Former Le Royal Meridien Yacht Club Goes Fractional
Given the current downward trading of hotel and property we are starting to see developers pursue alternative products in order to stimulate revenue. The Purnavarna Residences at Royal Phuket Yacht Club is a fractional offering is a 1/18th interest in a unit which offers a set amount of usage per year, though comes with ongoing maintenance and usage charges. The conversion of this program for a 5 star hotel that was previously the Le Royal Meriden Yacht Club is a significant economic indicator as to the challenges currently facing hotel operators.
I spoke to the development office today about the status of the other project which is the large multi million dollar villas, now called The Purnavarna Summer Palace which has been under development now for a number of years. Expect more information on the status once we speak to those in charge next week on the blog.
We can now see a good amount of alternative investment vehicles with lower pricing points to enter the market as seen with groups such as David Lloyd, Absolute, Laguna Holiday Club and Marriott Vacation Club. Another of the new management companies entering the island the LaTour Signature Group also have a vast amount of focus on this sector. It looks apparent that new ideas are going to be needed to push product in what's looking to be a challenging market.