Hotel Market – Looking Toward the End of 2007

Total tourist arrivals to Thailand increased by only 2.3% in the first eight months of 2007, compared to the first eight months of 2006. The resort hotel markets performed well, but Bangkok suffered with lower occupancy rates, according to the latest CB Richard Ellis’ Thai hotel report. More hotels are being built in both Bangkok and the resort markets. Investors and international hotel operators remain positive about the long term prospects for the Thai tourism market despite recent weaker performance.

The number of tourist arrivals increased to 9.59 million in the first eight months of 2007 up from 9.37 million during the same period of time in 2006. European arrivals grew by 14.3% in the first six months of 2007. East Asian arrivals were down by 3.9% and South Asian increased by 10.5% during the same period last year.

Thailand has been successful in attracting visitors from some new markets. The number of visitors from Russia increased to 139,000 in the first six months, a 51% increase year-on-year. India is now a growing market with about 265,000 visitors in the first six months, an increase of 14% from the same period last year. Middle East arrivals were also up 20% on a year-on-year basis.

There were weaknesses in other markets. Visitors from Malaysia dropped by 12%, Japan by 7%, and China by 18%. China is one of Asia’s fastest growing markets with 37 million Chinese expected to travel overseas this year. In the first six months, Thailand only attracted about 2% of the total Chinese overseas travellers.

“We expect that overall occupancy rates for Bangkok’s four and five star hotels will only be 70% in 2007 compared to 75% in 2006,” said Mr. Navaphol Viriyakunkit, head of Research Services at CB Richard Ellis Thailand. The reasons for low occupancy rates have been political uncertainties, the New Year’s Eve bombings and a weak economy.

The average room rate for four and five star hotels in Bangkok has increased slightly in Baht terms by 2% year-on-year, but the appreciation of Thai Baht against the US dollar has increased the rate in US dollar terms by more than 10% from last year. It is likely that rate will hit $170 per night at the end of 2007 compared to about $158 at present. Some hotel operators are going to change their contract rates from dollars into baht because of the appreciating currency. A typical hotel in the luxury (five to six star) category will have an average daily room rate (ADR) of over THB5,500 a night, while ADRs of first-class (four star) hotels ranged THB4,500-5,500.

CB Richard Ellis projects that more than 2,000 new four and five star hotel rooms will be completed in Bangkok in 2008, raising the supply by 24% from 2007. Major hotel developments that are due next year include Centara Grand at CentralWorld, The Regent Bangkok and Sofitel Sukhumvit Bangkok. Competition is expected to increase throughout 2008.

In Bangkok, serviced apartments are also competing with hotels and many offer daily rates. The total supply of serviced apartments is expected to top 10,000 units at the end of 2007, and exceed 12,000 units in 2008. The increase in supply will mean that more serviced apartments look for daily guests, increasing the competition with hotels.

International hotel operators want to establish their brands in Thailand not only in Bangkok but also in resort locations such as Phuket, Krabi, Phang-nga and Samui. Starwood has announced that they will operate a St. Regis hotel in Bangkok and W hotels in Bangkok and Koh Samui.

CB Richard Ellis believes that growth in international hotel operators will be positive for Thailand by both raising the quality of the total hotel supply, and harnessing the marketing power of the international operators to attract visitors to Thailand.

There will continue to be rising competition in the Asian tourist markets. India and Vietnam are new competitors attracting rising numbers of visitors. Thailand has had continued success in Europe and new markets such as Russia, India and the middle east, but has suffered set backs in the East Asian markets, particularly the fast growing Chinese market.

Title: Business Hotels in Bangkok, Thailand With Central Location

Better Business Hotels

When yearning for luxury after harrowing business meetings abroad, we should always refer to a general rule of thumb to find the most suitable hotel for the cause. My aim in this article is to try and pinpoint those main points-not only for the business stayer but for the arranger also, to help the weary business person and guests find a relax nest-haven where they can temporarily wind-down, away from the gruel of business.

Apart from the obvious facts of class and style not to mention the ominous matter of affordability, a large majority of business hotels should be located in the heart of the commercial business area of the city. They should offer a range of rooms from superior standard rooms to suite and deluxe rooms plus 100% reliable services. They should have access to all the city attractions, historical sites and convention centers. Staff service should be second to none.  Let’s take a look at these plus some of the conditions I would definitely ask for…

1. Locality

The hotel location should ideally be in a convenient area at the heart of Bangkok’s business center, and also slightly set back “away from it all” to allow for a happy medium. Make sure access to and from the international and domestic airports is easy and available. Less than 90 minutes to airport access by car or by public transport is recommended. Easy access to all business points, but not forgetting the available access to tourist attractions. Business people also need tour-timeout, as it not only helps wind-down, but also helps innovation!

Tip: Make sure transport access is available and efficient.

2. Service

Apart from hotel service and staff efficiency-which go without saying, service should also include the amenities in the vicinity of the hotel and the kind of service offered from the surrounding shops, restaurants etc. Poor service from surrounding amenities would almost certainly reflect badly on you and your business associates.

Tip: Check your business hotel vicinity.

 

3. Function Rooms and communication

Hotel function rooms should be spacious, luxurious and air-tight private. Suitable for all kinds of business people and comfortable enough to hold all day conferences.  The communications equipment available should include, high speed internet access-either wireless or wired to allow multi-port access. Over-head projectors, PC interface projectors, screens, white boards and flip-boards.

Tip: Check the tools available and make sure utmost privacy from other parts of the building can be secured.

 

4. Food

The food should allow for an international flavour-by taking into account nationalities and religions of your business guests-some of your guests may have special needs. Recommended cuisine for businesses is a combination of vegetarian Thai, Japanese or Chinese. All food should be authentic, ornate and able to impress.

Tip: Check the menus, check the rating.

 

5. Rooms

The business hotel should offer an extensive range of rooms that should be spacious, luxurious, and perfectly kempt at all times. Standard types to suite types fit for kings with high-tech communications, amenities, large-size beds, good views and everything any guest would need for a five star stay.

Tip: Check out the rooms.

 

Business Hotels with Suite Room

Atmosphere is also prerequisite for any good hotel. It should be slightly set back away from main drag as an idyllic retreat ideal for both relaxing and working.  A good example of such a hotel in the center of the Bangkok, would be the Tai-Pan Hotel off the Asoke and Sukhumvit Roads. It has convenient access to all of Bangkok’s business areas, the tourist attractions and close to the Skytrain. The Tai-Pan hotel has an extensive range of 146 rooms and function rooms available. Catering to the needs of both business and traveller alike, it boasts authentic Thai and Japanese cuisine, sports an all-purpose gym and a gorgeous outdoor swimming pool.

Luxury Alliances in Thailand: 5 Star Hotels in Bangkok