TO DISCUSS YOUR PROJECT OR LEARN MORE ABOUT OUR SERVICES:

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

PHUKET REPORT SHOWS 48% OF ALL HOTEL PROJECTS DELAYED

Category: Hotels, Posted:04 Aug 2009 | 07:07 am

Up to 48% of all new hotel developments in Phuket are experiencing major construction delays triggered by the global economic downturn and concerns over Thailand's political stability, an authoritative report has found.
According to the Phuket Hotel Market Update Mid-Year Report released by respected hospitality consulting firm C9 Hotelworks, the slowdown on hotel construction sites has however not dented developer's enthusiasm for entering the accommodation market on the island.
The report can be downloaded at the following link:
<link>http://www.c9hotelworks.com/downloads/phuket-hotel-market-update-august-2009.pdf*Hotel Market Update</link>
C9's Managing Director Bill Barnett said despite the delays, new developments continue to enter the stream with 38 properties offering 6,231 rooms at various stages of advancement in the construction cycle.

"Non-traditional product such as hotel managed villas and condos now represent 34% of the upcoming inventory," Mr Barnett said.
According to the research, first half trading for 2009 indicated tourist arrivals declined by 14% but a combined luxury/upscale/mid-scale occupancy rate of 60.4% produced an average room rate of USD141.
The report also noted that branded hotels outperformed non-branded properties rate wise by 33.7%, although the non-brand sector outperformed the brands on occupancy by 12.4%.

"Looking forward, short-term trading will focus on occupancy at the expense of long-term rate strategies," Mr Barnett added.

"Cash flow is a key underlying consideration in this market with most hospitality assets largely carrying low debt ratios. Defying the trends are the luxury high-end tier properties which operate in a favourable supply and demand segment and budget tier hotels who have captured changing demographics, are experiencing business from price conscious travellers."
The report concluded that Phuket's long-term outlook remained positive with brand concentration, growing airlift and infrastructure improvements, though recovery in 2009 has effectively been written off with prospects pushed into 2010.

Other News

Read more

New Phuket Hotel Market Update 2024 Report From C9 Hotelworks

Category: Hotels|Tourism, Posted:17 Apr 2024 | 19:06 pm Phuket’s tourism industry is undergoing an ongoing rebound, with last year’s airport passenger arrivals edging towards pre-pandemic figures according to C9 Hotelwork’s Phuket Hotel Market Update 2024. While hitting 7 million, it was still short of the 9 million mark set in 2019. This year the trend is continuing with 1.62 million arrivals to date […]
Read more

Delving Into the Real Estate Rental Landscape of Phuket

Category: Opinion|Real estate, Posted:16 Apr 2024 | 09:39 am Given the backdrop of a booming Phuket real estate sector, one area that is often overlooked is the rental market. Despite a vibrant vacation short-stay segment, there remains a strong demand for extended and long-stay rentals across the island. Rental demand coming out of the COVID19 pandemic experienced sustained uplift and has continued to perform […]
Read more

Inside the Numbers. The Potential of a Phuket Property Bubble

Category: Real estate, Posted:13 Apr 2024 | 13:12 pm One of the most common questions I am asked these days is about a potential Phuket real estate bubble. While it’s a popular buzz term, so many who ask the question don’t understand what a bubble is. The most notable real estate bubble in recent history was the subprime housing crisis in the United States […]
SiaJai logo

Thailand's Leading Homecare Marketplace