Villa Rental Demand Bigger Units, Shorter Stays
C9 Hotelworks has released a report titled Phuket Luxury Villa Rental Market 2015. One of the significant trends is the emergence of Hong Kong, Singapore and Mainland China. The geographic shift is seeing the ALOS (average length of stay) compress.
As one of Asia’s leading leisure destinations, Phuket has been a strategic location for high-end property investors and developers since the late 1980’s. The island’s luxury inventory is the most demonstrated and prolific in the region. One fundamental offshoot of this real estate element is a rising tide of holiday villa rentals.
Researching the sector, four-bedroom villas are the most popular unit type within the rental market; this is led on the back of an increasing number of guests coming in larger groups. In the past, Asians favored smaller unit sizes more, while bigger unit configurations were predominantly occupied by European guests.
A surge in short haul multi-generational travel and combination of friends and family is seeing the regional rental market demand gradually shifting toward larger unit types ranging from five to eight- bedroom villas.
The market trait for renting these villas is primarily through property management companies with on-line booking capabilities, rather than hotel groups. Over the next 36 months the island is expected to see an increased influx of larger branded luxury hotel-managed villas given the strong incoming supply pipeline.
For Phuket’s hotel industry the key underlying message is that non-traditional accommodation is rapidly growing in influence and appeal.
To download the full report, click the link below: