Samui 2014 Hotel Market Update February 2015
Samui’s tourism sector remains composed in face of mercurial trading climate Hotel Performance Trend Luxury tier hotels defy broader market and push upwards “Without doubt all of Thailand’s resort destinations were hit hard by last year’s political situation. The resort island of Samui was no different as the timing of the crisis came into the lead up to the traditional high season which resulted in year-on-year slides in annualized occupancy, average rate and RevPAR. Despite challenging conditions, in the broader perspective the increasing number of international arrivals stabilized the domestic front and by year-end passenger arrival numbers found equilibrium. Airlift remains the most profound bellwether for Samui and new flights to the gateways of Singapore and Kuala Lumpur have spurred fly-through traffic from regional and long-haul markets. More importantly the upgrading of the island’s daily flight ceiling has for the
% 100
in USD 250
80
200
60
150
40
100
20
50 2010
2011
Average Room Rate
2012
2013
RevPAR
2014 Occupancy
Source: C9 Hotelworks Market Research
moment put the long-term airport conundrum back on the bench. Critical challenges remain this year though, given the impact of the Russian ruble freefall, negative overseas media which has continued to impair Brand Thailand and finding a formula to regain a significant loss in the Australian market. Despite these issues, Samui has been able to shield itself from the pitfalls of other overdeveloped Asian resort islands.” Bill Barnett, Managing Director, C9 Hotelworks
2014 Trends
Forward Outlook
• Total passenger arrivals at Samui Airport were
• The Civil Aviation Department recently granted
• Hotel performance was strongly impacted by the
• Both the midscale and upscale hotel tiers with a
• Only one international standard hotel opened
• Samui’s hotel supply situation remains stable with
marginally lower by -0.5% from 964,276 in 2013 to 958,987 in 2014. This was led by domestic contraction while the international segment registered growth. mid-year political crisis as year-on-year occupancy was down by -6% and average room rates dropped by a similar percentage. RevPAR ended up as the biggest loser decreasing by -14%. during the year, the Ozo Chaweng with 208 keys.
permission for the Samui Airport to raise the number daily flights by nearly 40% from 36 to 50 per day, which is expected to induce new demand. considerable number of older properties remain susceptible to changing market tastes which will undoubtedly spur transaction, branding and renovation activity throughout the island.
only one new additional hotel coming online in 2015.
TOURISM Airline Indicators • International passenger arrivals in 2014 increased by 4% from 120,384 to 125,275. This was due to the rise of scheduled and non-scheduled inbound flights which grew by similar numbers.
Samui Airport Arrivals No. of Inbound Flights
No. of Arrivals 1,000,000
10,000
800,000
8,000
600,000
6,000
400,000
4,000
200,000
2,000
2007
2008
2009
No. of Domestic Arrivals No. of Domestic Inbound Flights
2010
2011
2012
No. of International Arrivals No. of International Inbound Flights
2013
2014
Source: Department of Civil Aviation and C9 Hotelworks Market Research
Average Length of Stay
Days 6 5
ALOS in 2014 increased to 4.60 days driven by Eastern European segment
4 3 2 1
Jan
Feb 2013
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Source: Surat Thani Provincial Office of Tourism and Sports and C9 Hotelworks Market Research
2014
Tourism Indicators • The two major market movers were visitors from Eastern Europe which rose year-on-year by 35% while Australian’s dropped by -17% during the same period.
Key Geographic Source Market Share % 100 80 60
8% 17%
_
6%
+
23%
20.3%
_
49%
_
19.6%
Top 5 Source Markets
No. of Arrivals 400,000
% 100 80 60 40 20 0 -20 -40
300,000 200,000
40 20
2013 Western Europe Asia
2
48% 2014 Eastern Europe Australia
C9 2014 Hotel Market Update: February 2015
100,000
Thailand 2013
Russia
Germany 2014
U.K.
Australia
Growth 2014
Source: Surat Thani Provincial Office of Tourism and Sports and C9 Hotelworks Market Research
HOTEL MARKET Hotel Performance • Analyzing non-branded and branded hotels, occupancy rates were similar at 66% and 67% while average room rates were significantly different at US$126 and US$195, respectively.
Performance by Tier % 100
in USD 600
80
450
60
Branded vs. Non-Branded Hotels % 100
in USD 300
80
250 200
60 300
40
150 40
150
20
Luxury
Upscale
Midscale
2013 Average Room Rate 2013 Occupancy
100
20
50 2010
Budget & Economy
2014 Average Room Rate 2014 Occupancy
2011
2012
Non-Branded Average Room Rate Non-Branded Occupancy
Source: C9 Hotelworks Market Research
2013
2014
Branded Average Room Rate Branded Occupancy
Source: C9 Hotelworks Market Research
Hotel Performance by Location % 100
in USD 250
80
200
60
150
40
100
20
50
Chaweng
Bo Phut
Choeng Mon
2013 Average Room Rate 2013 Occupancy
Choeong Mon area pushed up average room rates year-on-year by 17%
Lamai
2014 Average Room Rate 2014 Occupancy Source: C9 Hotelworks Market Research
Hotel Openings • There are 17,986 keys in registered accommodation establishments on Samui. Seventy-five keys will enter the island’s hotel supply in 2015. The Imperial Samui Resort has undergone a conversion to Starwood’s Sheraton brand. Hotel Name
Location
Keys
Prana Resort Nandana Holiday Inn Express Samui Bophut Holiday Inn Resort Samui Bophut Sofitel So Samui X2 Nautilus Samui COSI Hotel by Centara Sala Chaweng (conversion and extension of Muang Kulaypan) Manathai Koh Samui (conversion and extension of Buddy Oriental Resort)
Bophut Bophut Bophut Choeng Mon Plai Laem Chaweng Chaweng
60 200 150 120 44 153 78*
Feb 2015 2017 2018 2016 Q3 2016 2017 Q4 2017
Lamai
15*
Feb 2015
*Additional Keys for Existing Hotels
Opening Date
Source: C9 Hotelworks Market Research
C9 2014 Hotel Market Update: February 2015
3
About C9 Hotelworks C9 Hotelworks is an internationally recognized consulting firm with extensive experience in the Asia Pacific region. Its core business focus includes: Hotel and Resort Development Asset Management / Ownership Representation Project Feasibility and Analysis Key competencies include international hotel operator search, selection and contract negotiation, mixed use hotel and residential planning and operation reviews.
Bill Barnett Managing Director
A wide range of both institutional and private developers and a comprehensive portfolio of completed projects give C9 the skill set and background to focus on key issues, evaluate complex ones and assist clients in achieving solid results. Based in Phuket, Thailand and led by Managing Director Bill Barnett, who has 30 years of experience in Asia PaciďŹ c, the ďŹ rm is well positioned to serve an increasingly demanding marketplace.
The Source for all Hotel and Real Estate News www.thephuketinsider.com
C9 Hotelworks Company Limited 9 Lagoon Road, Cherngtalay, Thalang, Phuket, 83110, Thailand (Office located at the entrance of Laguna Phuket) T: +66 (0)76 271 535 F: +66 (0)76 271 536 www.c9hotelworks.com info@c9hotelworks.com