Hua Hin Hotel Market Update July 2021

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C9 HOTELWORKS

Airport factor propelling Hua Hin to rival other Thai leisure destinations Branded family-friendly hotels capture domestic demand

Hua Hin Airport Passengers Passengers

"Unlike other Thai leisure destinations that ore heavily reliant on international visitors, Hua Hin receives is strongly leveraged in the domestic market. Pre-COVID, 7 4% of the total visitors originated domestically.

%

l 00,000

1,000

80,000 500

60,000

The destination's legacy is a weekend and holiday getaway for Greater Bangkok . There is robust domestic demand on Friday and Saturday nights, which results in the highest rotes of the week . Typically, overage occupancy is 90% and above during the weekends and public holidays.

40,000

0

20,000

0

-500 2018

In FY2020, the Hua Hin hotel market posted the highest domestic occupancy with 39% surpassing top tourist destinations such as Pottoyo, Phuket, and Bangkok. Although Hua Hin's overage room rotes were slightly lower than Phuket's, the market-wide RevPAR in Hua Hin was the highest.

2019

2020 Growth

Source: Civil Aviation Authority of Thailand

Hua Hin hotel supply is anticipated to continue to grow at a moderate pace. In 202 l incoming inventory will rise 4%. Of the 2, 16 l new hotel keys in the pipeline, 7 4% ore in the upper-midscale category, 15% in upper-upscale segment, and l l % at the luxury tier . All the hotels in the pipeline ore branded to chains."

Hua Hin Airport hos become on important demand generator as demonstrated by 233% passenger growth between 2018 and 2019 . The main market feeders included international visitors on AirAsio and high-net-worth holiday travelers flying in on private oircroh .

Bill Barnett, Managing Director, C9 Hotelworks

Topping on domestic demand, Thai AirAsio hos been flying from Chiong Mai and Udon Thoni to Hua Hin prior to the current restrictions .

In Feb 202 l , the government announced the approval of a significant expansion of Hua Hin Airport. Project completion is slated for 2024

Benefiting from its drive-in proximity to Bangkok, hotels hove pushed demand through various packages such as workcotions and long stays .

After the airport upgrade is complete, larger regional oircroh con be accommodated with potential routes to Chino, South Korea, and Indio.

With brood hotel demand segmentation relying on family FIT and OTA travelers, wholesale business and MICE groups who fill weekday occupancy, remains challenged

The ongoing double-track railway project set to finished in 2024 is continuing with the Nokhon Pothom - Hua Hin and Hua Hin - Prochuop Khiri Khan segments now 66% and 82% com leted


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