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Thailand: A report from C9 Hotelworks has shown the growth of the upmarket hostel and hybrid hotel phenomenon in south-east Asia.
Thailand: A report from C9 Hotelworks has shown the growth of the upmarket hostel and hybrid hotel phenomenon in south-east Asia.
The report says south-east Asia has seen a boom in “second generation upmarket hostels now attracting a wider demographic”. With a market size of over 1,200 properties and nearly 52,000 beds, the new and improved product is “turning the heads of traditional hotels” says the report.
According to the report by hospitality consulting group C9 Hotelworks there was a 42 per cent surge in new beds coming online in the “flashpacker” category between 2015 and the third quarter of this year. Thailand, Malaysia and Vietnam are now the top three players in the region, with Indonesia narrowing the margin with year-on-year growth of 73 per cent.
C9 Hotelworks managing director Bill Barnett said: “Hostels are unlike hotels as average rates are calculated on a per bed basis, compared to hotels which use a per room rate. Our research across Southeast Asia shows that if comparing the two accommodation models side by side, the average room rates in newer hostel properties are matching or exceeding those in the more established budget hotel tier.”
“Ultimately the mix of accommodation and bed types in what are being term ‘poshtels’ attracts not only solo travellers and couples, but also taps the fast tracking friends and family group. Hostels are also set to take advantage of Asia’s low-cost airline carrier trajectory in a significant way. In Europe chains such as Generator and Meininger have attracted institutional investment to spur expansion, and we are already seeing private equity players in south-east Asia start to chase the trail of what is arguable the region’s must exciting travel space,” added Barnett.
The hybrid hotel and poshtel sector will be discussed at the 2017 Boutique and LIfestyle Hotel Summit in London in May 2017 – the event has been merged with the Hostel and Budget Traveller conference to expand its coverage of this sector.
www.c9hotelworks.com
