yangon Stock Exchange-listed First Myanmar Investments FMI, and Hong Kong and Shanghai Hotel Group.
The Hong Kong and Shanghai Hotel Group owns 70 per cent of the project, with Yoma Strategic Holdings holding the remainder.
The project, which was planned to consist of 88 rooms, began construction in 2014 and was originally expected to be completed in 2022. - Eleven Media/ANN
