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Serious oversupply of hotels


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Serious oversupply of hotels

Postby KK Veteran » Tue Apr 05, 2016 3:00 am

I spent my usual few months in KK Jan through the end of March and have to say there is no way there will ever be enough visitors to fill all the new hotels .

There is some serious cost cutting going on but how on earth will places such as the revamped Rimbung Inn ,now called the Lakeview ,recover their costs on 550 baht a night rooms?

The Kanyarat is struggling hence the signs outside offering monthly deals and the Ingatara is also cutting walk in room rates.

The old Sofitel now called the Pullman is really looking frayed at the edges with worn out carpets,the cracked tiles around the pool and generally looking run down.

Meanwhile lots of new hotels on highway one beckon the overnight traveller from Bangkok.

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Charlie
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Re: Serious oversupply of hotels

Postby Charlie » Tue Apr 05, 2016 7:50 am

We stayed at the Chaipat a couple of weeks ago and it was very quiet. You could tell by the board behind reception where they keep all the keys that very few rooms were occupied. They charge 450 per night.


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Re: Serious oversupply of hotels

Postby KK Veteran » Wed Apr 06, 2016 4:43 am

The Chaipat was the first hotel I ever stayed in back in the last century.It has been revamped and the rooms seemed reasonable for the price when I last visited several years ago.
However times have moved on and the hotel looks very tired just like other bottom end places to stay.

I have spent a lot of time at the B and B hotel at he top of the lake. 18000 baht a month is not cheap but I like the owner and the place.

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Re: Serious oversupply of hotels

Postby SkyyWalker » Fri Apr 08, 2016 12:27 pm

There's a glut of condos as well as stray dogs, too. I think the population of KKC will grow in the near future, so as long as new construction slows down, rooms will fill up over time. As the real estate market has lagged, there's also a growing number of homes for rent and or for sale. it's a great time to find a good rental/purchase deal...not a great time if you need to unload a property!
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Re: Serious oversupply of hotels

Postby KK Veteran » Fri Apr 08, 2016 4:40 pm

Glut of condo's is an understatement.

The large Kanyarat apartment building is near empty as can be witnessed by the number of rooms lit up at night.

I had a tour around it some months ago.They are asking just under 13 million for the large apartments fronting the lake and 4.5 million for the small single bed units. Bangkok prices and highly unlikely they will ever sell for that sort of money.

The same goes for the large block by Central Plaza. Take a look at how many lights on at night.

The prices asked for these units will buy you a nice detatched house on a gated estate.

I know the Rimbung Inn was up for sale before convesion for 75 million and a lot of money has gone in to it although all the floors are not completed. The standard room rate there 700 baht so they will need a lot of trade to cover their costs.

There are empty new shophouses everywhere on sale for £2.5 million.

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Re: Serious oversupply of hotels

Postby SkyyWalker » Fri Apr 08, 2016 5:11 pm

We received a flier in our mailbox the other day from The Piman Group. They have slashed prices by 30% on all 5 of their condo projects and cut prices 10% on the new homes under construction in the new phase of Piman Chol 2.
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Re: Serious oversupply of hotels

Postby parryhandy » Sat Apr 09, 2016 1:16 am

Its very rare they do that as previous buyers (thais) normally go ballistic if they paid more for the same properties previously.Times must be bad.


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