No one could argue that the type of visitor who comes to Thailand and Pattaya, in particular, has changed considerably over the last decade or so. The demand for long-term rentals in low to mid-range properties has reduced with demand for short-term rentals increasing. The problem with this is that rentals in condos that are less than 30 days in duration are technically illegal in Thailand unless the condo has a hotel license which is something that is quite rare.
So, we start to build up a picture of how Pattaya has changed and as a result, the developers have also needed to change and adapt their thinking. Local and national developers are joining hoteliers in constructing new properties and many of the rooms or units are being sold to investors with promises of guaranteed rental returns. This is obviously something that is attractive to investors whilst also meaning that developers find their projects far easier to sell. A win-win situation for all parties.
In Movenpick Na Jomtien, one tower is designed for hotel and the other for condo living
Currently, it is estimated that there are around 30 new hotel residences around Thailand, primarily in resort cities, that are a joint venture between a developer who had previously focused on building condos and a major hotel chain. These projects have proved to be hugely successful with demand remaining high both for the purchase of the rooms and in terms of their occupancy. Investors will certainly see this as something gives them the returns that they are looking for with very little required after the unit has been purchased.
Some of the developers are linking up with the major international hotel chains such as Amari, Best Western and Holiday Inn whilst others such as the New Nordic Group in Pattaya are choosing to do things alone. The two arguably aim for different market segments but nonetheless have proved to be incredibly successful so no doubt this will raise the question why the demand is so high for all concerned?
In Amari Residence, high-end one bedroom where you can also enjoy hotel service
On the face of it, rooms offered by the likes of New Nordic have a natural appeal for the coach parties. They have lots of facilities on site, there are a plethora of rooms available and they are in a great location. These rooms are booked months in advance so both developer and investor have confidence with handsome returns available. Luxury rooms will always be popular and indeed Pattaya continually welcomes business people and those with large budgets. The attraction for all parties is again obvious.
Of course, demand for condos still exists and it would be foolish to assume otherwise. People still need somewhere to live and that is the same for expats and Thais. Therefore, there will always be new condos being constructed as the demand will definitely be there. In the past, there has been an issue with an oversupply of units available, but the balance seems to have been readdressed. Pattaya is a city that is thriving, but it is also a city that is constantly changing and luckily developers and investors have recognised this need to adapt.
Veranda is another example of condominium combined with a hotel operated by Accor Group