Japanese luxury hotel group Okura said it has signed a contract with TEHO Development Cambodia to develop and manage The Okura Prestige Phnom Penh, a luxury hotel to be opened in the capital in 2019.

Originally announced a year ago, Okura says the deal is part of developer TEHO’s $500-million hotel and residential project called The Bay, on the capital’s Chroy Changvar peninsula.

Toshihiro Ogita, president of Hotel Okura, said, “We are greatly honoured to bring our hotel to Phnom Penh, Cambodia’s vibrant centre of economy and commerce and a hub between Ho Chi Minh City and Bangkok.”

“We hope that visitors and locals alike will love The Okura Prestige Phnom Penh and that our brand will flourish alongside the people of Cambodia and ASEAN.”

The hotel will have 40 storeys and 250 rooms, and will feature Japanese and other dining facilities, a rooftop bar, meeting and banquet rooms, a spa and an outdoor pool, and is expected to have “expansive views of the city and the Royal Palace.”

Ms Shoko Amano of Hotel Okura’s public relations department says Cambodia’s economic growth is the main attraction for the company: “Cambodia is one of the key markets for Hotel Okura’s plan to expand our business overseas, as we are expecting the country to grow further thanks to the government’s aggressive economic measures to lure investment from overseas, and its good diplomatic ties with Japan.”

TEHO Development is a wholly-owned subsidiary of TEHO International in Singapore, and will spearhead The Bay project in a venture with troubled local developer Sok Bun. TEHO International previously stated on the Singapore Stock Exchange that the hotel was part of Phase 1 development. While it was previously reported that construction would begin sometime this year, a clear date for breaking ground has not been publicly announced.