Banner ad Lux Neo
Connect with us

Property

The future of Bangkok’s Chinatown

Bill Barnett

Published

on

by Bill Barnett of c9hotelworks.com (First appeared on linkedin.com)

The emergence of boutique hotels, hostels, hip bars and cafes has revolutionised the way Chinatown, Bangkok is seen. This, together with the entry of international branded operators setting the stage for exciting changes.

Overview of Chinatown

For over 200 years, Yaowarat Road in Bangkok or Chinatown has been a center of Chinese immigrants in Thailand. Although some newer development has taken away some of Chinatown’s authenticity, it is still to this day one of Bangkok’s most visited areas which hasgenerated a splendid mixture of the old and new, be it street-food vendors, temples, or art galleries. On top of that, what really draws both local and foreign demand to the area is the ultimate experience itself.

Jammed streets with full tuk-tuks, small vans, and street merchants are what the other areas cannot offer. With some buildings and land is left unused, there have been many redevelopment projects for hotels and residences, and now domestic and international hotel chains are entering the market. What follows, is meant to shed light on the transformation of Chinatown.

Tourism

With the combined number of passenger arrivals at Suvarnabhumi and Don Mueang International Airports close to 50 million in 2017, the gateway experienced a 5-year compound annual growth rate (CAGR) of 11%. Based on our research and market interviews with hotels in the area, the number of tourists visiting Chinatown has sharply increased over the past few years. Thus, hoteliers in the area foresee that Chinatown will be reinvented over the next five years

Chinatown is now one of the hippest areas in Bangkok, while a few short years ago Millennials would view Chinatown as an ‘ancestor’s area’ where elders meet up and have their Asian breakfast. Similarly, the traditional food scene still exists, except that the average age of visitors has dropped substantially and visitors now are becoming bar or café hoppers. What changed is how the vibe shifted over a short period of time.

Mass Transit

After five years of construction, the upcoming MRT station of Wat Mangkon is now close to completion. Scheduled to open to the public in mid-2019, this station will be the nearest mass transit connection to Chinatown and sits right across from the upcoming 224-key Holiday Inn Express Bangkok Chinatown.

The station’s name originated from the largest Chinese Buddhist temple in Bangkok, Wat Mangkon Kamalawat. Regardless of how trendy Chinatown is, the area is not expected to be another Thonglor as there is no plan for a BTS station. It will be advantageous to have better access to public transportation, but the MRT does not carry the same clout as the BTS since many tourists are not familiar with the MRT.

Hotel Performance

Due to the location of Chinatown, budget hotels face challenges in competing with similar hotels in other parts of Bangkok such as Sukhumvit. Boutique hotels in the area are on an upward trajectory, yet accessibility to public transportation in the area remains a key factor.

The average daily rate (ADR) of boutique hotels in Chinatown ranges from 2,000 up to 6,000 baht, with occupancy averaging over 75%. Due to the constraints on development scale, hotel inventories for the existing hotels range from a handful up to 70 or 80 rooms. Given a captive guest base, revenue from food and beverage cannot be overlooked. Hotel operators are generally more focused on generatingother income for their properties compared to other areas in Bangkok. According to our research, some hotels’ F&B contribution can reach 70%, while the market-wide average is 31%.

Demand Characteristics

Online travel agents (OTAs) play an important role in this market among all distribution channels as boutique hotels mainly target younger guests who search for more authentic locations. Some boutique hotels try to stimulate direct bookings by offering complimentary breakfast and discounts on F&B and spa packages. One of the best performers in the market is able to achieve 70% for direct bookings.

In general, OTAs account for 75% bookings on a broad basis. For the nationality mix, the Asian market accounts for 38%, followed by European and American markets with 34% and 29%, respectively. The purpose of stay is mostly leisure at 93%, and only 4% of guests come for business.

Land vs. Rental Prices

With a peak land price of 375,000 baht per square metre, Chinatown is one of the most expensive areas in Thailand. Such high land prices result from the limited land supply and the vintage-style buildings. It is important to highlight the inverse correlation between land prices and rental/lease rate in Chinatown. Rental prices vary but generally tend to be in the range of 300 baht per square metre per month, while they can be well over 1,000 baht per square metre in Bangkok’s CBD areas. With a business model heavily reliant on leasing property, small boutique hotel and hostel supply isexpected to surge in Chinatown.

International vs. Domestic Chain Offerings

There has not been an international hotel brand in Chinatown until recently, with the InterContinental Hotels Group (IHG) poised to enter. The agreement between IHG and Uniland Company Limited to open a Holiday Inn Express is expected to be completed bythe end of this year. On the other hand, the notable Thailand-based Burasari Group, who own and manage Shanghai Mansion Bangkok, has signed an agreement to manage a new 128-key property in Chinatown early this year, marking itself as a leading operator in the area.

Burasari Group, with seven hotels in the portfolio domestically and internationally, is expanding its hotel network within the country. The group has been managing Shanghai Mansion for almost 10 years and believes the upcoming changes in the area will elevate guest experience and draw more demand to Chinatown.

Pipeline Projects

Holiday Inn Express Bangkok Chinatown is part of the THB3-billion ’I’m Chinatown’ mixed-use project. Positioned as ‘Modern Chinese’ in terms of design, the project includes 5,000 square meters of retail space, a 224-key hotel and 46-unit residence for sale. With its strategic location situating across the upcoming mass transit station, the hotel will mainly target foreign tourists and business travelers. The property is expected a year-round occupancy over 80% with average room rate over 2,000 baht.

Another project in the Chinatown pipeline, which will be managed by Burasari Group, is the redevelopment of a 50 year old vacant hotel. With 128 keys, W22 will be situated on Wongwian 22 with an opening in the mid of this year. Positioned as a boutique budget hotel, it is targeting Asian travelers and tour groups. The hotel will offer multiple room types including dormitories, double, twin and family rooms with an average room rate of 1,000 baht projected.

The two projects will create a new dynamic. Firstly the HIEX will provide standardised accommodations with expected amenities such as a swimming pool, which only a handful of hotels in the area have. Secondly, the W22 hotel will not only offer an affordable stay but also a varietyof room types and a large common space for guests to relax.

PHOTO: shanghaimansions.com

Forward Outlook

Because of the continuously increasing number of cafes, bars, and restaurants, further hotel development is expected to highlight the importance of design. Although cultural experience hasbeen the whole point of coming to Chinatown, the ‘chic’ experience will be a secondary factor to generate demand. From the recent developments and upcoming hotels, all properties have their uniqueness in design no matter in common areas or F&B outlets.

Even the 10 year old Shanghai Mansion Bangkok has been able to maintain high performance due to its unique interior design. Looking across Bangkok’s luxury Riverside projects, such as Four Seasons and Capella which will come into the market soon, it is clear that luxury hotels have come out of the Bangkok Central Business District. With mass transit and proximity to the river, there is a high possibility to see more upscale development coming up in Chinatown.

In the bigger picture, the new MRT station will be a key turning point for the area and its future potential remains unique in its offering.

- 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.

Continue Reading
Click to comment

You must be logged in to post a comment Login

Leave a Reply

Property

Three new luxury show suites open at flagship Twin Palms Residences

The Thaiger

Published

on

MONTAZURE ON STUNNING KAMALA BEACH

MontAzure, the upscale mixed-use residential resort community set on 454 rai (178 acres or 72 hectares) of mountainside to beachfront land in Kamala, has launched 3 new on-site beachfront show suites at the award-winning beach condominium development, Twinpalms Residences MontAzure.

Considered by real estate experts to be one of the most compelling lifestyle investment opportunities on Phuket, the development will be managed and operated by Twinpalms Group. Investors and visitors will be able to tour and experience all three of the units to really get a feel for the unique luxury island lifestyle on offer.

“Recent luxury investment trends on Phuket have seen a move away from private villas toward upscale condos, especially penthouse units with outdoor facilities. Buyers appreciate the opportunity to own these luxury properties on a freehold basis,” says MontAzure Executive Director Setthaphol Boottho.

“Properties managed by reputable brands also attract savvy investors, as the condos can be rented out to international visitors and therefore generate income when owners are not using them,” he added.

Andreas Savvides of Haveli Design, whose pedigree includes several landmark residential developments in Bangkok including 185 Rajadamri and The River, designed the interiors for two of the new show units at Twinpalms Residences MontAzure, one of which is a stunning penthouse with a rooftop pool and ocean view sun deck.

As the first phase of the expansive MontAzure master-planned mixed-use development, the luxury beachfront condominiums have already attracted lifestyle-driven investors looking for a combination of hotel-based yields and usage time, along with strong capital appreciation due to the rare beachfront location. Owners enjoy privacy and world-class facilities without having to employ their own staff as they would at a private villa.

The development is sensitively designed as a series of low-rise clusters orchestrated around generous communal swimming pools with intimate views of the beautifully landscaped grounds. One-bedroom units are sized from 70 to 250sqm while the two-bedroom units range from 154 to 400sqm. The developers also recently added super penthouses measuring an impressive 799sqm and offering stunning views of Phuket’s idyllic sunset coast. Prices for entry-level investment units start from 15.5 Million baht.

Part of the development’s beachfront zone, Twinpalms Residences MontAzure is just a short stroll along the beach from HQ Beach Lounge, which has become an island favourite for its chic, contemporary oceanfront dining and entertainment. The sea view restaurant at HQ serves delicious light fare, signature cocktails, fine wines and an eclectic music selection to match the casual surroundings. 

Right next door to HQ Beach Lounge, lifestyle aficionados can enjoy causal fine dining, world class drinks and entertainment at Café Del Mar, Phuket’s hippest waterfront venue with 40 metres of beach frontage and chic tropical design. A rolling schedule of events includes weekly pool parties, international guest DJs, and tempting food and drinks promotions to attract a stylish global clientele.

Enhancing the unique choice of word-class beachfront facilities, MontAzure’s anchor hotel, InterContinental Phuket Resort, will open this year to offer visitors and residents of Kamala even more options for dining and entertainment, complementing the breathtaking sea views and tropical surroundings.

“Twinpalms Residences MontAzure offers buyers a rare opportunity to own a property within an integrated beachfront resort and residential community just steps from the pristine sands at Kamala beach and within walking distance of the island’s most popular beachfront venues,” says Henri Young, Director of Marketing at MontAzure.

To mark the launch of the new show suites and MontAzure is offering buyers a guaranteed return on investment for 3 years on selected units, as well as free furniture packages valued up to 2 Million baht. 

For more information or to make an appointment to view the show units call +66 93 624 8800 or email [email protected]

Continue Reading

News

Sansiri launches THE BASE Central – Phuket

The Thaiger

Published

on

Sansiri launched another one of their ‘BASE’ branded condos with the launch of ‘THE BASE Central Phuket’.

Quoting from their media release, “The design is influenced by an enchanting lifestyle where the native people and Chinese from across the seas come together to create the Peranakan culture under the new concept ‘MARK MY BASE’.”

Poomisak Julamaneechot, Vice Managing Director of the condominium development project, San Siri Public Company Limited says, “Sansiri has continued under The Base brand in Phuket by launching this new project ‘The Base Central –Phuket’ with a budget for construction 1,660 million Baht.”

“The unique location at the heart of the island near Central Festival, and just one minute from the proposed new light rail station.”

“The project is under the branding of ‘Complete Your Living Experience’. The project will be available for initial registration and reservations on June 23-24 with prices starting from 1.99 million Baht.”

Check out some more about the new project HERE. (In English and Thai)

 

 

Continue Reading

Property

Stunning new Lux Neo project at Chaweng, Koh Samui

The Thaiger

Published

on

Lux Neo is now available, combining stunning sea views and outstanding modern design. Lux Neo is the newest award winning project by the “Neo” team with critiqued unique villa design and award winning styling. Click HERE to read more about the Neo design team and some of their otters award-winning projects.

This magnificent site offers a unique combination for in Thailand – inspired design, value, astonishing views and quality. Designer two or three bedroom villas are now available with sea views to Chaweng Noi and just minutes to the main attractions, beaches, shops, airport and the main Chaweng shopping and beach areas.

The “Lux” location is 18 Rai of premium Chaweng Noi sea view land with “Neo” being a private 12 plot residential development featuring the uniquely inspired villa style. The highly desirable location of Chaweng Noi is just 1 kilometre away from some of Koh Samui’s best beaches and restaurants.

These luxuriously designed spaces include vaulted double height ceilings, mezzanine floors, large open airy spaces, modern terrazzo bathrooms and mezzanine bedrooms – all with breathtaking views of Koh Samui offering unparalleled design with nothing else like it in South East Asia.

Prices start from 8.8 million baht for the 2 bedroom villas ranging up to 12.5 million baht for the 3 bedroom villas.

Read more about the details of this stunning Samui development or make enquiries HERE. You will be able to find out a lot more information as well as compare the new Lux Neo to other projects in the area.

Go to property.thethaiger.com when you want to search for Thailand’s largest selection of properties.

Continue Reading

The Thaiger Newsletter

Keep up with all the day’s news. Subscribe here.

The latest news and information from Thailand.

* indicates required

Trending