The $180 million Hyatt Regency Phnom Penh hotel opened on December 15 after numerous delays, which real estate experts claim will have positive bearing on the property market, and illustrate the progress of international tourism reopening plans and the strength of Cambodia’s economic growth.
Located on a 7,031sqm area in Chey Chumneah commune of the capital’s Daun Penh district, the five-star hotel was invested by local conglomerate Chip Mong Group.
Chip Mong Group signed a management agreement with Chicago, US-based Hyatt Hotels Corp in September 2016 for the hotel. The hospitality firm currently operates more than 900 hotels in 65 countries as well as 21 luxury brands.
Chip Mong chairman Leang Khun noted that $5 million was spent on preserving a French colonial building, which he said is now a luxury lounge in “the heart of the sprawling hotel”.
He claimed that the hotel would “promote a modern-day lifestyle, like in other areas, in line with the development of the lives of the people in Cambodia, which reflects strong economic growth”.
Presiding over the inauguration ceremony, Prime Minister Hun Sen suggested that foreign leaders could stay at the hotel during Cambodia’s 2022 ASEAN chairmanship, as could big-shot international investors or “local customers”.
“The Hyatt Regency Phnom Penh will be able to accommodate more heads of state and government in the upcoming future,” he said.
Global Real Estate Association president Sam Soknoeun described the opening as a “special message to the world” that the Cambodian economic recovery is showing positive signs, although the Covid-19 epidemic has not been completely contained.
He claimed that the hotel would not only attract high-rolling tourists, but also major investors to seek opportunities in the Kingdom as well.
“An uptick in the arrival of big investors would have a significant impact on the national economy and the real estate market, as investments always need a suitable location to match the type of the business. This is a fresh glimmer of hope for the real estate market in Cambodia,” he said.
Meanwhile, Lucky Realty Co Ltd CEO Dith Channa said that in an era of political stability, the hotel would be another impetus for the Cambodian real estate arena’s growing pool of large-scale investors, while properties remain “more affordable” than in neighbouring countries.
He said the hotel would not only offer a boost to the tourism industry but also “help revitalise the Cambodian property market, because when the economy is good, the real estate market will be just as good”.
There are currently 49 hotels in the capital, comprising a total of 7,501 rooms – eight five-star (3,451 rooms), 10 four-star (1,717 rooms), 15 three-star (1,446 rooms), eight two-star (477 rooms) and eight one-star (410 rooms).