Business News
Sanctioned Myanmar company buys out Thai owner of hotel
Oct 17, 2010, 8:15 GMT
Yangon - Myanmar's Htoo Trading Company, whose founder faces economic sanctions from the US, has purchased the Kandawgyi Palace Hotel from its Thai owners, a news report said Sunday.
A spokesman for Htoo Trading confirmed the purchase but could not verify the price, which some media reports put at 29 million dollars, the Myanmar Times said.
The Kandawgyi Palace, a teak construction on the Royal Lake in Yangon, was owned by the Bangkok-based Baiyoke Group of Hotels.
The Htoo Group is one of Myanmar's largest conglomerates, with business interests in timber, trade, tourism and construction.
The group is led by Tay Za, a Sino-Burmese businessman known to have close ties to military junta chief Senior General Than Shwe.
In October 2008, the US imposed financial sanctions on Tay Za and five Htoo Group companies as part of Washington's beefed up sanctions against the ruling generals and their business cronies.
The Kandawgyi Palace Hotel purchase came just weeks before the scheduled November 7 general election, which many hope will lead to an improved environment for Myanmar's tourism sector.
The Htoo Group is also the major owner of Air Bagan and Aureum Palace Hotels & Resorts.
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