Construction has started on the 22-storey Toyoko Inn Hotel, which will cost US$20 million to build, near the Hang Bridge. The project is due to be completed in November 2014.
Touch Somnang, the Project Manager for the Koh Pich development project, said the Toyoko Inn Hotel is a joint venture between OCIC Company and Japan’s Toyoko Inn Co, Ltd, which is well known in the hotel sector. He said work had been going smoothly on the project so far and the second floor has been completed.
He added that building a 3-star hotel is not a problem.
“I believe the project will be a success as the hotel is located in a good, beautiful place with plenty of fresh air,” he said.
He added that only the hotel building alone will cost $20 million, but more will have to be spent on internal and external features.
The Toyoko Inn Hotel will be built on 1,223 square metres of land, it will rise to 22 storeys and there will be 304 units in the 3-star hotel. According to Toyoko Inn sources, it will be open to guests in 2015.
Ho Vandy, the Managing Director of World Express Tours And Travel and a member of the Cambodian Chamber of Commerce, said from 2003 to 2010, the hotel sector experienced fast growth, but from 2010 to 2013 the sector did not seem to make significant progress because the need and supply for the sector had stalled.
He added that it is now the rainy season and because of that the occupancy rates for hotel rooms was 40 to 60 per cent. The rate jumps to between 80 and 90 per cent in the prime season and most hotel customers are in Phnom Penh and Siem Reap.
“If compared between Siem Reap province and Phnom Penh, the hotel investment in Phnom Penh has more potential because Siem Reap is rich in only tourists and that is seasonal,” he said.
As for building work at the Toyoko Inn Hotel, he said: “The hotel being built on Koh Pich will be a success if it’s managed well, provides quality service and gives a proper price as it is located in a good, beautiful place with plenty of fresh air.”
There are now more than 500 hotels and more than 1,000 guesthouses in Cambodia.
Luu Meng, president of the Cambodia Hotels Association, said the investment in hotel construction has increased continuously, particularly for small-scale hotels because large-scale ones take a long time to complete and the quality service for the sector is limited.
He said that in Siem Reap there is need for 5-star hotel rooms, while in Phnom Penh the 3-star and 5-star hotels are more favoured.
Asked which location has the most potential – Siem Reap or Phnom Penh – he said: “All investments are good because before investing in something, investors have to do research and marketing first.”