More Than Rooms On Sale In Thai Hotels

[Nirvana]

More than rooms on sale at Thai hotels

PHUKET: More than 100 hotels and resorts in Thailand are now for sale, as operators succumb to the impacts of the economic crisis and political unrest, industry insiders say.

The number is expected to rise if the situation does not improve within two years, said Chanin Donavanik, chief executive officer of one of Thailand's largest hotel chain operators, Dusit International.

"This year is the worst for our hotel industry in 20 years," he said.

Full article, see link below.

-- Phuket Gazette 2009-05-11

[Boater]

According to the anonymous property agent's firm, Samui Buri Resort and Spa is selling for 1.1 billion baht, while newly opened Villa Lawana wants 1.5 billion. Meanwhile, Ban Taling Ngam is being sold at public auction, listed at 1.8 billion baht, and Nora Beach Resort and Spa is offered at 2 to 2.5 billion.

trouble is no serious investor will pay these over priced figures !

[Nirvana]

Nirvana,can you please add link to source.

Sure

The Nation via

http://www.phuketgazette.net/news/index.asp?id=7334

[Samuian]

Nirvana,can you please add link to source.

a google search lead to the headline and article in the Puket Gazette

and this article refers to The Nation - I can't find it in "The Nation".

Source:

According to the anonymous property agent's firm, Samui Buri Resort and Spa is selling for 1.1 billion baht, while newly opened Villa Lawana wants 1.5 billion. Meanwhile, Ban Taling Ngam is being sold at public auction, listed at 1.8 billion baht, and Nora Beach Resort and Spa is offered at 2 to 2.5 billion.

trouble is no serious investor will pay these over priced figures !

You got it!

Lawana Resort for 1.5 Billion.... mega - inflated!

Edited May 11, 2009 by Samuian

[BigC]

More than rooms on sale at Thai hotels

PHUKET: More than 100 hotels and resorts in Thailand are now for sale, as operators succumb to the impacts of the economic crisis and political unrest, industry insiders say.

The number is expected to rise if the situation does not improve within two years, said Chanin Donavanik, chief executive officer of one of Thailand's largest hotel chain operators, Dusit International.

"This year is the worst for our hotel industry in 20 years," he said.

Full article, see link below.

yes must have links to these accusation. 1 thiory to the credit crunch is that the media made it. People do not want to spend their money when they see articals like these. Media is more dangerous than the credit crunch.

-- Phuket Gazette 2009-05-11

[Boater]

and how many hotel rooms are there now in samui????

[Birdman]

Nirvana,can you please add link to source.

a google search lead to the headline and article in the Puket Gazette

and this article refers to The Nation - I can't find it in "The Nation".

Source:

According to the anonymous property agent's firm, Samui Buri Resort and Spa is selling for 1.1 billion baht, while newly opened Villa Lawana wants 1.5 billion. Meanwhile, Ban Taling Ngam is being sold at public auction, listed at 1.8 billion baht, and Nora Beach Resort and Spa is offered at 2 to 2.5 billion.

trouble is no serious investor will pay these over priced figures !

You got it!

Lawana Resort for 1.5 Billion.... mega - inflated!

Villa Lawana betw. Coral Bay Resort and Baan Had Ngam that is.

[Ocean11]

Link to Nation as follows:

http://www.nationmultimedia.com/2009/05/11...ss_30102325.php

[BigSnake]

Maybe the worse is over, hope so anyway, my guess is tourist will return in masses if things stay stable for a few month, the old baht is getting stronger by the hours.

[limbos]

Maybe the Thai Baht being so strong is part of the problem. If the Baht would loose up a bit and the Pound, the US$ plus other currencies would get more out of their dough, there would be more folks coming this way.

[Boater]

Maybe the Thai Baht being so strong is part of the problem. If the Baht would loose up a bit and the Pound, the US$ plus other currencies would get more out of their dough, there would be more folks coming this way.

and the Bars, Rest and Hotels lowered there profit margins abit !

i mean every bar in samui is charging at a 100% profit ++++++++++++++

[maenam]

According to the anonymous property agent's firm, Samui Buri Resort and Spa is selling for 1.1 billion baht, while newly opened Villa Lawana wants 1.5 billion. Meanwhile, Ban Taling Ngam is being sold at public auction, listed at 1.8 billion baht, and Nora Beach Resort and Spa is offered at 2 to 2.5 billion.

trouble is no serious investor will pay these over priced figures !

I thought Samui Buri is managed by Accor and is called Mercure Samui Buri Resort?

[keepsamuiclean]

Samui Buri is already gone to Mercure - wonder why.

The article states that after the tsunami Samui hotels mushroomed - a fact - but dind't the builders think about years after the tsunami? No they didn't! Now we have hotel buildings with 3 storeys close to the beach (not totally legal...) with almost no guests. Samui can blame everything - the yellow shirts, the red shirts, the financial crisis, the swine flu... but Samui should start blaming herself.

[Texpat]

I've only been to Phuket once and was totally unimpressed.

It's crap.

The entire island seems a petty, pandering, shameless mess.

Stayed in the Karon Beach Hilton for a week. Overpriced, overstaffed, junky rooms. The tuk-tuks are rip-off merchants and the hotel driver got 800 baht to drive us to Patong. Couldn't go in the water as the seas were too high.

There's nothing in Phuket for me. I'll not go back soon -- if ever.

[Birdman]

I've only been to Phuket once and was totally unimpressed.

It's crap.

The entire island seems a petty, pandering, shameless mess.

Stayed in the Karon Beach Hilton for a week. Overpriced, overstaffed, junky rooms. The tuk-tuks are rip-off merchants and the hotel driver got 800 baht to drive us to Patong. Couldn't go in the water as the seas were too high.

There's nothing in Phuket for me. I'll not go back soon -- if ever.

Did you expect to meet Friday? It looks like you came in the monsoon season, with wrong expectations, and you could not find an appropriate way to move around.

You should have asked the next package tourist, who comes year by year.

Edited May 12, 2009 by Birdman

[Nirvana]

Samui Buri is already gone to Mercure - wonder why.

The article states that after the tsunami Samui hotels mushroomed - a fact - but dind't the builders think about years after the tsunami? No they didn't! Now we have hotel buildings with 3 storeys close to the beach (not totally legal...) with almost no guests. Samui can blame everything - the yellow shirts, the red shirts, the financial crisis, the swine flu... but Samui should start blaming herself.

That sounds like some sense..

Along with all the other usual things to mention such as infrastructure. Its all fine and dandy to build hotels and then link them to what exactly. In Phuket they announce every few months a huge project that never comes off, but at least basics are there. In Samui maybe majority would settle for a bit of order and a decent road or two. Of course a concrete monstrosity built where once was green (a bit of planning) would be decent. It becomes not so easy to access a beach year by year. TiT unfortunately, money talks.

Its tongue in cheek when you read " More than rooms on sale in Thai Hotels" anyhow..

Nirvana

[Rooo]

Its tongue in cheek when you read " More than rooms on sale in Thai Hotels" anyhow..

Nirvana

I nearly had a heart attack when I seen the topic title.

[Boater]

I nearly had a heart attack when I seen the topic title.

Reason for edit: spelling

well it is from the nation

what should it read i wonder

[SamuiRes]

Samui Buri is already gone to Mercure - wonder why.

The article states that after the tsunami Samui hotels mushroomed - a fact - but dind't the builders think about years after the tsunami? No they didn't! Now we have hotel buildings with 3 storeys close to the beach (not totally legal...) with almost no guests. Samui can blame everything - the yellow shirts, the red shirts, the financial crisis, the swine flu... but Samui should start blaming herself.

Accor Group through Mercure only have a management contract on Samui Buri - it was not sold. The article in The Nation seems to suggest that the current spate of sales is a consequence of the present economic climate. All the hotels mentioned (with the exception of Lawana which is relatively new) have been offered at these prices for the last two or three years. Unrealistic then - even more so now.

Edited May 12, 2009 by SamuiRes

[Samuian]

and how many hotel rooms are there now in samui????

"only" some 14.000 and going....

and yes the Samui Buri has been bought by Mercure - Accor Group

as of my knowledge it has been built to be sold, never been built to be run

by the same people who built it (Resotel-Group)

[maenam]

and how many hotel rooms are there now in samui????

"only" some 14.000 and going....

and yes the Samui Buri has been bought by Mercure - Accor Group

as of my knowledge it has been built to be sold, never been built to be run

by the same people who built it (Resotel-Group)

somebody told me that Accor is same like a management company and they don't own the properties. is this correct?

Resotel, you mean same as Chaweng Cove, Samui Plaza and the new Munchies?

[SamuiRes]

and how many hotel rooms are there now in samui????

"only" some 14.000 and going....

and yes the Samui Buri has been bought by Mercure - Accor Group

as of my knowledge it has been built to be sold, never been built to be run

by the same people who built it (Resotel-Group)

somebody told me that Accor is same like a management company and they don't own the properties. is this correct?

Resotel, you mean same as Chaweng Cove, Samui Plaza and the new Munchies?

Like the majority of hotel groups, they own very few hotels themselves and their business is primarilly managing hotels for owners for a fee. Management Contracts can be very lucrative for hotel chains and there is a great deal of competition between the groups. I am pretty sure that Samui Buri is only a management contract and has not been sold. Yes it is the same owner as those you mention.

[livinthailandos]

My take on all these hotels, being sold, I seriously don't see how they will sell for those prices, like everything in thailand everything seems over inflated on prices. I could be wrong on this but maybe the hotels should sell it for less. even if they sell at lower prices I believe with many factors in play its gonna be a hard sell.

Global Recession ( Things won't go back to normal again like last year but maybe in 1 or 2 years should see some better pickup hopefully better than this year.

Swine Flu. If you have seen enough reports. The only thing spreading faster than this flu was panic and fear towards it.

Domestically Thailand is a mess always has been within 30 years and 19 military coups. Prime Ministers only last less than 2 years this country won't get anywhere anytime soon. If this country was to make actually progress it would take 50 years and have to start with the young generation and complete change in schools. otherwise thailand will always be a developing country.

The hotels themselves. Mind you this is a unconfirmed I was informed that most are run by local thai families or thai management ( NOTE I am NOT trying to be biased towards thais on this, I just wonder in general how many of them:

A: had a good business plan,

B: prepared for a event like this

C: how many have stacked away cash for a hard season like this

D: How many think outside of the box

E: Able to take responsiblity

what I am going to say I don't know if most would understand this but, I run a small business were doine fine even 5 months on. I control costs, and for 3 years I have not raised prices, I believe that if you don't have to raise prices don't. Don't offer discounts offer value, good prices, good service. I honestly believe to many people have gotten greedy on this island. Or they dont think in general. It would seem like everyone was going high scale. To me there's a market for everyone even the back packer. Thailand is still a good place but it needs change

Edited May 12, 2009 by livinthailandos

[Boater]

A: had a good business plan,

B: prepared for a event like this

C: how many have stacked away cash for a hard season like this

D: How many think outside of the box

E: Able to take responsiblity

probably none

[SamuiRes]

My take on all these hotels, being sold, I seriously don't see how they will sell for those prices, like everything in thailand everything seems over inflated on prices. I could be wrong on this but maybe the hotels should sell it for less. even if they sell at lower prices I believe with many factors in play its gonna be a hard sell.

Global Recession ( Things won't go back to normal again like last year but maybe in 1 or 2 years should see some better pickup hopefully better than this year.

Swine Flu. If you have seen enough reports. The only thing spreading faster than this flu was panic and fear towards it.

Domestically Thailand is a mess always has been within 30 years and 19 military coups. Prime Ministers only last less than 2 years this country won't get anywhere anytime soon. If this country was to make actually progress it would take 50 years and have to start with the young generation and complete change in schools. otherwise thailand will always be a developing country.

The hotels themselves. Mind you this is a unconfirmed I was informed that most are run by local thai families or thai management ( NOTE I am NOT trying to be biased towards thais on this, I just wonder in general how many of them:

A: had a good business plan,

B: prepared for a event like this

C: how many have stacked away cash for a hard season like this

D: How many think outside of the box

E: Able to take responsiblity

what I am going to say I don't know if most would understand this but, I run a small business were doine fine even 5 months on. I control costs, and for 3 years I have not raised prices, I believe that if you don't have to raise prices don't. Don't offer discounts offer value, good prices, good service. I honestly believe to many people have gotten greedy on this island. Or they dont think in general. It would seem like everyone was going high scale. To me there's a market for everyone even the back packer. Thailand is still a good place but it needs change

The locally managed hotels are always going to struggle unless they have moved wth the times and are affiliated to good overseas agencies. In doing so they have to deliver what they promise because the agencies will cut them off at the knees if they do not. That is one of the advantages of being managed by an international chain in that you have immediate access to a world wide marketing organisation. However, international chains in general are not interested in small. low value hotels. Small hotels are obviously much easier to fill than large ones and if you can build up a good reputation for service and value for money, repeat custom and recommendation become your best marketing tools. The problem with the hotels mentioned here in Samui - and many others not mentioned that are for sale - is that they simply have not managed their room rates sensibly and their valuations are based more on replacement cost rather than income return and where land values in particular have become so inflated the two will never match up.

The other issue they will all have to face as hotel room numbers increase is accessibility. Conrad, Park Hyatt, W, Banyan Tree, possibly another Marriott and maybe Ritz Carlton - the customers for these hotels are not going to come by land and sea. Flight costs are not going to be an issue for these people but I suspect that when things get back to something like normal - however long that takes - seat availability on Bangkok Air may be a serious problem. Not just in the high end - but look at the additional 3 and 4 star hotels being built and completed now e.g Bhundhari and the new Nora on the way to Choengmon.

It will be interesting to see how this all pans out.

[livinthailandos]

Conrad, Park Hyatt, W, Banyan Tree, possibly another Marriott and maybe Ritz Carlton, you know even with these extra hotels coming, or another international brands, regardless eventually you have to much supply and very little demand. Recovery for global travel is going to be slow at least for a few years. Things should get slightly better than last year but not by much. Thailand here could always go more downhill though. Thailand isn't exactly stable though. Time will tell how things will do or how thailand will do. Samui in general though needs serious infrastructure improvements more than anything. It would seem to many regardless though on this matter what hotels come or go, you still need to do something different from other hotels, need a good location though to. I know I'm gonna go off topic on this but most hotels already have

modern facilities

modern rooms

most are up to date but the only thing i've really seen missing is staff that really understands or comprends. most of you know what i'm talking about. Those who do completely understand are thai's who usually dont work in the hotel industry or if they do they are rarely ever found.

[SamuiRes]

Conrad, Park Hyatt, W, Banyan Tree, possibly another Marriott and maybe Ritz Carlton, you know even with these extra hotels coming, or another international brands, regardless eventually you have to much supply and very little demand. Recovery for global travel is going to be slow at least for a few years. Things should get slightly better than last year but not by much. Thailand here could always go more downhill though. Thailand isn't exactly stable though. Time will tell how things will do or how thailand will do. Samui in general though needs serious infrastructure improvements more than anything. It would seem to many regardless though on this matter what hotels come or go, you still need to do something different from other hotels, need a good location though to. I know I'm gonna go off topic on this but most hotels already have

modern facilities

modern rooms

most are up to date but the only thing i've really seen missing is staff that really understands or comprends. most of you know what i'm talking about. Those who do completely understand are thai's who usually dont work in the hotel industry or if they do they are rarely ever found.

I cannot really disagree with anything you have said. Hotel prices here are in general so far out of line with reality that I have advised a client not to buy here unless he can do so at a very heavy discount. We will find much better deals elsewhere in Thailand and probably throughout SE Asia over the next few months.

[Nirvana]

I cannot really disagree with anything you have said. Hotel prices here are in general so far out of line with reality that I have advised a client not to buy here unless he can do so at a very heavy discount. We will find much better deals elsewhere in Thailand and probably throughout SE Asia over the next few months.

I think there are many places you can go now in SEA where you can get real good value and mid to high end hotels. Rates are falling. You can get alot more "bang for your buck". When all things are maybe considered i dont think this is quite understood yet in Samui. The reasoning that "yes but this is Koh Samui " just is not going to work in times like these. People are looking at value, Flights, Transport, Hotels the whole lot. I would admit I am wrong if these higher end hotels in Samui are full of tourists who "dont Care" about these incidental costs as they are rich enough. I believe they are not and nor are they going to be. I can see it being tough for some time ahead.

Nirvana

[Boater]

well it is also about the concept

take Ibis for example, they are doing really well at the moment

[livinthailandos]

Based on your comments SamuiRes It would appear you've seen the fast changes that most of us have seen here on the island, although this is a compliment your posting was well done in a way that most people on thai visa seem to lack. I am pretty sure you know what I am talking about.