wowpow
September 4th, 2006, 08:11
Locally owned hotels up for sale - Competition knocks smaller players out
Bangkok Post today
PITSINEE JITPLEECHEEP KRISSANA PARNSOONTHORN
More than 20 hotels, mostly in major tourist destinations such as Pattaya, Chiang Mai, Phuket and Krabi, have been put up for sale amid stiff competition from hotels owned or managed by international chains.
Most of the hotels on the market are in Pattaya, which is expecting a further upturn in tourism after the opening of Suvarnabhumi Airport later this year. According to industry sources, Pattaya properties on the block include the Baiyoke Pattaya Hotel, which has 136 rooms, the Montien Hotel Pattaya, with 350 rooms, the 248- room Day Night Pattaya, the 350- room Jomtien Holiday Hotel, the 50-rai Koh Kood Resort and a 157-room hotel in Na Khlua.
Panlert Baiyok, the owner of Baiyoke Tower in Bangkok's Pratunam district, said he wanted to sell his property in Pattaya for 300 million baht to reduce his hotel portfolio. ''I have many hotels in Bangkok, Cha-am, Mae Hong Son and even in Burma. If I can sell one of them, I will use some of the money to help society,'' he said.
A real-estate consultant and a professional agent said advertisements for hotels of many different sizes had gone into newspapers and on websites to attract potential buyers. ''It's a good time to sell hotels in some locations, especially in Pattaya. These hotels are seeking new investors because of the new market [foreign ownership] requirements. But a successful sale will depend on hotel location and quality,'' he said. The consultant said most of these hotels were three-star properties and without improvements, they would probably face losses. Potential buyers are Thai or foreign investors. Their prime focus would be on beachfront hotels that have high potential for renovation. ''I can say that the hotels that are listed in the classified ads will be difficult to sell. If they are really good, you won't see their names in newspaper ads,'' the consultant said.
Currently, the average occupancy rate of hotels in Thailand stands at about 60%, according to the Thai Hotels Association (THA). Bundarik Kusolvitya, the THA vice-president for the eastern region, said hotel occupancy in Pattaya was better than in other areas, at 80-90% in the high season and 60% in the low season. Some industry executives believe Pattaya has an oversupply of hotel rooms. The resort city has about 9,000 registered rooms, but including non-registered rooms, the total could reach from 40,000 to 50,000. ''In my opinion, the overall hotel industry is fiercely competitive. Tourists have more choices and they prefer to book rooms through international chains and networks, and this has affected small hotels with local management,'' Ms Bundarik said.
Although its proximity to Suvarnabhumi Airport should help Pattaya, many hotels are having difficulty competing with bigger brands such as the Garden Cliff Resort and Spa, Sheraton Pattaya Resort, Long Beach Garden and Spa Hotel, Regent Marina Hotel and Le Me{aac}ridien, which is due to open in mid-2007.
To improve competitiveness, these hotels needed to renovate and upgrade their facilities, according to Ms Bundarik.
Manus Sawasdee sold his seven-rai luxury resort in Ao Nang, Krabi for 39 million baht. He had developed nine villas but stopped abruptly after the December 2004 tsunami hit the coastal province. ''I come from the garment business. I have never run a hotel but I have an educational background in hospitality. I have suffered since the tsunami and I will shift my focus to developing a new hotel in Chiang Mai instead,'' he said.
A large number of hotels in Phuket and Krabi were severely damaged by the tsunami. Some of their owners want to sell rather than face the expense of rebuilding. A hotel executive in Phuket said some hotel owners on Patong and Karon beaches had given up running their properties.
Bangkok Post - with apologies to LMTU for venturing into his area of guarenteed well researched expertise.
Bangkok Post today
PITSINEE JITPLEECHEEP KRISSANA PARNSOONTHORN
More than 20 hotels, mostly in major tourist destinations such as Pattaya, Chiang Mai, Phuket and Krabi, have been put up for sale amid stiff competition from hotels owned or managed by international chains.
Most of the hotels on the market are in Pattaya, which is expecting a further upturn in tourism after the opening of Suvarnabhumi Airport later this year. According to industry sources, Pattaya properties on the block include the Baiyoke Pattaya Hotel, which has 136 rooms, the Montien Hotel Pattaya, with 350 rooms, the 248- room Day Night Pattaya, the 350- room Jomtien Holiday Hotel, the 50-rai Koh Kood Resort and a 157-room hotel in Na Khlua.
Panlert Baiyok, the owner of Baiyoke Tower in Bangkok's Pratunam district, said he wanted to sell his property in Pattaya for 300 million baht to reduce his hotel portfolio. ''I have many hotels in Bangkok, Cha-am, Mae Hong Son and even in Burma. If I can sell one of them, I will use some of the money to help society,'' he said.
A real-estate consultant and a professional agent said advertisements for hotels of many different sizes had gone into newspapers and on websites to attract potential buyers. ''It's a good time to sell hotels in some locations, especially in Pattaya. These hotels are seeking new investors because of the new market [foreign ownership] requirements. But a successful sale will depend on hotel location and quality,'' he said. The consultant said most of these hotels were three-star properties and without improvements, they would probably face losses. Potential buyers are Thai or foreign investors. Their prime focus would be on beachfront hotels that have high potential for renovation. ''I can say that the hotels that are listed in the classified ads will be difficult to sell. If they are really good, you won't see their names in newspaper ads,'' the consultant said.
Currently, the average occupancy rate of hotels in Thailand stands at about 60%, according to the Thai Hotels Association (THA). Bundarik Kusolvitya, the THA vice-president for the eastern region, said hotel occupancy in Pattaya was better than in other areas, at 80-90% in the high season and 60% in the low season. Some industry executives believe Pattaya has an oversupply of hotel rooms. The resort city has about 9,000 registered rooms, but including non-registered rooms, the total could reach from 40,000 to 50,000. ''In my opinion, the overall hotel industry is fiercely competitive. Tourists have more choices and they prefer to book rooms through international chains and networks, and this has affected small hotels with local management,'' Ms Bundarik said.
Although its proximity to Suvarnabhumi Airport should help Pattaya, many hotels are having difficulty competing with bigger brands such as the Garden Cliff Resort and Spa, Sheraton Pattaya Resort, Long Beach Garden and Spa Hotel, Regent Marina Hotel and Le Me{aac}ridien, which is due to open in mid-2007.
To improve competitiveness, these hotels needed to renovate and upgrade their facilities, according to Ms Bundarik.
Manus Sawasdee sold his seven-rai luxury resort in Ao Nang, Krabi for 39 million baht. He had developed nine villas but stopped abruptly after the December 2004 tsunami hit the coastal province. ''I come from the garment business. I have never run a hotel but I have an educational background in hospitality. I have suffered since the tsunami and I will shift my focus to developing a new hotel in Chiang Mai instead,'' he said.
A large number of hotels in Phuket and Krabi were severely damaged by the tsunami. Some of their owners want to sell rather than face the expense of rebuilding. A hotel executive in Phuket said some hotel owners on Patong and Karon beaches had given up running their properties.
Bangkok Post - with apologies to LMTU for venturing into his area of guarenteed well researched expertise.