PHUKET: Family-run hotels on the ropes

PHUKET Branded hotel room supply accounts for 90% of incoming Phuket pipeline, according to the latest C9 Hotelworks market research, released over the weekend.

The report suggests that international hotel brands are rising in prominence and could ultimately replace Phuket’s legacy of independent properties (family run).

Already the development pipeline suggests the island’s future hotel landscape will be dominated by international groups.

C9 Hotelworks managing director Bill Burnett warned that the sentiment of developers is now firmly on the side of the chains.

“It is not only reflected by the current pipeline but also demonstrated by a number of recently announced conversions led by the French hotel group AccorHotels.”

Barnett said he expected the trend to continue with a secondary shift that would take the form of increased number of hospitality-led residences under planning.

Pipeline Characteristics

Marriott and Best Western are the key chains controlling more than a quarter of Phuket’s supply pipeline by number of rooms.

From a total of 32 projects, 29 are new-build hotels and there are either expansion or conversions of existing properties.

Strong sentiment in the popular destination of Patong contributes towards 34% of the island’s room supply pipeline.

An increase of 5,216 rooms, between 2016 and 2019, is forecasted, with 30% opening in 2016 and 23% in 2017.

Approximately 71% and 75% of the branded and independent hotels, respectively are sized 100 keys or more.

The incoming pipeline of 32 properties will include 28 branded hotels (4,677 keys) and 4 independent hotels (539 keys).

sourced:ttrweekly.com