Shangri-La opens high-end property in Mongolia

Ulaanbaatar

SIX years after construction began, Shangri-La Hotels and Resorts opened its first property in Mongolia on Wednesday to target business travellers seeking opportunities in the nation's nascent mining economy. The 290-room hotel and adjoining retail and office complex in downtown Ulaanbaatar represent a US$500 million investment, according to MCS Group, Mongolia's largest conglomerate with real estate and construction businesses, and a joint owner of the development.

Shangri-La opens its doors as the economy slows because of weak commodity prices and protracted disputes with investors, including Rio Tinto Group, which manages the Oyu Tolgoi mine. Foreign investment in the country tumbled to US$389 million last year from US$4.45 billion in 2012. The government and Rio Tinto reached an agreement last month after two years of negotiations to develop Oyu Tolgoi, likely opening the door to US$6 billion in new investments.