Beruflich Dokumente
Kultur Dokumente
Bangkok: Hotel
& Hotel Residences
JANUARY 2018
Bangkok: Hotel & Hotel Residences Market Update - January 2018
Bangkok has made a new record There are plenty of beautiful properties built without
of international arrivals again, knowing customer profile and they are ready to undercut
so what’s next? one another for survival. When the going gets tough, the
tough get going.
Following a robust year in 2016, the growth momentum
continued in 2017, and is fully expected to continue on So, infrastructure is a first and foremost step to success.
into 2018. The city’s upbeat performance is a fruition of This is attested by developed metropolises like Singapore,
hoteliers’ hard work and a little bit of luck when China Tokyo and Hong Kong commanding big bucks of tourism
shut the door to South Korea and Mount Agung in Bali did spending. New demand generators are being developed
Thailand a big favour. The Bangkok hotel market enjoyed as we see more (mega) mixed use complexes sprawling
booming demand across the board with gravitation throughout Bangkok.
toward intraregional travels.
The goal is to capitalize on a new genre of discerning and
2018 outlook remains bright and positive but what lies experiential travellers who pay for what they value rather
ahead? One must ask oneself, “Are we reaching the peak than a good value for money. If things go as planned
after a long uphill battle or this is simply a moment before a in an orderly and coherent fashion, everyone’s hope of
flight takes off?” witnessing Bangkok benchmarked with other big names
will not be just a dream.
In all fairness, it is the million dollar question. Despite big
numbers of visitation statistics, we must not forget that It is great to think long term, but regardless the city’s
the two Bangkok airports, the city’s heart and soul feeding destiny may be decided at the upcoming election,
tourists to all hotel submarkets, are operating beyond tentatively scheduled in late 2018/early 2019. Another
capacity. Until bottlenecks are unlocked, we will likely see domestic quarrel with bad press could send the hotel
smaller waves of single-digit growth for consecutive years. market back to where it had been not long before. Then,
hoteliers can only wink and wait patiently for the blue sky
Mass tourism could lose its way to repeat success stories after a big storm as tourists start to play a merry-go-round
as owners and developers, local and international, are again.
jumping on the bandwagon and supply is playing catch-
up. Identifying a niche spot and crafting an irreplicable Nikhom Jensiriratanakorn, Director, Horwath HTL
product would prove to be a strenuous task but eventually
rewarding with a competitive advantage from high
barriers to entry.
www.horwathhtl.com www.c9hotelworks.com 2
Bangkok: Hotel & Hotel Residences Market Update - January 2018
Bangkok Visitor Arrivals The city is a commercial and transport hub of Thailand
and the Indochina region where long-haul business
Bangkok has gained significant popularity and leisure travellers fly into and/or use as a base to
in the travel and tourism industry. catch domestic or regional carriers to other destinations.
MasterCard ranked Bangkok as the top destination city Thailand has been the largest feeder market for Myanmar,
by international visitor arrivals in its Global Destination Laos and Cambodia as local airlines in these countries
Cities Index, and Euromonitor International ranked are at an inaugural stage. In return, Bangkok captures
Bangkok fourth in its Top City Destinations Ranking. their growing outbound travel demand.
The city offers a wide range of tourism products from Bangkok is also a connecting hub for travellers from
exquisite temples and palaces in the old quarter to China and Australia to South Asia, particularly India
modern recreational amenities including culinary and Pakistan. Providing direct connectivity with these
adventure, night life, shopping and spa. MICE (Meeting, major countries creates immense travel opportunities.
Incentive, Convention and Exhibition) and medical tourism Furthermore, Bangkok is one of a few cities outside
in Bangkok are also enjoying international presence. South Asia that operates direct scheduled flights to
Bhutan, an upmarket vacation destination with a
minimum daily spending requirement.
50,000,000 35%
45,000,000 30%
40,000,000 25%
35,000,000 20%
30,000,000 15%
25,000,000 10%
20,000,000 5%
15,000,000 0%
10,000,000 -5%
5,000,000 -10%
- -15%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017F YTD YTD
Nov'16 Nov'17
Source: Airports of Thailand and Horwath HTL
www.horwathhtl.com www.c9hotelworks.com 3
Bangkok: Hotel & Hotel Residences Market Update - January 2018
www.horwathhtl.com www.c9hotelworks.com 4
Bangkok: Hotel & Hotel Residences Market Report - January 2018
Infrastructure: Mixed Use Developments: Grade A Office Developments: Other Tourism Amenities:
• Eastern Economic Corridor • M1: Australian Embassy Redevelopment • O1: 548 Ploenchit • T
1: Bangkok Observation Tower
• Expansion of Suvarnabhumi and • M2: Bang Sue Grand Station • O2: Bank of Ayuddhaya Headquarters • T 2: BDMS Wellness Complex
Don Mueang International Airports • M3: British Embassy Redevelopment • O3: T-One • T3: Mahanakorn Tower Observatory Deck
• Extension of Existing Mass Transit Lines • M4: Dusit Thani Redevelopment • T4: Michelin Star Restaurants
(Green, Blue, Purple and Airport Rail Link) • M5: Forestia • T 5: Queen Sirikit Convention Center Expansion
• New Mass Transit Lines (Pink, Orange, Yellow, • M6: Langsuan Village Retail Developments:
Dark Red, Light Red and Gold) • M7: Makkasan Complex R1:
• Amarin Plaza Repositioning
• High Speed Rail from Bangkok to Nong Khai Province • M8: One Bangkok R2:
• Asiatique 2
• High Speed Rail from Bangkok to Utapao International • M9: Samyan Mitrtown R3:
• Bangkok Mall
Airport and Rayong Province • M10: Singha Complex R4: EmSphere
•
• M11: Super Tower R5:
• Icon Siam
• M12: The PARQ
• M13: Whizdom 101
www.horwathhtl.com www.c9hotelworks.com 5
Bangkok: Hotel & Hotel Residences Market Update - January 2018
www.horwathhtl.com www.c9hotelworks.com 6
Bangkok: Hotel & Hotel Residences Market Update - January 2018
4,000 80%
8,000 80%
3,500 70%
7,000 70%
3,000 60% 6,000 60%
2,500 50% 5,000 50%
2,000 40% 4,000 40%
1,500 30% 3,000 30%
0 0% 0 0%
2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 2016
ADR (THB) RevPAR (THB) Occupancy ADR (THB) RevPAR (THB) Occ %
Source: STR and Horwath HTL Source: STR and Horwath HTL
• RevPAR increased at a compounded average annual • RevPAR followed the overall market trend, consistently
growth of 6.6% for a period from 2011 to 2016. rising over the past five years except for the disrupted
The growth was impacted by the martial law period in 2014. The luxury segment achieved a
announcement in 2014. stronger compounded average annual growth of
8.3% for the same period.
However, this is an improvement from the previous
five years when the city witnessed three major political • Occupancy uplift largely contributed to the
events, the military coup (2006), Suvarnabhumi Airport improvement of luxury segment performance,
closure (2008) and the protest and rally in the city recovering from 55.6% in 2011 to 74.0% in 2016.
centre (2010), in addition to the global financial crisis It appeared that the luxury segment was more
(2009). In 2016, RevPAR returned to its previous peak significantly impacted by the political turmoil and
in 2006. negative publicity prior to 2011.
• Occupancy soared from 66% in 2011 to a ten-year • ADR increased at a modest pace of 2.3 percent
peak of 77% in 2016 when the city returned to annually on average, similar to the overall market’s
stability. The last time when the city’s occupancy hit progress. Hotels were rebuilding occupancy, taking
a 75% mark was back in 2006. a priority to rate growth in recent years
www.horwathhtl.com www.c9hotelworks.com 7
Bangkok: Hotel & Hotel Residences Market Update - January 2018
ADR (THB) RevPAR (THB) Occupancy ADR (THB) RevPAR (THB) Occupancy
10,000 100% 10,000 100%
- 0% - 0%
2011 2016 2011 2016
Source: STR and Horwath HTL Source: STR and Horwath HTL
• RevPAR of riverside luxury hotels was up by • The city centre consists of the Silom/Sathorn central
7.8% annually on average during 2011 to 2016. business district, Sukhumvit and the Siam/Ploenchit
The riverside area commanded a 6% premium area.
over the city center in 2011 and 3% in 2016.
The premium decline was due to competition • RevPAR of luxury hotels in the city center grew faster
from new solid products such as Siam Kempinski, at 8.6% annually over the same period.
St Regis and Okura Prestige.
• Occupancy was up from 60% to 79% with a rate
• Occupancy increased from 46% in 2011 to 62% growth of nearly 3% annually over the past five years.
in 2016 while rate growth was marginal.
• As city hotels capture more broad-based demand,
their ADR is lower by 20-30%, but they operate at
a much higher occupancy.
www.horwathhtl.com www.c9hotelworks.com 8
Bangkok: Hotel & Hotel Residences Market Update - January 2018
300 100%
270 90%
240 80%
210 70%
180 60%
150 50%
120 40%
90 30%
60 20%
30 10%
- 0%
Bangkok HCMC Jakarta Kuala Lumpur Singapore
www.horwathhtl.com www.c9hotelworks.com 9
Bangkok: Hotel & Hotel Residences Market Update - January 2018
Making
• America Great Again or
One Belt One Road?:
US, China and Singapore are the top three
geographical source countries. US is in a leading
position supported by fairly loyal American tourists
who are inclined to choose hotels associated with
American chains. China has emerged as one of the
Source: STR and Horwath HTL top contributors within the past 5 years and has high
tendency to overtake US in the foreseeable future.
The Singapore market has perceived Bangkok as a
good bargain for luxury spending.
Performance Growth, 2017 vs. 2016
Occ. % ADR % RevPAR % The e-commerce age:
•
Change Change Change Direct booking through brand websites and online
Riverside travel agent platforms is the strongest distribution
Luxury 6.1% 0.8% 7.0% channel similar to the trend observed across all
Hotels segments. As Bangkok is evolving into a modern city,
City Center guests have been adapting to digital transformation of
Luxury 2.0% 7.0% 9.1% travel planning.
Hotels
Leisure is King:
•
Bangkok
Leisure remains a predominant segment of the
Luxury 3.1% 5.3% 8.5%
Bangkok luxury hotel market. Corporate contribution,
Hotels
combining transient and group demand, is expected
Total to be approximately one-third.
Bangkok 1.3% 2.1% 3.4%
Market Size no longer matters:
•
As luxury travellers are seeking for personalization
Source: STR and Horwath HTL
and intimacy, they will pay less attention to a
majestic scale of development and oversized facilities.
Curated offerings, personal story-telling and fulfilling
experience are what matter more these days. An
average size of luxury hotels in Bangkok is becoming
smaller from 383 rooms (prior to 2008), to 264
(2008-2017) and soon 179 (in the pipeline).
www.horwathhtl.com www.c9hotelworks.com 10
Bangkok: Hotel & Hotel Residences Market Update - January 2018
6,000 2,500
5,000 2,000
4,000
1,500
3,000
2,000 1,000
1,000 500
• In 2017, Bangkok’s luxury supply grew to nearly • The Siam/Ploenchit area has emerged as the most
8,000 rooms. The latest openings are Park Hyatt sought-after location for luxury hotels with the largest
and 137 Pillars in the first half. amount of inventory as of 2017.
• In the pipeline, 8 hotels are expected to open between • The riverside area has maintained its prestige with
2018 and 2022 representing an 18.2% increase over the long established luxury hotels such as Mandarin
current hotel stock, or a 3% compounded annual Oriental, Peninsula and Shangri-La. With new
average growth. iconic developments such as the Icon Siam and the
Bangkok Observation Tower, the river scene is being
• Our figures include 6 announced developments and rejuvenated.
two potential projects which are expected to be part
of the mega-scale One Bangkok development. • Riverside and CBD locations are attractive for new
developments, accounting for nearly 80 percent of
the pipeline. This is largely due to availability of large
Name Location Rooms Opening
developable plots.
Four Seasons Riverside 301 2018
• There are fewer projects in Siam and Wireless Road and
Capella Riverside 101 2019
no new luxury hotel is planned in the Sukhumvit area.
Edition CBD 154 2019
Siam /
Waldorf Astoria 171 2019
Ploenchit
Siam /
Rosewood 159 2019
Ploenchit
www.horwathhtl.com www.c9hotelworks.com 11
Bangkok: Hotel & Hotel Residences Market Update - January 2018
Summary
Opportunities are up for grab: However, it is wise to operate with caution
because of possible threats:
• The establishment of the Eastern Economic Corridor
with a focus on high technology industries will drive • Increasing competition from new/reinvented
more high-paying business travellers to Bangkok and destinations, particularly in Southeast Asia with
those en-route to factory visits. more lenient visa policies and convenient online visa
platforms, will dilute demand from international
• Massive infrastructure outlays and mega commercial tourists and MICE delegates. Destination will be
projects will stimulate further economic and selected on a rotational basis.
tourism developments and create self-sustaining
neighbourhoods. • Unregulated hotel development will unavoidably lead
to an influx of new supply at certain periods, causing
• Growth in population and wealth of China, Middle oversupply and suppressing rate growth.
East, India and Southeast Asia will boost upscale travel
and tourism demand for Bangkok. • A progression from mass tourism to high spenders
poses a new challenge that needs collaboration of
• Additions of in-demand activities and facilities such as multiple parties in the entire value chain and changes
Michelin Star Guide, unique observatory decks and in business mindset during the transition.
world-class retail, MICE, and wellness centres will
augment Bangkok’s appeal to visitors. • The upcoming election may lead to the resurgence
of political conflict and uncertainty in completing key
• Branding will enhance awareness and marketability of infrastructure projects.
not only individual products, but also neighbourhoods
and Bangkok overall. Strong branding comes with loyal • Thai Baht strengthening could make Thailand less
customers, extensive distribution channels and high competitive compared to other vacation options.
value perception.
www.horwathhtl.com www.c9hotelworks.com 12
Bangkok: Hotel & Hotel Residences Market Update - January 2018
Avg. Built-up Sales Price 2016 Avg. Built-up Sales Price 2017
www.horwathhtl.com www.c9hotelworks.com 13
Bangkok: Hotel & Hotel Residences Market Update - January 2018
Market Overview
Hotel residences in the market have a 73% take-up rate. Majority of the supply is concentrated
in Charoen Krung (47%), followed by Silom (20%), Sathorn (19%) and Charoen Nakhon (14%).
360,000
6
5 volume, while supply has
4
340,000
3
2
lower absolute unit prices
320,000
1
30 0 ,0 0 0 0
Charoen Krung Silom Charoen Nakhon Sathorn
Two-bedroom
0.14 to 3.55 in 2017
One-bedroom
Sales Pace
Three-bedroom
with average sales pace of
Two-bedroom 8.8 units per month
One-bedroom
Sales Pace
www.horwathhtl.com www.c9hotelworks.com 14
Bangkok: Hotel & Hotel Residences Market Update - January 2018
Supply Characteristics
300
500
400
seek for spacious residences
300
200
200
100
100
0 0
One-bedroom Two-bedroom Three-bedroom Four-bedroom+ Penthouse
800
units is 46% larger than
600 freehold penthouses,
400
attracting high-end
200
www.horwathhtl.com www.c9hotelworks.com 15
Bangkok: Hotel & Hotel Residences Market Update - January 2018
3%
LEASEHOLD
1%
FREEHOLD
www.horwathhtl.com www.c9hotelworks.com 16
Bangkok: Hotel & Hotel Residences Market Update - January 2018
www.horwathhtl.com www.c9hotelworks.com 17
Bangkok: Hotel & Hotel Residences Market Update - January 2018
www.horwathhtl.com www.c9hotelworks.com 18
Horwath HTL is the world’s largest hospitality consulting C9 Hotelworks is a globally awarded hospitality
brand with 45 offices across the world providing expert consultancy recognized as Asia’s leading advisor on
local knowledge. Since 1915 we have been providing residential and mixed use developments, with projects
impartial, specialist advice to our clients and are and clients across all markets within Asia Pacific.
recognized as the founders of the Uniform System of
Accounts which subsequently has become the industry With a history spanning over a decade, C9 has worked
standard for hospitality accounting. throughout Asia and in many other locations around the
globe from its base in Thailand, delivering independent,
Horwath HTL is the global leader in hospitality consulting. strategic advisory services to owners and developers for
We are the industry choice; a global brand providing market studies, feasibility reports, management operator
quality solutions for hotel, tourism & leisure projects. negotiations and asset management.
We focus one hundred percent on hotels, tourism C9 has a high level of expertise in both hospitality and
and leisure consulting, and globally have successfully property sectors, with deep experience producing and
completed over 16,000 projects. analyzing research that delivers insight to identify key
issues, evaluate complex ones and support clients in
With over two hundred professionals and membership achieving solid success.
of a top ten accounting network, we are the number one
choice for companies and financial institutions looking to C9 Hotelworks
invest and develop in the industry. 9 Lagoon Road, Cherngtalay,
Thalang, Phuket, 83110, Thailand
Horwath HTL Thailand Telephone: +66 (0)76 325 345/6
37/10 Soi Langsuan, Email: info@c9hotelworks.com
Phloen Chit Road Lumpini www.c9hotelworks.com
Pathumwan Bangkok 10330, Thailand
Telephone: +66 89 444 7272
Email: nikhom@horwathhtl.com
www.horwathhtl.asia
19
ASIA PACIFIC EUROPE LATIN AMERICA
AUSTRALIA ANDORRA ARGENTINA
rdewit@horwathhtl.com vmarti@horwathhtl.com cspinelli@horwathhtl.com
POLAND
dfutoma@horwathhtl.com CANADA
pgaudet@horwathhtl.com
AFRICA PORTUGAL
IVORY COAST vmarti@horwathhtl.com
cspecht@horwathhtl.com
SERBIA
RWANDA serbia@horwathhtl.com
fmustaff@horwathhtl.com
SPAIN
SOUTH AFRICA vmarti@horwathhtl.com
capetown@horwathhtl.com
SWITZERLAND
hwehrle@horwathhtl.com
TURKEY
merdogdu@horwathhtl.com
UNITED KINGDOM
eheiberg@horwathhtl.com
www.horwathhtl.com