International hotel brands are identifying Phnom Penh as a city with great potential for growth. The boom in real estate and a fast-growing economy is turning the Cambodian capital into a new business city. Factors such as increasingly open borders and more airline routes and frequencies are setting favourable conditions for hospitality sector investment.
While Phnom Penh currently boasts prestigious properties, such as Royal Raffles and Sofitel, the Cambodian capital offers few three- and four-star accommodation options. And mid-range hotels are seen as a lower investment risk due to lower operating and construction costs.
American giant Marriott is making inroads into Cambodia’s capital. Courtyard by Marriott is slated to open its doors in 2017 with a total of 189 rooms, all-day dining, a dynamic lobby cafe, and a sky bar. A hotel management agreement was signed in July with Phnom Penh-based property developer Khou Investment.
Last month Hyatt announced that it would open its first Hyatt Regency property in the capital following the signing of a management agreement with Cambodia-based Chip Mong Group. Expected to open in 2020, Hyatt Regency Phnom Penh will have 250 rooms, restaurants, a rooftop swimming pool and bar, as well as a convention centre. The property will be located in the vicinity of the Tonle Sap River with sweeping views over the Royal Palace.
David Udell, Hyatt Hotels’ Group President-Asia Pacific, said: “As Phnom Penh becomes known as a destination for art, culture, tourism and business, we are confident that the globally recognized Hyatt Regency brand will resonate with business and leisure travelers visiting the country. Furthermore, we believe the hotel will play a vital role in the city’s development and will become a landmark in the city and a dynamic member of the local community.”
In addition to Marriott and Hyatt, Japanese hospitality group Okura in 2015 signed a contract to develop and manage the Okura Prestige Phnom Penh. The first Japanese brand to enter the luxury market in the Cambodian capital, the 40-floor property will have 250 rooms and is due to be inaugurated in 2019. The hotel will be part of The Bay, a mixed-use residential and commercial complex under construction between the Tonle Sap and Mekong Rivers on the Chroy Changvar Peninsula. It will command expansive views of the city and the Royal Palace.
Finally, the high-end Rosewood Hotel is scheduled to open in 2017. It will be a deluxe property with 175 rooms and suites and will occupy the top 14 floors of Vattanac Capital Tower One, one of the new skyscrapers now dominating Phnom Penh city centre. The Rosewood will have some of the largest hotel guestrooms in Phnom Penh. Dining options will include a 120-seat bistro, a 60-seat lobby lounge, two specialty restaurants, and a sky bar on a cantilevered terrace. It will offer a spa, a 20-meter swimming pool, a fitness centre, and meeting facilities.
Cambodia Hotel Association President Din Somethearith declared recently to HVS that it was good to see notable hotel chains establishing a presence in the Kingdom. “It provides a new option for the customers,” he said. “It would be nice to have all the big-brand hotels in Cambodia.”
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