The big news of the week for the real estate industry is that the hotel market is showing promising signs of achieving improved performance rates for Q2. While the first quarter of this year was burdened with strong feelings of skepticism and adverse predictions of the market due to the unstable political situation, today industry experts at Jones Lang LaSalle are singing a more optimistic tune.
Since the 60-day emergency decree was lifted just one month ago, developers and hotel owners can breathe a sigh of relief that there is hope of the city’s tourist-population returning to a healthier amount. The political situation in Thailand has been receiving much less international attention, allowing would-be visitors to feel more comfortable about booking trips. In addition, many development projects in Bangkok that were postponed have finally commenced.
Normally, each year several thousand hotel rooms will be added to the current pool, which today stands at roughly 100,000 hotel rooms in Bangkok alone. This year however, only an additional 2,200 are planned to be completed before 2015. This lower number will prevent Bangkok from reaching over-supply, thus protecting the standing price point for short term accommodation.
The sentiments mentioned above are purely that; sentiments. However they are based on historical data that the market has quickly bounced back after similar crises. As the political situation is already dying down now at the start of only the second quarter, there is still much time for the market to make a full recovery before the year’s end.
