Thailand is leading the way in Southeast Asia when it comes to hotel-branded residential projects with 4,775 units in 44 developments totaling USD3.5 billion currently for sale on the market, according to research from hospitality consulting group C9 Hotelworks. Phuket, Bangkok and Pattaya are Thailand’s most popular locations for these hotel-branded residential projects.
The research showed well-known hotel brands have been recruited to help increase the overall value of projects. The main reason behind the boon has been a willingness by developers to embrace mixed-use projects that have both residential and hotel elements. That’s because land prices continue to increase and developers need to find news ways to add value of their projects. Many developers include commercial, sporting and tourism attractions as part of broader lifestyle offerings at many mixed-used projects.
“The historic pattern of hotel and real estate marriages has moved away from the beach and leisure destinations and is gaining traction in urban city offerings,” said C9 managing director, Bill Barnett. “Traditional lifestyle buyers are being supplanted by end users, with Asians representing the largest transaction segment. Bangkok’s stirring success story at the St Regis Residences demonstrated this, while the more recent Four Seasons offering has struck a chord with both local and overseas buyers.”
Mixed-use hotel-branded developments now make up 26 percent of the market in urban locations and 14 percent for resort destinations. Thai hospitality groups such as Minor, Centara, Onyx and Dusit are increasingly tapping into the movement both domestically and abroad to get the most out of its projects.
With 37 percent of hotel projects in the country including residences, Thailand is the largest market for these in Southeast Asia followed by Indonesia at 22 percent. Southeast Asia’s hotel residence market recently surpassed USD16 billion in value and continues to grow. At the moment there are 28,000 units in 120 projects for sale across the region.
Image: St Regis Residences Bangkok
