Condo Hotel Consumer Action Hits News
A high profile consumer action that has been reportedly filed against the developers of a Pattaya condo hotel project has become a leading new item.
As reported by the Bangkok Post a group of 157 property buyers have filed a complaint against the developers of the Centara Grand Residences Pattaya.
While the hotel brand has been named broadly, the actual developers of the project, the Tulip Group – Bazis Development Company are the sellers of the real estate and those in default.
For Centara Hotels and Resorts who have a licensing and management agreement, the issue underpins risk factors in hotel residence projects when things go bad.
For hotel operators in these situations, potential brand damage is a major concern, as the general public often cannot differentiate between hotel groups and developers.
Certainly the lessons learned for HMC’s in the sector are the importance of project fundamentals and not overleveraging risk when projects are relying on residential sales to execute developments.
That said, hotel pipeline appetite in the region remains strong and a good number of hotel groups are willing to take risk in the name of a bigger reward in terms of chain growth.