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Hot hotel trends – Branded residences

Bill Barnett

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by Bill Barnett of c9hotelworks.com

Asia’s property developers are jumping into bed with hotel groups as branded residences flourish.

Southeast Asia’s real estate love affair between property developers and hotel brands is morphing into a feeding frenzy. With nearly 100 mainstream hotel residence projects and over 21,000 units completed, the next three years is set to take the sector into bold new territory.

According to C9 Hotelworks new SE Asia focused Hotel Residences Market Trends (between 2018 and 2020) new completed units will represent a massive 83% rise over existing supply. The Top 5 pipeline project locations in order of volume are Danang, Phuket, Kuala Lumpur, Bali and Bintan.

Looking at changing trends, if we’d roll back the clock 18-24 months, urban projects were part of a shifting landscape, but today investment buyers are back heavily in resort destinations, especially Vietnam. Market-wide average sales price per square meter in the region (excluding Singapore) is US$5,713 in urban areas and US$3,207 in resort destinations.

Examining the geographic source of property buyers, Thailand’s more mature market is deeper with foreign purchasers, while Indonesia and now Vietnam are tracking an onslaught of domestic demand, back of a skyrocketing consumer class.

As for the attraction of hotel branded real estate C9 Hotelworks latest research reflects that market-wide premiums of recognized hospitality groups range between 25-35% versus independent properties. Chains that are most active includes Marriott, Banyan Tree, Hyatt, Melia, Minor and Mövenpick along with brands that have used hotel residences to spur their pipelines such as BHM Asia and Alila.

Despite the growth storyline, there is a a warning sign for both developers and property buyers over the onslaught of projects offering high levels of guaranteed returns over sustained periods. Danang is one location that has all the signs of a recipe for disaster with recurring returns being promoted at 10.5% on a long-term basis.

Compounding the outlook is the strong take up in the domestic segment with purchasers leveraging debt at extraordinary levels. If returns fail to materialize at the promoted numbers, developers will be unable to fund returns, buyer will forfeit units to banks and market values could evaporate. It could be a perfect storm and wider regulation for consumers over guaranteed returns across Southeast Asia is sorely needed.

PHOTO: MontAzure

Click HERE to see the full report.

- Bill Barnett

Bill Barnett has over 30 years of experience in the Asian hospitality and property markets. He is considered to be a leading authority on real estate trends across Asia, and has sat at almost every seat around the hospitality and real estate table. Bill promotes industry insight through regular conference speaking engagements and is continually gathering market intelligence. Over the past few years he has released four books on Asian property topics.

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National

Singapore Airlines back on top. Thai Airways in 10th place.

The Thaiger

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PHOTO: Flyer Talk

Singapore Airlines is back on top after a decade held out of the top airline position by middle-eastern competition. It’s their fourth win since the Skytrax World Airline awards started back in 2001.

The island nation’s national carrier was named Airline of the Year at the 2018 Skytrax World Airline awards. Singapore Airlines was last top of the list in 2008. This year it forced out last year’s top honours winner, Qatar Airways, into second place.

Yeoh Phee Teik, Singapore Airlines’s senior vice president of customer experience, said “We’re very ecstatic.”

The airline  also claimed best airline in Asia, best first class and best first class seat.

Asian airlines made a return to the winner’s list this year with ANA All Nippon Airways receiving third place, Taiwan’s EVA Air in 5th position, Cathay Pacific in 6th, Hainan Airlines in 7th, Garuda Airlines in 9th (an extraordinary achievement considering their reputation only a decade ago) and Thai Airways in 10th place.

Singapore’s victory marked a resurgence in Asian carriers in the annual UK-based aviation industry review. Skytrax began its awards in 2001 and is recognised for its fairness due to passengers voting in all categories. Aside from a win by Hong Kong’s Cathay Pacific back in 2014, all past seven years have all gone to middle east based airlines.

“We’re glad that our work has been recognised and our customers have voted for us to be the world’s best,” said Yeoh.

Garuda Airlines, which has turned its service around since the early days of Skytrax, when it was banned from flying into European airspace, was presented with the prize for best cabin staff along with its 9th place overall.

Not one US airline picked up a single award.

Locally Air Asia picked up an award for Best low coast airline – Asia, Thai Airways won the award for best airline catering in Economy Class (The Thaiger thinks the voters weren’t flying on the same flight when Thaiger experienced the economy class ‘food’) and Bangkok Ailines won Best Regional Airline – Asia.

The top 10 world’s best airlines for 2018
1. Singapore Airlines
2. Qatar Airways
3. ANA All Nippon Airways
4. Emirates
5. EVA Air
6. Cathay Pacific
7. Lufthansa
8. Hainan Airlines
9. Garuda Indonesia
10. Thai Airways

Best airlines by global region
Northern Europe – Finnair
Western Europe – Lufthansa
Eastern Europe – Aeroflot Russian Airlines
Africa – Ethiopian Airlines
Australia / Pacific – Qantas Airlines
Central Asia / India – Air Astana
China – Hainan Airlines
Central America / Caribbean – Copa Airlines
South America – Avianca
North America– Air Canada
Asia – Singapore Airlines
Middle East – Qatar Airways
Europe – Lufthansa

Best low-cost airlines
Africa – Mango
Australia & Pacific – Jetstar Airways
Asia – AirAsia
Central Asia / India – Indigo
China – West Air
South America – Sky Airline
North America – WestJet
Middle East – Flynas
Europe – Norwegian

Best airline catering
Economy – Thai Airways
Premium economy – Aeroflot Russian Airlines
Business – Austrian Airlines
First class – Air France

Best airline seats
Economy – Japan Airlines
Premium economy – Air New Zealand
Business – Qatar Airways
First class – Singapore Airlines

Best regional airlines
Africa – Royal Air Maroc
Asia – Bangkok Airways
South America – Azul Brazilian Airlines
Central Asia / India – Azerbaijan Airlines
Europe – Aegean Airlines

Best airline lounges
First class – Qatar Airways
Airline alliance lounge – Star Alliance Los Angeles
Independent airport lounge – Plaza Premium Heathrow Terminal Two
First class lounge dining – Air France
Airline lounge spa facility – Thai Awards

Best airlines staff service by global region
Africa – South African Airways
Australia / Pacific – Qantas Airways
Central Asia / India – Vistara
China – Hainan Airlines
Central America / Caribbean – Copa Airlines
South America – Azul Brazilian Airlines
Asia – ANA All Nippon Airways
Middle East – Emirates
Europe – Austrian Airlines

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National

Sangkhla Buri floods declared a disaster zone

The Thaiger & The Nation

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Kanchanaburi Governor Jirasak Phumsawat has declared Sangkhla Buri a flood disaster zone to speed up help to affected villagers.

The governor took the action after seven villages in Tambon Nong Lu and three villages in Tambon Laivo were hit by floods on Friday morning following heavy rains that hit 70 per cent of the district.The disaster-zone declaration allowed the provincial administration to bypass the bureaucratic process to send help and compensation directly to the affected villagers.

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National

The 21st century’s longest lunar eclipse next week

The Thaiger

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The moon is going to disappear for six hours next week in a mega lunar eclipse – the longest for the entire 21st century.

In fact it will be this century’s longest lunar eclipse and will be able to be seen across Thailand on July 27-28 between 00.14-6.10 am.

Thai PBS reports that the total phase of the eclipse – called the totality, when the earth blocks out all light from the sun falling on the moon – will span 1 hour and 43 minutes.  The shortest total lunar eclipse of this century, which occurred on April 4, 2015 only lasted 4 minutes and 48 seconds.

Dr Sarun Posayachinda, director of the National Institute of Astronomical Research, says that three astronomical phenomena would take place on the night of Asalha Bucha Day, July 27.

“A partial eclipse precedes and follows the total phase of eclipse, each time lasting 1 hour and 6 minutes.  So, from start to finish, the moon spends nearly 4 hours crossing under Earth’s dark shadow.

Mars is very bright and red throughout July and August this year, but the eclipse night will be a very special night.

“The eclipse will happen on the same night that Earth is passing between the sun and Mars, placing Mars at opposition in our sky. In one of the sky’s wonderful coincidences, the Mars opposition happens on July 27 too.  It is not just any Mars opposition, but the best Mars opposition since 2003.”

Although the longest eclipse, Dr Sarun said the red moon will be smaller than usual because it will be at the farthest point from the Earth this year – at 406,086 kilometre from the Earth. He notes that the eclipse night would be the best opportunity to observe Mars as Mars will move closer to the Earth until July 31 when it is about 57.6 million kilometres from Earth – the closest in 15 years – from normal average distance of 225 million kilometres.

Read more about the century’s longest lunar eclipse HERE.

SOURCE: Thai PBS

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