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Tag: hotels

  • Crackdown on Underground Hospitality: Thailand Targets Illegal Hotels on Phuket Island

    Crackdown on Underground Hospitality: Thailand Targets Illegal Hotels on Phuket Island

    The Thai government is stepping up its measures against unauthorized accommodations, following the discovery of three illegal hotels on Phuket, the nation’s largest island. During a recent operation, Deputy Interior Minister Polapee Suwunchwee led a task force targeting three hotels consisting of approximately 200, 240, and 45 rooms. The investigation revealed that none of the properties held valid construction permits or operating licenses.

    Two of these establishments had initially received approval as residential buildings or condominiums but had been unlawfully converted into hotels. In addition, officials conducted online booking simulations, which showed that the hotels were mostly selling rooms to European and other international tourists, with very few Thai patrons.

    Illegal Ownership and Consequences

    The investigation further exposed suspected nominee ownership arrangements, involving companies with a shareholding structure that is 49% foreign and 51% Thai. In some instances, the properties were legally owned by Thai citizens but rented out to Chinese investors, who allegedly ran the hotels without the necessary licenses.

    This operation is part of a larger scheme covering over ten locations across Phuket. Local authorities, under the instruction of Phuket Governor Sophon Suwannarat, have been directed to immediately close businesses that fail to provide the necessary documentation.

    Director-General of the Department of Provincial Administration, Narucha Kosasivilize, highlighted the triple-edged harm of illegal lodging operations. They disadvantage legal, tax-paying businesses, pose safety hazards due to non-compliance with government safety standards, and damage Thailand’s reputation, thereby undermining long-term confidence in its tourism industry. Efforts are being made in conjunction with the Royal Thai Police, Ministry of Commerce, Department of Special Investigation, and other agencies to broaden probes into foreign business networks nationwide.

    In a separate development, Deputy Government Spokeswoman Lalida Pervsivatan announced that Thailand will implement a new intelligence-based screening system on August 1 to enhance the detection of nominee businesses. This system will scrutinize company registration records, shareholder structures, and financial statements to pinpoint high-risk firms with Thai shareholders in suspicious circumstances. Lalida emphasized, however, that these measures are not designed to deter rightful foreign investment but to distinguish legal investors from those employing nominee structures to operate illicitly.

    Questions & Answers

    What is the focus of the crackdown in Thailand?
    The Thai government is focusing on the detection and closure of illegal hotels without the necessary operating licenses.

    What consequences do these illegal operations bring?
    Illegal hotels disadvantage legal businesses, pose safety threats due to non-compliance with government safety regulations, and tarnish Thailand’s reputation, undermining confidence in its tourism sector.

    What is the future plan of the Thai government to curb these illegal operations?
    Thailand plans to introduce a new intelligence-based screening system to improve the detection of businesses that are high-risk or suspicious, focusing on those with Thai shareholders.

  • Hong Kong’s Luxury Hotels Triumph in Recovery, Surpassing Pre-Pandemic Levels

    Hong Kong’s Luxury Hotels Triumph in Recovery, Surpassing Pre-Pandemic Levels

    The luxury hotel sector in Hong Kong has shown remarkable resilience, bouncing back stronger than the broader hospitality industry in the city. According to the property consultancy JLL, room rates have even surpassed those of 2018, indicating a significant rebound in demand.

    A Robust Recovery for Luxury Hotels

    JLL reports that luxury properties were the only hotel segment to return to their 2018 average daily rates by 2025, reaching HKD2,169 (US$277). This figure represents a 1% increase over rates recorded before 2019 and during the Covid-19 pandemic.

    Meanwhile, the general hotel market in Hong Kong recorded average daily rates of HKD1,263, an 8% decrease from the 2018 level. In the first quarter of this year, luxury hotels maintained their strong performance, with average daily rates rising 12.3% year-on-year to HKD2,452. In contrast, non-luxury segments posted increases between 7% to 8.7%.

    Cleavon Tan, Senior Vice-President of JLL’s Hotels and Hospitality Group in Hong Kong, notes that the luxury hotel segment’s recovery in 2025 was more robust than that of the broader hotel market. He attributes this to the combination of improved demand in conjunction with a constrained supply environment, which allowed luxury hotels to rebuild occupancy while maintaining pricing power.

    Tan suggests that Hong Kong’s hotel recovery and long-term growth prospects will depend on specific segments and assets. Luxury hotels may experience slower physical-supply growth but potentially stronger pricing power, whereas selected mid-market hotels may capture broader visitor growth if their location, product, and cost structure remain competitive.

    Demand Drives Transaction Volumes Across Asia-Pacific

    The demand for luxury hotels across the Asia-Pacific region has also significantly increased. JLL’s report noted that this surge in demand has driven transaction volumes, including sales and acquisitions, up 77% between 2017 and 2025, totalling about US$2.1 billion.

    Luxury hotel transactions accounted for almost 20% of all hotel deals in the region in 2025, a sharp increase from 8% in 2017 and surpassing the previous pre-pandemic peak of 16%.

    In Hong Kong, prime luxury hotel assets are primarily held by local conglomerates, family offices, strategic long-term owners, and high-net-worth investors, resulting in a limited supply. Recent market activity has predominantly focused on refurbishments, repositioning projects, and reopenings rather than adding new supply.

    Noteworthy developments include the 2023 return of The Regent in Hong Kong, the launch of Mondrian Hong Kong, the upcoming Andaz Hong Kong Central, and the recent reopening of The Landmark Mandarin Oriental.

    Questions & Answers

    Why are luxury hotels in Hong Kong experiencing a stronger recovery than the broader hotel market?
    The stronger recovery in the luxury hotel sector is attributed to increased demand in tandem with a constrained supply environment, enabling these establishments to increase occupancy rates while retaining their pricing power.

    What does the future look like for Hong Kong’s hotel industry?
    The long-term outlook for Hong Kong’s hotel industry will vary depending on specific segments and assets. Luxury hotels may see slower growth in physical supply but potentially stronger pricing power. In contrast, selected mid-market hotels could capture more extensive visitor growth if their location, product, and cost structure remain competitive.

    What are some notable developments in Hong Kong’s luxury hotel market?
    Significant developments in Hong Kong’s luxury hotel sector include the 2023 return of The Regent, the launch of Mondrian Hong Kong, the upcoming Andaz Hong Kong Central, and the recent reopening of The Landmark Mandarin Oriental.

  • Indonesia Slashes Taxes for Hotels and Restaurants to Boost Business Recovery

    Indonesia Slashes Taxes for Hotels and Restaurants to Boost Business Recovery

    In a proactive move to aid its beleaguered hospitality industry, Jakarta officials have unveiled a temporary tax reduction initiative for hotels and restaurants amid escalating costs and a dip in consumer demand. The new regulation introduces a hefty 50% tax reduction for hotels from late August until the end of September, tapering to a 20% cut from October through December. Restaurants are not left out, as they too will enjoy a 20% reduction during these same time frames. As an added condition, hotels must participate in the E-TRAPT system by submitting electronic transaction data to foster transparency and accountability.

    Supporting a Vital Industry

    Jakarta Governor Pramono Anung emphasized that this decision was not made lightly. He pointed out that the revenue from hotels and restaurants in the capital already exceeds the national average by 14–15%. This tax relief is designed to keep businesses afloat and encourage growth within the sector. “It’s not just a gift; it’s a strategic maneuver,” he noted.

    A Short-Term Relief with Longer Implications

    The policy is set to last until the year’s end with the possibility of extending into January 2026, depending on the economic climate.

    Industry Reaction and Economic Impact

    The hotel association has warmly embraced the tax cuts, viewing them as a crucial lifeline for operational stability, service quality, and job preservation in this challenging environment characterized by rising operational costs and declining occupancy rates. As one industry leader put it, “It’s not a magic wand, but it’s a significant boost.” Officials have also pointed out that improved cash flow will allow hotels to roll out promotions and elevate services without eroding profit margins—showing that sometimes, a little tax relief can go a long way in shaking up a stagnant market.

    Questions & Answers

    What prompted the Jakarta government to implement tax reductions for hotels and restaurants?
    The tax reductions were introduced in response to rising costs and declining customer demand in the hospitality sector, aiming to support these businesses during tough times.

    How long will the tax reductions be in effect?
    The tax relief measures will apply until the end of December 2025, with the possibility of extension into January 2026.

    What conditions must hotels meet to qualify for the tax cuts?
    To qualify for the tax reductions, hotels are required to submit electronic transaction data through the city’s E-TRAPT system, ensuring transparency and accountability.

  • Bangkok Welcomes Seven Exciting New Hotels in First Half of 2025!

    Bangkok Welcomes Seven Exciting New Hotels in First Half of 2025!

    Bangkok’s hotel market is seeing a shift as it navigates the complexities of 2025. According to a report from Knight Frank, average occupancy rates dipped to 75.1% in the first half of the year, marking a 3.7 percentage point decrease from the same period in 2024. While January and February started strong, both exceeding 81% occupancy, a steady decline followed, culminating in a mere 69.8% in June—the lowest monthly rate in over a year.

    Understanding the Trends Behind Occupancy Rates

    The declining performance reflects a combination of factors, including a rising supply of rooms, shorter average stays, and a greater influx of short-haul travelers whose demand typically yields lower returns. As recently unveiled by Knight Frank, several key indicators paint a fuller picture of the market’s current state.

    Average Daily Rates Provide a Mixed Outlook

    Despite the dip in occupancy, the Average Daily Rate (ADR) registered a notable increase of 3.3% year-to-date, climbing to THB 4,260 in the first half of 2025 from THB 4,121 in the same timeframe last year. January boasted the highest ADR, while May and June recorded the lowest. Some months exhibited stagnant or declining year-on-year comparisons, amplifying the impact of reduced occupancy on Revenue per Available Room (RevPAR), particularly during the second quarter.

    A Growing Supply of Accommodations

    The first half of 2025 also marked a surge in hotel supply, with seven new hotels introducing 1,906 keys. Noteworthy establishments included the Grande Centre Point Lumpini, featuring 512 keys, and Four Points by Sheraton with 333 keys. The hotel’s openings celebrated a diverse array of offerings, spanning luxury brands like Aman Nai Lert and Grande Centre Point to midscale options such as Queensland Hotel and The Quarter. Looking ahead, an additional 12 properties totaling 3,283 keys are set to debut in the latter half of the year, underscoring the accelerating growth of the market and intensifying competition.

    The Changing Landscape of Bangkok’s Hotel Footprint

    Many of the newly launched hotels are positioned within emerging or revitalized urban areas, reflecting a strategic decentralization of Bangkok’s hospitality scene. Brands like The Quarter and Queensland are actively expanding in the upper-midscale segment, while international players such as Radisson and Four Points continue to assert their presence. This dynamic indicates a robust confidence among global operators keen to tap into Bangkok’s evolving marketplace.

    The Future: Navigating Normalization Challenges

    As Bangkok’s hotel landscape transitions into a post-pandemic normalization phase, the environment is characterized by steady competition rather than dramatic recovery spikes. With ADR growth moderating and the supply pipeline expanding, operators may find themselves at a crossroads. The shift toward prioritizing volume over yield will necessitate refined segmentation strategies, enhanced digital distribution channels, and stronger loyalty programs to safeguard profitability as they move forward.

    Questions & Answers

    How has Bangkok’s hotel occupancy changed compared to last year?
    Occupancy rates have declined to 75.1% in the first half of 2025, down 3.7 percentage points from the same period in 2024, with June seeing the lowest performance rate of 69.8% in over a year.

    What notable trends are affecting Bangkok’s hotel market?
    Key trends include a surge in hotel supply, shorter average lengths of stay, and a predominance of short-haul travelers, reflecting a shift towards price sensitivity and increased competition.

    What does the future hold for hotel operators in Bangkok?
    Operators will likely need to focus on refining their segmentation strategies and enhancing loyalty programs to adapt to expanded supply and moderating ADR growth, all while ensuring profitability amidst an increasingly competitive landscape.

  • Singapore Set for Lowest Hotel Openings Since 2023 as Hospitality Landscape Shifts

    Singapore Set for Lowest Hotel Openings Since 2023 as Hospitality Landscape Shifts

    Hotel development in Singapore is gearing down significantly in 2025, as the industry adapts to shifting market dynamics. The latest report from JLL highlights a stark trend: only the 338-key Mandai Rainforest Resort by Banyan Tree will debut in April 2025, designating it as the lone new hotel opening in Singapore during the second quarter. This follows the much-anticipated launch of Raffles Sentosa in the first quarter of the same year.

    Anticipated Slowdown

    JLL’s findings underscore that 2025 is likely to witness the fewest new room additions since the tourism sector began its rebound in 2023. “More active government support,” the report notes, is observable with the introduction of two hotel sites through the Government Land Sales program scheduled for the latter half of 2025. However, that proactive approach might not be enough to reverse the impending slowdown.

    Mixed Performance in Hotel Segments

    As of June 2025, luxury hotels have reported a year-on-year decline in revenue per available room (RevPAR), attributed to softer average daily rates (ADR) and occupancy rates. The midscale and upscale segments also experienced reductions, although the drop was somewhat softened by improvements in occupancy. The pronounced declines appear particularly striking when juxtaposed with the high baseline performance recorded in 2024.

    Record-Breaking Transactions

    In a surprising twist, Q2 2025 saw robust transaction activity, including the sales of notable properties like the 299-key Citadines Raffles Place, the 49-key Duxton Reserve Singapore, and the 48-key 21 Carpenter Street. The latter transaction set a record as Singapore’s largest shophouse deal, and one of the most significant for a hospitality property in the city-state.

    Stable Growth Ahead

    The outlook remains cautiously optimistic, fueled by stable year-on-year growth projections for tourism arrivals and receipts, as per the Singapore Tourism Board. Key markets, particularly China and Australia, are expected to continue to lead in tourism spending, especially around hospitality and food and beverage sectors.

    There’s also a notable shift toward unique hospitality properties with historical significance. Investors are increasingly drawn to these assets for their potential capital appreciation and stable returns, suggesting that more significant transactions could be on the horizon following high-profile deals in the sector.

    Questions & Answers

    Why is hotel development slowing in Singapore in 2025?
    Development is projected to slow due to a decrease in new room additions, marking the fewest since the tourism rebound began in 2023, alongside softer performance metrics in various hotel segments.

    What notable hotel transactions occurred in H2 2025?
    The quarter saw significant sales, including the landmark transaction of 21 Carpenter Street, which became Singapore’s largest shophouse deal, marking a pivotal moment for the local hospitality market.

    Which markets are anticipated to drive tourism in Singapore?
    Key markets such as China and Australia are expected to continue leading tourism spending, particularly in areas like accommodation and food and beverage, contributing to stable year-on-year growth in arrivals and receipts.

  • Manila Set to Unveil 2,680 New Hotel Rooms by 2025: Exciting Growth in Hospitality Awaits!

    Manila Set to Unveil 2,680 New Hotel Rooms by 2025: Exciting Growth in Hospitality Awaits!

    According to a recent report by Colliers, the Philippine hospitality sector is on the upswing, bolstered by significant infrastructure improvements and an influx of international visitors. In 2024, the country welcomed nearly 5.95 million tourists, a figure ensuring it’s still catching up to pre-pandemic expectations. Despite not hitting the ambitious tourist arrival targets, spending reached a record-breaking PHP 760 billion, making the Philippines a leader in Southeast Asia regarding per-visitor expenditures.

    Emerging Opportunities for Developers

    With an optimistic outlook for the future, Colliers advises developers to keep an eye on emerging destinations, particularly with the newly approved 99-year land lease law making strides through the legislative process. This development is poised to attract foreign brands and facilitate the creation of integrated leisure hubs, providing a fertile ground for investment.

    Foreign Brands Join Forces with Local Developers

    In a striking trend, foreign hotel brands are aggressively expanding by forming partnerships with local developers in both established and up-and-coming markets. Major players such as Dusit, Wyndham, Accor, Marriott, and The Ascott Group are leading the charge. The ongoing integration of land lease extensions and Real Estate Investment Trusts (REITs) is anticipated to further drive investment, especially in tourism-centric townships and convention facilities.

    Rising Occupancy Rates Amid Construction Delays

    Metro Manila has seen its hotel occupancy rates rise to 64% in the latter half of 2024, with Average Daily Rates (ADRs) climbing by 2.7% year-on-year. As we moved into the first quarter of 2025, demand for Meetings, Incentives, Conferences, and Exhibitions (MICE) facilities remained robust, particularly in the Makati Central Business District, Fort Bonifacio, and the Bay Area. Four- and five-star hotels particularly benefitted from this increased demand, reflecting the resurgence in business travel. Though room supply struggled due to construction delays, the market anticipates the addition of 2,680 new rooms in 2025, primarily located in Makati and the Bay Area. Interestingly, outside the capital, occupancy rates soared to between 70% and 80% in areas like Clark and Cebu.

    A Bright Outlook for the Future

    Colliers anticipates consistent occupancy levels and a modest ADR increase of 3% in 2025, driven by rising foreign arrivals and thriving MICE activity. Developers are encouraged to collaborate closely with airport infrastructure projects to pinpoint future growth corridors and capitalize on the evolving travel landscape.

    Questions & Answers

    How has tourist spending changed in the Philippines recently?
    In 2024, tourist spending in the Philippines hit a record PHP 760 billion, making the country a leader in Southeast Asia for per-visitor expenditure.

    What major trends are influencing hotel development in the Philippines?
    Foreign hotel brands are actively partnering with local developers in both established and emerging markets, with new land lease laws set to stimulate investment in integrated leisure hubs.

    What are the expected occupancy rates for Philippine hotels in 2025?
    Colliers is forecasting stable occupancy levels and a 3% increase in Average Daily Rates in 2025, fueled by increasing international arrivals and strong MICE demand.

  • Singaporeans Embrace Affordable Luxury in China’s Flourishing High-End Hotel Scene

    Singaporeans Embrace Affordable Luxury in China’s Flourishing High-End Hotel Scene

    The high-end hotel landscape in China is undergoing a vibrant transformation, with a flurry of new establishments rising from the urban skyline to serene natural retreats. This dynamic boom is creating fresh opportunities for travelers, especially those from Singapore.

    Hilton’s Ambitious Expansion

    Take Hilton, for example. The hospitality giant has expanded its footprint to over 840 hotels across China and Mongolia, officially recognized as the “fastest-growing international hospitality company” in the region by Wendy Huang, senior vice-president and commercial director for Greater China and Mongolia. Between now and 2024, Hilton plans to open more than 100 new hotels each year. Currently, it boasts 17 luxury properties and aims to double that number within the next decade.

    Marriott’s Growing Portfolio

    In a similar vein, Marriott International has over 600 properties scattered across approximately 140 locations in China. The company operates 70 luxury hotels and has 40 more under development, further enriching the high-end lodging options for international travelers.

    Revival of Interest Among Singapore Travelers

    The flourishing luxury hotel scene is reviving interest in Chinese destinations among Singapore travelers, as reported by The Straits Times. Flight searches from Singapore to Lijiang in Yunnan province skyrocketed by 410% year-on-year in the first half of 2024, according to Skyscanner’s 2025 Travel Trends report.

    Paralleling this trend, Hilton’s 2025 Trends Report highlights China as a top choice among Singapore-based travelers during the holiday season from late December to early January. Notably, searches for Shanghai and Guangzhou surged by 81% and 87%, respectively, with 23% of Gen Alpha and Gen Z travelers expressing significant interest in visiting China.

    Significant Arrival Increases

    This renewed curiosity is translating into increased arrivals. Last year, approximately 535,000 travelers from Singapore visited China, more than doubling from 260,000 in 2023, according to Oxford Economics. While still shy of pre-pandemic levels of over a million visitors annually, this surge indicates a robust recovery in travel demand, as reported by the South China Morning Post.

    Yunnan: A Hot Destination for Singaporeans

    Nitesh Pandey, chief operating officer for Asia Pacific at hotel management company The Lux Collective, noted that the number of Singapore tour groups to China spiked fivefold between June 2023 and June 2024, particularly highlighting Yunnan-Guizhou-Sichuan as a favored route. “Yunnan is quickly becoming one of the most desired destinations for Singaporeans, celebrated for its scenic beauty and the rich cultural tapestry of 25 of China’s 56 minor ethnic groups,” Pandey remarked to TTG Asia.

    Affordable Luxury

    The affordability of these luxury hotels is a major draw for Singaporeans, bolstered by a strong exchange rate and fierce competition among China’s vast hotel offerings. The Singapore dollar has appreciated against the yuan from 4.61 in December 2021 to 5.55 this past Thursday, making lavish accommodations much more accessible. For instance, a night at Hilton Shanghai City Center in September is priced at around S$211 (US$162), significantly less than Hilton Osaka’s rate of S$408.

    “When comparing four- to five-star hotel prices in China with other destinations, you’re often getting much more value for your money,” stated Edmund Ong, senior regional director for Southeast Asia at the online travel agency Trip.com. Many Singaporeans returning from trips to China echo this sentiment about the country’s affordable luxury.

    Take cybersecurity professionals Lionel Wee, 34, and Joanna Lee, 27; they enjoyed four nights at the InterContinental Haikou Seaview for just S$421 in April. “For an upscale hotel, this is a steal, even if it’s considered on the pricier side for China,” remarked Lee. The duo had also stayed at Glenview ITC Plaza Chongqing last October, spending S$700 for six nights. “I now want to visit China at least once a year; it’s becoming my go-to like Bangkok or Bali—relaxed and easy,” shared Wee.

    Jordy Cheah, who has visited China seven times in the last year, cited affordability as a major allure, alongside the country’s captivating nature, convenience, and vibrant local culture. “It’s close to mountains and lakes, has great weather, delicious fresh produce, and a slower pace of life—all while enjoying plentiful lodging options that are generally cheaper than in Singapore,” mentioned Cheah, a 28-year-old tech sales representative.

    Questions & Answers

    What makes China an attractive destination for Singaporean travelers?
    China offers a rich blend of scenic beauty, cultural diversity, and affordable luxury accommodations, making it a compelling choice for travelers from Singapore.

    How much has travel interest from Singapore to China increased?
    Flight searches from Singapore to various Chinese cities have surged significantly, with a notable 410% increase in interest towards Lijiang.

    What does the current hotel pricing in China look like compared to other destinations?
    Luxury hotel prices in China are generally viewed as more affordable than those in destinations like Japan, with many travelers expressing satisfaction with the value they receive during their stays.

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  • Thailand Lifts Alcohol Ban on Five Buddhist Holidays at Airports and Hotels, Boosting Tourism Appeal

    Thailand Lifts Alcohol Ban on Five Buddhist Holidays at Airports and Hotels, Boosting Tourism Appeal

    Thailand is stepping into a new era for travelers, as the government embarks on a journey to boost tourism by allowing limited alcohol sales during five prominent Buddhist holidays. Specifically, from Saturday, international airports, hotels, venues hosting major events, and select nightlife spots will welcome patrons looking to raise a glass—even on days traditionally marked by sobriety.

    Selected Venues, Select Days

    However, not every establishment will be joining the celebration; the rule relaxation is strategically aimed at specific locations rather than a blanket policy. In a statement reported by the Bangkok Post, government spokesman Jirayu Houngsub emphasized that the change is part of the “Amazing Thailand Grand Tourism and Sports Year 2025” campaign, aimed at providing a much-needed boost to the tourism industry. “It will directly benefit businesses in the tourism sector,” he noted.

    Despite its reputation as a premier tourist hotspot known for stunning beaches, lively nightlife, and being the only Southeast Asian nation to decriminalize cannabis, Thailand has often left visitors scratching their heads. Tourists frequently encounter closed bars during religious holidays, even amid peak travel seasons.

    A Cautious Celebration

    People’s Party MP Taopiphop Limjittrakorn, a notable advocate for liberalizing Thailand’s alcohol laws, urged caution in celebrating this change. He pointed out that the ban on alcohol sales persists for many retail outlets. “Roadside food stalls, convenience stores, and supermarkets are not included in the new announcement. They still cannot sell alcohol,” he shared on Facebook.

    In recent months, Thailand has taken significant steps toward relaxing restrictions in the alcohol sector. Earlier this year, lawmakers in the House of Representatives passed an amended alcohol control bill, repealing an outdated 1972 military decree that prohibited alcohol sales before 11 a.m. and during certain afternoon hours. This exciting legislation is currently making its way through the Senate, paving the way for further changes in the beverage industry.

    Who knows—maybe soon, you’ll be sipping a cold one during sunset by the beach, even on a holiday!

    Questions & Answers

    What are the specific locations where alcohol sales will be allowed during Buddhist holidays?
    Alcohol sales will be permitted at international airports, hotels, venues hosting major events, and select nightlife spots.

    Why was this change implemented?
    The change is part of the “Amazing Thailand Grand Tourism and Sports Year 2025” campaign aimed at stimulating the tourism sector and benefiting related businesses.

    Are all businesses allowed to sell alcohol during these holidays?
    No, the new regulations only apply to select locations, and many places like roadside food stalls, convenience stores, and supermarkets will still be prohibited from selling alcohol.

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  • HCMC hotel business gloomy as foreign tourists keep away

    HCMC hotel business gloomy as foreign tourists keep away

    Hotels in Ho Chi Minh City are suffering from low occupancy rates due to a sharp drop in international visitor arrivals and domestic tourists’ preference for traveling to beaches.

    In May, amid a wave of hotel closures and conversions into office buildings, the Norfolk Hotel in District 1 with over 100 rooms stopped operating.

    In mid-June many hotels in tourist areas such as Bui Vien Street, Bui Thi Xuan Street and Le Thanh Ton – Ly Tu Trong in District 1 temporarily closed due to lack of customers.

    The latest accommodation market report by real estate consultancy Savills Vietnam said hotel occupancy rates in the second quarter were down 8 percentage points quarter-on-quarter.

    All segments suffered as foreign visitor arrivals to the city fell by 13% quarter-on-quarter. The rate of overnight guests in the city was only 19%, the lowest in the country.

    Hotels are currently relying on business guests since the city is a transit point between various provinces and cities.

    Troy Griffiths, deputy general director of Savills, said recovery in international tourism has been slower in Vietnam than other countries in the region.

    He pointed out that the number of visitors from China, the second biggest market, was 78% down in the first half from 2019, the year before Covid.

    Trang Minh Ha, chairman of investment firm North Stars Asia, said the third quarter, when it is the rainy season, is the low tourist season in HCMC, and so occupancy and room rates would continue to be low.

    The number of hotels that close permanently or temporarily could rise sharply, he said.

    The economic difficulties post-pandemic, boring and monotonous tourism products and Vietnam’s difficult visa policies have kept tourists away, he said.

    The city needs to strengthen programs on attracting visitors to compete with countries such as Thailand, Singapore and Indonesia, he said.

    “HCMC’s hotel industry is waiting for an optimistic signal from the economy for recovery. However, the market may have to wait until the end of 2024 for a solid positive signal.”

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  • Hotels become quarantine facilities to survive Covid

    Hotels become quarantine facilities to survive Covid

    Some 10 percent of hotels in big cities are used exclusively for quarantining Covid-19 patients and those who were in close contact with patients, according to Savills.

    They include 25 in HCMC with more than 3,000 rooms, mostly in Districts 1 and Tan Binh, 20 with 1,600 rooms in Hanoi and 34 with 3,000 rooms in Da Nang.

    The fourth wave of the Covid pandemic led to the lowest occupancy rates in a decade and a drop in room rents.

    Average occupancy rates at 3-5-star hotels in Hanoi regularly topped 74 percent in the decade before the pandemic.

    In 2020, it fell to 30 percent, and the average room rent to $81 from $113.

    In the first half of this year, they declined further to 25 percent and $72.

    In HCMC, the rate this year has been only 18 percent due to stringent social distancing regulations, and the rent fell to $69.

    The switch as medical isolation areas has thrown all of them a lifeline.

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  • Nha Trang hotels up for sale as Covid puts paid to tourism

    Nha Trang hotels up for sale as Covid puts paid to tourism

    Hit hard by the successive waves of Covid-19, hotel owners in tourism hotspot Nha Trang are putting up their properties for sale on realty forums.

    They have price tags of VND20-300 billion ($0.9-13 million), but are mostly in the VND30-70 billion range.

    Most are in the downtown area on streets like Tran Phu, Hung Vuong, Tran Quang Khai, Pham Van Dong, and Nguyen Thi Minh Khai.

    A seven-story hotel with 19 rooms on Nguyen Thi Minh Khai Road is now available for sale at VND30 billion. “The hotel is a few dozen meters from the beach, and was built a few years ago,” its owner said on a forum.

    The owner of a newer hotel said: “Our hotel operated for only two months and then stopped due to Covid-19. I want to sell it to repay bank loans and engage in another field of business because I think that the pandemic will prolong.”

    According to insiders, in 2015-19, the heyday of Nha Trang’s tourism and property sectors, many non-tourism businesses and wealthy individuals built or bought hotels in the city and hired people to run them.

    However, since 2020, after tourism has been devastated by Covid with almost no international arrivals and few domestic travelers, many have been forced to sell out to cut losses.

    Some two- and three-star properties with 50 rooms or fewer are on sale partly because they face fierce competition from condotels, Phan Viet Hoang, general secretary of the Khanh Hoa Real Estate Brokerage Association, said, pointing out that few four- and five-star hotels are being sold.

    According to the Khanh Hoa Province Tourism Department, there were only 210,000 visitors in the first quarter of 2021, a year-on-year drop of nearly 67.3 percent. The number of foreigners was down 97.6 percent to 10,000, all people stranded due to Covid.

    Hotels in the province reported an occupancy rate of just 8.6 percent during the quarter.

    As of the end of last year Khanh Hoa had over 1,100 tourist accommodation establishments with nearly 50,000 rooms, including 125 hotels rated between three and five stars with 24,000 rooms.

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  • Hotels continue to suffer Covid-19 impacts

    Hotels continue to suffer Covid-19 impacts

    Vietnam’s third Covid-19 outbreak last month has exacerbated the problems of low occupancy and plunging revenues for hotels and resorts nationwide.

    Average daily rates in October slumped 25 percent year-on-year, said Mauro Gasparotti, director of real estate consultancy Savills Hotels Asia Pacific.

    In HCMC, occupancy has hovered under 20 percent since the April lockdown, compared to 72 percent during the same period last year.

    The latest outbreak in HCMC last month followed the second one that hit July and August with hundreds of cases, all linked to Da Nang City, which badly affected the high season for the hospitality industry, Gasparotti said.

    Savills data shows that overall, the resort market is barely crossing the 25 percent occupancy mark, except for some located in drive-to destinations where it is 10 to 15 percentage points higher than the national average.

    “The market is in a slow recovery. Even though local demand has delivered a strong rebound, it has not proven steady enough to support hotel and resort performances.”

    While expectations for 2021 are positive, they are mainly focused on the third and fourth quarter when it is anticipated that travel restrictions will be eased and corporate guests and independent travellers from neighbouring counties will be able to return, partially supporting recovery of the hotel and resort market, he added.

    In the first 11 months of this year, foreign arrivals hit 3.8 million, down 76.7 percent year-on-year, according to the General Statistics Office.

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  • Hotels for sale at new high amid pandemic blues

    Hotels for sale at new high amid pandemic blues

    Hotels with ‘for sale’ signs have mushroomed across different parts of Vietnam, despite scarcity in buyers.

    The sales trend first kicked off in central areas of HCMC and Hanoi’s Old Quarter, but later spread to other tourism hotspots like Phu Quoc Island, Da Nang City, and other coastal towns including Nha Trang, Vung Tau, and Quy Nhon.

    Dozens of hotels have been listed for sale each day by brokers or on real estate websites, since the second Covid-19 outbreak hit the country late July.

    Longtime brokers in the real estate market say the current wave of hotel sales is the biggest they have seen in the past decade.

    On the streets of Ly Tu Trong, Le Thanh Ton, Bui Thi Xuan, and a few others, nearby HCMC’s iconic Ben Thanh Market, many 30-100 room hotels are listed for sale. Prices commonly range from a few dozen billion to hundreds of billions of dong (VND1 billion = $43,160), with some going up to VND1 trillion.

    The current situation is completely contrary to 5-7 years ago when a wave of investment in mini-hotels was so popular in Saigon that many street houses were bought specifically for such renovation purposes.

    However, brokers said currently listed hotel prices are still at a higher than expected threshold, complicating the sales process.

    Vo Quoc Phuong Trang, head of hotel investment consultancy at real estate service firm Jones Lang LaSalle (JLL), said the hotel business sector was among the groups first and hardest hit by the pandemic.

    There were no mergers and acquisitions in the hospitality industry during the first half of the year as uncertainty caused by the Covid-19 outbreak gripped the sector.

    Mauro Gasparotti, director of real estate consultancy Savills Hotels Asia Pacific, said the limited number of flights have prevented buyers from inspecting properties, and so negotiations are delayed.

    Four- and five-star hotels are still holding up but those with three stars and below are facing challenges since there are few guests, he said, explaining that some are experiencing 10 percent occupancy rates, while the minimum to sustain operations is 35 percent.

    Foreign tourist arrivals in Vietnam between January and August fell 66.6 percent to 3.77 million, according to the General Statistics Office.

  • Here We Come, Osaka! Centara Signs Historic Deal forFirst Japanese Property

    Here We Come, Osaka! Centara Signs Historic Deal forFirst Japanese Property

    Centara Hotels & Resorts, Thailand’s leading hotel operator, together with Taisei Corporation and Kanden Realty & Development, announced a landmark agreement to bring the Centara brand to Japan. The three companies signed an Investor Agreement for Centara Grand Hotel Osaka, an upper upscale property with 515 keys that will occupy a gleaming 34-storey tower on a prime site in Osaka’s Namba district, the centre of leisure tourism for the city and the wider Kansai region. Centara’s first property in Japan is scheduled to open in mid-2023.

    The investment partnership between Centara Hotels & Resorts, Taisei Corporation and Kanden Realty & Development marks Centara’s entry into one of the world’s most popular tourist destinations. Osaka is a key gateway city and Japan’s third largest city, with a population of 2.7 million. Additionally, it is one of the leading Japanese destinations for international visitors, second only to Tokyo, and is considered the cultural heart of the nation. Along with popular attractions such as Universal Studios Japan and the city’s proximity to Kyoto, Kobe and Nara, Osaka is expected to see a further boost in tourism when the city hosts the World Expo in 2025.

    “Extending the Centara footprint to Japan has been a long-term strategic objective for the company, and this is a major milestone for the Centara brand as we have successfully added the 14th country to our portfolio,” said Thirayuth Chirathivat, Centara’s CEO. “This an exciting opportunity to partner with Taisei and Kanden Realty & Development, whose outstanding track records have earned leading positions in construction and property development. We are looking forward to making Centara’s debut and ongoing development in other Japanese cities a great success.”

    “This project is in Namba, an important and bustling district of Osaka and a place of international exchange. It is directly connected to Kansai International airport, making it one Japan’s major gateway cities to the world” said Senior Managing Executive Officer, Taisei Corporation, Katsuyuki Kanai. “It is really a significant milestone both to Japan and to Taisei that Centara, representing Thailand in tourism and hospitality, has embarked on this venture in Namba, the perfect location in Japan for the development of an upper upscale hotel.”

    “As a major Property Development Company based in Osaka, we are honoured to play an important role in this joint investment project to develop Centara Grand Hotel Osaka with such a significant and established Thai partner, Centara Hotels & Resorts, and with Taisei Corporation, who has a long and proven record of success,” stated Managing Executive Officer, Kanden Realty & Development, Munetaka Isoda. “We are committed to working with you in making every effort to ensure the success of this project and we wish you all a very warm welcome to Osaka.”

    The newly built hotel will occupy a stunning new 34-storey tower overlooking Namba Parks, with 360-degree views of the city. The top floors will include a lounge along with customisable space for meetings and events, plus a rooftop restaurant sky bar providing panoramic views in every direction.

    Facilities will include award winning Spa Cenvaree, a fully equipped fitness centre, a diverse selection of restaurants and banquet facilities. And the hotel’s spacious lobby will welcome guests with touches of Thai and Japanese style and ambience.

    The hotel location puts guests at the doorstep of some of Osaka’s leading entertainment, shopping and cultural attractions, popular with visitors and locals alike. A few steps away is Namba Parks, an architectural marvel and the city’s most distinctive mall, complete with a massive rooftop garden with cliffs, ponds, streams and waterfalls, making it a must-see for tourists. The Namba area, also known as Minami, is home to countless restaurants and bars, shopping venues, an electronics district, as well as one of Osaka’s most revered Shinto shrines.

    The addition of its first property in Japan is further proof of Centara’s expansion strategy, which calls for doubling the number of properties under its management by 2022. Centara’s expertise, combined with the local market presence and development experience of Taisei Corporation and Kanden Realty & Development, are sure to boost Centara’s Japan market launch toward long-term success.

  • Centara kicks off 36th anniversary with epic 36-dayglobal celebration

    Centara kicks off 36th anniversary with epic 36-dayglobal celebration

     Centara Hotels & Resorts, Thailand’s leading hotel operator, is marking its 36th anniversary milestone with a 36-day worldwide customer-focused celebration tied to the company’s 1983 founding. On this occasion, it also marks the 36th anniversary of Centara Grand at Central Plaza Ladprao Bangkok, the first hotel of the group, together with the 10th anniversary of Centara Grand and Bangkok Convention Centre at CentralWorld and Centara Grand Mirage Beach Resort Pattaya.

    Thirty-six years ago, Thailand’s first shopping centre mega-mall development, Central Plaza, rose from a suburban construction site on Bangkok’s Ladprao Road, complete with a brand new 5-star hotel that launched the Central Group’s hotel business with one of the Group’s largest investment commitments.

    From its first hotel in Ladprao, Centara has grown and prospered. Today, 70 Centara properties with six distinctive brands are operational or under development across 12 countries, and the company is well on its way to doubling its global portfolio by 2022.

    Centara will kick off the 36th anniversary celebration by rolling out a series of enticing offers, attractive promotions and lucky draws on 3rd June 2019, all featuring a special “36” theme. Guests should look out for the following limited-time deals:

    Every Third Night For Just THB 36 – For 36 days (3rd June to 9th July 2019), travellers will be able to stay with Centara for just THB 36. Under this amazing offer, guests who book a minimum three-night stay at any Centara hotel or resort worldwide – including five-star Centara Grand resorts in Thailand and the Maldives – will be able to pay just THB 36 for their third night.

    Lucky Stay E-Voucher – For seven days from 14th to 20th June 2019, guests will be able to book rooms at selected Centara hotels for one set price (only THB 3,600 per night) and enjoy sublime stays with a higher value. This generous offer is valid for room nights worth more than THB 4,500 and available for stays taken up until 31st October 2019.

    Cash Bonus Spending Credit: THB 3,600 for More! – The 36th anniversary celebrations will make your Centara stays even more rewarding this summer. Guests who purchase a stored value credit of THB 3,600 between 21st and 27th June will see its value instantly boosted to THB 5,500. Use the credit to pay for spa treatments, hotel dining and much more.

    LINE Coupons: Exclusive Deals for THB 36 and THB 360 – Sip, snack or feast for less with a series of tantalising weekly coupons. For 36 days (3rd June to 9thJuly), Centara will reveal a series of fantastic F&B deals on LINE, the social media app. Grab a coffee, bakery and other snacks for as little as THB 36, or a relaxing 40-minute massage at spa Cenvaree for just THB 360.

    10 Year Travel in Style Challenge: Photo Competition – Compete in the 10 Year Travel in Style Challenge with Centara, or the 36 Year Challenge if you dare. Guests who post their “now and then” throwback travel photos and use hashtag #36CentaraThrowback could win one of 36 prizes, including one grand prize — a sensational five-night holiday at Centara Ras Fushi Resort & Spa Maldives, including transfers.

    Exclusive Privilege for Centara The1 – Our Photo Challenge is twice as enticing for members of Centara The1. All Centara The1 member prize winners will also receive 3,600 Centara The1 points, on top of their main prize. To help our winners make the most of their points, Centara will be offering free night redemptions for just 6,363 points at select hotels for a limited time.

    And that’s not all. Guests who stay with Centara during the 36-day anniversary period will be offered the chance to enter a Check-In Lucky Draw. Guests can win on-the-spot prizes including spa treatments, bottles of wine, celebratory cakes, special discounts and more.

    Since it first entered the hospitality industry 36 years ago, Centara has developed a strong reputation for blending gracious Thai-style hospitality with world-class accommodation and exceptional amenities. Now, with an expanded collection of innovative brands, Centara is aiming to write the next exciting chapter in our history, with the goal of doubling our global portfolio by 2022.

    For more information about Centara Hotels & Resorts, please visit https://36.centarahotels.com