The number of branded hotel residences in Phuket is more than double that of Pattaya, the 2nd closest city in terms of numbers, showing the popularity of this property type on the island. Developers in Thailand prefer these as they are more popular with buyers and can fetch higher prices, according to research from C9 Hotelworks.
“In Thailand, Phuket with 13 completed projects and another 13 in the works has a long-standing legacy of hospitality-led residences in such well-known ultra-luxury resorts as Amanpuri, Banyan Tree, and Sri Panwa,” says C9 Hotelworks’ Founder and Managing Director Bill Barnett to the Phuket News.
At the moment, there are 29 new hotel residence projects in Thailand with about 90 per cent being located in resort areas. The top 3 locations for branded hotel residences in Thailand are Phuket, Pattaya, and Bangkok. A few of the Bangkok-based developments have utilised luxury brands to increase prices.
“Over the past few years Bangkok’s Chao Phraya River with marquee branded projects affiliated to the likes of global icons Four Seasons and Mandarin Oriental have pushed prices though the glass ceiling to an average of more than THB315,000 per sq. metre, while the national average selling price in the sector is just over THB101,000 per sq. metre,” says Barnett.
However, it is not just international brands getting into hotel branded residences. Regional companies are active in this sector as well, usually teaming up with popular designers. For example, Thai-based Onyx Hospitality reached a deal with the international design group Yoo to operate their branded properties.
“Despite the presence of legacy global hotel brands that appear in C9’s data across Southeast Asia a number of Thai brands and hotel management groups are well placed such as BHM Asia, Dusit Thani, Minor, and Onyx. C9 concludes that an increasing number of mixed-use projects that feature both hospitality and residential elements and hotel operators who want to drive expansion can’t ignore the strategic benefit of offering developers a holistic management and brand solution,” says Barnett.
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