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Staff at the hotels said they are licensed by the General Administration Department rather than the Ministry of Hotels and Tourism, unlike hotels elsewhere in Myanmar. The offensive upended negotiations between U Thein Sein’s government and ethnic armed groups towards a nationwide ceasefire. The Tatmadaw subsequently demanded that the three groups – the MNDAA, the TNLA and the AA – surrender as a precondition for joining the peace process. This demand was rejected, and armed groups along the Myanmar-China border refused to sign the NCA later that year out of solidarity with the three groups. Under the terms of the deal, Peng’s ex-CPB faction – now renamed the Myanmar National Democratic Alliance Army – was granted control over the area, designated as Shan State Special Region 1.
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