POSCO Engineering and Construction (CEO: Hwang Tae-hyeon) announced on the 12th that it had held the groundbreaking ceremony for the construction of a hotel worth $220 million in Yangon, the economic capital of Myanmar.
Night view of the luxury hotel that will serve as the landmark of Yangon, the economic capital of Myanmar. POSCO E&C has held the groundbreaking ceremony on the 12th of May this year.
The ceremony was attended by over 200 people, including the senior executives of the companies involved, such as Hwang Tae-hyun, CEO of POSCO E&C, Jeon Byeong-il, CEO of Daewoo International, Song Yong-deok, CEO of Hotel Lotte and Kim Ki-beom, CEO of Daewoo Securities, and representatives of Myanmar’s corporate elite.
Located at the heart of the city of Yangon, the hotel will consist of one 15-story luxury hotel building with 346 guest rooms and one 29-story hotel with 321 guest rooms. Altogether, it will be a new highlight in the city’s growing hotel market, along with convention centers and other amenities.
This project will be implemented on a build-operation-transfer (BOT) basis where the land lot near the lake of Inya, Yangon, will be leased for 70 years for the operation of the hotel, before being returned to the Myanmar government. The hotel will be open for business in late 2016.
Convinced of Myanmar’s growth potential thanks to its recent push for reform and opening-up, after half a century of military rule, POSCO E&C in association with Daewoo International, one of its affiliates, has proposed a project of “Hotel Development in Yangon” to the Myanmar government as part of its drive to diversify its overseas business.
By becoming the first Korean contractor to create a building that will serve as a landmark of the economic capital, POSCO E&C has secured the foundation for a head-start in Myanmar’s construction market.
Having expanded to Vietnam in 1995 and now operating the most sites in the country among Korean contractors, POSCO E&C plans to push its business frontiers to other countries in the region, including Laos, Cambodia and Thailand, based on its strong track record in Vietnam and Myanmar.