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.
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