C9 Hotelworks Releases Thonglor Bangkok Market Update
More branded serviced apartment operators to enter expat-oriented Thonglor market in Bangkok as demand shifts to short-stay due to surging leisure market and lagging number of Japanese expatriates according to C9 Hotelworks new Thonglor Bangkok Serviced Apartment Market Review.
For at least a decade, Thonglor has been known to be Bangkok’s trendiest neighborhood. However, what really makes the area unique is the perfect combination of urban peace and chic nightlife, which is not commonly found in Sathorn or Asoke.
Thonglor today though is an expat-oriented district in contrast with the past when it was Japanese-centric. Thus, the demand of serviced apartments has been driven by expatriates, the majority of which are Asian. Japanese residents once accounted for 90% of the market while their share today has reduced to 65% according to our market research. Many serviced apartments, therefore, have adjusted their business model and designs to short/leisure-stay transient focused guests versus the traditional Japanese long-stay business client.
Two notable projects in the pipeline to keep an eye on are Ascott Thonglor and Staybridge Suites. With a total of 753 units entering the market, competition is ramping up. Moving forward, we expect as lower growth in supply of serviced apartments challenged by a scarcity of land and higher development costs.
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