Cambodia Investment Review
EHM (Elite Hospitality & Management) has announced the soft opening of Caravan Hotel by EHM, a 4-star property centrally located in Phnom Penh. This new addition to the city’s hospitality sector comes at a time when the hotel market in Phnom Penh is experiencing a gradual recovery from the impact of the COVID-19 pandemic.
The Caravan Hotel, standing 15 floors high, offers 94 rooms and suites designed to cater to both business and leisure travelers. Each room is equipped with modern amenities and large windows that provide natural light and views of Phnom Penh’s skyline. Mr. Pav Vannyrong, Chief Operating Officer of Caravan Hotel by EHM, stated, “Our team has focused on creating a comfortable environment that reflects both Cambodian hospitality and contemporary needs.” The hotel joins EHM’s portfolio, which includes other notable properties such as Palace Gate Hotel & Resort and Palace Gate Hotel & Residence.
Challenges and Recovery in Phnom Penh’s Hotel Market
The Phnom Penh hotel market, like much of the global hospitality industry, was significantly affected by the COVID-19 pandemic. However, there has been a steady recovery, with Cambodia’s tourism sector reaching 81% of its pre-pandemic levels in 2023. The Cambodia Hotel Association (CHA), established in 2005, has played a crucial role in this resurgence. The association, which has grown to 139 members, continues to advocate for the industry by engaging with the Royal Government of Cambodia to address ongoing challenges.
One of the key challenges has been the sharp decline in Chinese tourists, who were a significant demographic for the market. In 2023, the number of Chinese tourists visiting Cambodia decreased by 93% compared to pre-pandemic levels. Additionally, international flight arrivals remain at only 42% of what they were before the pandemic. Despite these setbacks, there has been a notable increase in land travel, with international arrivals by land rising from 220,000 in 2019 to 352,000 in 2023.
In the face of these challenges, the hospitality industry in Phnom Penh has demonstrated resilience, with several new 4- and 5-star hotels, including Caravan Hotel, opening in recent years. These developments signal optimism and confidence in the market’s long-term recovery.
Caravan Hotel’s offerings include Blossom Restaurant, which provides a selection of Asian and Western dishes, and Oasis Skybar, a rooftop venue designed for guests to unwind with views of the city. The hotel also features Senses Spa, offering a range of treatments that combine modern and traditional techniques.
A Blend Of Local Hospitality and Modern Amenities
To support business travelers, the hotel includes a business center equipped with essential office services. This facility is intended to meet the needs of guests who require a professional environment while traveling.
As Caravan Hotel by EHM begins operations, it aims to establish itself as a reliable option for visitors to Phnom Penh, offering a blend of local hospitality and modern amenities. Mr. Pav Vannyrong highlighted the significance of this latest addition, stating, “With Caravan Hotel, we are adding to our portfolio in a way that meets the needs of different types of travelers. Our focus is on providing consistent quality across all our properties.”
The hotel will also be offering 50% on rooms rates starting from $45 per night from now until the end of October 2024.
Caravan Hotel by EHM is the latest addition to the portfolio managed by EHM, a subsidiary of Luxelite Group. Luxelite Group is a multi-sector parent company focused on growth in Southeast Asia’s hospitality and F&B sectors. With a diverse range of subsidiaries, joint ventures, and businesses across industries such as entertainment, hospitality, retail, and SME construction, Luxelite Group is dedicated to providing quality service and creating unforgettable experiences for its clientele. The group’s hospitality portfolio includes properties like Palace Gate Hotel & Resort, Palace Gate Hotel & Residence, and Eden Beach Resort across Cambodia.
