Luxury hotel group Shangri-La International Hotel Management said it will invest $115 million for the construction of a new Lakeside Shangri-La hotel in Myanmar. The 350-room structure will be located near Kandawgyi Lake, according to Myanmar Times. The Lakeside Shangri-La will be the second hotel to be operated by the luxury hotel firm in Yangon. The company held a ground-breaking ceremony on December 8, the report said.

Shangri-La Yangon director Kuok Koon Kwong said, "We expect the second phase to be completed by late 2016."

According to U Htay Aung, Myanmar's hotels and tourism minister, the Lakeside Shangri-La hotel investment would be worthwhile. The minister cited Myanmar's increasing tourist arrivals as one of the factors for the success of the investment. He also said that the tourist arrivals are up 82% as of November 2013 compared to last year.

Recent government data showed that Yangon has over 200 hotels and guesthouses offering a total of 9,000 guestrooms. However, the data indicated that the city still experiences shortage to accomodate its visitors, Myanmar Times reported.