Thailand January 2018 Hotels & Hospitality Group Hotel Destinations Thailand
2 Hotel Destinations - Thailand Thailand 2010 15.9 million Chiang Mai 2011 19.2 million 2012 22.4 million 2013 26.5 million Bangkok Pattaya 2014 24.8 million Hua Hin & Cha Am 2015 29.9 million Khao Lak Koh Samui 2016 32.6 million Phuket Krabi 2017 (preliminary) 35.4 million Source: Ministry of and Sports
Hotel Destinations - Thailand 3 Quick Facts (Latest Data) Total Number of New Rooms (2017) Bangkok 21.1 million (YTD November 2017) 1,863 rooms Phuket 9.2 million 614 rooms Khao Lak (Phang Nga) 694,079 762 rooms Koh Samui 1.9 million 236 rooms Krabi 2.0 million 443 rooms Pattaya 8.3 million 637 rooms Hua Hin & Cha Am 1.2 million 441 rooms Chiang Mai 2.6 million 236 rooms Source: Ministry of and Sports, JLL
4 Hotel Destinations - Thailand Bangkok 21.1 million (YTD November 2017) 1,863 rooms 75.7% Occupancy THB 6,084 ADR THB 4,608 RevPAR ibis Bangkok IMPACT (587 rooms) Travelodge Sukhumvit 11 (224 rooms) Park Hyatt Bangkok (222 rooms) Hyatt Regency Bangkok Sukhumvit Carlton Hotel Bangkok Waldorf Astoria Bangkok Hotel Nikko Bangkok 2016 saw international arrivals increase by 7.5% y-o-y to 20.8 million. This represents a more moderate increase compared to the 24.8% seen in 2015, mainly due to the slowed growth of visitors from Mainland China in response to the crackdown on zero-dollar tours in late 2016. As at YTD November 2017, arrivals had risen 20.6% y-o-y to 21.1 million. Mainland China is Bangkok s largest source market, contributing almost 30% of international visitors as at YTD July 2017 according to latest available statistics. Despite the government crackdown, Bangkok tourism was not significantly affected, with strong y-o-y growth from South Korea (20.1%) and India (17.4%) further supplementing visitor arrivals. Approximately 1,900 keys were added in 2017. While 2016 saw a concentration in the midscale segment, accounting for close to 50% of new supply, 2017 saw a shift to the budget and upscale segments, contributing close to 30% each. Approximately 9,800 rooms remain in the pipeline between 2018 and 2020. In terms of location, we are seeing a shift beyond the traditional Sukhumvit area, as the Riverside and Ratchadapisek areas gain traction. Despite stable arrival figures from Mainland China, Bangkok continues to see strong growth in visitor numbers from other major source markets, particularly from South Korea and India, as the government shifts focus from arrival figures to visitor spending by targeting higher-spending niche markets. The newly released first edition of the Michelin Guide to Bangkok will further strengthen Bangkok s forefront position as a culinary destination. Carlton Hotel Bangkok Premier Inn Bangkok (now Travelodge Bangkok) Swissôtel Nai Lert Park Note: Bangkok refers to Luxury hotels Source: STR Global (YTD Nov 2017), Ministry of and Sports, JLL ADR - Average daily rate, RevPAR - Revenue per available room
Hotel Destinations - Thailand 5 Chiang Mai 2.6 million Total Visitor Arrivals 236 rooms X2 Chiang Mai Riverside Hotel (30 rooms) U Nimman Chiang Mai (147 rooms) Buri Rasa Village Chiang Mai There were no hotel transactions in 2017 In 2016 (latest data available), international visitor arrivals increased by 2.3% y-o-y to 2.6 million. Domestic arrivals showed a slightly higher growth of 4.1% y-o-y to 5.0 million, bringing total visitor arrivals to Chiang Mai to 7.7 million. In addition to the many tourist attractions the city has to offer, its location serves as a perfect base for travel to Thailand s Golden Triangle and Hill Tribe communities. Top source markets to Chiang Mai in 2016 were Mainland China, Japan and the USA, comprising 31.0%, 7.1% and 6.7% of total international visitor arrivals respectively. Mainland China also recorded the fastest growth in arrivals at 43.0% y-o-y. Thailand s winter months of December to February are the months with the highest visitor numbers. In 2017, Chiang Mai saw an addition of 236 rooms added to hotel supply. Almost 400 rooms are expected to enter the market in 2018. The majority (50.5%) of this future supply will be located in Nimman. 85.0% of this future supply will be in the upscale segment, while the balance is in the midscale segment. Over the past 12 months, the city has seen an increased presence of local brands such as BED hotels and X2 Resorts. The city s air connectivity has been improving rapidly, further strengthening its position as one of Thailand s leading tourist destinations. Qatar Airways has launched four weekly flights to Chiang Mai, connecting the city with the Middle East and Europe. In addition, VietJet has launched four weekly flights between Ho Chi Minh City in Vietnam and Chiang Mai, while various other flight operators have launched connections between Chiang Mai and destinations including Yangon (Myanmar), Nakhon Ratchasima (Thailand), Chengdu (Mainland China) and Quang Binh (Vietnam). Source: Ministry of and Sports, JLL
6 Hotel Destinations - Thailand Hua Hin & Cha Am 1.2 million 441 rooms AVANI Hua Hin Resort & Spa (196 rooms) Baba Beach Club Hua Hin (82 rooms) Holiday Inn Hua Hin Vana Nava (Soft Opening) (150 rooms) Best Western Plus AD Hua Hin Lake & Resort Coral Tree Villa Hua Hin U Hua Hin There were no hotel transactions in 2017 In 2016 (latest data available), total domestic and international visitor arrivals to Hua Hin and Cha Am reached 6.0 million, representing a marginal y-o-y growth of 2.0%. Domestic visitors continue to dominate the market, accounting for approximately 80.0% of the total visitor arrivals. While domestic arrivals continued to exhibit growth in 2016, international arrivals remained stable at 1.2 million. The two coastal towns of Hua Hin and Cha Am are popular weekend getaways for Bangkok residents. In addition to Thais, the top international source markets for Hua Hin and Cha Am in 2016 were the United Kingdom (11.7%), Germany (10.4%) and Denmark (7.5%). The neighbouring resort towns fastest growing markets were Mainland China and the USA. While supply additions for Hua Hin and Cha Am have been limited since 2013, approximately 700 rooms were added in 2016 and 2017. A further 1,800 rooms are anticipated to open over the next three years, with 1,050 of these rooms being condominium units with rental pool options on Cha Am Beach. The Pattaya-Hua Hin daily ferry service, which became fully operational in February 2017, is expected to increase visitor arrivals in both destinations. However, the highly-anticipated opening up of Hua Hin Airport to allow commercial flights has yet to be confirmed by officials. With their location and current infrastructure, the two cities combined tourism outlook is largely underpinned by domestic visitors. Source: Ministry of and Sports, JLL
Hotel Destinations - Thailand 7 Khao Lak 694,079 762 rooms La Vela Khao Lak (181 rooms) Le Menara Khao Lak Resort (108 rooms) Bangsak Merlin Resort (275 rooms) Devasom Khao Lak Resort AVANI Khao Lak Sheraton Khao Lak Resort There were no hotel transactions in 2017 In 2016 (latest data available), total domestic and international visitor arrivals to Khao Lak and Phang Nga reached 1.0 million, representing an impressive five-year (2011-2016) Compound Annual Growth Rate (CAGR) of 12.6%. International visitors comprised the majority of arrivals, accounting for 68.5% at 694,079 visitors. Khao Lak s tourism trade has continued to benefit greatly from Phuket International Airport s expanded facilities and improved flight connectivity. Germany remained the largest source market, contributing 26.6% of total international arrivals in 2016, followed by Mainland China (10.5%), Austria (7.2%) and Sweden (6.1%). Mainland China continues to be the key growth market, registering a y-o-y increase of 37.1% following a 122.9% growth in the previous year. Underpinned by its economic recovery, the Russian market rebounded strongly with over 40% y-o-y growth. This geographic diversity in key source markets has significantly reduced seasonal demand fluctuations in the market. We expect to see more internationally branded hotels including Sheraton and AVANI entering the market. However, future hotel supply is anticipated to be fairly limited with approximately 750 keys scheduled to open by 2020. Bangsak Beach accounts for 43.8% of total future supply. All future openings will be in the upscale segment. The growth in tourism arrivals has been driven by the improved international connectivity of Phuket International Airport. The area is expected to continue on its growth trajectory given the potential development of Phang Nga Airport, which is currently under review pending Environmental Impact Assessment (EIA) approval. Source: Ministry of and Sports, JLL
8 Hotel Destinations - Thailand Koh Samui 1.9 million 236 rooms COSI Samui Chaweng (155 rooms) Ritz-Carlton Koh Samui (Soft Opening) (70 rooms) ibis Styles Koh Samui Chaweng Beach Sala Samui Chaweng X2 Vibe Samui Nautilus SO Sofitel Samui There were no hotel transactions in 2017 In 2016 (latest data available), international visitor arrivals totalled 1.9 million, accounting for 84.6% of the total visitor arrivals and representing a y-o-y increase of 3.5%. The island s total arrivals recorded a five-year CAGR (2011-2016) of 22.6%. This positive figure was attributed to increases in the frequency of low-cost carrier flights to Surat Thani and ferries to Koh Samui. Mainland Chinese visitors showed the strongest growth of 50.2% y-o-y during 2016. Despite the continued emergence of the Mainland Chinese market, Germany remained the island s top source market comprising 14.5% of total visitor arrivals. The average length of stay was approximately 5.5 days in 2016, which represented a 6.0% y-o-y increase. In 2017, approximately 230 rooms were added to the market. Between 2018 and 2020, over 1,000 new rooms are expected to be added, with the majority being in the upscale and luxury segments. Branded hotels continue to dominate the island s supply. Notable recent openings include Centara s COSI and Marriott s Ritz Carlton. Over the medium term, Koh Samui s tourism industry is anticipated to expand, especially in the midscale and upscale segments, as we see a number of new hotels being added to the market as well as more flights being scheduled. In light of all this, hotel trading performance is predicted to remain healthy. Source: Ministry of and Sports, JLL
Hotel Destinations - Thailand 9 Krabi 2.0 million 443 rooms Sugar Marina Cliffhanger (75 rooms) Ava Sea Resort (108 rooms) Kokotel Krabi Ao Nang (72 rooms) Banyan Tree Krabi Sugar Marina Cliffhanger (Expansion) Pilanta Spa Resort In 2016 (latest data available), Krabi welcomed 2.0 million international overnight visitors, representing a y-o-y growth rate of 3.3%. When domestic arrivals are included, Krabi registered a total of more than 3.6 million visitors to record a fiveyear CAGR of 8.5% from 2011 to 2016. Mainland Chinese guests remained the top source market to Krabi with over 400,000 Chinese visitors in 2016 representing 20.3% of the total international visitors to the province. The Mainland Chinese market was further highlighted with a record high y-o-y growth rate of 28.2%. In addition to Asian markets, Krabi is also becoming more popular amongst European markets. The city s key source markets include the United Kingdom and Germany. Qatar Airways has also increased the frequency of its Doha-Krabi flights from four weekly flights to daily flight services, strengthening Krabi s connection to the Middle East as well as to Europe. Between 2018 and 2019, approximately 1,000 rooms are expected to be added to the Krabi market with the majority located in Ao Nang Beach. Most of this future supply (53.4%) will be in the midscale segment, followed by 39.5% in the upscale segment. Ao Nang remains the area s most popular beach with 69.9% of existing hotels located in this area. Krabi s hotel market outlook is positive as the city continues to capitalise on its unrivalled tourist attractions and improving infrastructure. As at August 2017, Krabi recorded the highest growth in search results for Thai holiday destinations on TripAdvisor, increasing 41.0% y-o-y. The recently opened Port Takola Yacht Marina and the potential expansion of the airport will further bolster the city s tourism trade. Source: Ministry of and Sports, JLL
10 Hotel Destinations - Thailand Pattaya 8.3 million 637 rooms Renaissance Pattaya Resort & Spa (Soft Opening) (200 rooms) Centara Azure Hotel Pattaya (96 rooms) Mytt Beach Hotel (236 rooms) Best Western Plus AD The Grand Jomtien Beach Pattaya Evason Na Jomtien Banyan Tree Jomtien Grande Centre Point Pattaya Premier Inn Pattaya (now Travelodge Pattaya) The total number of international and domestic overnight visitors to Pattaya registered an impressive growth of 37.7% y-o-y to reach 12.7 million arrivals in 2016 (latest data available). While international visitors accounted for over 65.0% of the total arrivals at 8.3 million, the domestic market registered a strong growth y-o-y of 73.8% in 2016. As at YTD July 2017, international arrivals at U-Tapao airport had risen by 19.3% y-o-y, following a record growth of 170.1% in 2016 due to the commercialisation of the military airport. Mainland China continued to be Pattaya s largest source market, contributing 31.3% of total overnight visitors in 2016. Despite a significant decline in 2015 due to the depreciation of the ruble, the Russian market has since bounced back with a 44.3% y-o-y growth in 2016. Looking ahead, we are anticipating a shift in demand from European markets to Asian countries such as South Korea and India. Pattaya is expected to see a significant increase in supply over the next three years with over 6,700 rooms scheduled to open, including more than 3,500 condominium units with rental pool options. Future openings are concentrated in the midscale (53.9%) and upscale (35.2%) segments. Jomtien, Na Jomtien and North Pattaya are the sites of the majority of these future openings. is expected to continue on an upward trend, supported by the October 2018 opening of the U-Tapao airport expansion, which will take annual capacity from 0.8 to 3.0 million passengers. In addition, the upcoming high speed railway linking Bangkok and the Eastern Economic Corridor will improve the city s accessibility. Nevertheless, it is anticipated that the influx of supply and greater reliance on Mainland Chinese visitors will put downward pressure on hotel rates in the medium term. Source: Ministry of and Sports, JLL
Hotel Destinations - Thailand 11 Phuket 9.2 million 614 rooms 77.1% Occupancy THB 3,740 ADR THB 2,882 RevPAR Rosewood Phuket (Soft Opening) (47 rooms) The SIS Kata Resort (124 rooms) The Marina Phuket Hotel (205 rooms) Ramada ChaoFa Phuket Sheraton Phuket Kalim Beach Resort X2 Vibe Phuket Bangtao In 2016 (latest data available), Phuket welcomed over 12.7 million total domestic and international visitor arrivals to record a five-year (2011-2016) CAGR of 7.4%. The number of international arrivals has seen a steady rise, reaching 9.2 million following the completion of a new international airport terminal in September 2016. Upon completion in mid-2018, the renovated domestic terminal will comprise a total service area of 41,500 square metres. Phuket has seen a balanced mix of visitor arrivals from Asia and Europe. Top source markets include Mainland China (28.8%), Russia (9.2%), Australia (6.1%), Germany (5.5%) and the United Kingdom (3.9%). Russia represents the fastest growing market recording a y-o-y growth of 25.1% as the Russian ruble continues to stabilise. Phuket saw an addition of approximately 600 rooms during 2017. Over 4,800 rooms are expected to enter the market from 2018 to 2020. However, this future supply also factors in the openings of condotels which may not account for full inventory. The majority of future supply will be concentrated in the upscale segment (61.5%), followed by the midscale (28.4%) and luxury (10.1%) segments, respectively. The positive outlook for Phuket s tourism industry is predominantly attributed to the ever increasing demand from international visitors. To accommodate this growth, Phuket has seen a number of ongoing and future infrastructure improvements including the Proposed Phuket Light Rail System which is scheduled to be completed in 2021. There were no hotel transactions in 2017 Note: Phuket refers to Market-wide hotels Source: STR Global (YTD Nov 2017), Ministry of and Sports, JLL ADR - Average daily rate, RevPAR - Revenue per available room
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