Thailand’s Industrial Zone Si Racha Heats Up

Talking to many hoteliers outside of Thailand and when speaking about Si Racha, they start immediately thinking about the red hot chili sauce Sriracha.

Over the past few years the area which is a center of industrial activity on the Eastern Seaboard has flown under the radar of international hotel brands.

Today, incoming branded offerings by ACCOR’s Novotel, Ascott’s Somerset and Centara along with a Movenpick that is in the works, are creating a major shift into the market.

C9 Hotelworks has released a new report titled Si Racha Serviced Apartment Market Update 2016 that includes coverage of the area’s hotels as well.  Read and download a copy CLICK

Si Racha –Chonburi is Thailand’s second largest industrial zone by scale, with over 65,000 work permits issued and the second largest Japanese community outside of Bangkok in the country.

Currently the hotel and serviced apartment market stands at slightly more than 3,500 units  while strong investment sentiment has bolstered the pipeline with 2,239 new keys expected to enter the market by 2018.

According to C9 Hotelworks research on the serviced apartment sector there is a forecast for yet more branded properties to enter the supply pipeline within this year.

While short term the market is expected to be influenced by changes in the supply demand scenario, longer-term the planned high-speed Eastern Seaboard train project could be a major game changer to the area.

Meanwhile hotels and serviced apartments are going to have to look for more diverse segmentation and an impact from new condo product is also expected to hit the core long-stay rental segment.