For several years, Burma's former capital Rangoon has earned the reputation of being the most expensive city in Asia, with demand far outstripping supply following the country's political opening in 2011. International tourism to Rangoon jumped from 364,000 a year in 2011 to 1.18 million last year. According to initial estimates from the Ministry, Rangoon could welcome between 1.3 and 1.4 million visitors this year.
The lack of international-standard hotels has contributed to the surge in prices. In 2013, out of a total of 10,175 rooms, only 2,400 were of international standard. The average price of a room in 2013 and 2014, with the average price of a room in a superior category hotel reaching up to 250 dollars, and in a luxury hotel up to 350 dollars.
However, the situation is changing fast, with prices falling sharply over the past year as new hotels open. In 2015, there were more than 3,500 rooms at the end of 2015, and this year the figure should be around 4,800 rooms in the four/five star category. According to consultancy firm Colliers International, the average price of a room in a superior category hotel fell back to around $150/160 at the end of last year. From an occupancy rate of more than 81% in 2012, luxury hotels posted an occupancy rate of 72% in 2014, 55% last year and, again according to Colliers International, only around 52% this year.
By the end of the decade, Rangoon's international hotel stock should be in the region of 9,000 hotel rooms. Upcoming chain hotel openings include Summit Park, Daewoo Amara Hotel, Pan Pacific, a new Shangri-La, Sheraton, Kempinski and Peninsula. The latter two will be in the ultra-luxury category, having taken over two of Rangoon's finest colonial structures. The Kempinski has taken over the former colonial police station, while Peninsula will renovate the former headquarters of the Burmese Railways. The two hotels are due to open their doors in 2017 and 2018 respectively.
