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Raimon Land welcomes Singaporean entrepreneur
Company announces plans for regional expansion
(From left) Raimon Land
Directors Johnson Tan and Lionel Lee pose with company Chairman, Pradit
Phataraprasit, and Chief Executive Officer, Hubert R Viriot.
Well-regarded entrepreneur Lionel Lee, who heads
Singapore-listed Ezra Holdings Limited (‘Ezra’), has recently acquired a
substantial stake in Raimon Land PLC, one of Thailand’s leading high-end
property developers.
Taking on a new role as director and strategic shareholder, Lee, through his
wholly-owned company, JS Oil Pte. Ltd., has replaced IFA Hotels & Resorts 3
Limited as Raimon Land’s largest shareholder, purchasing a 24.97%
shareholding for THB 2,143,200,000 in a transaction completed in February.
Lee is well known for the development of the Singaporean offshore oil and
gas services company, Ezra Holdings Limited. Over the past decade, he has
grown Ezra and other SMEs into world class, global players with listings in
Singapore, Norway and Malaysia, and a total market capitalization of nearly
US$2 billion, with over 5,000 staff worldwide. Under his visionary
leadership, the Ezra Group has also launched two other listed entities,
including the recently listed TRIYARDS Holdings Limited, a shipyard that has
expanded significantly since it was taken over in 2005.
In recent years Lee has further diversified his interests into real estate
and hotel management with the successful development of Tower 15, an
impressive 30-storey, high-rise skyscraper in Singapore’s central business
district that is now home to many well-known Oil & Gas companies, boutique
hotel klapsons, and popular sky-terrace bar Fabrika.
Klapsons The Boutique Hotel (‘klapsons’), the 2012 winner of Singapore’s
Best Boutique Hotel award, opened in 2009 during the economic downturn, but
quickly became an immediate hit with business travelers seeking a stylish
alternative to mainstream hotels. Designed by William Sawaya of contemporary
design forerunner Sawaya & Moroni, the unique hotel has also won several
prestigious design awards. klapsons is managed by Wisteria Hotel Management
Pte Ltd, a subsidiary of Lee’s family-owned Jit Sun Investments.
Commenting on his latest investment, Lee said, “Raimon Land stands out
clearly as Thailand’s leading luxury real estate developer and, like me,
they are passionate about exceptional quality and innovation. The Group has
bright prospects with its unique offering which resonates well with an
emerging populace that demands affordable luxury and identifies with strong
brands. I believe the company has great potential to expand regionally, and
I look forward to working closely with Raimon Land and their management team
in identifying opportunities for growth in Thailand and throughout the Asia
Pacific region.”
Lee continued, “We are pleased to warmly welcome Pradit Phataraprasit as
Raimon Land’s new Chairman of the Board. We believe that under his
chairmanship, he will lead Raimon Land to new heights.
Hubert Viriot, Chief Executive Officer of Raimon Land said, “This is an
exciting development for the company. Phataraprasit’s chairmanship and Jit
Sun’s investment and strategic contributions are well-timed to extend the
company’s business horizons geographically. Going forward we will work
closely to develop new plans for Raimon Land’s expansion both in Thailand
and in other countries.”
Raimon Land has achieved a major turnaround since 2009 with a solid platform
of projects under development in Thailand. Having successfully established
its leadership position in the Thai market, Raimon Land’s on-going projects
and new growth opportunities look to continue to provide a secure stream of
cash-flow and returns to shareholders.
The acquisition was advised by Johnson Tan of IB Partners.
Special promotions from Raimon Land
Raimon Land is now offering some great promotions on is developments in both
Bangkok and Pattaya. From now until 31 March 2013, The River, in Bangkok,
and Zire Wongamat, in Pattaya, come with bonus packages to make the
transition to a new lifestyle relaxing and worry-free.
For the ultimate residence on the Chao Phraya, buyers of The River will get
a chance to explore their creativity with the award-winning brand Mobella.
The special ‘Stylish Living’ promotion offers vouchers valued up to 700,000
THB to buyers of The River Condominium. With The River now ready for
occupancy, it is the perfect way start building a home along the banks o the
Chao Praya.
For beachfront paradise buyers, investors in the Zire Wongamat can
immediately experience the pinnacle of seclusion and tranquility of
Pattaya’s most exclusive beach. The marvellous ‘Romantic Maldives’ offers a
dream holiday package for two at Club Med Kani including airline tickets
from Bangkok Airways. Scheduled for completion in 2014, Zire Wongamat will
be Pattaya’s newest beachfront experience for the modern generation.
For more information on The River and Zire Wongamat, call 02 651 9600 or
visit www.raimonland.com.
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Thailand Property Awards 2013 officially launched
The eighth annual Thailand Property Awards were
officially launched on Tuesday 19 February at a special event hosted by the
organisers Ensign Media Ltd at the Westin Grande Sukhumvit Hotel in Bangkok.
The launch included a presentation and detailed explanation of this year’s
property awards schedule, with information on the judging process provided
by Sunchai Nuengsit, managing director of Builder Smart PCL and chairman of
the central judging panel, followed by a Q&A and networking session.
Organizers and judges for
this year’s Property Awards pose for a group photo.
In addition to well established awards such as Best
Developer Thailand, which last year went to Charn Issara Development PLC,
Best Boutique Developer Thailand, plus a host of regional awards for the
best condominiums and villa developments on the Eastern Seaboard, Phuket,
Koh Samui and in Chiang Mai, the 35 categories announced at the event also
included four new awards for this year: Best Residential Development (Khao
Yai), Best Villa Rental Agent, Best Villa Architectural Design and Best
Villa Interior Design.
This year, awards for Best Property Management Company will also be given
for Bangkok and the resort sector.
Terry Blackburn, CEO of
Ensign Media Ltd., addresses the media at the launch of the 2013 Thailand
Property Awards.
“The quality and scope of real estate in Thailand is
improving every year and the Thailand Property Awards not only reward the
best in the industry, but also offer investors a crucial benchmark for
excellence,” said Terry Blackburn, CEO of Ensign Media Ltd. “We received
over 1,400 nominations last year and judging by the response so far we
expect even more in 2013.”
To enter the 2013 Thailand Property Awards, real estate companies and
projects must be nominated by a third party and the entire judging process
is monitored independently by BDO Advisory to ensure that that the judging
process is undertaken fairly, without bias or favour. Several hundred
companies have already been put forward in a wide range of categories, with
many more expected before nominations close on March 22 and the judges begin
the arduous process of selecting a shortlist of winners.
“I am delighted to be leading the judging panel this year,” said Sunchai
Nuengsit. “It’s a tough job selecting winners from such a wide range of
nominations, but with a team of experienced fellow judges to work with and
site visits teams ready to inspect the all projects that qualify, I am
confident we will narrow down the list and award the very best properties
and companies that Thailand has to offer in 2013.”
The Thailand Property Awards Gala Dinner and awards presentation ceremony
will be held at Centara Grand & Bangkok Convention Centre at Central World
on 19 September 2012.
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Sansiri launches The Base Central Pattaya
Uthai Uthaisangsuk, Senior
Executive Vice President of Sansiri PLC.
Sansiri PLC.’s latest condominium venture in Pattaya sold
90 percent of its units within five days of its grand opening.
Senior Executive Vice President Uthai Uthaisangsuk said The Base Central
Pattaya, a 3.1 billion project on Second Road and Soi 11, already booked 2.1
billion in units before the Feb. 19 opening. The company had held the bottom
two floors of units open for the opening party, and most of those were sold
within days.
The two-tower project, whose buildings will rise 27 and 31 stories, offers
condo owners a prime location only 200 meters from Central Festival Pattaya
Beach and even fewer steps to the beach.
The Base will feature 2 towers
rising 27 and 31 stories.
“It has a concept to reflect the fun lifestyle for the
beach goers,” Uthai said. The exterior will be decorated with lights and
diagonal lines and all units have a sea view.
Floor-plans include one-bedroom units from 28.5-34.5 sq. meters, a
two-bedroom, one-bath unit measuring 51 sq. meters, and a two-bedroom unit
with two baths measuring 61.5-69.5 sq. meters. Prices begin at 1.99 million
baht.
Construction is slated to begin later this year and be completed by 2016.
(By Phasakorn Channgam)
An artist’s drawing shows the
rooftop pool and spectacular sea view from The Base condominium in central
Pattaya.
Units come in a variety of
sizes to suit a broad range of budgets and requirements.
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Tulip Group to start construction of Centara’s 5th Pattaya hotel
Tulip Group’s Centara Avenue
Residence & Suites.
Luxury property developers the Tulip Group have confirmed
that construction of their newest Centara Hotel will begin this month. The
hotel is part of a mixed use development of both condominium and hotel named
Centara Avenue Residence & Suites. Construction of the condominium is
already underway, and now that all permits are in place Tulip will start
preparations for the piling works for the hotel part of the project.
In addition to this hotel Tulip Group are also developing Centara Grand
Resort & Spa Pattaya, which is in its final stages and will open in the last
quarter of this year, and Centara Grand Resort & Spa Jomtien, which is due
to open late 2015 early 2016.
Centara Avenue Residence & Suites will feature 380 condominium units and a
100-key hotel, the condominium was launched 18 months ago and is now 95%
sold out.
“I think the sales figures for the condominium has shown the power of the
name Centara - our clients are extremely excited about Centara managing both
the hotel and the condominium,” said Jason Payne Tulip Group Vice President.
“As a company we are very excited to start the construction of the onsite
hotel - Tulip Group and Centara have a strong working relationship, and I am
confident that this property will play an important role in their property
portfolio in Pattaya,” he added.
Three new projects announced
At the end of February, Tulip Group also announced they had purchased three
new land plots in Pattaya with plans to build three new hotels and one
condominium.
“We are delighted to have found these plots of land, we are especially happy
with being able to secure the land on Pratamnak Hill, it will offer stunning
views of the ocean, and has great beach access, it is a great area and we
have plans for something very special on this land,” commented Jason Payne
The other plots are further north in Naklua area, in Soi 12 and Soi 16.
Tulip Group has confirmed that they are in talks with three high profile
hotel operators, and hope to secure agreements for hotel management in the
near future.
“Negotiations are progressing very well, our design teams are already in
place and working on concepts for the properties that we have planned, we
will continue our business model of only offering branded residences, as we
believe the condominium hotel mix offers clients many more benefits, than
just a standalone condominium “ added Payne.
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Hilton continues
record growth
Hilton Worldwide now has a
presence in 90 countries around the globe. (Photo Wikipedia commons)
Hilton Worldwide continues to be the fastest growing
global hospitality company by number of rooms. In 2012, it opened 171 hotels
with more than 28,000 rooms and has the largest pipeline in the industry and
in its history, including nearly 1,000 hotels with nearly 170,000 rooms. It
also has more than 85,000 rooms under construction, which is more than half
of its total pipeline and more than any other hospitality company.
Since 2007, Hilton Worldwide has increased its total amount of rooms by 32
percent and opened more than 1,100 hotels globally. It has also expanded
from a presence of 77 to 90 countries and territories.
In 2012, Hilton Worldwide continued its rapid growth in each region of the
world, and more than 60 percent of its pipeline and nearly 80 percent of its
rooms under construction are now outside the United States. It has the
largest pipeline of any hospitality company in the Americas, Europe and
Middle East & Africa, and the most rooms under construction in Asia Pacific,
Europe and Middle East & Africa. It also has the second largest pipeline in
Asia Pacific, and the second most rooms under construction in the Americas.
“In 2012, we achieved phenomenal success and further established ourselves
as the preeminent hospitality company by adding to a long list of
accomplishments from the last five years,” said Christopher J. Nassetta,
president and CEO, Hilton Worldwide. “We continued to find even more ways of
providing the very best service to our guests around the world and
benefiting the communities where we operate, including delivering thousands
of new jobs as a result of our unprecedented growth.”
Hilton Hotels & Resorts has expanded its portfolio to 80 countries and
territories as it entered Qatar, Peru and Lebanon. DoubleTree by Hilton
added 49 hotels to its brand portfolio and entered four new markets: Spain,
Thailand, Croatia and Japan, opening its 300th hotel in Okinawa.
Embassy Suites Hotels maintained the largest pipeline among U.S. upper
upscale brands and opened three new Design Option III properties, a concept
that allows its developers more flexibility.
Hilton Garden Inn opened its 500th hotel in the Americas and entered new
countries including Switzerland, Argentina and the Netherlands.
Meanwhile Home2 Suites by Hilton continued its rapid growth with 13 hotels
currently open and more than 70 properties in the pipeline, including its
first properties in Canada and Mexico.
Hilton Worldwide also announced several other major accomplishments in 2012,
including achieving its five-year goal to reduce total waste output by 20
percent, a full two years ahead of schedule, as well as over $147 million in
cumulative savings from efficiency projected for hotels reporting through
LightStay, its proprietary sustainability measurement system. (Business
Wire)
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CW Asset launches Abatalay Condominium at Jomtien Beach
An artist’s rendering shows
the Abatalay Condominium development in Jomtien.
CW Asset Co is set to launch their newest affordable
ocean side condominium development on March 16. The launch party and booking
event for Abatalay Condominium is set to start at 9 a.m. with a reception at
4 p.m. There will be a special promotional bonus of free furniture and air
conditioner for buyers making a reservation on March 16. All are invited to
attend.
The new Abatalay Condominium is located at Jomtien Beach and features 23sqm
studio condo units in an 8 floor building with roof top pool. The 216-unit
condo development is located between Soi Wat Boon and Soi Chiayapreuk on Wat
Boon Soi 3. Take Sukhumvit Road or the new Jomtien 2nd Road for quick access
from central Pattaya.
Located close to Jomtien beach it is an ideal investment opportunity for
investors looking for good annual return and long term appreciation. The
23sqm Studios start at just 699,000 baht and can be combined to create one
and two bedroom condo units. Facilities include underground parking, central
atrium with Koi pond, rooftop pool and fitness center, wifi, 24hr reception
desk, CCTV security with ground floor market and café.
With the official launch, the company expects to sell out soon. Buyers
making a purchase now will see the value of their unit rise as prices will
increase as the building goes up. With starting prices of just 30,000
baht/sqm it makes the price of the Abatalay Condos 30% under local market
values.
During the Abatalay Condominium pre-launch sale, running since November
2012, CW Asset has already sold close to 40% of the available units.
“Sales have been very strong for these affordable ocean side condos”, said
Imorn Luekhamharn, Managing Director of CW Asset Co.
For more information, readers may visit the company’s website at
www.cwasset.com. Contact the professional staff at info@ cwasset.com. For
sales assistance call (Thai) 085 272 8228, (English) 091 232 7981 or
(Russian) 091 232 7983.
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Habitat Five launches The Ville Jomtien
Chanint Wanitwong (right), MD of The Ville
Jomtien, talks to the media and prospective investors during the launch day
of The Ville Jomtien.
(By Phasakorn Channgam)
Habitat Five Co. is offering three resort-style designs
in its new The Ville Jomtien housing development in Jomtien Beach.
Managing Director Chanint Wanitwong unveiled the 300 million project on Soi
Chaiyapruek 2 near Sukhumvit Road Jan. 31. Aimed at European buyers, the
development has already sold half its 82 units, he said.
Chanint said the 32-rai The Ville Jomtien marks a change for Habitat Five,
which primarily has built condominiums during its eight-year history.
Although located near railroad tracks, the development is designed to give
homeowners the feeling of living in a nature resort while in the middle of
the city.
Three layouts are available: A two-bedroom “Resort Villa” beginning at 2.6
million baht, three-bedroom “Pool Villa” starting at 5 million baht, and
four-bedroom “Grand Villa” starting at 6 million baht.
Sales are expected to close this summer, with construction complete sometime
next year.
Exterior of a Resort Villa
house.
All properties feature
stylishly decorated interiors.
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SRT to push ahead with Makasan mega-project
The Governor of the State Railway of Thailand (SRT),
Prapat Chongsanguan, has said that the SRT’s mega-investment project Makasan
Complex is set to go ahead.
Prapat said the SRT management is discussing the Terms of Reference (TOR)
for the auction to find the developer of the project. The terms of reference
are expected to be published in the next 1-2 months.
The Governor said the Chairman of the SRT board, who is also the current
Dean of Chulalongkorn University’s engineering department, has extensive
experience in property management, having managed Chulalongkorn University’s
properties and overseen the university’s contract with the MBK shopping
center.
The Makasan Complex project plans to turn the area around Makasan train
station into an important income source for the SRT, by transforming it into
a commercial area. The project will require an investment of approximately
200 billion baht, according to the SRT Governor.
The Governor also said that preliminary considerations suggested that the
SRT should rent its land to suitable developers for the duration of 30
years, with an option to renew it for another 30 years if the SRT deems it
suitable. (NNT)
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Marriott set to double in size in Thailand
Company signs landmark deal with TCC Hotels Group for seven hotels
Charoen Sirivadhanabhakdi,
Chairman of TCC Group (4th right) and Simon Cooper, President & Managing
Director Asia-Pacific, Marriott International (3rd left) shake hands at the
official signing ceremony between TCC Hotels Group and Marriott
International. Also in the photo (left to right) are Shawn Hill, Regional
Vice President – Hotel Development Asia-Pacific, Marriott International;
Paul Foskey, Executive Vice President - International Hotel Development
Asia-Pacific, Marriott International; Charles Mak, Managing Director &
President - International Wealth Management, Morgan Stanley; Wallapa
Traisorat and Soammaphat Traisorat - President and CEO, TCC Hotels Group.
Marriott International has announced the signing of seven
management agreements with TCC Hotels Group which will see the US
hospitality company operating seven TCC hotels across Thailand. These
agreements make the TCC Hotels Group the largest owner of Marriott
International hotels in Asia Pacific.
The seven hotels are: The Imperial Queen’s Park Hotel, Bangkok to be
rebranded as Bangkok Marriott Hotel Queen’s Park; Imperial Adamas Phuket
Beach Resort to be rebranded as Phuket Marriott Resort & Spa, Nai Yang
Beach; Hua Hin Marriott Resort & Spa; Pattaya Marriott Resort & Spa, Jomtien
Beach; JW Marriott Pattaya Resort & Spa; Bangkok Marriott Hotel and
Executive Apartments, Surawong and The Ritz-Carlton, Bangkok.
This landmark agreement will add 3,000 rooms to Marriott International’s
existing 12 hotels of 3,110 rooms across Thailand.
The TCC Hotels Group will represent a variety of Marriott International’s
brands including the Ritz-Carlton, JW Marriott and the company’s signature
Marriott Hotels & Resorts brand. It will see Marriott International take on
the management of two existing hotels and five new build properties across
the country in the strategic tourist destinations of Bangkok, Phuket, Hua
Hin and Pattaya.
Speaking at the signing ceremony in Bangkok, Simon Cooper, Marriott
International’s president and managing director Asia Pacific, said: “We are
delighted to announce this landmark deal for Thailand. TCC Hotels Group is
very well established as a hotel owner and operator around the world and
these seven hotels will add to our already strong portfolio of hotels in the
country.
“I believe this partnership shows our commitment to and faith in Thailand as
a strategically important business and leisure destination in South East
Asia. Managing this portfolio of TCC hotels in the country will allow us to
extend our product offering and brands in Thailand, and enable domestic and
international travellers to experience our hotels and world-class service.”
TCC Hotels Group expects to invest approximately US$500 million for the
seven hotels including an extensive refurbishment of the existing Imperial
Queen’s Park Hotel, Bangkok and the Imperial Adamas Phuket Beach Resort
before being rebranded and opened under the Marriott Hotels & Resorts brand
in 2016.
“TCC Hotels Group believes that Thailand and the group could benefit from
the global network and standards of Marriott International. We are very
excited to be working together with Marriott International, an experienced
global operator to support our growth strategy and our confidence in both
Tourism and MICE business sectors of Thailand,” said Wallapa Traisorat,
President of TCC Hotels Group.
These 3,000 rooms are in addition to Marriott International’s existing
pipeline in Thailand of more than 1,000 rooms, and the company expects to be
managing almost 7,000 rooms in Thailand by 2017 to support the continued
tourism growth for Thailand as it becomes a strategic location of the Asian
Economic Community (AEC).
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New grade A apartment in Bangkok targets Japanese expats
Avora 31 on Sukhmvit Road,
Bangkok.
Baan DSC Co., Ltd. has launched a newly built grade A
apartment (single ownership) for rent in Sukhumvit 31, named Avora 31. This
low-rise apartment building has been designed to meet the requirements of
Japanese expatriates working in the downtown areas of Bangkok, according to
property consultancy firm CBRE.
Avora 31 is a 51-unit apartment development for rent with only 7-storeys,
thereby allowing higher ceilings. Within each unit, a high standard of
modern décor, furnishings and appliances is provided. Facilities for tenants
include a swimming pool, gym, sauna, key-card system, 24-hour security
guard, shuttle tuk-tuk, and parking spaces.
“Sukhumvit 31 appeals to Japanese expatriate tenants who want to live in
Bangkok’s downtown area as there are facilities which match their lifestyle,
such as supermarkets, shopping centres, Japanese restaurants and access to
Phrom Phong BTS station,” says Theerathorn Prapunpong, Director and Head of
Residential Leasing at CBRE Thailand.
Avora 31 offers one-bedroom units with 55 – 66 square metres at THB 38,000 –
45,000 per month, two-bedroom units with 120 - 125 square metres at THB
68,000 - 78,000 per month, and 170-square-metre three-bedroom units at THB
90,000 – 94,000 per month. In January 2013, the developer appointed CBRE as
the marketing consultant, sole leasing agent, and property manager for Avora
31 to ensure the delivery of services to an international standard.
According to the latest survey by CBRE Research, there are approximately
8,500 apartment units, including grade A and grade B properties, located
between Sukhumvit 1 – 65 and Sukhumvit 2 – 44, with fewer than 250 units due
to be completed in 2013. The average occupancy rate of apartments in this
area continues to be very high at 91.4%.
“Given the limited new apartment supply in the downtown areas, I am strongly
confident that Avora 31 will be fully occupied soon,” Theerathorn added.
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Robust investment activity in Thailand’s key hotel markets
Investors lured by strong hotel trading performance and investment yields
The Movenpick Resort & Spa
Karon Beach was sold for a record THB 2.87 billion in 2012.
The latest research entitled ‘Spotlight on Thailand -
Hotel Investment Market’ by Jones Lang LaSalle’s Hotels & Hospitality Group
reveals that Thailand’s major hotel markets saw robust investment activity
in 2012. With strong income growth potential due to continued recovery of
the country’s tourism market, hotel investment in Thailand is expected to
stay buoyant this year.
Mike Batchelor, Managing Director, Investment Sales Asia, Jones Lang
LaSalle’s Hotel and Hospitality Group, commented “2012 was an exceedingly
strong year for hotel investment in Thailand’s key hotels markets, including
Phuket and Bangkok. Phuket, in particular, saw four major hotel transactions
of over THB 1 billion each.”
According to the Jones Lang LaSalle report, the last hotel transaction
recorded in Phuket was the sale of the Bundarika Villas & Suites on Layan
Beach for around THB 1.1 billion which includes redevelopment and
acquisition costs. The other three transactions include The Movenpick Resort
& Spa Karon Beach, The Evason Phuket Resort & Bon Island and Laguna Beach
Resort, with combined value in excess of THB 8 billion. The Movenpick Resort
& Spa Karon Beach was the largest hotel transaction recorded in Thailand in
2012 at THB 2.87 billion.
The report also reveals that there were several hotel sales transacted in
Bangkok and Pattaya last year such as the sale of the Siri Sathorn, a
111-room serviced apartment in the Saladaeng area of Bangkok which was
acquired by a local business group from HKR International. However, most
transactions were not made known to the public as it is still typical in
Thailand for hotels to trade directly between owners and investors.
“Robust investment activity has been driven by strong investor interest in
Thai hotels due to reasonable selling prices that allow for attractive
investment yields ranging between 7% and 9%. In addition, investors
anticipate greater income potential and capital gain. Whilst Thailand’s
hotel sector across all key markets reported strong performance in 2012, the
momentum is likely to continue as the country’s tourism market has recovered
from the Global Financial Crisis and unstable political situation,” said Mr.
Batchelor.
Strong travel demand strengthening hotel performance
According to the Tourism Authority of Thailand (TAT), the number of visitors
to Thailand increased from 14.6 million in 2009 to 19.1 million in 2011. The
year 2012 showed a 16% growth over 2011 with 22.3 million arrivals. The TAT
has forecast total visitor arrivals of 24.5 million for 2013, a 23.5% growth
over 2012. Overall, Thailand’s 14-year Compound Annual Growth Rate (CAGR
1998-2012) is at a healthy 7.7%.
In line with the growth in the number of international visitors, Thailand’s
major hotel markets reported a solid performance in 2012.
Phuket
Last year, the Phuket hotel market enjoyed an average daily rate (ADR) of
THB 3,902 and an average occupancy rate of 72.4%, propelling the revenue per
available room (RevPAR) to THB 2,824, a 10.1% increase from 2011.
Despite the significant growth in hotel supply, with 2,756 additional rooms
anticipated by 2015, the increase in visitor arrivals has provided demand
and the outlook remains positive. Given the current growth rate and an
increase in the number of affluent Asian travellers with greater spending
power, Phuket is poised to retain its position as one of Asia’s most popular
tourist and investment destinations.
Bangkok
The Bangkok hotel market was hit hard by the great floods in 2011 that
resulted in widespread cancellations. However, the market recovered quickly
in 2012, with the RevPAR of three-star, four-star and five-star hotels
showing an increase of 11.6%, 20.7% and 22.6%, respectively. The five-star
sector, which was the best performer across all hotel segments in 2012,
recorded an ADR of THB 4,956 and an average occupancy rate of 68.5%.
An estimated 8,000 rooms across all hotel segments in Bangkok that are in
the future pipeline between 2013 and 2015 may limit further RevPAR growth in
the short term. However, given the rate of land price appreciation, hotel
projects will become harder to get off the ground, with a slower rate of new
room supply potentially assisting in a market recovery in the medium term.
“We expect 2013 to be another strong year for hotel investment in Thailand,
based on several major deals that are now under negotiation in the country’s
major hotel markets of Phuket, Bangkok, Pattaya, Samui and Chiang Mai. Jones
Lang LaSalle is currently marketing two additional properties in Phuket in
the midscale and upscale segments, one of which is eligible for a BOI
incentive, allowing for a majority foreign ownership,” said Mr. Batchelor.
Batchelor also added, “The anticipated formalisation of the new real estate
investment trusts (REITs) legislation in Thailand in 2013 is expected to
provide another source of investor interest across Thailand. The REIT
platform also provides another option to attract foreign investment and is
expected to drive continued growth in the Thailand real estate market,
including the hotel sector.”
(Source: Jones Lang LaSalle Thailand)
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SilverNeedle reveals dynamic expansion plans in Thailand
Iqbal Jumabhoy, MD and Group CEO, SilverNeedle
Hospitality.
SilverNeedle Hospitality’s ‘SilverNeedle Collection’,
which features Riva Surya in Bangkok and 137 Pillars House in Chiang Mai,
has announced its focus on growing the group’s independently owned and
branded luxury boutique hotels in Thailand and key Southeast Asian
destinations to at least 15 properties by 2016.
Iqbal Jumabhoy, MD and Group CEO of SilverNeedle Hospitality, said with
ASEAN Economic Cooperation (AEC) set to become a reality as early as 2015,
Thailand’s importance as a gateway to markets like Myanmar, Laos and Vietnam
would yield fresh opportunities to cater to business travellers in the
region and globally looking for excellent service and high quality boutique
hotels and resorts for business and leisure.
SilverNeedle Collection’s 137
Pillars House in Chiang Mai blends old world elegance with modern day
luxury.
“Thailand especially is a key market for development and
we are actively pursuing opportunities for hotels and resorts that are the
right fit for the ‘SilverNeedle Collection’,” Jumabhoy revealed during a
visit to Bangkok.
SilverNeedle Hospitality manages over 67 properties in Asia-Pacific and
offers an impressive array of hotel management and professional services
that fulfill a need gap in the market from which owners can benefit.
Thailand closed 2012 with a record 22 million tourist arrivals, and with an
office strategically positioned in Bangkok and a global head office in
Singapore, the company appears perfectly poised to begin a new phase of
growth.
Jumabhoy says each ‘SilverNeedle Collection’ hotel and resort has been
carefully selected for its uniqueness and attention to detail: “Every hotel
featured is distinguished by offering guests unique and authentic
experiences in special and desirable locations where service excellence
comes as standard,” he said. “From intimate retreats embraced by nature to
urban havens in the city, our properties are as individual as they are
diverse.”
The ‘SilverNeedle Collection’ debuts with three distinctive properties in
South East Asia: 137 Pillars House, Chiang Mai is a boutique hotel that
revives the old world elegance of the orient and invites guests to enjoy
exceptional modern day luxury.
Riva Surya, Bangkok, a hotel located along the Chao Phraya River in the
heart of Bangkok, adds a touch of style and charm to this bustling locale.
Kiridara Luang Prabang, Laos is an elegant, contemporary boutique hotel
scaled on a hillside and surrounded by native teak forests. It offers
panoramic views of Mount Phou Si.
Jumabhoy continued, “As owners ourselves, we recognize the requirements and
different business cycles within the independent boutique hotel sector in
the Asia Pacific region. It is with the foundation of this understanding
that we have identified the need for a platform like ‘SilverNeedle
Collection.’
“Flexibility is key to the way we operate,” he added. “From pre-opening to
post-opening and beyond, owners can choose from a selection of operational
and management services. We can effectively tailor solutions according to
their specific needs while connecting them to our powerful sales and
marketing platforms, thereby maximizing the potential of each individual
hotel while continuing to retain their unique identity.”
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Bangkok office rents rise - but still cheapest in Asia Pacific
An artist’s impression shows
the interior of Bhiraj Tower in Bangkok.
Bangkok office rents rose to their highest levels ever in
2012 surpassing the previous 1992 peak, according to a report by leading
international property consultancy firm CBRE Thailand. Average grade A rents
in the central business district (CBD) reached a level of 770 baht per
square metre per month and Park Ventures Ecoplex on Wireless Road became
Bangkok’s most expensive office building achieving rents of 925 baht per
square metre per month in 2012.
Bangkok’s grade A CBD rents rose by 9% in 2012; however Bangkok’s office
rents were still the cheapest in the Asia Pacific Region.
The total amount of office space in Bangkok reached 8.1 million square
metres and the overall occupancy rate was 88% compared to 86% at the end of
2011. Total net take up (the growth in the amount of occupied office space)
was 160,000 square metres in 2012 compared to 83,000 square metres in 2011,
demonstrating the increase in demand.
There was 45,000 square metres of new space completed in
2012. There are only 430,000 square metres under construction due for
completion between this year and the end of 2015.
Only 88,000 square metres will be completed in Bangkok’s CBD, Bhiraj Tower a
50,000 square metre grade A building opposite Emporium is due for completion
in 2014 and AIA Sathorn a 38,500 square metre grade A building is due for
completion in 2015.
“There is limited choice of space in grade A CBD buildings,” says James
Pitchon, Executive Director and head of CBRE Research & Consulting. “Sathorn
Square and Park Ventures Ecoplex, the two most recently completed grade A
developments, are now 70% and 87% committed. Tenants wanting more than 3,000
square metres on consecutive floors have few choices.”
Despite the 9% increase in grade A rents, Bangkok remains the cheapest
office location in the Asia Pacific region. Hong Kong was the most expensive
location with prime office rentals of 6,600 baht per square metre per month
more than eight times more expensive than Bangkok even though prime Hong
Kong rents fell by 18% during 2012. Out of 31cities in the Asia Pacific
Region covered by CBRE Research, 20 cities saw rents rise and 11 cities saw
rents fall.
Four out of the five most expensive office locations in the world were in
the Asia Pacific region. Hong Kong (Central) was the most expensive followed
by London (West End), Tokyo (Marunouchi Otemachi), Beijing and New Delhi.
Globally office markets have cooled over the past year with slowing economic
growth in China, recession in Europe and a tepid economic recovery in North
America. There was a marked slowdown globally in leasing activity in the
banking and finance sector. Nonetheless prime office occupancy costs
increased in 74 of 133 markets tracked by CBRE.
Global office occupancy costs have increased 2.1% over the past year led by
the Americas with a 5.2% annual increase, Asia Pacific at 2.6%. Tight market
conditions, strong demand for high quality space and limited new supply are
the major factors driving big increase in occupancy costs in prime office
markets across the globe.
CBRE predicts that demand for Bangkok office space will grow compared to
2012 and because of limited new supply rents will continue to rise,
especially for grade A CBD buildings.
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