Property News · January 20, 2016

Hotel-branded residences gain momentum in Thailand


Phuket, Bangkok and Pattaya top the list
X2 Vibe Pattaya Seaphere
There’s no stopping the hotel residences real estate segment in Thailand, which leads the Southeast Asian marketplace with 37 percent of all projects under the category, according to the latest data from consultancy firm C9 Hotelworks.
While some developers are moving away from traditional beach destinations by building these hotel residences in more urban settings, the usual resort areas remain the most popular investment destinations.
Thailand’s resort areas of Phuket and Pattaya are two of most popular locations for the segment, in addition to Bangkok.
Global hotel brands, such as Ritz-Carlton and Banyan Tree, are among the key players in the market, while boutique hospitality developers like X2 are also fast-becoming known with several projects in the pipeline.
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In Pattaya, a favourite tourist hub just two hours by car from Bangkok, X2 recently announced that 80 percent of residential units at the X2 Vibe Pattaya Seaphere hotel residences project – due for a Q2 2017 opening – have already been pre-sold as of January 2016. Prices at the branded development start at THB3.517 million (USD97,000) per unit.
The success of X2’s Pattaya hotel residences project, which offers buyers a guaranteed return of 8 percent for five years and targets both the affluent crowd and a younger demographic, will most likely allow the firm to launch new luxury developments in Thailand in the near-term.
Commenting on the growing interest on the segment, Bill Barnett, managing director of C9 Hotelworks, said: “Traditional lifestyle buyers are being supplanted by end users, with Asians representing the largest transaction segment.
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“Asia’s property cycles have typically seen these type of investment driven projects at the top of markets in the mid 1990s and again in the mid-Millennium, hence history is recreating itself, yet this time out at a considerably higher scale.”
Breaching the USD16 billion level in 2015, the hotel residences market in the Southeast Asian region currently has more than 28,000 units for sale from nearly 120 current projects.
Other top markets in this category are Indonesia (with 22 percent of currently available units are located), the Philippines, Malaysia and Vietnam, with some notable projects in Cambodia.

Source : property-report.com
Read more…Hotel-branded residences gain momentum in Thailand

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