A banner year seen for hotel industry

Bamrung Amnatcharoenrit

The Nation

BANGKOK: -- This year is expected to be a golden one for the hotel industry, with a parade of new openings in major tourism provinces thanks to improved political stability, which has created a better investment climate, and the upcoming Asean Economic Community (AEC) single market in 2015.

According to data released by the Thai Hotels Association (THA), an estimated 3,919 new rooms, mainly four- and five-stars, will be added to the market during the course of the year.

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Meanwhile, Jones Lang LaSalle's Hotels and Hospitality Group projects that there are some 8,000 new rooms in all Bangkok hotel segments in the pipeline between now and 2015.

The company's research has found that here are major negotiations under way in Phuket, Bangkok, Pattaya, Samui and Chiang Mai this year as well.

In the capital, Hilton, Radisson Blu, Marriott, Centara and Indigo hotels are all scheduled to be opened this year, mainly in the Sukhumvit area.

In Phuket, Accor Group will open the Pullman Phuket Arcadia and the Novotel Phuket Kamala Beach, while Centara, the country's leading chain, will strengthen its portfolio with seven openings nationwide.

Ronnachit Mahattanapreut, senior vice president for finance and administration of Centara Hotels & Resorts, said it was hard to count the overall number of new hotels among all categories this year, as there are also many three-star hotels opening with less fanfare across the nation to cash in on the rising number of foreign tourists, especially from China.

"However, the clear trend of the hotel industry is that Thailand is considered a major destination for investment among foreign investors in this business," he said.

Centara was recently approached by foreign financial institutions from four countries to set up a real-estate investment trust, but the company needs time to study whether such a move would be a boon for its business, he said. In principle, the fund would take a lead role in purchasing attractive properties around the country.

Patrick Basset, senior vice president of Accor for Thailand, Vietnam, Cambodia, Laos and the Philippines, described the industry outlook as positive, thanks to the impressive number of international arrivals in the final quarter of last year, which led into a very strong first month for 2013.

The benefits have clearly fallen into all of Accor's 50 hotels in Thailand, which have posted solid forward bookings for the current quarter, he said.

"Accor believes Thailand is a country that has very strong economic fundamentals, which have enabled it to pull itself out of every crisis and rebound quickly without serious long-term consequences. We hope Thailand's [political and investment] environment maintains the status quo, so that we can move forward with business as usual and continue to drive Thailand as one of Asia's top tourist destinations," he said.

However, Basset urged the government to continue to improve the Kingdom's airport infrastructure, as airports in both Bangkok and Phuket are reaching full capacity.

AEC investment boost

The advent of the AEC is seen as a force to make Thailand more attractive for investment, with the country becoming a platform to expand hotel networks regionally, thanks to its good location, strong infrastructure and skilled labour.

"Let's take a look at the country in relation to other countries nearby," Centara's Ronnachit said. "From the North to the South and the East to the West, it is being connected with projects. The borders are being opened up like the integration of the European Union, and connected with new transport links."

Thailand will become a corridor for trade and investment, which also means a big opportunity for hotel businesses. According to THA data collected from websites, Bangkok still has more hotels than any other Thai tourism destination with 1,123 properties, followed by Phuket with 1,083, Surat Thani with 867, Krabi with 782, Chon Buri with 711, and Chiang Mai with 565.

The average occupancy rate around the country was recorded at 64.91 per cent last year, an increase of 6.49 percentage points over the previous year.

In Bangkok alone, occupancy grew to 66.76 per cent, compared with 60.07 per cent in 2011.

-- The Nation 2013-02-05

Another 'puff' for the 'hi-so' end of the hospitality trade.

But wait a moment, weren't they recently complaining, the tourists keep spoiling the game by staying in cheaper non-member establishments ?

Edited February 5, 201313 yr by Ricardo

There is room for growth if they do it right ...however like the building of condos and moo baans there is a false sense of the real needs ...anything below 70% occupancy in the business is overbuilding and has an impact on pricing strategies

If you build it, they will come.

If they don't come, raise the prices.

Guess you don't work in the business then mate ..

There is room for growth if they do it right ...however like the building of condos and moo baans there is a false sense of the real needs ...anything below 70% occupancy in the business is overbuilding and has an impact on pricing strategies

I think this thread is about hotels not condos.

http://www.fivestara...-2012-w-bangkok

2012 was a banner year for hotels in Thailand as it was a banner year for tourism and industry.

Edited February 5, 201313 yr by chiangmaikelly

There is room for growth if they do it right ...however like the building of condos and moo baans there is a false sense of the real needs ...anything below 70% occupancy in the business is overbuilding and has an impact on pricing strategies

Don't worry occupancy will climb to new hieghts. Culture Minister Sonthaya Khunploem has been working overtime to boost tourist numbers.

Another 'puff' for the 'hi-so' end of the hospitality trade.

But wait a moment, weren't they recently complaining, the tourists keep spoiling the game by staying in cheaper non-member establishments ?

No actually not,

http://www.thaivisa.com/forum/topic/615980-foreigners-commend-thailands-stability-hospitality/

http://www.thaivisa.com/forum/topic/614957-thailand-records-223m-visitor-arrivals-in-2012%3B-targets-245m-in-2013

Commenting on the performance, TAT Governor Suraphon Svetasreni said, “We are overjoyed to have achieved this result in the year the people of Thailand commemorated the 85th birthday of His Majesty the King. It is also a tribute to the cooperation and creativity of the entire Thai travel and tourism industry for the huge effort that has been made to ensure that travel and tourism remains a leading industry for job creation, distribution of income nationwide and contribution to culture, heritage and environmental preservation.”/

was this weekend in a socalled 4 star hotel ... 7000 baht per night, small room with off course overpriced mini bar

small swimming pool, small choice in breakfast buffet

no free toothbrush or anything

max 2 bottles of water

and off course, in this day and age, no FREE WIFI .... 200 baht per hour !

welcome to cheap thailand ?

Another 'puff' for the 'hi-so' end of the hospitality trade.

But wait a moment, weren't they recently complaining, the tourists keep spoiling the game by staying in cheaper non-member establishments ?

I know I do 3star and some 4 star are good enough for me. 2,000 baht might be a little high to some but it is OK with me. I don't require the 55,000 baht service or ambiance.

Edit

whoops make that 5,000 baht

Edited February 5, 201313 yr by hellodolly

If they don't come, raise the prices.

Guess you don't work in the business then mate ..

was this weekend in a socalled 4 star hotel ... 7000 baht per night, small room with off course overpriced mini bar

small swimming pool, small choice in breakfast buffet

no free toothbrush or anything

max 2 bottles of water

and off course, in this day and age, no FREE WIFI .... 200 baht per hour !

welcome to cheap thailand ?

No need to be an expert in the industry to evaluate low standards and high prices! It's enough to be ripped off already!

If they don't come, raise the prices. No need to be an expert in the industry to evaluate low standards and high prices! It's enough to be ripped off already!

Luckily Thailand does not have to worry about that, "Bangkok – January 21, 2013: Thailand has achieved record-breaking visitor arrivals, crossing the 22 million mark for the first time in 2012. Figures tabulated by the Ministry of Tourism and Sports for January – December 2012 show total arrivals by nationality of 22,303,065, up 15.98 percent over 2011."

There is room for growth if they do it right ...however like the building of condos and moo baans there is a false sense of the real needs ...anything below 70% occupancy in the business is overbuilding and has an impact on pricing strategies

Don't worry occupancy will climb to new hieghts. Culture Minister Sonthaya Khunploem has been working overtime to boost tourist numbers.

Not to mention that SNL video. Thousands of Americans are booking their tours as we sapeak.

Another 'puff' for the 'hi-so' end of the hospitality trade.

But wait a moment, weren't they recently complaining, the tourists keep spoiling the game by staying in cheaper non-member establishments ?

No actually not,

http://www.thaivisa....ty-hospitality/

<snip for brevity>

On the contrary, the THA were moaning that unlicensed non-member hotels were hurting their business, by "luring a large number of tourists with low prices", and hoping government-action might drive up room-rates and reduce the supply of rooms nationwide.

But now all is well, their occupancy-rates are up, and a parade of new openings is on-the-way ! So better squash that unfair market-led competition, a bit more, you know it makes sense (for their 4/5-star members).

If you know where to look you can get 4-5 star easily under 3,000 Baht. But with the over supply of hotels I think there are other reasons for the continuing expenditure on building them i.e. money laundering.

There is room for growth if they do it right ...however like the building of condos and moo baans there is a false sense of the real needs ...anything below 70% occupancy in the business is overbuilding and has an impact on pricing strategies

I think this thread is about hotels not condos.

http://www.fivestara...-2012-w-bangkok

2012 was a banner year for hotels in Thailand as it was a banner year for tourism and industry.

OP says "This year is expected to be a golden one for the hotel industry"

I must be delusional to think that this year is year 2013?

Only a matter of time before the next political unrest/coup/mismanaged natural disaster brings them back down to Earth again.

Have fun while it lasts kids.

Another 'puff' for the 'hi-so' end of the hospitality trade.

But wait a moment, weren't they recently complaining, the tourists keep spoiling the game by staying in cheaper non-member establishments ?

No actually not,

http://www.thaivisa....ty-hospitality/

http://www.thaivisa....ts-245m-in-2013

Commenting on the performance, TAT Governor Suraphon Svetasreni said, “We are overjoyed to have achieved this result in the year the people of Thailand commemorated the 85th birthday of His Majesty the King. It is also a tribute to the cooperation and creativity of the entire Thai travel and tourism industry for the huge effort that has been made to ensure that travel and tourism remains a leading industry for job creation, distribution of income nationwide and contribution to culture, heritage and environmental preservation.”/

Shame the rest of the population and business owners missed out on the "overjoy" Hope i can get an invite

Creativity of Thai travel and tourism industry? is that short for new scams? do expand!

"Let's take a look at the country in relation to other countries nearby," Centara's Ronnachit said. "From the North to the South and the East to the West, it is being connected with projects. The borders are being opened up like the integration of the European Union, and connected with new transport links."

...&lt;deleted&gt; is he talking about?

New transport links? The hi-speed train between BKK and CNX? The "extention" of Swampy?

Borders are being opened up? In 2013? Which exactly?

Another tourist- expert, who only says, what many wanna hear, that holds no water at all!

What do so many Thai Visa posters have such hatred for Thais doing well. New hotels opening is a good thing. Not sure why you lot are getting so upset. Many of you keep commenting on Thailand not having a free market. Well the hotel industry seems pretty free, but you still knock it. If there were rules about opening new hotels, you'd knock that as well. Can't win with you lot. New hotels and more competition is good, as it tends to raise standards.

"Let's take a look at the country in relation to other countries nearby," Centara's Ronnachit said. "From the North to the South and the East to the West, it is being connected with projects. The borders are being opened up like the integration of the European Union, and connected with new transport links."

...&lt;deleted&gt; is he talking about?

New transport links? The hi-speed train between BKK and CNX? The "extention" of Swampy?

Borders are being opened up? In 2013? Which exactly?

Another tourist- expert, who only says, what many wanna hear, that holds no water at all!

And most probably no idea about the EU......

Only a matter of time before the next political unrest/coup/mismanaged natural disaster brings them back down to Earth again.

Have fun while it lasts kids.

The same could be said for any country in the world.

A bumper year for the spin doctors methinks.

Tourists

Record rice sales

Hotel rooms

Growth

GDP

Whoopy!

What do so many Thai Visa posters have such hatred for Thais doing well. New hotels opening is a good thing. Not sure why you lot are getting so upset. Many of you keep commenting on Thailand not having a free market. Well the hotel industry seems pretty free, but you still knock it. If there were rules about opening new hotels, you'd knock that as well. Can't win with you lot. New hotels and more competition is good, as it tends to raise standards.

Wrong!

Just look at destinations like Samui.

Everybody is building hotels simply everywhere, nature goes belly up and the standard of the hotels overall is not getting better.

Many of the (smaller, thai owned hotels) have to close down with their (rather untrained staff) having no chance to find new jobs.

Some of those hotels actually made the charme of many destinations, but they are replaced by chain- owned standard- bunkers, with no flair and personality, some open for a few years, blast smaller competition out of the water and there is no healthy growth at all.

The whole tourism industry is out of control and the standard is by no means going up.

A bumper year for the spin doctors methinks.

Tourists

Record rice sales

Hotel rooms

Growth

GDP

Whoopy!

Methinks you are writing with no facts. Got some? Post em. You disagree with the Thai GDP? Where in the OP does it talk about rice sales?

A number of troll baiting posts have been removed.

What do so many Thai Visa posters have such hatred for Thais doing well. New hotels opening is a good thing. Not sure why you lot are getting so upset. Many of you keep commenting on Thailand not having a free market. Well the hotel industry seems pretty free, but you still knock it. If there were rules about opening new hotels, you'd knock that as well. Can't win with you lot. New hotels and more competition is good, as it tends to raise standards.

Some people complain about other peoples success, and others spend their time getting a piece of that success. The latter probably do not have time to comment on TV though, which may be why you mostly see posters complaining :-)

A banner year seen for hotel industry

Lemme see now, ban booze 14:00-17:00, ban lady gaga, gonna ban this, gonna ban that......yup banner year again alright.

A banner year seen for hotel industry

Lemme see now, ban booze 14:00-17:00, ban lady gaga, gonna ban this, gonna ban that......yup banner year again alright.

So your point is that because you can't buy booze at a few retail stores from 2:00 in the afternoon to 4 PM except in case lots that, that has caused Hilton, Radisson Blu, Marriott, Centara and Indigo hotels not to open new hotels this year? Oh wait a sec I misspoke. Hilton, Radisson Blu, Marriott, Centara and Indigo hotels are opening new hotels in Bangkok this year according to the OP. I guess they didn't hear that you can't buy less than case lots of booze at the 7/11 between 2 and 4 PM.

2.00 - 5.00 pm (not 4pm)

(14.00 - 17.00)

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