Yangon, Myanmar, March 26, 2014—IFC,
a member of the World Bank Group, is lending $80 million to subsidiaries
of Shangri-La Asia Limited to expand its hospitality business in Myanmar.
The loan will improve the country’s business and travel infrastructure
by providing international-standard rooms and conference facilities, boosting
Myanmar’s tourism sector, contributing to its economic diversification
and sustainable growth, and creating jobs.
IFC’s investment will be used to complete the renovation at the Traders
Hotel Yangon and also increase its capacity from 270 to 485 rooms. Shangri-La,
a leading hotel owner and operator, is a majority owner of the hotel. IFC’s
investment will also be used to complete construction of the Shangri-La
Residences Yangon, a 240- apartment building. Both projects are expected
to be finished in 2014, helping meet the acute demand for hotel rooms and
serviced apartments from business travelers and expatriate workers. International
arrivals in Myanmar have increased by around 30 per cent a year since the
economy opened, surpassing one million for the first time in 2012.
“This investment continues our relationship with IFC towards developing
the hospitality industry in a challenging country environment in South
East Asia,” said Madhu Rao, Chief Financial Officer of Shangri-La. “The
projects’ key locations in the central business area of the country’s
most populated city Yangon, along with Shangri-La’s quality, will set
a benchmark and raise the quality of services available locally.”
IFC will work closely with Shangri-La to ensure international environmental,
health, and safety standards are adhered to at the sites. The renovation
and construction projects are providing jobs for more than 1,000 local
workers. About 600 permanent employees – of whom about one-third are expected
to be women – have been hired and trained in hospitality to operate the
“At a time of growing economic interest in Myanmar, it is crucial to increase
access to much needed business-enabling infrastructure to attract more
investors and travelers, as well as helping place Myanmar on a par with
other commercial hubs in the region,” said Vipul Prakash, IFC Director
for Manufacturing, Agribusiness and Services, Asia Pacific region. “The
operation of international standard hotels and serviced apartments will
help generate jobs and provide supply chain linkages to local farmers and
suppliers, thus boosting the tourism sector and contributing to economic
diversification and sustainable growth.”
IFC, together with the World Bank, is supporting reforms and investments
in Myanmar to strengthen the private sector and create jobs to reduce poverty
and boost shared prosperity. IFC works to improve the country’s investment
climate, access to finance, and infrastructure, with an initial focus on
the power and telecommunications sectors.
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. Working with private
enterprises in more than 100 countries, we use our capital, expertise,
and influence to help eliminate extreme poverty and promote shared prosperity.
In FY13, our investments climbed to an all-time high of nearly $25 billion,
leveraging the power of the private sector to create jobs and tackle the
world’s most pressing development challenges. For more information, visit
Shangri-La Asia Limited, or Shangri-La, headquartered in Hong Kong, is
a leading owner and operator of deluxe hotels and resorts primarily in
Asia. Shangri-La is listed on the Hong Kong Stock Exchange. It
is 50-percent owned by Kerry Group Limited, a conglomerate based in Hong
Kong that is controlled by Robert Kuok, a well- known Asian entrepreneur.
For more information, visit www.shangri-la.com.