The pandemic has shaken up the hotel market in Thailand. The country has more than 750,000 hotel rooms. And year after year, the country has added new capacity. For the period 2020-2022, there are plans for 123 hotels representing more than 31,000 additional rooms. Will they all open? In the current climate, the question does indeed arise.
But with, according to STRa last year's occupancy rate of 23.5% and screenings of 37% in 2021The situation in the hotel industry remains precarious. And this is likely to attract the interest of the major chains, as many independent establishments could find themselves bankrupt.
Against this backdrop, the number of announcements from major chains is increasing. Each week brings a new batch of future takeovers. Starting with Hilton who has just announced his commitment to the Kingdom.
The chain has indicated that it intends to convert up to 2,000 rooms over the next two years. It will focus in particular on its premium brands Hilton Hotels & Resorts and DoubleTree by Hiltonand on Hilton Garden Inn. The latter is in the mid-range segment with more limited services. Hilton is currently present in Bangkok, Phuket, Koh Samui, Hua Hin and Pattaya.
Hilton explains that the owners ofindependent hotels can in fact benefit from the rebranding of their establishments with Hilton. With tourism set to recover in 2023 These independent establishments are now able to leverage Hilton's commercial strength and cutting-edge technology solutions to return to pre-crisis levels. " By focusing on rebranding opportunities, we will be able to help independent hotel owners in Thailand maximise the potential of their assets." said Guy Phillips, Senior Vice President Development, Asia and Australasia.
Hilton has already signed several agreements in recent years. These include the launch of Hilton Garden Inn. The first will open in Phuket at the end of 2021. The group also plans to launch its new brand, Canopy by Hilton, to 2023.
A stronger presence for Hilton and Hyatt
With 11 hotels across four brands, eight more under construction and the arrival of two new brands, Thailand is poised for significant growth in the years ahead.
" Our commitment to Thailand remains unchanged. While travellers' needs and requirements may change, we believe they will continue to recognise our brands for the reliable service, exceptional experiences and high safety standards for which we are renowned around the world." said Paul Hutton, Hilton's vice-president of operations in South-East Asia.
Hilton is not the only chain concerned. Hyatt Hotels Corporation is also gaining momentum in the kingdom. The group has signed an agreement to manage and develop new hotels with Asset World Corporation (AWC)a major Thai property group. The framework agreement provides for development of over 1,000 new bedrooms in several Hyatt-branded hotels.
" We are delighted to strengthen our relationship and begin working with Hyatt to build a better future together and create a world-class product to elevate Thailand's tourism industry." said Wallapa Traisorat, Chairman and CEO of Asset World Corp. The collaboration with Hyatt will enable us to offer a unique perspective to business and leisure customers by providing them with high-level services."
Future Hyatt-branded properties will be positioned in high-end, luxury and lifestyle niches. Facilities are planned in Bangkok, Chiang Mai, Chiang Rai and Pattaya.. " The signing of this framework agreement underpins our commitment to grow the Hyatt brand in Thailand" said David Udell, Hyatt Group President for the Asia-Pacific region.
