Currently there are 29 new hotel residence projects countrywide with nearly 90% of these located in resort areas, Mr Barnett notes in consulting group C9 Hotelwork’s latest release, titled “Thailand’s Real Estate Developers Flock to Hotel Brands” (click here), issued yesterday (Oct 30).
New research by the consulting group released earlier this month in the “Southeast Asia Hotel Residences Market Trends” report (click here) identified the top three locations in the country for completed and pipeline projects as Phuket (26 properties), Pattaya (10 properties) and Bangkok (nine properties).
Viewing how Thailand ranks in terms of competitiveness in the sector, with 41 completed projects to date, this accounts for 41% of the regions supply that stands at over 21,000 hotel residence units. Indonesia follows, whilst the rising star is Vietnam with Danang featured as a favoured developer’s marketplace, Mr Barnett noted in that report.
“In Thailand, Phuket with 13 completed projects and another 13 in the works has a long-standing legacy of hospitality-led residences in such well-known ultra-luxury resorts as Amanpuri, Banyan Tree and Sri Panwa,” Mr Barnett said in the release issued today.
“Though over the past few years Bangkok’s Chao Phraya River with marquee branded projects affiliated to the likes of global icons Four Seasons and Mandarin Oriental have pushed prices though the glass ceiling to an average of more than B315,000 per square meter, while the national average selling price in the sector is just over B101,000.”
Commenting on the connection to brands and pricing premiums, Mr Barnett said, “Our research in all the markets in the country show a demonstrated brand premium between 15-20%. Taking a close look at existing supply 92% of the supply are brand affiliated and we expect this preference by developers and property buyers to continue.”
Branding and its relationship to real estate is not solely in the hotel domain, he notes, pointing out that Thai-based Onyx Hospitality recent entered into an operating agreement with the international design group Yoo, which was founded by Philippe Starck and John Hitchcox, to run their branded properties.
Mr Barnett also highlighted that in another move in the design brand space, Bangkok’s BLINK Design Group, who work extensively in hotels, resorts and residences, bought over noted creative firm Jaya. The latter subsequently formed a venture with boutique hotel management group Two Roads Hospitality for Jaya branded hotels and residences.
“Despite the presence of legacy global hotel brands that appear in C9’s data across Southeast Asia a number of Thai brands and hotel management groups are well placed such as BHM Asia, Dusit Thani, Minor and Onyx,” Mr Barnett reported.
“C9 concludes that an increasing number of mixed-use projects that feature both hospitality and residential elements and hotel operators who want to drive expansion can’t ignore the strategic benefit of offering developers a holistic management and brand solution.”