Research File 0690 345 q3 10 Bangkok Luxury Hotel Market View

8/7/2019 Research File 0690 345 q3 10 Bangkok Luxury Hotel Market View

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Bangkok Luxury HotelThird Quarter 2010www.cbre.com/research

CB RICHARD ELLIS

The hotel sector in Bangkok saw increased levels of tourists only a few months

after the political unrest which had resulted in the closure of many hotels in the

central business district. The improvement indicates the strength and the

resiliency of the Thai tourism market. The number of disembarking

international passengers at all Airports of Thailand Public Company Limited

(AOT) managed airports in Bangkok increased by 21.8% Q-o-Q or 9.7%

Y-o-Y. Tourism in Phuket also continued to grow rapidly with the number of

disembarking international passengers increasing by 46.3% Y-o-Y in Q3

2010.

Increase tourist arrivals led to higher occupancy levels for upscale hotels in

Bangkok in Q3 2010, an increase from 45% in Q3 2009 to 52% in the same

period this year. However, the Average Daily Rate (ADR) decreased by 8%

Y-o-Y to THB 4,898 in Q3 2010. Revenue Per Available Room (RevPAR) was

Quarterly Highlights

In Q3 2010 the Ave rage Dai ly Rate

Change inQ2 10

Change inQ3 10

Occupancy (%)

ADR (USD)

RevPAR (USD)

Quick Stats

2010, CB Richard Ellis (Thailand) Co. Ltd.

THB 2,406 in Q3 2010, an increase from THB 2,373 in the same period last

year. This was a Y-o-Y decrease of 1.4%.

The recovery in tourism numbers has been remarkable especially as business

travel and the MICE market has not yet recovered. Phuket has not been

significantly impacted, in fact arrivals numbers continue to grow beyond 2008

levels.

There is a growing concern over increasing competition that will come from

the large future supply of hotels in Bangkok. Significant additions to the current

hotel stock of 28,002 keys are expected over the next 3 years. There are

approximately 10,003 new keys scheduled to be added to the hotel stock by

the end of 2013, bringing the total hotel supply to 38,005. This represents a

36% increase on current figures.

Increases in serviced apartment supply in the future will further intensify

competition. The supply of serviced apartments increased by 13% Y-o-Y in Q3

2010 to 14,062 and is expected to grow by an additional 11% by the end of

2012 to 15,653.

was THB 4,898, a decrease of 8.0%

from THB 5,322 in Q3 2009.

Revenue per Available Room (RevPAR)of upscale hotels in Bangkok was THB

2,406 in Q3 2010, an increase from

THB 2,373 in Q3 2009, a Y-o-Y

increase of 1.4%.


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MarketViewBangkokLuxury

Hotel

Total Hotel Supply in Bangkok by Class andArea, Q3 2010 The majority of Bangkok hotels in the downtown area are mid-

range hotels, with a total of 13,491 room keys. This accounts

for 48% of the total downtown Bangkok hotels, followed by

first-class hotels with 5,828 room keys (21%), luxury hotels

Hotel Supply in Downtown Bangkok, Q3 2010

Supply

During Q3 2010, the total number of hotel rooms in downtown

Bangkok was 28,002, an increase of 4.6% Q-o-Q and 7.0%

Y-o-Y. Supply grew by 519 keys with the completion of twonew hotels this quarter. The 303-key Siam Kempinski is

located on Rama 1 Road, adjacent to Siam Paragon, and

while the 216-key Novotel Bangkok Fenix Silom is located at

the end of Silom Road.

Source: CBRE Research

Riverside

17.1%

Sliom/

Sathon

24.4%

Ploenchit/

Sukhumvit

58.5%

Q-o-Q Y-o-Y

Luxury 3,157 937 700 4,7944,7944,7944,794 6.7% 18.5%

First-Class 1,713 1,224 2,891 5,828 0.0% 1.6%

ClassPloenchit/

Sukhumvit

Silom/

SathonRiverside Total

% Change of Total

ThirdQuarter2010


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Future Hotel Supply in Downtown Bangkok,Q3 2010

, ,

room keys (14%).

The Ploenchit/Sukhumvit district is where most of the hotel

supply in downtown Bangkok is located, representing 59% of

the total stock. This is followed by the Silom/Sathorn area with

24% and Riverside at 17%.

For 2010, there will be another 1,468 keys expected to be

completed. This will be made up of 405 first-class rooms, 512

mid-range rooms and 551 economy hotel rooms.

Mid-range 9,259 3,033 1,199 13,491 1.6% 6.9%

Economy 2,258 1,631 0 3,889 0.0% 1.3%

TOTAL 16,387 6,825 4,790 28,002 4.6% 7.0%


Total No. of Units % Change Y-o-Y

Q3 2010 28,000 5%

2010F 29,500 11%

2011F 35,300 18%

2012F 37,300 2%2013F 38,000 2%

2014F 38,800 2%


TotalYear


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MarketViewBangkokLuxury

Hotel

RevPar, ADR and Occupancy Rate of SelectedUpscale Hotels in Bangkok, 2003-Q3 2010

In Q3 2010, the occupancy rate for luxury and first class hotels

increased to 52% from 45% in Q3 2009.

Demand & Price

The number of international arrivals increased in Q3 2010 by

10% Y-o-Y to 3,783,982 from 3,448,017 in Q3 2009.Tourism in Bangkok appears to have now fully recovered from

the Apri l and May riots that had a severe impact on tourist

arrivals in the second quarter.

Number of Disembarking InternationalPassengers of Suvarnabhumi and Don Muang

Airports, 2004-Q3 2010

Year Total % Change Y-o-Y

2004 12,836,250

2005 13,402,129 4%

2006 14,871,209 11%

2007 15,798,690 6%

2008 15,061,317 -5%

2009 14,454,954 -4%

Q3 2010 3,783,982 10%Source: Airport of Thailand

175

200

225

70%

80%

90%

100%

ThirdQuarter2010


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Revenue Per Available Room (RevPAR)Revenue Per Available Room (RevPAR)Revenue Per Available Room (RevPAR)Revenue Per Available Room (RevPAR)

As of Q3 2010, RevPAR of upscale hotels in Bangkok was

USD 79, a 12% increase from USD 71 in Q3 2009. In terms

of Thai Baht, RevPAR increased to THB 2,406 from THB2,373 in Q3 2009, showing a decline of 1% Y-o-Y.

Average Daily Rate (ADR)Average Daily Rate (ADR)Average Daily Rate (ADR)Average Daily Rate (ADR)

As of Q3 2010, the ADR of selected upscale Bangkok hotelswas USD 162, an increase of 2% Y-o-Y. In terms of the Thai

Baht, the ADR stood at THB 4,898, a decrease of 8% Y-o-Y

from THB 5,322.

0

25

50

75

100

125

200

3

200

4

200

5

200

6

200

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200

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9

Q1201

0

Q2201

0

Q3201

00%

10%

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30%

40%

50%

60%

RevPAR (USD) AD R (USD) Occ Rate


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MarketViewBangkok Luxury Hotel

Occupancy Rate (OCC):

The percentage of room nights occupied to total

room nights during a given period of time.

Average Daily Rate (ADR):

The average daily rate of rooms that are

occupied during a given period of time.

Revenue per available room (RevPAR):

A ratio used to measure financial performance

in the hospitality industry (OCC multiplied by

ADR).

For more information regarding theMarketView, please contact:Kulwadee SawangsriExecutive Director of CBRE HotelsT. 66.2.654.1111 ext 301 F. [email protected]

Khanitha JarukiratiAssociate Director of Investment &Resort Land Services

Outlook

The fourth quarter of 2010 will determine the overall performance of the Thai

tourism industry in 2010 and will indicate the growth prospects for the coming

year. The upcoming high season will be crucial for the hotel industry which

has suffered from numerous events in the past year. We expect that thecontinued imposition of the emergency decree in many provinces of Thailand

will have some bearing on tourist arrivals in the next quarter. The hotel sector

is also faced with the rapid appreciation of the Thai baht which has resulted in

increased room rates in terms of USD despite the decline in ADR in terms of

Thai baht.

The main challenge facing Bangkoks hotel industry will continue to be the

new supply of new hotels and serviced apartments that are expected to be

completed by 2013. Increased competition from these developments will put

pressure on occupancy and rates that have already suffered from numerous

events.

CBRE Research Services Subscription Products

Bangkok Property Report

The Bangkok Property Report, now in its 13 th year, is CB Richard Ellis

For more information regarding theMarketView, please contact:

James PitchonExecutive Director of CBRE ResearchCB Richard Ellis (Thailand) Co. Ltd.46th Floor, CRC Tower, All Seasons Place87/2 Wireless Road, Lumpini, PathumwanBangkok 10330 ThailandT. 66.2654.1111 F. [email protected]

2010 CB Richard Ellis (Thailand) Co. Ltd. CB Richard Ellis statistics contained herein may represent a different data setthan that used to generate National Vacancy and Availability Index statistics published by CB Richard Ellis CorporateCommunications Department or CB Richard Ellis research and econometric forecasting unit, CB Richard EllisEconometric Advisors. Information herein has been obtained from sources believed reliable. While we do not doubt itsaccuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility toindependently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are forexample only and do not represent the current or future performance of the market. This information is designed

exclusively for use by CB Richard Ellis clients, and cannot be reproduced without prior written permission of CB RichardEllis.

T. 66.76.239.967 F. [email protected]

For more information, please email [email protected] or call +66.2.654.1111 ext 205.

Phuket Property Report

The Phuket Property Report, the latest quarterly subscription report by CB

Richard Ellis Research Services in Thailand, is an initiative designed to bring

professional analysis and transparency to the growing Phuket property

market.

The report provides detailed information and analysis from CB Richard Ellis

comprehensive and unrivaled Phuket and overall Thailand database,

combined with our own exhaustive market and property surveys.

Thailands flagship quarterly subscription publication, with data from a tried

and tested database reinforcing its reputation as Bangkoks definitive property

sector source.

The Bangkok Property Report provides in-depth analysis of the Bangkok realestate market, including property supply and demand, occupancy, take-up,

prices, rental trends and other indicators.
http://www.cbre.co.th/en/Phuket-Property-Report.asp?utm_source=MarketView&utm_medium=Mailer&utm_campaign=BKKHotelQ310http://www.cbre.co.th/en/Research-Bangkok-Property-Report.asp?utm_source=MarketView&utm_medium=Mailer&utm_campaign=BKKHotelQ310

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Research File 0690 345 q3 10 Bangkok Luxury Hotel Market View