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Banyan Tree in JV to manage 17 Htoo hotels, resorts in Myanmar
HOSPITALITY group Banyan Tree Holdings has formed a 50-50 joint venture (JV) with Myanmar Treasure Hotel & Resort Group (Htoo Hospitality) to initially manage 17 of the latter's hotel properties.
Htoo Hospitality is the hospitality division of Myanmar business tycoon U Tay Za's Htoo Group of Companies. It currently owns 15 hotels and resorts, with two in the pipeline.
This includes brands like Aureum Palace Hotels & Resorts, Myanmar Treasure Resorts and Malikha Lodge. Projects under development include Kandawygi Palace Hotel in Yangon and a new destination resort in the Mergui Archipelago.
The joint venture will create opportunities for Banyan Tree to enter related strategic sectors in Myanmar. It also comes as the group identifies growth opportunities in Myanmar's hotel management sector, according to a regulatory update on Monday.
Htoo Group of Companies is a holding company with diversified businesses in trading, construction, aviation and hospitality, to name a few.
The JV agreement was entered into by Banyan Tree's wholly-owned subsidiary Banyan Tree Hotels and Resorts Pte Ltd on March 16.
Incorporated in Singapore, the JV company will have an issued and paid-up share capital of S$100,000, with each party contributing an equal amount.
Banyan Tree's capital contribution will be funded by internal resources and is not expected to have any material impact on the group's consolidated net tangible asset and consolidated earnings per share for the financial year ending Dec 31, 2020.
The JV company will incorporate a subsidiary in Myanmar - which will carry out the hotel management business in Myanmar. The JV company will also operate Htoo Hospitality's hospitality school in Yangon called Hotel & Tourism Training Centre.
Banyan Tree's shares closed flat at S$0.30 on Monday.