That was in 1990, and since then, the economy of Myanmar has been ailing because of global political sanctions. Needless to say, both tourism and business travel have dwindled down to a trickle, but the Holzs still go to Myanmar often to oversee the running of their hotel and to catch up with friends. 'It started with the idea of providing a better place for business people to stay when they're in Myanmar, especially for extended stays,' says Mr Holz, the former managing director for Siemens in Myanmar.
Together with his wife, they were in Myanmar frequently for business in the mid-80s. The country then had growth potential (and still has), with several international chains rushing in to build hotels. The couple, permanent residents in Singapore, took up their idea seriously in 1992. Together with some friends, they scouted around for a location for their hotel - finally deciding on a colonial bungalow right in the heart of town, a stone's throw from the Golden Shwedagon Pagoda.
'We thought that since it's aimed at the business traveller, it should be at a central and convenient spot, a bonus being the view of the pagoda,' says Mr Holz, in his 60s. With a few other shareholders, they invested some US$4 million in the project - converting the bungalow into a hotel of 26 rooms and six suites, adding a courtyard pool and a Mexican wine bodega.
'All the woodwork was handcrafted by local carpenters on site, using local teak and traditional tools. For some of the floor areas and bathrooms, locally hand quarried marble was used. All soft furnishings are woven locally wherever possible, like the silk bedspreads,' he says, adding that the decor naturally also features local Myanmar antiques. 'We try to make it feel like a residence - that's the original idea, so business people can be comfortable although they're away from home.'
The bungalow was retained as the reception area, while the rooms were added on in the surrounding building which retains similar features as the bungalow.
One of the biggest challenges, though, was getting the hotel built. Mr Holz had to be there practically every day to supervise the construction. 'Otherwise, things would go walking off and cement proportions might not be correct,' he says, adding also that timeliness was an issue. Everything else for the hotel - like kitchen equipment and bathroom fittings - had to be imported.
'Having worked there before, we did go into the project with our eyes wide open,' he recalls. Even more challenging was trying to tally the various accounting ledgers for the project - something those who've been to Myanmar and dealt with its official and black market rates for currency would understand.
The hotel took two years to be built, and since then, it has been listed in the Small Luxury Hotels of the World directory - the only one in Myanmar. Because of the political sanctions since the late 80s, however, the occupancy rate has hovered at around 35 per cent, says Mr Holz. 'Which isn't bad given the political and economic climate there, and the long down-time between May and September because of the rainy season.'
Although the idea of building a hotel at that point in time was economically viable, and a fun project for a group of friends from very diverse backgrounds, none of them foresaw the later political sanctions which affected the whole business landscape so drastically.
'All the oil explorations stopped overnight and the companies sent their staff home. Other businesses followed suit,' he recalls. The Holzs stood by their project with hopeful optimism, although they have since reduced their shareholding percentage. Now with Myanmar being marketed as an exotic holiday destination, they foresee more European tourists coming to the country. Also, with an important political convention in the country coming up, they hope it will reverse the downward economic tide - for the sake of the local people, more than anything.
Although they would ideally have liked for their investment to be more profitable, the Holzs are very glad that the hotel has given them the opportunity to contribute to some charitable causes there, and maintain this link between them and their Myanmar friends.
'Myanmar is a beautiful country and we really treasure the ties we have with the people there,' says Mrs Holz. For example, they recently donated two ambulances which they shipped from Germany for two local hospices - in Yangon and Mandalay. They've helped support the daily needs of an orphanage for many years and a project to build an old folks' home has just been completed.
Of course, the frustration comes from not being able to fully realise the running of a good hotel business in Myanmar. 'It's not a problem that's unique to us, of course. But the ultimate aim of a hotel is be occupied,' she adds.
Would they acquire another hotel or expand their business in Myanmar if the economy picks up? The Holzs say no, since they're already in 'retirement mode' and are content to be full-time parents to their two children, aged 10 and 12.