Demand:

Growing prominence of Surat Thani airport as a secondary gateway to Samui, in addition to the existing airport, has helped fuel demand.

• Visitor arrivals to Samui Airport in 2013 increased by 14.5% over 2012 to 1.5 million.
• Average length of stay in Samui has been declining as a result of growing prominence of short-stay visitors from the region.

Supply

• According to the Department of Tourism, there are 20,047 hotel rooms in Samui as at 2013 year-end.
• The large increase of high-end resorts during the past three years has repositioned the island as a luxury resort

Trading Performance

• Current political demonstrations in Bangkok have had a minimal impact on hotel trading performances.
• Occupancy in 2013 reached a record of 73% growing by about 5% over 2012.
• ADR declined from 2008 through 2012 before recording subpar growth of 1% in 2013 to THB 3,940. RevPAR growth of 8.9% to THB 2,870 in 2013 was largely occupancy driven.

Outlook

• The supply pipeline for Samui is slowing over the next three years and is largely concentrated in the midscale to upscale segments.
• Demand fundamentals remain healthy going forward and we anticipate continued emergence of short-stay demand from key Asian source markets.
• We expect China, Russia and India visitor markets to be the strongest growth markets in the medium term.

The News

New Additions during 2013 to Q1 2014

• Vana Belle, A Luxury Collection Resort, 79 keys
• KC Beach Club Hotel & Pool Villas, 42 keys
• Escape Beach Resort, 69 keys
• Ozo Chaweng Samui, 210 keys, Q1 201

Major Renovations

• Anantara Bphut Koh Samui Resort & Spa, 106 keys (Reopened in Nov 2013 after seven months of extensive renovations)

Notable Hotel Transactions

• Buddy Oriental Samui Beach Resort, 133 keys in November 2013 (Price: Confidential)

Hotel Currently for Sale by JLL

• Bhundari Spa Resort & Villas, 126 keys

About JLL's Hotels & Hospitality Group
JLL's Hotels & Hospitality Group serves as the hospitality industry's global leader in real estate services for luxury, upscale, select service and budget hotels; timeshare and fractional ownership properties; convention centers; mixed-use developments and other hospitality properties. The firm's 300 dedicated hotel and hospitality experts partner with investors and owner/operators around the globe to support and shape investment strategies that deliver maximum value throughout the entire lifecycle of an asset.

For inquiries, contact:  www.ap.jll.com