Kempinski agrees KBZ hotel deal after Marriott pulls out

Kempinski agrees KBZ hotel deal after Marriott pulls out

By Tim McLaughlin   |   Friday, 04 April 2014

Swiss hotel chain Kempinski AG has entered a deal with Kanbawza Group of Companies to manage a hotel in Nay Pyi Taw, after US giant Marriott pulled out of the project.

U Moe San Aung, deputy director at the Kanbawza Group of Companies, told The Myanmar Times that Kempinski and Kanbawza signed the deal in late March. The Kempinski Nay Pyi Taw is scheduled to open on May 1, ahead of the ASEAN Summit which later that month. The property will be fully owned by Kanbawza.

The deal has not been formally announced and a Kempinski spokesperson said only that "Myanmar is a market Kempinski is interested in and is exploring opportunities for entry".

Kanbawza was originally working with Marriott on the project, but the US hotel giant pulled out of the deal because of a dispute related to quality control.

According to U Moe San Aung, Marriott's rigorous inspections of the hotel construction site in Nay Pyi Taw were putting the project behind schedule. Marriott declined to comment on the failed deal.

Kempinski operates 75 hotels in 30 countries, including the Siam Kempinski in Bangkok. Thailand Crown Property Bureau has been the majority shareholder in the company since 2004.

– Additional reporting by Aung Shin

http://www.information.myanmaronlinecentre.com/kempinski-agrees-kbz-hotel-deal-after-marriott-pulls-out/