Thai Developers Embracing Hotel Brands
Property developers across Thailand have devised a clever way to raise their projects’ pricing as well as increase buyer demand. Projects across the country are now branded with hotel brands, as part of the developers’ effort to stimulate demand and growth in the market.
As a result, there are several dozen new hotel residence projects across the country, with the vast majority, at 90%, located in resort areas, which is good news for people looking for a Pattaya residence hotel or a Phuket residence hotel.
Real estate consultancy group C9 Hotelworks, there are three hotspots where residential hotel projects are in exceptional demand. Their Southeast Asia Hotel Residences Market Trends report detail these three hotspots, and they are:
- Phuket, with 26 properties;
- Pattaya, with 10, and;
- Bangkok, with 9.
Thailand has 41 completed hotel residence projects, amounting to 21,000 units, to date, accounting for 41% of the region’s supply, making it the top area for these developments, which is then followed by Indonesia. Vietnam, in particular the area of Dananghas also been noted as an up-and-coming favourite for developers and investors.
In the country, Phuket leads in developments, with 13 completed projects, to be followed by an additional 13. Fitting, as the area has a notable history of hospitality-led residences located in notable ultra-luxury resorts such as Banyan Tree or Amanpuri. The capital, however, have been making some waves, with the Chao Phraya River attracting several marquee branded projects, associated with global brands such as Mandarin Oriental. As a result, the capital’s average pricing currently sits at Bt315,000/m2, which is more than three times that of the national average, which is only Bt101,000/m2. These recent developments have been good not just for those looking for a Pattaya residence hotel, but also for those looking for residences in other areas.
According to C9 Hotelworks’ Bill Barnett, the group’s research showed that brand premiums lead to a price increase averaging around 15-20%, with 92% of the current supply being brand affiliated. With profits only increasing with such practices, C9 has predicted that this particular trend will only continue in the foreseeable future.