Leading the regional push is the marriage between international hospitality brands and Thai property developers, who are sitting at the head of the table with $3.5 billion in inventory for sale. According to new research by Thai-based hospitality consulting group C9 Hotelworks, there are currently over 28,000 hotel-branded residential units for sale across the region, representing nearly 120 projects.
In Thailand, there are 44 developments on the market, representing 4,775 units. The top three locations in the country for hotel residences are Phuket, Bangkok and Pattaya.
The average price per square metre for urban properties in the country is $6,772sqm, while in resort destinations it is $3,731sqm. One key catalyst for the rising tide has been an increasing number of mixed-use projects that contain hotel and real estate components. Recognised hotel brands are being tapped to help engineer pricing premiums for property sales, which in market-wide terms has equated to 26 per cent in urban locations and 14 per cent for resort products.
Commenting on the research, C9 managing director Bill Barnett said: “The historic pattern of hotel and real estate marriages has moved away from the beach and leisure destinations and is gaining traction in urban city offerings. “Traditional lifestyle buyers are being supplanted by end users, with Asians representing the largest transaction segment. Bangkok’s stirring success story at the St Regis Residences demonstrated this, while the more recent Four Seasons offering has struck a chord with both local and overseas buyers.” The two leading Southeast Asian marketplaces are Thailand, with 37 per cent of it hotel project residences, followed by Indonesia at 22 per cent.
What is clear in looking at the landscape is that rapidly escalating land prices are driving developers to embrace mixed-use projects in increasing numbers, and often add in commercial, sporting and tourism attractions as part of broader lifestyle offerings.
Thai hospitality groups such as Minor, Centara, Onyx and Dusit are increasingly tapping into the movement both domestically and abroad.