In 2020, Aman Nai Lert Bangkok established a new standard for ultra-luxury branded residences positioning itself as the best-in-market product at the time. Today, the Porsche Design Tower Bangkok, developed in partnership with Ananda Development, has pushed those boundaries further, surpassing THB1 million (just over USD33,000) per square meter. This landmark project not only raises the bar for pricing but also positions Bangkok as a key hub for ultra-luxury urban living, attracting UHNWIs and setting a new benchmark for exclusivity according to C9 Hotelworks newly released Thailand Branded Residences Market Review 2024.
Overall, Thailand’s branded residences market now consists of 46 projects, totaling 10,081 units valued at USD5.7 billion. Of this, 67% of the units are located in resort destinations led by Phuket (41%), while 33% are concentrated in Bangkok. The median price in Bangkok stands at THB279,600 per square meter, significantly higher than the THB163,677 seen in resort areas, reflecting Bangkok’s premium status in the market.
With rising land costs in top-tier destinations like Bangkok and Phuket, developers and brands are increasingly eyeing expansion into second and third-tier locations such as Khao Yai and Rayong, where more affordable opportunities are emerging. Notable developments include the Kempinski Residences Khao Yai and Amatara Residences Rayong.
One critical issue facing branded residences in Thailand is greater clarity on how you can, and may not be able to obtain a hotel license for properties offering hotel-type rental management. While this pertains to both urban and resort developments, the most contentious area in the marketplace today is condominiums that wish to obtain a hotel license. There are inconsistencies in local jurisdiction interpretations of the law on converting residential properties to commercial use and this has created uncertainties in the property sector that need to be remedied.
To download C9 Hotelworks Branded Residences Market Review 2024 CLICK.
The 177-room Hilton Garden Inn Phuket, Bang Tao has traded to private equity group TriO Capital.
Operating under a franchise agreement with Hilton, the hotel opened in late 2021 and had been owned and operated under GCP Hospitality.
A strategic plan for a design and development upgrade under TriQ will kick off at the end of this coming high season in Q2 of 2025.
Hotel transactions in Phuket remain muted as there continues to be a gap between buyer and owner’s expectations. The most notable sales post-COVID-19 is the Evason Phuket to Malaysian Group YTL, which closed earlier this year.
South Korea’s luxury real estate market has evolved significantly, transitioning from traditional residential properties to innovative branded residences. The trend began in 2008 when The Ananti Hotel introduced a pioneering co-ownership model, targeting affluent buyers seeking luxury vacation homes and social prestige. This success spurred other domestic brands like Lotte and Hanhwa Resorts to follow suit, while international players such as Marriott, Banyan Tree, and Capella entered the market, adding investment appeal with structured rental programs.
Today, branded residences stand out as high-value investments within South Korea’s luxury real estate market. These properties often command a price premium of up to 4 times the market-wide built-up sales price. Seoul has the highest built-up sales price across all regions, reaching USD28,713 per square meter this year. Nevertheless, branded residences have higher price premiums in resort destinations compared to cities.
Jeju and Gangwon-do, two of the country’s emerging resort markets, have seen significant growth driven by increased tourism activity. The high accessibility from Seoul has spurred demand for secondary homes and investment properties in these areas. Branded residences with recognized affiliations are breaking market sales price records while maintaining an above-average sales pace as these properties are perceived to have higher investment value with less risk. Currently, branded residences in Jeju and Gangwon-do has 4 and 6 times higher built-up sales prices compared to market-wide averages, respectively.
Therefore, with more attractive rental management programs introduced by international hotel brands, we see branded residences continue to grow in demand in South Korea. Property prices in the existing market make branded residences competitive and a viable alternative asset class in the broader real estate sector.
To read and download C9 Hotelworks South Korea Branded Residences Market Review 2024 CLICK
Zanzibar’s tourism industry is experiencing a remarkable resurgence, having successfully surpassed pre-pandemic visitor numbers since 2022 according to a new report by C9 Hotelworks. In 2023, the island welcomed over 638,444 visitors from around the globe, marking a significant recovery. Projections for 2024 indicate a further 9% growth, with January to May arrivals reaching 255,408 compared to 234,444 during the same period in 2023.
The government’s comprehensive development plan for 2021-2026 aims to enhance Zanzibar’s infrastructure and economy, bolstering the tourism sector. A key milestone is the opening of the new Terminal 3 at Abeid Amani Karume International Airport, which now can accommodate up to 1.3 million passengers annually. This strategic initiative underscores Zanzibar’s commitment to becoming a global travel destination.
The majority of visitors to Zanzibar in May 2024 stayed for 8 days, with 94.4% citing holidays as their primary reason for visiting. Hotel demand in Zanzibar varies seasonally, with an average occupancy rate of 62% in 2023. The market is predominantly driven by European travelers, who account for nearly 60% of the total arrivals by sea and plane.
The hotel pipeline indicates improved economic stability, with international hotel chains signing with five new properties including Anantara, Four Seasons, and Canopy by Hilton, primarily in the luxury and upper upscale segments. The number of hotels in the pipeline has doubled this year, signaling a positive outlook for the tourism industry. The introduction of these diverse, high-end properties is poised to attract a broader range of tourists, further enhancing Zanzibar’s appeal.
To download the full Zanzibar Hotel Market Update 2024 CLICK
PHIST (Phuket Hotels for Islands Sustaining Tourism), Southeast Asia’s biggest sustainability event for the travel and hospitality sectors, will return to spark conversation and drive the green agenda this September, with an impressive line-up of key figures and industry innovators led by Peng Sum Choe, CEO of Pan Pacific Hotels Group.
Led by the Phuket Hotels Association, the non-profit organization of hoteliers focused on creating a bright future for Phuket, PHIST 2024 will run under the theme “One on One: Sustainability from the Top”, as it reveals how senior company executives can successfully build a forward-thinking corporate culture and drive positive change, not only within their own companies but across the entire industry and beyond.
Headlining this year’s event will be Peng Sum Choe, CEO of Pan Pacific Hotels Group, who has guided his company towards integrating sustainability into every aspect of its operations. This has led to the group achieving Global Sustainable Tourism Council (GSTC) Multi-Site certification for all eight of its properties in Singapore. He will come together with Jesper Palmqvist, Senior Director – Asia Pacific for hospitality analysts STR, to discuss the critical issue of green leadership.
Also driving the conversation will be Jayne MacDougall, Executive Director of the Phuket Hotels Association, who will reveal the details of the Green Planet School Farm Project – an important initiative that is empowering the next generation of organic producers.
Staged at Angsana Laguna Phuket in Phuket on 2nd September 2024, PHIST is not just another conference; it is a highly immersive and interactive learning event that will feature a series of candid debates and discussions, 18 workshops, career development sessions and networking opportunities that will encourage attendees to confront conventional thinking and create meaningful solutions to a range of environmental and community-focused challenges. Last year’s conference was attended by more than 1,000 people.
“I am grateful for the opportunity to address my industry colleagues at PHIST. Sustainability is a crucial issue, particularly for island communities, making this event an important platform for collaboration. I look forward to sharing my experiences and learning from the innovative solutions and insights of others,” said Peng Sum Choe, CEO, Pan Pacific Hotels Group.
“We are thrilled to announce Peng Sum Choe and Jesper Palmqvist as our headline speakers; they will provide the perfect blend of expertise and insight to inspire guests to create sustainable futures for their own businesses,” said Jayne MacDougall, Executive Director, Phuket Hotels Association.
PHIST 2024 is organized by the Phuket Hotels Association, and with co-founding partners C9 Hotelworks and Greenview and support from the American Chamber of Commerce Thailand (AMCHAM), QUO, Creative Concept AV Thaiger Media, Brand TD and Delivering Asia Communications.
To reserve a spot free at this special event, please register here.
The once popular Phuket Bali flight route will see AirAsia restart direct flights from 10th August 2024.
AirAsia Indonesia will be the carrier and flight frequency will be three times a week.
Bali hosted nearly 600,000 international visitors in May with Australia ranking 22.5% share, followed by India with 11.3% and China on the rise at 5.6%.
For more on Bali, read C9 Hotelworks and Horwath HTL latest market report Bali Hotel and Branded Residences CLICK
Diversity, inclusiveness, and equality are core issues for the hospitality industry. C9 Hotelworks and the Phuket Hotels Association have organized a learning event titled ‘Mind the Gap, Women & Diversity in Hospitality on Saturday 31st August at the SAii Laguna Phuket.
Join us in this unique, candid, and insightful half-day session that takes a closer look at critical issues facing women in the workplace. Our goal is to tackle topics which will help empower change and provide the tools and inspiration to make a difference. A special focus will be on how to enable career growth and still maintain a work life balance.
This is a learning event for those, regardless of gender, working in hotels, travel, restaurants hospitality tech, human resources, and the service sector.
The event is organized by the Phuket Hotels Association and C9 Hotelworks together with support from Dragonfly 360, Brand TD, Delivering Asia Communications, AMCHAM Thailand, SAii Laguna Phuket and Thaiger Media.
Event Schedule
Date: Saturday 31st August 2024
Venue: SAii Laguna Phuket, Similan Ballroom, 12:00 pm onwards
Registration
Session Schedule: 1:30 pm to 5:00 pm
Exclusive to Inclusive: Hospitality Leading the way for Neurodiverse Employment
Max Simpson, Founder and CEO, Steps
The Mission. Why is Diversity and Inclusion Important Today
Christina Ho, Airline Pilot | From a Fashion Designer to an Airline Pilot | TEDx Speaker
Managing Success at Work and with a Family
Kirsten Fletcher, Australian Consul -General, Phuket
Gaining A Voice, LBGTQ+ In the Hospitality Workplace
Nikki Phinyapincha, Founder, TransTalent Consulting Group
Female Leaders in the Restaurant Industry
(Moderator) Emma Gray, Vice President Marketing and Business Development, Delivering Asia Communications
Panel speakers
- Samantha Häberli, Plant-Based Holistic Nutritionist, F&B Executive at Soneva & Founder of The Earthling Cafe, and Earthling Consulting
- Atchara Wongthai Palleros, Wine Training Manager & Wine Sommelier, Tops Wine Cellar, Central Food Retail Co., Ltd
- Tipaporn Phianthong, Chef the Cuisine, Banyan Tree Group
Session Co-Host
Sumi Soorian, Senior Advisor, Phuket Hotels Association
Short coffee and tea break
A Woman Leader. Leading Between the Lines
Anchalika Kijkanakorn, Founder and Managing Director, Akaryn Hospitality Management Services (AHMS)
Why We Need Role Models. The Power of Inspiration
Julie Cancelloni, Founder and Managing Director, Inspiring Girls Thailand
Networking and Building Meaningful Connections
Naureen Ahmed, Founder, Inspiring Women in Hospitality
Understanding Mental Health and Wellbeing
David Boucher, Chief Executive Officer, Bumrungrad International Hospital Phuket
Paul Hawco, AVP Executive Global Director Integrated Welbeing, Banyan Group
DEI (Diversity, Inclusion, Equity) Training – A Short Course
Papungkron Numprasit, F&B Instructor and Supervisor in the Sustainable Hospitality Challenge, Dusit Thani College
Session Co-Host
Viona Zhang, Deputy Managing Director, C9 Hotelworks
Admission is THB500 payable at the door, with proceeds going to the non-profit Phuket Hotels Association training fund. Advance registration is required and QR code from Eventbrite is required for entry. SAii Laguna Phuket will be offering a special event lunch option. Parking is available and details will be sent out prior to event.
Please click for event registration HERE
Standalone villas shake up traditional hospitality supply as the market rises. Increasing demand for multi-bedroom accommodation growing, coupled with a preference for spacious and private villas according to new research from C9 Hotelworks in their new Samui Villa Rental Market Review.
In recent years, private villas rented as vacation homes have emerged as a significant segment of tourist accommodation in Samui. Platforms like Airbnb serve this market, offering a range of options from midscale to luxury properties. Independent management companies such as Elite Havens, The Luxe Nomad, and a handful of local groups are significant players in the luxury segment as many consumers require other management and concierge services in addition to only rentals.
According to our market research, there are approximately 5,800 holiday rentals available in Samui. These properties market-wide have an average daily rate of THB13,700 and maintain an annualized occupancy rate of 55% year-to-date in 2024, resulting in a Revenue Per Available Room (RevPAR) of THB7,535. With favorable returns, we see increased investment in the sector, particularly in upscale build-to-rent villas.
While the post-COVID growth of villa developments marks growing family demand on the island, many of the properties lack professional management and product standards, whereby the owners focus on visual presentation and low rental rates as a main sales strategy. The concentration of this supply is located on inland hillside areas with lower investment costs, resulting in reduced rates. Rate pressure does not affect beachfront villas as inventory is still limited.
With spreading competition from often unregulated hospitality supply, the market is turning to management companies with a local operating presence. Access to clientele through brand recognition does not only increase overall rental turnover and rates but also result in better overall cost control from management. Operations are becoming increasingly challenged by the lack of skilled manpower.
To read and download C9 Hotelworks full Samui Villa Rental Market Review CLICK
A resurgence of Samui tourism has been fueled by domestic travelers, with 69% Y-O-Y growth. Muted Chinese traveler demand pushes hotels to diversify source markets and adapt to a changing landscape according to C9 Hotelworks new Samui Hotel & Tourism Market Review.
In 2023, Samui hosted 3,541,821 visitors, evenly split between domestic and foreign travelers, marking a shift from the pre-COVID dominance of overseas tourists. The gap between airport arrivals and visitors at registered tourist accommodations reflects that many visitors came by ferry from the mainland. A domestic influx has been crucial in driving the recovery, with the total number of registered hotel guests surpassing 2019 levels by 1.5 times. Airport passenger arrivals trailed, closing the year at 94% of pre-COVID level, with a total of 1,208,364 passenger arrivals.
Diving into the international sources markets, the lower volume of Chinese travelers, previously one of the key source markets, now constitute less than 4% market share. This has been replaced by increased travelers from Europe, USA and a re-emerging Israeli market. The new mix of foreign travelers has resulted in a longer average length of stay.
Samui’s tourism legacy was previously influenced by its limited gateway and reliance on Bangkok Airways, leading to higher travel costs compared to its regional counterparts. Nevertheless, the limitations have also allowed the island to attract high-spending tourists which are favorable for hotel operators and maintain its position as a premium beach resort destination.
However, the cycle is expected to gradually shift as the government and Samui International Airport plan for expansion of the airport and adding a cruise terminal to increase traffic to the island. The entry of Scoot Airlines from Singapore and new routes promise further growth in the near future with an increased number of regional upscale travelers Looking at the current momentum, the island-wide 2024 Q1 hotel RevPAR has already outperformed 2023 and may close at a 5-year historical high.
To download and read the full C9 Hotelworks Samui Hotel & Tourism Market Review CLICK
