Hotel development takes off in Thailand
Double-digit increases in demand are attracting hotel investors and developers to Thailand GLOBAL REPORT—Following several turbulent years—characterized by high-profile floods and political protests, which reduced both investor and visitor interest in the Land of Smiles—Thailand’s hotel sector is firmly on the road to recovery, with supply and demand fundamentals returning to a more favorable balance. “Thailand is still relatively cheap as far as investment is concerned,” said Jason Payne, VP of Pattaya property developer Tulip Group, which will add three new hotels to its portfolio in the next two months and at least 10 over the next five years. “There is strong interest from almost all international hotel operators as far as entering into management contracts for good quality properties goes. This interest drives companies like ours to build and develop more hotels. According to data from STR Global, supply growth is highest in the capital. During 2012, the number of rooms available in Bangkok grew by 4.2%. During the first four months of 2013, this continued at a rate of 3.9%. The fastest growing category is luxury hotels, which increased at a rate of 8.4% in 2012 and 9.3% in the first four months of this year.
I believe that Pattaya will be a hot market not just in 2013 to 2014 but for the next five years at least, as the city is continually changing and reinventing itself,” Payne said. “I would never say the town will attract the true luxury market, but it will become a far more family-friendly destination that will cater to travelers looking for modern, up-market accommodation.
By Elly Earls