TO DISCUSS YOUR PROJECT OR LEARN MORE ABOUT OUR SERVICES:

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

Phuket Hotels Lose US$300 Million In Rate Plunge

Category: Hotels, Posted:25 Jan 2010 | 20:24 pm

Industry-wide discounting by Phuket hotels cost the industry on the island US$300 million in room revenue in 2009, according to the Phuket Hotel Market Update report compiled by leading Thailand consultancy C9 Hotelworks.
Download the full <link>http://www.c9hotelworks.com/downloads/2010-01-Phuket-Hotels-Lose-US$300-Million-In-Rate-Plunge.pdf*report</link> here.
Room rate cuts averaged 20% across the board last year, leading to the loss compared to 2008 room revenue. Despite tourism arrivals rebounding back to 2007 levels, a key blow to fundamental hotel metrics hit profit margins.
C9 Hotelworks Managing Director Bill Barnett, author of the report, said "the 2 P's – pricing and pool villas – represented dynamic drivers as average room rates and revenue available per room (RevPAR) declined.

"Bottom lines have been hit as hoteliers scrambled to induce demand and meet increasing consumer pressure for lower rates. Virtually every chain scale tier was affected with the exception of the budget and economy segment," Mr Barnett said.
The Phuket Hotel Market Update summarized that 2.9 million tourist arrivals visited Phuket in 2009 with a island-wide average occupancy of 64%. Average rates and revenue per occupied room slumped by 20% and 22% versus 2008.
Investment has been hit with the suspension of significant projects due to economic and political concerns shrinking 19% of the new hotel supply. The pipeline now has 31 properties set to open over the next three years representing 4,600 rooms and equates to a 12% rise over the existing market.

"Our research points to a positive upward trend in 2010, pairing a growing critical mass of hotels and demand drivers to capitalize on the global upswing. More Asian airlift and increased spending power from feeder markets maintains potential, while hotel oversupply could undermine long-term fundamentals if not addressed," Mr Barnett added.

"As Thailand continues to recover from the political driven events of late 2008 and early 2009, market confidence remains cautiously optimistic."

Other News

Read more

PHIST 2021 – Sustainable Asia RE-defined Coming 28 October

Category: Hotels, Posted:11 Oct 2021 | 09:11 am The fourth annual Asian-based sustainability-focused learning event PHIST 2021 will take place in a dynamic virtual setting on 28th October. Organized in Phuket, Thailand with speakers from across the region. PHIST (Phuket Hotels for Islands Sustaining Tourism) has established itself as a leading forum in Asia for sustainable tourism, environmental education for hotels as well […]
Read more

Lonely Planet. Ultimate Vacation Homes. More Phuket Meds

Category: Tourism, Posted:07 Oct 2021 | 21:02 pm It’s Friday and we have a trio of video insights for you. Listen to an intriguing talk with Joe Cummings who is behind the first Lonely Planet Thailand guidebooks. Hear seven short real estate talks on the latest trends. And then, how is Thanyapura looking to expand their medical footprint across Phuket. Right here. Right […]
Read more

Two Neil’s For Six Senses

Category: Hotels, Posted:03 Oct 2021 | 17:35 pm Veteran Asia-Pacific hotelier Neil Palmer has been named Chief Operating Officer of Six Senses Hotels Resorts Spas. Palmer is best known as a stalwart executive at Starwood Hotels & Resorts. Meanwhile, Neil Jacobs continues in his role as Chief Executive Officer. Former Six Senses COO Guy Heywood has moved to boutique chain Habitas Hotels.