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At every corner of Asia be it St. Regis in Singapore, Bvlgari in
Bali, Four
Seasons in Koh Samui or Banyan
Tree in Phuket, brands are driving new ultra luxury hotels and
resorts. What were once traditional capital appreciation offerings
have now shifted gear into rental yield vehicles. The icing on the
cake is brand name appeal and ownership opportunities in some of
the worlds best holiday getaways. Villas with absolute privacy,
their own swimming pools and in room services from dining to spa
treatments are at the top of the high end mountain.
Partnering with a big name
Today in Phuket there has been an evolution hotel managed projects
offering ownership to individuals. Moving from the 1990’s where
Amanpuri,
Banyan Tree and
Sheraton
seeding the trend, currently branded projects range the spectrum
from Raffles, Dusit,
Moevenpick,
Jumeirah and Taj. Banyan
Tree continues to lead the pack with the multi-million dollar
Double Pool Villas along with a vast array of offerings in the Laguna
Phuket integrated resort. While price ranges vary from project to
project, most offerings at this end of the market are aimed at high
net worth individuals and tend to average one to three million US
dollars.
Spending money to make money
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One of Asia’s most recognized and well regarded brands Shangri
La have launched their long awaited Phuket Resort and Spa at the
northern end of Bangtao Bay. Coupled with the resort are fifty hotel
managed villas which will be run as part of the resort and owners
getting investment yields based on a revenue share. Priced between
thirty eight up to sixty million Thai baht (average price is US$1.2
million) these units have created a furor among lifestyle investors.
With already a quarter of the project sold to date it appears the
offering will be one of the years biggest success stories.
Situated on the same stretch of coastline that Amanpuri,
Chedi,
Sheraton
and Banyan Tree
call home and situated on 134 rai (approximately 20 hectres) the
resort is set to open by the end of 2008. With 315 rooms configured
with a combination of guestrooms and villas the site combines both
oceanfront and large tropical lagoons. The villas for sale with
an area of 350 square meters offer two bedrooms, indoor and outdoor
living spaces, large private pool and total privacy.
Letting someone else do the work
For those looking at branded hotel managed products as a property
buy need to weigh the relative merits of a shorter return on investment
scenario with ongoing rental returns. Additional benefits include
owners usage for a period of time each year in a luxury resort where
instead of having to venture outside your room in search of service,
it comes directly to you in our own villa. Anticipated rental yields
currently quoted in the Phuket market average 6-8% per annum. A
resale market does exist for this type of product and while the
mixed use trend is still in its infancy, capital appreciation has
been significant when looking at comparable transactions over the
past few years.
That said this type of investment does not suit every buyer. Those
seeking retirement homes or longer stays are often put off by mandatory
operating of the villa by the hotel. Lifestyle property does offer
hassle free quality management by upper scale hotel chains and return
potential is most often enhanced through the worldwide sales and
marketing networks. As in any luxury purchase it’s the brand
promise, affinity of the buyer to that and many buyers simply adding
this to a long line of financial rewards. Luxury continues to become
a force worth reckoning in today’s frill filled world and there
is a capital market out there seeking exactly what the Shangri La
Phuket is offering.
Hot Tips
Contact CB Richard Ellis who are the Sole Agent at Shangri La’s
Phuket Resort and Spa at www.shangri-la-villas.cbre.co.th or email
phuket.@cbre.co.th
About Bill Barnett
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Bill Barnett is Managing Director
of C9 Hotelworks (c9hotelworks.com), a Phuket-based hotel
and residential consulting firm that has been involved in
many of the islands leading developments. With over 20 years
experience in the Asia-Pacific region, Bill has held senior
corporate roles in development, hotel operations, and asset
management. He was previously Deputy Managing Director of
the publicly listed Laguna Resorts & Hotels. Prior to
that, he was Chief Operating Officer – Asia-Pacific for
Millennium & Copthorne Hotels with responsibility for
43 hotels. As an executive with Century International Hotels
in Hong Kong, he played a key role in the expansion of the
chain for nine years. His previous asset management and ownership
representation experience includes the following properties:
Four Seasons New York, Regent Beverly Wilshire, Ritz Carlton
Hong Kong, Grand Hyatt Taipei, Hilton Seoul and Westin Philippine
Plaza. He attended Cornell University School of Hospitality
Management.
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