PIPELINE : ASIA PACIFIC
THAILAND
Despite entering into recession and being the most saturated hotel market in Southeast Asia , Thailand ’ s continuing tourism boom is fueling more development as demand from increased visitors from China and Russia as well as domestic tourists outstrips new supply . The national government ’ s department of tourism expects tourist arrivals to increase 18 % to 26.4 million in 2013 .
Accor leads the market in terms of portfolio size , but there are a lot of players , with a multitude of local hotel companies making news such as Centara Hotels & Resorts , Bangkok , which operates 32 hotels in Thailand . In 2014 , Minor Hotel Group will open its 11th Anantara-branded hotel in Thailand , the Anantara Phuket Layan Resort & Spa , and will also debut its Avani brand in the country with the opening of Avani Atrium Bangkok after opening three Avanis in Sri Lanka and one in Malaysia . Dusit International , Bangkok , operates 12 hotels in Thailand and plans to continue expansion there with its lifestyle DusitD2 Hotels & Resorts brand .
In Bangkok , where supply growth is highest , occupancy was up more than 8 % year-on-year during the first five months of 2013 , while ADR was up more than 15 %, according to STR Global . There is still room for additional ADR growth in the luxury segment , as only in Malaysia are luxury hotel rates lower than in Bangkok .
“ During the first six months of 2013 , Centara ’ s Thailand hotels have shown a strong improvement compared to the same period last year ,” says Thirayuth Chirathivat , CEO , Centara Hotels & Resorts . “ RevPAR on average has shown double-digit growth , mainly driven by growth in occupancy , boosted by growth in tourist arrivals . In some locations with already high occupancy , such as Pattaya and Hua Hin , ADR has driven RevPAR growth during this time period .”
Resort destinations like Hua Hin , Pattaya , Phuket and Koh Samui have sizable pipelines , and the bulk of the country ’ s pipeline is in the luxury , upscale and midscale segments . Given
Accor opened the Pullman Phuket Arcadia in February 2013 . Phuket International
Airport arrivals have steadily increased since 2009 , buoyed by upticks in tourists from China and Russia .
the rate of land appreciation , investors are finding it easier to develop via conversion rather than new-build projects . “ In Thailand we will have more hotels added from conversion than construction because land is hard to come by ,” says Duane Elledge , executive vice president and managing director , Asia Pacific , Wyndham Hotel Group .
IHG launched its Holiday Inn Express brand in Thailand last year and has two hotels under its lifestyle brand Hotel Indigo under development in the country .
Six Senses Hotels Resorts Spas , Bangkok , says it is scouting in more remote parts of Thailand for new luxury resort locations . “ There is potential for the hotel market in the regions that are currently less traveled . In my opinion the play is in the northern areas of Thailand by the Myanmar and Laos borders , the more rural and remote areas that showcase the real Thailand ,” CEO Neil Jacobs says . “ The challenge in these areas is airlift access . Guests need airlift and access to our resorts within a reasonable timeframe .”
64 HOTELS November 2013 www . hotelsmag . com