Memories Group, the tourism-focused company based in Myanmar, is acquiring a boutique hotel in Loikaw, Kayah State, Myanmar, for US$2.9 million ($3.9 million) from the Wa Minn Group of Companies and U Kun Naung Myint Wai.
Named Kayah Resort, the 26-key boutique hotel comprises 24 bungalows and two executive suites, and is 10-minute drive from Loikaw Airport and an hour’s flight from Yangon.
According to Memories Group, the hotel enjoys an occupancy rate of about 60% during the high seasons between Oct and March. During the low season between April and Sept, its occupancy rate is at around 30%.
The hotel’s gross operating profit was approximately US$220,000 for the 9M ended Dec 2017.
“It’s a great pleasure for me to announce Memories Group’s second acquisition of an ideally-located tourism asset since our Singapore listing in January. Our acquisition is well-timed and we expect the rebranding and planned improvements to improve Kayah Resort including driving its occupancy rate,” says Serge Pun, executive chairman of Memories Group.
“From hot-air balloons to luxury resorts and yachting, I’m proud to say our fast-growing integrated tourism platform now has a presence in six of Myanmar’s most-visited tourist destinations namely Loikaw, Hpa-An, Bagan, Inle Lake, the Mergui Archipelago and Yangon.”
Shares in Memories Group closed flat at 20 cents on Monday.