DDC Issue 15 by Tha Lia

Development Design & Construction issue 15 | March 2012

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Development Design & Construction

hƩp://development-design-construcƟon.com/ Courtesy of Joe Andrews

PRESENTER Thalia Andrews Editor Paul Snowdon editor@qube-3.com ADVERTISING accounts@qube-3.com

QUBE ConsulƟng (Thailand) Co., Ltd 973 President Tower, 11th Floor, Ploenchit Road, Lumpini Pathumwan, Bangkok Thailand 10330 Tel: +66 2 656 0500 ext 110 Tel: +66 8 0589 8479

ADMINISTRATION Silailuk@qube-3.com D|D&C | 2

DUSIT EXPANDS CHINA

ASIA LEADS THE WAY IN HOTEL DEVELOPMENT The Asia Pacific region is the leader in global hotel development, according to the January 2012 STR Global Construc on Pipeline Report. The region’s hotel development pipeline is comprised of 1,479 hotels with a total of 359,753 rooms. Within the region, China leads the way with 141,177 rooms under construc on, followed by India, with 28,769

rooms; Thailand, with 8,807 rooms; Vietnam, with 7,957 rooms; Malaysia, with 7,479 rooms; and Indonesia, with 6,762 rooms. The second most produc ve region in terms of new hotel development is Europe, with 866 hotels and a total of 139,700 rooms. The Middle East/Africa region ranks third with 495 hotels and 131,981 rooms. 

Thailand-based Dusit Interna onal group will launch its second hotel project in China in 2013. The 300-room Dusit Devarana Hainan will be located in Hainan Island’s ‘Seven Fairy Mountain’ region, with a focus on wellness and MICE customers. The lowrise resort will feature a range of rooms and villas, and take advantage of local hot springs that supply water to the resort’s outdoor bathing pools as well as a mountain river that courses through the complex. The resort follows the group’s inaugural property in China, the Dusit Thani Hainan, launched in 2011. The group plans to expand further in China and throughout Asia. 

HOTEL OVERSUPPLY POSES PROBLEMS FOR DEVELOPERS IN THAILAND Thailand is experiencing a surge of hotel openings, especially no ceable in the na on’s capital, Bangkok. The abundance of accommoda ons is good news for travellers—as of the third quarter of 2011, there were 30,815 hotel rooms in central Bangkok, with an addi onal 8,664 rooms to be completed by 2014. Most of the future rooms are in 3- to 4-star hotels, with 2,131 rooms in seven 5-star hotels, including W Hotels, Hotel Okura and Park Hya . The growth indicates that despite a number of crises that have hit Thailand’s tourism industry, including the 2010 civil unrest and last year’s flooding, tourist arrivals con nue to grow. In fact, in 2011, arrivals topped 19 million, a 19% increase from 2010 – and the

numbers are expected to grow further this year. S ll, the supply is growing faster than demand, and this has led to a downward pressure on room rates. At the end of 2011, the average daily rate in the 5-star segment was under US$200 (6,112 baht), very low when compared with similar accommoda on elsewhere in Asia. This is bad news for developers as it means longer payback periods for their investments. In a saturated market, hotels face various addi onal pressures: the challenge of renova ng older hotels, compe on from serviced apartments, and posi oning and product diﬀeren a on for hotels that compete on rates. Another major issue is finding and

Dusit Thani Sanya

retaining skilled hospitality staff. Older hotels must deal with upstarts poaching their staff, while all hotels face the challenge of staff turnovers. The contact Sa ta at reduced return on investment accounts@qube-3.com and increased challenges in the industry should be a wakeup call to all those considering developing another hotel in Thailand as an easy moneymaker.  D|D&C | 3

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PANORAMA UNVEILS NEW HOTEL BRANDS FOR INDONESIA PHM Hospitality, part of the Panorama Group, is launching 2 new hotel brands in Indonesia. The Alaia and BnB will add to the group’s exis ng brands, The Haven and The 101, both located in Bali. The Alaia, named a er Hawaii’s first sur oard, will be the group’s 3-star premium brand, with various

themes developed to match specific markets and loca ons. The first Alaia will be launched by the end of 2012 on Bali’s Canggu Echo Beach—its surfing theme in tune with the island’s favourite recrea onal ac vity for many travellers. Meanwhile, the inaugural BnB hotel will open in Jakarta by the year’s

end. To compete with other budget brands, BnB will feature bigger rooms, in-room WiFi access, and a higher standard of ameni es. The group has 6 addi onal proper es under construc on in Bali, Jakarta, Yogyakarta and Bogor. The group expects to manage 30 hotels by 2015. 

SHERATON’S 12 NEW HOTELS IN CHINA PART OF MAJOR GLOBAL EXPANSION Sheraton Hotels, a key arm of the Starwood Hotels & Resorts Worldwide group, will open 12 new hotels across China, including Starwood’s largest hotel in the world, the Sheraton Macao, as part of the chain’s plan to launch 20 hotels across the globe in 2012. With Sheraton’s rapid expansion, Starwood is set to achieve its goal of opening

its 100th hotel in China later in the year. Meanwhile, Sheraton plans to have a total of 80 hotels in China by 2015. At the centre of this year’s growth will be the nearly 4,000-room Sheraton Macao, an important addi on to the city’s Cotai Strip, also known as the “Las Vegas of Asia.” The development boom

in China has fueled a surge of new Sheraton resort openings there, driven by strong demand in second- and third- er ci es. Elsewhere in Asia, Sheraton plans to launch a new flagship resort in Bali, Indonesia, and is widening Starwood’s lead as the largest operator of 5-star hotels in India. 

CARLSON REZIDOR TO LAUNCH PARK INN BRAND IN ASIA A er launching its Park Inn brand in India in April 2012, the Carlson Rezidor Hotel Group plans to add proper es in China, Thailand, Indonesia and the Philippines. The new mid-scale brand, posi oned between Ibis and Novotel, targets the growing

Asian middle classes. While most of the group’s brands, such as Radisson Blu, are in the upscale segment of the market, Park Inn has been very successful in Europe and fits in with the group’s strategy of moving towards the mid-range market.

Carlson Rezidor will launch the brand in Asia in conjunc on with several partners, and the group sees future investment in Asia through further joint ventures.

Understated Luxury www.riverbirches.co.nz

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