PHUKET REPORT SHOWS 48% OF ALL HOTEL PROJECTS DELAYED

Travel and Lifestyle Press Releases Tuesday August 4, 2009 08:56
Bangkok--4 Aug--C9 Hotelworks

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 (download the full report here) 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.

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.

About C9 Hotelworks –

C9 Hotelworks is a hospitality consulting firm based in Phuket, Thailand and led by Managing Director Bill Barnett. With 23 years of experience in Asia Pacific, he is a leading specialist on hotel and property development issues. He is a columnist with a number of leading newspapers, including the Phuket Gazette and The Nation and has appeared on CNBC, the BBC and CNN. His popular blog www.thephuketinsider.com is the authoritative source of all Phuket hotel tourism and real estate issues and trends. More information on the company can be found at www.c9hotelworks.com.

For further information please contact –
Bill Barnett, Managing Director, C9 Hotelworks
Email: bill@c9hotelworks.com
Telephone: +66 (0)8 1956 1802

Latest Press Release

Oasis Spa Opens Its Newest Phuket Branch Oasis Tropical Retreat Spa Inside Laguna

Oasis Spa's newest branch lies within the park-like Laguna Resort near Bangtao beach, Phuket. Nestled among white beaches and tranquil lagoons, the Oasis Tropical Retreat Spa is an elegant sanctuary for relaxation and restoration. Its spacious treatment...

Photo Release: THAI Welcomes Assembly Members from the Federation of Ishikawa and Fukui Prefectures, Japan

Mr. Korakot Chatasingha (fourth from left), THAI Director of Thailand Regional Sales, recently welcomed assembly members from the Federation of Ishikawa and Fukui Prefectures, Japan, who made a courtesy visit to the head office of Thai Airways...

King Power Mahanakhon Unveils New World Class Tourist Destination #Mahanakhon SkyWalk

King Power Mahanakhon unveils Mahanakhon SkyWalk – Thailand's highest 360-degree observation deck and rooftop bar at 314 meters high, offering spectacular panoramic views of the city from Thailand's tallest building. The new premium attraction...

Loy Krathong Celebration at Sheraton Hua Hin Pranburi Villas

This renowned festival is celebrated annually throughout Thailand, and is held on the full moon night in November. Among Thai people there is a belief to worship the Goddess of water and ask for forgiveness for polluting waterways. Sheraton Hua Hin...

Thailand leads Asia in international visitors spending, UNWTO report

International visitors spent more money in Thailand than in any other Asian country in 2017, according to a UN World Tourism Organisation (UNWTO) report. The report said that Thailand recorded a total tourism expenditure of USD57 billion in 2017, ahead...

Related Topics