5-Star Japanese Hotel to Be Tallest Building in Phnom Penh

• 31 December 2015
• Property Focus
• 4088 Views

Teho International Inc Ltd (TEHO), a diversified group with interests in the marine, offshore oil & gas, and property industries, announced on 7 February that TEHO Development Cambodia Pte. Ltd. has entered into an agreement with Hotel Okura Co., Ltd. to open a 5-star luxury hotel, The Okura Prestige Phnom Penh, in Cambodia.

The hotel is a part of the US$500 million project called “The Bay”, an integrated development under a joint venture between TEHO Development Cambodia Pte. Ltd., a subsidiary of the company registered on the Singapore stock market, and local investor Sok Bun Development.

It is perfectly located on the Chroy Changvar Peninsula between the Tonle Sap and Mekong Rivers, in an area known as “The City of the Future” occupying 34,000 sqm. The Bay project will offer the tallest building in Phnom Penh and unparalleled views of the capital and the Royal Palace across the Tonle Sap.

Construction of The Bay will start in 3 consecutive phases, according to Mr. Bun Sok, CEO of TEHO SBG Development Co Ltd.

Phase 1 includes The Okura Prestige Phnom Penh, a US$50 million, 45-floor, 250-room, 5-star luxury hotel. Operated by Hotel Okura Co Ltd., it will feature a Japanese restaurant, club, meeting rooms and banquet room, spa, and outdoor swimming pool.

Phase 2 and 3 will start consecutively with the construction of five, 55-floor accommodation buildings each with a supermarket and park.

“We have submitted the construction project proposal to the government already,” said Sok Bun. “Construction is expected to begin by the end of this year and will be finished in late 2019 or early 2020”.

Foreign buyers will largely be targeted rather than local ones, he added.

“I believe that the supply of apartments and condominiums are not overloaded yet as big international companies increasingly enter the Cambodian market and cause demand to increase”, Sok Bun said. “At this rate, in the next five years, I am not sure there will be enough supply for the demand or not.”

The Bay building has been designed by ONG&ON, Singapore’s multiple award-winning international architect firm.

According to a post on Prime Minister Hun Sen’s Facebook on 24 February, the project will create jobs and enhance the tourism sector in Cambodia.

“Cambodia welcomes Hotel Okura Co., Ltd, which are ready to invest in a luxury hotel at Chroy Changvar with US$500 million. The project will make a lot jobs for youths as well as contribute in tourism sector development”, his post said.

Hotel Okura is an established global hotel group founded in 1958, headquartered in Tokyo, Japan. It currently operates 72 hotels internationally under 3 hotel chains, namely Okura Hotels & Resorts, Nikko Hotels International and Hotel JAL City. The Okura Prestige Phnom Penh is the latest in the pipeline of Hotel Okura’s growth target of 100 hotels from the present 72?