Keppel Land held a ground-breaking ceremony on Oct 22 to launch the second phase of its Sedona Hotel Yangon project in Myanmar.
The property group is building in Yangon a new 29-storey hotel wing, which will be operational in 2016.
Phase one was completed in 1997 and comprises 366 rooms.
The second phase will see an addition of about 420 rooms, bringing the hotel's total room capacity to 786.
The total development cost for the new wing is about US$80 million (S$100 million), million, and when completed, will be fully integrated with the existing Sedona Hotel Yangon.
At the same time, phase one of Sedona Hotel Yangon is undergoing refurbishment works to feature a modern look and feel, while maintaining the original heritage character of the hotel.
The renovation works, which will cost about US$25 million, are expected to be completed by end-2013.
"The upgrading and extension of Sedona Hotel Yangon is timely to meet the corresponding rise in demand for quality hotel rooms, which is currently in short supply in Yangon," said Keppel Land chief executive Ang Wee Gee.
In the first eight months of 2013, local authorities reported that Myanmar has already received more than one million foreign visitors, about 60 per cent higher than the same period last year.
Tourist arrivals are forecast to reach between 1.8 and 2 million by end-2013, almost double that for the whole of 2012.
Keppel Land will also be commencing renovation works to Sedona Hotel Mandalay, its second hotel property in Myanmar, early next year.
The works, which includes the upgrading of rooms and common facilities such as the ballroom and restaurants, is expected to cost about US$7 million.