Hotel brands go for residences

HONG KONG  Southeast Asia’s hotel residences segment has topped the USD16 billion level and is still growing, according to C9 Hotelworks managing director Bill Barnett.
The latest observations on this fast growing market appear in the C9 Hotelworks’ research report released earlier this week.
Download the full report here.
According to the hospitality consulting group, there are currently over 28,000 hotel branded residential units for sale across seven Southeast Asian nations represented by nearly 120 projects.
PrintAn average price for urban apatments is USD4,870 per square metre except in Singapore where the number climbed to USD25,000.
One key catalyst for the rising tide has been an increase in mixed use projects that contain hotel and real estate components.
Recognised hotel brands are being tapped to help engineer pricing premiums for property sales, which in market-wide terms has equated to 26% in urban locations and 14% for resort units compared to independent projects.
Commenting on the research C9’s managing director Bill Barnett said: “the historic pattern of hotel and real estate marriages has decidedly moved away from the beach and leisure destinations and is gaining traction in urban city offerings. Traditional lifestyle buyers are being supplanted by end users, with Asian’s representing the largest transaction segment.”
The two leading Southeast Asian marketplaces are Thailand with 37% of all projects followed Indonesia at 22%.
Key emerging counties are Philippines, Malaysia and Vietnam, though Cambodia has ranked in with some notable offerings.
C9-Graph_03What is clear in looking at the landscape is that rapidly escalating land prices are driving developers to embrace mixed, use projects in increasing numbers, and often add in commercial, sporting and tourism attractions as part of a broader lifestyle offerings, the research states.
C9 Hotelworks’ report highlights a refocus by global hotel chains that have realised that in order to spur pipeline they must partner with property developers in hotel residence offerings.
Key groups in the sector are Louvre, Singapore’s Banyan Tree, Starwood, Shangri La and Ritz Carlton. Boutique chains such as Alila have also successfully gained profile with high value partnerships.
On trending, C9’s Bill Barnett noted: “Asia’s property cycles have typically seen these type of investment driven projects at the top of markets in the mid 1990’s and again in the mid-Millennium, hence history is recreating itself, yet this time out at a considerably higher scale.”
C9 Hotelworks is led by founder and managing director Bill Barnett, who brings over 30 years’ experience in the Asian hospitality and real estate sectors.

sourced:ttrweekly.com