Nearly half of Phuket hotel projects delayed
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Up to 48% of all new hotel developments in Phuket are experiencing major construction delays triggered by the global economic downturn, a report has found. According to the ‘Phuket Hotel Market Update Mid-Year Report’, released by consulting firm C9 Hotelworks, the slowdown on hotel construction sites has however, not dented developer’s enthusiasm for entering the island. C9’s Managing Director, Bill Barnett (pictured), said that despite the delays, new developments continue to enter the stream with 38 properties offering 6,231 rooms at various stages of advancement in the construction cycle.
“Non-traditional product such as hotel managed villas and condos now represent 34% of the upcoming inventory,” Barnett said.
According to the research, first half trading for 2009 indicated tourist arrivals declined by 14% but a combined luxury/upscale/mid-scale occupancy rate of 60.4% produced an average room rate of US$141. The report also noted that branded hotels outperformed non-branded properties rate-wise by 33.7%, although the non-brand sector outperformed the brands on occupancy by 12.4%.
“Looking forward, short-term trading will focus on occupancy at the expense of long-term rate strategies,” Barnett added.
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