Continued Thailand arrivals growth expected
American hotel chain Wyndham Hotels & Resorts is confident about the growth of the Thai tourism industry and overall economy, planning to sign eight new hotel management deals in major tourist destinations this year.
David Wray, vice-president of development and acquisitions for Southeast Asia and the Pacific Rim, said the Thai tourism sector always bounces back after crises such as bombings or political chaos.
“Despite the crises, tourist arrivals resume and they always return in higher numbers,” he said to The Bangkok Post. “Huge growth in the tourism industry will continue no matter who makes up the new government.
Projects like the high-speed trains will also continue.” This year Wyndham plans to agree to manage eight new hotels in Bangkok, Pattaya, Phuket, Chiang Mai and Chiang Rai with a total 2,000 rooms. In the next two years, Wyndham expects to have a total of 25 hotels with 5,470 rooms opened in Thailand.
Branded residences in Phuket
Branded residences in Phuket offer quality condominiums and houses in projects managed by well-known hotel management companies. Such projects offer buyers full access to 5-star hotel’s facilities and services and, even more important, rental management services with better returns.Number of such branded residences increase significantly in Phuket last years. Such projects have full hotel license and, in this way, are able to legitimately offer short-term rentals. As in opposite, condo owners who rent out their properties on daily basis using Airbnb or other channels facing increasing resistance of Phuket authorities.
Branded residences provide more degree of confidence to buyers because they believe hotel management companies ensures the quality of the project as well and its operation and management. They also believe that their condominium or villa will generate better returns is is is efficiently and effectively marketed and managed by well-known brand.
Property developers in Phuket offer quality projects with rental programs with or without rental guarantee for quite a few years. Using branded hotel management as a project operator betting this trend to a new level, with most recent example of Wyndham Naiharn Beach Phuket. Each condominium unit in this project is owned by individual investors and their Wyndham branded units will be rented out for eleven months a year. The buyer has the right to use their condominium for a 30 days a year. Project developers offers initial guaranteed yield of 6% for the first two years and 100% GOP (hotel operation profit) share for the next thirteen years. Having a Wyndham managing a property gives investors the confidence that their return will be much higher after the initial guarantee period.
Since majority of resort property buyers in Phuket are foreigners, it’s important that condominiums in such projects are offered with a foreign freehold ownership.
The trend is that the more and more property projects in Phuket will be offered with a management of famous and well-known hospitality companies.