Phuket Hotels MarketView - Q4 2014

Chinese arrivals to Phuket increased by 41% Y-o-Y in December

QUARTERLY HIGHLIGHTS

• Occupancy of upscale hotels (with average daily room rates between THB 2,000 and THB 10,000) increased slightly from the same period last year by 0.9 percentage points to around 70%.
• The Average Daily Rate (ADR) of upscale hotels in Q4 dropped compared to the same period last year.
• Revenue per Available Room (RevPAR) has decreased Y-o-Y by 5% due to the decrease in the average daily rate.
• Total hotel supply is expected to increase by around 22% by the end of 2018.

OUTLOOK

We expect to see an improvement of hotel performance in Phuket in 2015. However, there are some challenges facing the market. The Phuket hotel market has become increasingly dependent on the Chinese market which will create challenges with danger of hotels being dominated by a single nationality of guests deterring other nationality guests.

New supply and competition from other West Coast destinations such as Khao Lak will possibly restrict growth in Phuket occupancy and potential for room rate growth.

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CONTACT

Robert McIntosh
Executive Director - CBRE Hotels, Asia Pacific
O: +65 6326 1200
M: +65 8123 0208
E: robert.mcintosh@cbrehotels.com