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INDONESIA, THAILAND AND VIETNAM PROVIDE LARGEST HOTEL INVENTORIES IN SOUTH-EAST ASIA

Updated: Feb 18, 2023

ID HOTELIER - South-East Asia continues to be a growth hub for the hotel construction industry, according to Lodging Econometrics recent Construction Pipeline Trend Report, with Indonesia, Thailand and Vietnam taking the lead in the development stakes.

Hotel Inventories in South-East Asia
Hotel Inventories in South-East Asia

The countries with the largest hotel construction pipelines at the close of the third quarter 2022 were led by Indonesia with 252 projects/40,821 rooms, then Vietnam with 233 projects/86,847 rooms, followed by Thailand with 174 projects/42,371 rooms.


South-East Asia cities, with the largest construction pipelines are led by Bangkok, Thailand with 67 projects/17,766 rooms and Jakarta, Indonesia with 54 projects/10,047 rooms. Kuala Lumpur, Malaysia is next with 45 projects/13,128 rooms, and then Phuket, Thailand with 35 projects/8,992 rooms.


Vietnam has recorded the highest number of hotel rooms, growing from 420,000 in 2016 to 780,000 in 2021, a CAGR of 13.2%. The number of hotel rooms in Indonesia has grown from about 530,000 in 2016 to 719,000 in 2021, a CAGR of 6.4%. Meanwhile, Thailand has added about 104,000 rooms to its inventory growing from 683,000 rooms in 2016 to 787,000 in 2021, a CAGR of 2.9%.



Accounting for 7% of South-East Asia’s hotel room inventory, the Philippines has added 125,000 rooms between 2016 and 2021, a CAGR of 19.5%, the highest recorded in the region.


The extent to which the current trajectories continue over the next few years will depend in large part on the recovery of both the inbound and domestic markets in the region and attractive investment opportunities presented by a new class of hotels.

 

About Writer

Ross Woods is a seasoned hotel investment advisor with over 30 years of global experience in hotel asset management, portfolio management, and hotel advisory services. Known for his collaborative-based consulting style that integrates a high level of strategic and analytical expertise, his “smarts” are sought by clients to solve complex issues, make better decisions and realize the highest risk-adjusted investment returns. His clients include banks, private investors, REITs and hotel management companies in the United States, South East Asia, Australasia, Europe, and Dubai.


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