Posh Hostels Pushing Into Hotel Segment

C9 Hotelworks has released a regional overview of the emerging hybrid hotel sector titled Southeast Asia Hostel Market Trends 2015.

Over the past two years we have completed a number of research engagements in the hostel market and it’s clear that the once entry level accommodation tier is now recreating itself into an exciting trading space.

While it’s hard to create a name tag for the various properties coming onstream, the reality is whether they are called hybrid hotels, hostels or poshtels, the push into the mainstream budget and economy tier is very real.

Two key differentiators in lodging metrics are the ADRB (average daily rate per bed) being driven by the room types which are sold on a rate per bed, and secondly the ABR (average beds per room).

In Southeast Asia in broad terms the ADRB is US$10 but the ratio of beds to room at 3.9 equates to an ADR of nearly US$40. This is often a higher average rate then budget hotels in the same marketplace.

For developers, the ability to do conversions and on the heels of rising land values are able to create efficient investment yields on a per square meter return.

Two international hostel or hybrid brands that have attracted institutional investment are Generator and Meininger. The former has been at the leading edge of the poshtel push, and features a trendy communal lounge area and entertainment offering that captures a chic group of flashpackers and experiential travelers.

After creating headlines in London, Paris and other Euro locations , Generator is on the move. One upstart in the US is Freehand, who are already developing a critical mass of properties.

Here in Southeast Asia, Thailand’s Lud.d brand already has two hostels operating successfully and are about to open a third. One of the keys of their success has been to raise the bar in terms of design and standards. While in the Philippines, the Junction offering is making waves in Manila.

To download C9 Hotelworks Hostel Market Trends 2015 click on the link below:

http://issuu.com/thephuketinsider/docs/southeast-asia-hostel-market-trends