TO DISCUSS YOUR PROJECT OR LEARN MORE ABOUT OUR SERVICES:

  • This field is for validation purposes and should be left unchanged.

Condo Hotels Hit Bangkok Property Market

Category: Hotels, Posted:01 Aug 2020 | 15:10 pm

Bangkok’s real estate scene is about to see a new wave of condo hotel developments that have already been seen across Southeast Asia’s resort markets over the past decade.

The Wyndham hospitality chain and brands are being used as a vehicle for Thai group Siamese Asset under a license and franchise offering, with white label management by UK group Kew Green Hotels under a joint venture.

A mixed-use concept is seeing properties having a hospitality component with investment-oriented units sold under a rental scheme. A hotel license will be used so daily rentals are the primary target. For pure residences, these have optional hotel services.

Bangkok’s hotel branded residences at the luxury level have seen prolific growth over recent years with such names as Four Seasons, Mandarin Oriental, Ritz-Carlton, St. Regis and Banyan Tree featured. Though it needs to be noted in these developments the hotel brands have been purely for residential use and not operated as hotel units.

Notable trends in this deal and key takeaways are:

Kew Green Hotels while being a UK Group is controlled by the Chinese travel conglomerate HK CTS Metropark Hotels, so there is a China play in both real estate and hotel bookings.

The condo hotel surge is rampant in certain Thai resort markets presently with Phuket as an example, with over 15,000 new keys in the pipeline, over 50% of these are condo hotel-type properties.

Condo hotels require hotel licenses, which while legal in Thailand have faced opposition or are subject to interpretation in key tourism markets like Pattaya and Koh Samui.

Siamese Asset is a real estate player primarily and most focused on short-term property sales revenue, so it will be interesting to see how they manage the long-term capital heavy environment of hotels.

Urban condo hotel growth in Asia is typically a cyclical phenom that attracts a highly speculative investment-oriented buyer profile and is an indication of the top of a real estate cycle.

The emergence of Kew Green  Hotels as a white label operator is certainly going to see other groups follow, given a rise in global chains moving from management to franchising, and the needs for scalable management offering within this structure.

Other News

Read more

C9 Hotelworks Releases New Phuket Hotel Market Update Report

Category: Hotels|Tourism, Posted:16 Mar 2023 | 00:29 am According to C9 Hotelworks new Phuket Hotel Market Update 2023, the resort island’s tourism recovery has accelerated over the past six months. With the removal of Thailand’s pandemic travel restrictions in 2022, airlift quickly ramped up as India and Malaysia were key early source markets. Over the current winter season aside from the return of […]
Read more

Destination Ink Radisson For Patong Hotel

Category: Hotels, Posted:12 Mar 2023 | 23:16 pm Phuket’s hotel brand conversion trend is continuing, with the latest move having Radisson sign a deal for a 390-room hotel in Patong. Owned by the Destination Group, the property will be branded as a Radisson. This is the fourth recent conversion by Destination with one more Radisson and two Holiday Inns by IHG. Expect more […]
Read more

Hilton Phuket Arcadia Reflagged To ACCOR’s Pullman Brand

Category: Hotels, Posted:03 Mar 2023 | 07:35 am One of Phuket’s largest hotels, the 662-room Hilton Phuket Arcadia Resort has been reflagged under ACCOR’s Pullman brand. The hotel, which will be named Pullman Phuket Arcadia Karon Beach Resort will operate as a Pullman effectively in April of this year, and a staggered 24-month refurbishment program undertaken. With this addition, there will be three […]
SiaJai logo

Thailand's Leading Homecare Marketplace