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THAILAND HOTELS Overbuilding In Economic Cycle Mismatch

Category: Hotels, Posted:02 Feb 2010 | 06:00 am

A growing concern in Thailand is becoming evident back of the cancellation or postponement of hotel projects in the development pipeline. The timing of hotel s which can be a long term process are often out of alignment with economic and supply/demand cycles that can potentially throw the financial viability of projects into negative territory.
Bangkok has witnessed a number of these when you take a ride down Sukhumvit Road and the past reminders of the excesses of vaunted Lehman's and even Grande Assets who's towering skeletons rise above the skyline. Of more concern is the sharp rise of new hotels opened over the past 12 months and what appears to be an unabated supply line for the next 12-24 months.
Prospects to see a continued flattening of rate growth and inevitable declines in leading metric RevPAR create an industry resembling an overgrown giant trying to fit into pants two sizes too small. Viewing Phuket's pipeline the same issues are now hitting closer to home, and while the political and economic events of the past few years are somehow rationalizing investment levels in hotel grade assets, the sins of the past are going to come due very very soon.

Other News

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Koh Samui To Follow Phuket In International Reopening

Category: Tourism, Posted:19 Jun 2021 | 16:29 pm Leading tourism news out of Thailand has the government’s CCSA (Centre for Covid-19 Situation Administration approve in principal a plan to open a sealed route to Samui in mid-July. The plan covers the three islands of Koh Samui, Koh Tao and Koh Phangan and would require travelers to first stay in an ASQ hotel for […]
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Thailand’s Sandbox Is Not A Quarantine

Category: Tourism, Posted:12 Jun 2021 | 10:45 am As we are 19 days away from Thailand’s Sandbox tourism reopening in Phuket, there continues to be a misunderstanding of the overall rules and the term quarantine is incorrectly used. Quarantine by definition is isolation, whereby Sandbox travelers will be able to move throughout their hotel, visit beaches, restaurants, shops etc. Remember Phuket is about […]
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C9 Hotelworks Releases New Krabi Report

Category: Hotels, Posted:07 Jun 2021 | 06:00 am Comparing major Southern Thai resort destinations, Krabi is one that historically balances well between the international and domestic markets. In the new Krabi Hotel Market Update from C9 Hotelworks, we take a look back at pre-Covid trading to examine from what point hoteliers hope tourism will upcycle towards recovery and what will the trends be. […]