PERSONALISED SERVICES WITH BETTER HYGIENE STANDARDS

Summary & Recommendations

As of Q3 2020, Yangon’s serviced apartment market witnessed a decline in demand albeit modestly compared to the level a year ago. The overall performance, in fact, appeared more resilient than expected especially in comparison to their hotel counterparts. Moving froward, Colliers sees serviced apartment likely to fare better given its self-contained environment and more personalized offerings and features. Requirements, however, for new market entrants will remain subdued in the near term, with operators only likely to tap on existing and domestic channels. Consequently, effective renegotiation of existing leases along with new competitive rates should overall help buoy demand. Given the limited stock of mid-tier serviced apartments, along with resilient occupancy levels recorded in the past quarters, investors are likely to see this as bankable asset not least in an emerging market such as Myanmar. Besides flexible payment terms and equipping work-from-home designs and setups, Colliers also encourages operators to continually adopt a culture of personalized service while keeping hygiene standards at a high level.