New completed hotel residence units in South-east Asia will represent a massive 83 per cent rise over existing supply between 2018 and 2020, with Danang, Phuket, Kuala Lumpur, Bali and Bintan the top pipeline project locations, according to C9 Hotelworks.
“Currently across South-east Asia, there is an estimated 94 mainstream hotel residence projects with more than 21,000 units online. This year 15 hotel branded projects will be completed and 2,496 units will enter supply. The region is expecting a sharp rise in supply in 2018 with 43 projects currently under development,” said Bill Barnett, managing director of C9 Hotelworks.
The report further shows that projects are largely established in resort areas, accounting for 75 per cent of the current supply overall. For those under development, over 78 per cent of the properties are located in resort destinations, with over 95 per cent set in Indonesia, Vietnam and Thailand.
With an onslaught of supply entering the market, developers are looking to increase sales by offering guaranteed yields, especially in emerging markets such as Vietnam, Indonesia and Cambodia, C9 Hotelworks observed.
And as domestic demand flattens and overseas buyers increase, Barnett said “widening reforms for foreign property ownership are expected to further push transaction volume given the region’s favourable price competitiveness”.
Branded hotel chains continue to dominate the market, with 148 projects representing 79 per cent of existing and new supply. C9 Hotelworks said its latest research reflects that the marketwide premiums of recognised hospitality groups range between 25-35 per cent versus independent properties. Chains that are most active include Marriott, Banyan Tree, Hyatt, Melia and Minor.
Original content is on http://www.ttgasia.com
“With a tremendous number of new “condotels” coming onto the market with artificially inflated returns for cracker box-sized rooms, Ocean Boutique stands out with it’s Boutique size and units that are twice as large as many branded developments on the market, and professional hotel management team already in place.”