Thursday, February 20, 2025
Yangon, Myanmar Peninsula Hotel project scrapped as political turmoil forces investors to withdraw, leading to multimillion-dollar losses.
The ambitious Peninsula Hotel development in downtown Yangon has officially been put on hold, according to a report by Nikkei Asia.
The luxury hospitality brand Peninsula Hotels had initially planned to construct a high-end property worth US$130 million in Myanmar’s commercial hub. However, due to ongoing political instability in the country, the company has decided to shelve the project entirely, writing off all related investments.
Despite prior plans to move forward, the project remains suspended, with no clear prospects for Myanmar’s tourism industry, the report stated.
As a result, the company will register a financial loss of approximately HK$160 million (around US$20.51 million), further adding to economic challenges faced by the group in Hong Kong. The region’s weakening property market and diminishing purchasing power have also contributed to financial difficulties.
The Peninsula Hotel project was intended to occupy the historic Yangon Railway Headquarters site and was structured as a joint venture. The key stakeholders included Singapore-listed Yoma Strategic Holdings, Yangon Stock Exchange-listed First Myanmar Investments (FMI), and the Hong Kong and Shanghai Hotel Group.
The Hong Kong and Shanghai Hotel Group held a majority 70 percent stake in the venture, while Yoma Strategic Holdings controlled the remaining share.
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