Bangkok Hotel Market Snapshot April 14

Bangkok
Hotel Market Update
Market Snapshot l Hotels & Hospitality Group
April 2014
Bangkok: Resilient Once Again!
•
•
International visitor arrivals to Bangkok in 2013 increased
20.1% over 2012 to a record 17.5 million visitors.
YTD March 2014 statistics show a decline of 15.0% over the
previous year due to recent political demonstrations in the
capital.
During YTD March 2014, France was the only top 10 source
market recording an increase of 7.7% while arrivals from
other top feeder markets declined.
100
20
80
16
60
12
40
8
20
0
4
0
Growth (%)
•
Number of Visitors (million)
International Visitor Arrivals to Bangkok
Demand
-20
2008
2009
2010
2012
2011
International Visitor Arrivals
2013
YTD
Mar-13
YTD
Mar-14
-40
Annual Growth
Sources: Department of Civil Aviation / JLL
Source Markets (2013)
China 19.5%
Supply
Others 37.6%
Japan 8.2%
•
According to our research, 4,857 rooms are expected to
enter the Hotel market by the end of 2016.
Majority of future openings over the next three years is
concentrated in the upscale segment, with Sukhumvit being
the most prominent location for new development.
Radisson Blu Plaza
Germany 3.3%
Australia 3.3%
Malaysia 3.7%
USA 3.8%
India 5.5%
Korea 5.1%
United Kingdom 4.0%
Sources: Department of Tourism / JLL
New Supply (2008-2016F)
Key Future Openings (2014)
Hotel
Russia 6.2%
Location Rooms Rating Opening
Sukhumvit 290
5-star
2014
Park Hyatt Central Embassy Ploenchit
222
5-star
2014
Le Meridien Suvarnabhumi
Bang Na
214
5-star
2014
Amara
Surawong
250
4-star
2014
Holiday Inn Express
Sukhumvit 161
3-star
2014
Total
1,137
Number of Rooms
•
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
2008
2009
2010
Completed Supply
Source: JLL
2011
2012
2013 2014F
Luxury
Upscale
2015F
2016F
Midscale
F
= Forecast
Source: JLL Research
1
Hotel Market Snapshot l Bangkok, Thailand
Hotels & Hospitality Group
Trading Performance
The midscale segment showed similar improvement in 2013
with a year-on-year increase of 26.1% in RevPAR. RevPAR
performance during YTD Feb 2014 however declined 26.8%,
driven by a drop of 29.9% in occupancy while ADR improved
by 4.3%.
Bangkok Hotel Market – Quick Facts
5,000
4,000
3,000
2,000
1,000
0
2006 2007 2008 2009 2010 2011 2012 2013
ADR (THB)
RevPAR (THB)
Trading Performance – Upscale Segment
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
ADR (THB)
Details
Change
2,421
2.5%
Total Stock (rooms*) in 2012
96,822
-
Future Supply (rooms) to 2017
10,266
10.3%
Luxury (THB) FY 2013
3,884
6.0%
Upscale (THB) FY 2013
2,206
13.0%
2,500
Midscale (THB) FY 2013
1,293
26.1%
2,000
Luxury (THB) FY 2013
5,758
2.3%
Upscale (THB) FY 2013
2,897
4.8%
Midscale (THB) FY 2013
1,694
10.6%
Luxury FY 2013
67.5%
3.6%
Upscale FY 2013
76.1%
7.8%
Midscale FY 2013
76.3%
14.0%
RevPAR
ADR
Occupancy
RevPAR (THB)
YTD YTD
Feb-13 Feb-14
90
80
70
60
50
40
30
20
10
0
Occupancy (%)
Sources: STR Global / JLL
Trading Performance – Midscale Segment
ADR/ RevPAR (THB)
New Completions (rooms) as at Dec 2013
Occupancy (%)
Sources: STR Global / JLL
2006 2007 2008 2009 2010 2011 2012 2013
Key Parameters
YTD YTD
Feb-13 Feb-14
90
80
70
60
50
40
30
20
10
0
Occupancy (%)
6,000
Occupancy (%)
•
Despite supply additions in 2013, the upscale segment
witnessed a 13.0% increase in RevPAR over the previous
year. However, YTD Feb 2014 RevPAR performance
declined by 28.1% as a result of softening demand. ADR was
up 4.1%.
7,000
1,500
1,000
500
0
2006 2007 2008 2009 2010 2011 2012 2013
ADR (THB)
RevPAR (THB)
YTD YTD
Feb-13 Feb-14
90
80
70
60
50
40
30
20
10
0
Occupancy (%)
•
The luxury segment recorded in 2013 an improvement of
2.3% in ADR while occupancy rose by 2.4%. However, the
luxury segment saw 34.4% year-on-year decline in RevPAR
during YTD Feb 2014. The decline was occupancy driven
while ADR increased by 7.9%.
Trading Performance – Luxury Segment
ADR/ RevPAR (THB)
•
Political instability led to a drop in tourist arrivals and caused
a decline in occupancy levels across all segments during
YTD Feb 2014. However, ADR recorded a strong increase
over the same period.
ADR/ RevPAR (THB)
•
Occupancy (%)
Sources: STR Global / JLL
* Based on number of accommodation establishments
Source: Department of Tourism, STR Global / JLL
2
Hotel Market Snapshot l Bangkok, Thailand
Hotels & Hospitality Group
Outlook
•
On March 19, 2014, the Thai government lifted a 60-day
state of emergency; leading to a return to stability and
recovery in international visitor arrivals.
•
We expect Hotel trading performance to strongly rebound as
political uncertainty is gradually lifted and the Bangkok
tourism industry shows resilience once again.
The News
Notable Hotel Transactions
• Proposed Hotel Sukhumvit (Under development), 338 keys,
Sold in January 2013
• Centre Point Sala Daeng, 69 keys, Sold in March 2013
• Swiss Park Hotel, 108 keys, Sold in May 2013
Notable Management Agreement Signings
• Rosewood Bangkok, 146 keys, Scheduled to open in 2017
(JLL acted as exclusive advisor)
• Atrium Hotel Bangkok, 568 keys to be rebranded as Avani
Atrium Bangkok from Q3 2014.
• Cachet Hotel Bangkok, 70 rooms and 224 serviced
apartments, scheduled to open in 2016.
Hotels Currently for Sale by JLL
• Leasehold rights to Ma Hotel Bangkok, 243 keys (with
expansion possibility to 253 keys)
• Internationally-branded serviced apartment with vacant
possession potential, 129 keys
FO
R
SA
LE
Key Recent Additions during 2013 and Q1 2014
• Marriott Hotel & Executive Apartments, Sukhumvit, 370 keys
• Centara Watergate Pavillion Hotel, Prathunam, 281 keys
• Hilton Sukhumvit, 280 keys
• Holiday Inn, Sukhumvit, 300 keys
• DoubleTree by Hilton, Sukhumvit, 177 keys
Major Renovations
• Four Seasons Hotel Bangkok, 354 keys (THB 300 million
renovation in 2015)
• Atrium Hotel Bangkok, 568 keys (Formerly Amari Atrium
Bangkok)
FO
R
SA
LE
Ma Hotel Bangkok
Internationally-branded serviced apartment
3
Hotel Market Snapshot l Bangkok, Thailand
Hotels & Hospitality Group
About JLL’s Hotels & Hospitality Group
JLL’s Hotels & Hospitality Group serves as the hospitality industry’s global leader in real estate services for luxury, upscale, select
service and budget hotels; timeshare and fractional ownership properties; convention centers; mixed-use developments and other
hospitality properties. The firm’s 300 dedicated hotel and hospitality experts partner with investors and owner/operators around the
globe to support and shape investment strategies that deliver maximum value throughout the entire lifecycle of an asset. In the last five
years, the team completed more transactions than any other hotels and hospitality real estate advisor in the world totaling nearly US
$36 billion, while also completing approximately 4,000 advisory, valuation and asset management assignments. The group’s hotels
and hospitality specialists provide independent and expert advice to clients, backed by industry-leading research.
For inquires, contact:
Consulting and Research
Andrew Langdon
Executive Vice President
Thailand & Indochina
[email protected]
+66 81 844 2049
Jonathan Ottevaere
Vice President
Thailand & Indochina
[email protected]
+66 81 901 2901
Frank Sorgiovanni
Vice President
Research & Strategic Advisory, Asia
[email protected]
+65 9383 2495
Chakkrit Paul Chakrabandhu Na Ayudhya
Vice President
Investment Sales, Indochina
[email protected]
+66 89 815 2272
Karan Khanijou
Vice President
Investment Sales, Indochina
[email protected]
+66 81 497 7566
Investment Sales
Mike Batchelor
Managing Director
Investment Sales, Asia
[email protected]
+66 81 984 8970 (Bangkok)
+65 9654 6255 (Singapore)
www.jll.com/hospitality
COPYRIGHT © JONES LANG LASALLE 2014. All rights reserved. The items in this publication have been compiled from the various sources
acknowledged. The information is from sources we deem reliable; however, no representation or warranty is made to the accuracy thereof.

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