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

Thaiger Cage Hospitality Digital Pitch Event To Debut at Thailand Tourism Forum 2023

Category: Hotels|Tourism, Posted:26 Dec 2022 | 13:48 pm Leading Thai digital media outlet The Thaiger is launching a new start-up technology pitch event ‘The Thaiger Cage’ on 16th January 2023 at the Conrad Bangkok. It is a special prequel to the Thailand Tourism Forum (TTF) 2023, now in its twelfth year and widely considered to be the country’s leading annual hospitality event The […]
Read more

Could Thailand’s Southeast Coastal Gem Khanom Be The Next Koh Samui?

Category: Real estate|Tourism, Posted:23 Dec 2022 | 12:26 pm The search for the next big resort destination in Thailand is an absolutely big ask. An expansive country with 77 provinces and an amazing array of diverse geographical locations, Instagram-worthy aspects, and distinctly different nuances. Out of this brazen travel chaos, the endearing term ‘same same, but different’ was born and remains highly relevant. Yet, […]
Read more

Digital Homecare Platform SAIJAI Unveils “Hospitality Staffing” Solution as Hotels Grapples with Manpower Crisis

Category: Hotels, Posted:21 Dec 2022 | 12:21 pm The pandemic changed everything. It has been an accelerator but also a major change-maker for Thai service workers retrenched or “paused” during the three-years Covid crippled Thailand’s hospitality industry. Many who left the sector are now in great demand to return but there is a reluctance to do so on as the sector has simply […]
SiaJai logo

Thailand's Leading Homecare Marketplace