There is already a thread on FT for RGN hotels. I stayed at the Kandawgyi Palace Hotel Yangon last week and found it to be OK, although not your usual 4* place. The breakfast was pretty good, though.
I got a decent rate through a negotiator (weg.de in my case) and after rebates paid ~$50/night. Most 'better' hotels are Government-owned/operated and rather expensive.