Serviced Apartment - W

Market
Research
B angkok serviced apartment M arket
BANGKOK SERVICED APARTMENT SECTOR OVERVIEW | M arc h | 2 0 0 8

c o l l i e r s i n t e r n at i o n a l | Thailand
B a n gko k s e rv i c e d a pa rt m e n t M a r k e t | march | 2008
BANGKOK SERVICED APARTMENT

SECTOR OVERVIEW 2008
• After 2 years of uncertainty linked to political issues, the property market in general
Market Indicators and the serviced apartment market in particular is expected to experience renewed
activity and growth in 2008.
2007 2008F
• At the same time, competition will intensify further as 6,580 new serviced apartment
Supply units in 38 projects are set to enter the market by 2011.
• Total new investment in these 38 projects is estimated at around THB 27 billion.

Demand
• Many investors are attracted to this sector by strong income potential combined with
lower investment and operating costs and offered higher yields than hotels.
OCCUPANCY (%)
• International operators, such as Oakwood Asia Pacific, Frasers Hospitality and The
Ascott Group, are expanding aggressively throughout Asia and all have new
properties underway in Bangkok.
AVERAGE achieved
rent (thb / sq.m.)
• The advantage of a strong brand name, either local or international, will become
more apparent in a more competitive environment.
• As new supply outpaces new demand, operators have turned increasingly to short-
stay tourists and business travelers, rather than the traditional serviced apartment
long-stay market (1-3 months), competing with hotels.
By 2011, the total amount of
• Some serviced apartments are currently taking in 30-35% long-stay and 65-70%
serviced apartment investment will
short-stay business.
be approximately THB 27 billion for
the new supply of 6,580 units in 38
• With new supply of hotels also increasing sharply, the market is expected to enter a
serviced apartment projects. This
very competitive phase in 2008.
investment cost is exclusive of land
prices.
• With increased supply coupled with licensing requirements for short-stay operators,
a strategy for success could be a return to focus on the traditional longer-stay
market. Offering guests staying a month or longer a well-designed product that meets
their needs would be preferable to engaging in a price-cutting war with hotels.
• Appreciation of the Baht is putting some Grade A properties outside the budget
allocation of some long-stay expatriates, which could benefit the Grade B market in
the near term.
www.colliers.com/thailand
The Knowledge Report | March | 2008 | Bangkok Serviced Apartment Market
2 Colliers International COLLIERS INTERNATIONAL 2

SUPPLY BY LOCATION
Currently, there are approximately 10,685 units in 75 serviced apartment projects located in
Bangkok. After more analysis, the serviced apartment area can be divided into four areas or
pockets of concentration:
• Central Business District Area (CBD)

This is the area that encompasses Silom Road and Sathorn Road as well as other sois in
between such as Soi Saladaeng, Soi Convent & Soi Pipat.There are approximately 1,687 units
in serviced apartment located in this area. The below table shows future supply of serviced
apartment projects in this area.
New supply in Central business district area (CBD)

Central Business District
Area covers Serviced Apartment Name Location No. of units Expected completion
- Silom Road For your residence Silom Soi 17 24 2008

- Sathorn Road Sathorn Vista - Marriott Soi Suanplu 195 2008
- Other sois in between
Sathorn Garden Sathorn Road 155 2009
such as Soi Saladaeng, Soi
Convent & Soi Pipat Istitmar Residence Sathorn Road 77 2010
Metro Sathorn Tower Soi Saint Louise NA 2011
Source : Colliers International Thailand Research
• Central Lumpini Area

The Central Lumpini area covers areas along Rama I, Rajdamri, Wireless, Ploenchit and
Langsuan Roads. This area is convenient for both business travelers and tourists, because
of its proximity to many of the office buildings and local attractions. Cape House, Centre
Point – Wireless and Natural Ville, among others, are located in this section of the city with
approximately 1,984 units. However, an additional 578 units will be added in this area by 2011.
New supply in Central Lumpini
Serviced Apartment Name Location No. of units Expected completion
Bliss Residence Soi Ruamrudee 78 2008
Baan Rajprasong Soi Mahadlekluang 3 70 2008
Noble Ambience Ruamrudee Soi Ruamrudee 2 108 2008
Siam Kempinski Rama I 150 2009
St'Regis Rajdamri Road 22 2010

Central Lumpini Area covers
- Rama I Road Planned Project Ploenchit Road 150 2011
- Rajdamri Road Planned Project Ploenchit Road NA 2011

- Wireless Road
- Ploenchit Road
- Langsuan Road
COLLIERS
Colliers INTERNATIONAL
International 3
• Sukhumvit Area
This is the section of Sukhumvit Road between Soi 1 and Soi 69 to the north and Soi 2 and
Soi 42 to the south as well as other sois in between. This popular area with expatriates and
tourists includes the Asoke Intersection on the west to the Emporium Mall to the east. The
area between Sukhumvit Soi 1 and Sukhumvit Soi 69 is popular as a residential area for western
expatriates. Japanese nationals tend to prefer from Asoke intersection upwards, especially Soi
Thonglor. Serviced apartments in the vicinity include Emporium Suites, Jasmine Executive
Suites, President Park, Sofitel Residence Asoke, Somerset Lake Point and Unico Grand
Sukhumvit, to name a few. The serviced apartments in this vicinity are 5,273 units, with a huge
amount of new supply in this vicinity being added of approximately 3,659 units.
Sukhumvit Area covers New supply in Sukhumvit

- Sukhumvit Road between
Soi 1 and Soi 69 to the north Serviced Apartment Name Location No. of units Expected completion
- Sukhumvit Road between Sukhumvit Park View by Marriott Sukhumvit Soi 24 300 2008
Soi 2 and Soi 42
Compass Sukhumvit Soi 24 340 2008
to the south.
- Other sois in between NA Sukhumvit Soi 19 42 2008
Admiral Suite II Sukhumvit Soi 31 122 2008
Citadines 8 Sukhumvit Soi 8 130 2008
Column Residence Sukhumvit Soi 16 238 2008
Somerset Amar Garden Sukhumvit Soi 3 122 2008
Eight Thonglor Sukhumvit Soi 55 148 2009
The Royal Suite Serviced Apartment Sukhumvit Soi 13 170 2009
Somerset Sukhumvit Thonglor Sukhumvit Soi 55 268 2009
Oakwood Residence Thonglor Sukhumvit Soi 55 NA 2009
Somerset Grand Sukhumvit Sukhumvit Soi 23 265 2010
Jasmine Resort & Park Hotel Sukhumvit Soi 69 300 2010
Benchasiri Place by Marriott Sukhumvit 92 2010
Fraser Suites Sukhumvit Sukhumvit Soi 6 250 2010
L&H Sukhumvit 19 Sukhumvit Soi 19 600 2011

• Outer Central Business District (Outer CBD) Area

This is the area that stretches along the bank of the Chao Phraya River on Charoenkrung Road.
Narathiwat Ratchanakarin and Rama III Roads are located in this area. This is a new area for
expatriate serviced apartments since this area is located on the border of the CBD, with easy
access to the CBD area. Thus, there is a scarcity of Grade A serviced apartment projects in the
area. Despite this many serviced apartments in the area such as Oakwood City Residence, Centre
Point Silom (Bangrak), Shangri-La Hotel Apartments have excellent reputations in this vicinity.
The serviced apartments in this precinct boast a total supply of 987 units. Additional Grade A
serviced apartments of 560 units will be added in this vicinity.
New supply in OUTER CENTRAL BUSINESS DISTRICT (Outer CBD) AREA

Outer Central Business
District Area covers
- Charoenkrung Road Riverside Garden Marina Charoenkrung Road 260 2008
- Narathiwat Ratchanakarin Radisson Suite Narathiwat Road 300 2009
Road
- Rama III Road
• Other Areas
Most of the remaining Grade B & C serviced apartments are scattered across the city including
Phayathai, Petchaburi, Rama 9 Roads, Mitmaitri, etc. The recent addition of the Amanta in
Ratchadapisek added about 116 units to the total stock in this area. The total stock of this area is
754 units. Since the new international airport has been moved, the area around Suvarnabhumi
International Airport is in the investment consideration area for investors. There will be
approximately 468 units added in the area around the new airport.
New supply in Other Areas
Four Wing Residence Srinakarin 128 2008
McKenna Serviced Apartment Phayathai 169 2008
Fragrant Real Estate Makkasan 350 2009
Somerset Ratchatewi Phayathai 225 2009
Chamchuree Square Rama IV 120 2008
Oakwood Garden Tower Bangna 340 2009-2010

The remaining areas
scattering across the city
- Phayathai Road
- Petchaburi Road
- Rama 9 Road
- Bangna Road
COLLIERS
International 5
SUPPLY BY GRADE
The market share of serviced apartments Total supply of Grade A-serviced apartments is
targeting expatriates can be categorized into approximately 3,978 units, representing 37% of
two grades which are Grade A and Grade B. the total number of serviced apartments, while
the supply of Grade B-serviced apartments is
Grade A serviced apartment projects are in good approximately 6,707 units, representing 63%.
locations and easily accessible. The layout must
be practical for living, with good design and
nice interiors. The property must be managed
by reputable management -/- operator. There
must be adequate facilities for the residents.
Definition of Grade A
serviced apartments
- Good location Figure 1 : Bangkok current supply of serviced apartments by grade (units)
- Easy accessible
- Pratical layout for living
- Reputative property
Grade A
management -/- operator 3,978
- Adequate facilities. 37%
Grade B
6,707
63%
Recently, there were 22 projects of Grade A apartments had 53 projects in Bangkok as of

serviced apartments, while Grade B serviced end of 2007.
Figure 2 : Number of serviced apartment projects

by grade, as of 2007
No. of projects
60
50
40
53
30
20
10 22
0 Grade
Grade A Grade B

The supply of Grade A serviced apartments majority of the supply of serviced apartments
is mainly located in three areas which are is concentrated in the Sukhumvit area as this
the CBD, Sukhumvit, and Central Lumpini area is popular for expatriates and tourists. The
area. Central Lumpini has the highest Sukhumvit area is also popular for Japanese,
number of Grade A serviced apartments, especially Sukhumvit Soi 39 and Sukhumvit
with approximately 1,651 units, followed by Soi 55 where the Japanese community
Sukhumvit area and CBD area. Earlier, Grade in Bangkok is. There are many Japanese
A serviced apartments were concentrated in supermarkets such as Fuji Supermarket,
the Sukhumvit area, however many landlords located in Sukhumvit Soi 39 and Soi 33. In
didn’t renovate their properties, thus the Sukhumvit Soi 55, there is J-Avenue which is
quality of their properties have dropped to a neighbourhood mall - serving Japanese and
Grade B. Another factor is that an increasing expatriates residing around the area. The graph
number of new serviced apartment buildings below illustrates the number of Grade A and
Central Lumpini area has were developed in good locations, near BTS Grade B serviced apartments in each area.
the highest numbers of Grade and MRT stations, and also managed by
A serviced apartments, with international chains. However, the
approximately 1,651 units,
followed by sukhumvit area,
with 1,501 units and the
CBD area, with 826 units.
Figure 3 : Number of units of Grade A & B serviced apartments
current supply by location, as of 2007
No. of units
4000
3,772
3500
3000
2500
2000
1,651
1,501
1500
987
1000 826 861
754
500 333
0 0 Location
0
CBD Sukhumvit Central Outer CBD Others
Lumpini
Grade A Grade B
COLLIERS
International 7
There are approximately 75 serviced apartment since the total projects of serviced apartment
projects as of 2007, with 39 serviced apartment in the CBD are higher than the total projects
projects located in Sukhumvit. It is noticeable of serviced apartment in Central Lumpini.
that the projects of serviced apartment in
Central Lumpini have more units than the
projects of serviced apartment in the CBD
Figure 4 : Number of projects of Grade A & B serviced apartments

current supply by location, as of 2007
No. of projects
There are approximately 30

30
75 serviced apartment
25
projects as of 2007, with 39
serviced apartment projects 20
located in Sukhumvit. 15
10 9
8 8
6 6
5
5 3
0 0 Location
0
Lumpini
Grade A Grade B
The supply of Grade A & B serviced apartments the highest additional number of supply, with
added in 2007 was approximately 1,596 units in 892 units in 12 projects added in this area.
15 projects. In 2007, the Sukhumvit area had

New serviced apartments added in the year 2007
Project Name Location Opened No. of units Room Type

Studio - 36 Sq.m.
Adelphi Suite Sukhumvit Soi 8 Nov-07 93
1BR - 48 Sq.m.
Studio - 30 Sq.m.
Citadines 16 Sukhumvit Soi 16 Jan-07 79
1BR - 36 Sq.m.
1 BR - 100 Sq.m.
Civic Park II Sukhumvit Soi 55/13 Dec-07 24
2 BR - 110 -120 Sq.m.
Studio - 30 Sq.m.
Chatra Court Exclusive
Sukhumvit Soi 19 2007 60 1BR - 60 Sq.m.
The highest additional Residence
2BR - 60 Sq.m.
supply in 2007 was in the
Studio - 52 Sq.m.
Sukhumvit area, with 892
1 BR - 60,73,80 Sq.m.
units in 12 projects.
Fraser Suites Sukhumvit Sukhumvit Soi 11 Oct-07 163 2 BR - 95, 100 Sq.m.
3 BR - 130, 134, 140,
160 Sq.m.
1 BR - 65, 69 - 72 Sq.m.
2 BR - 104, 119 -124,
136 -142, 157 Sq.m.
Fraser Urbana Sathorn South Sathorn Road Jan-07 142
3 BR - 180 Sq.m.
PH 3 BR - 271, 313,
335 Sq.m.
Studio - 44, 54 Sq.m.
Grand Centre Point 1 BR - 69, 72 Sq.m.
Soi Mahadlekluang 2 Oct-07 526
Rajdamri 2 BR - 111 Sq.m.
3 BR - 148, 179 Sq.m.
Legacy Suite Sukhumvit Soi 29 Dec-07 108
1 BR - 46, 65 Sq.m.
Malee Suites Serviced
Narathiwat Soi 24 Sep-07 36 1 BR - 60, 61, 66,
Apartment
72 Sq.m.
Oakwood Residence
Sukhumvit Soi 24 Dec-07 112 1 BR - 53, 55, 58 Sq.m.
Sukhumvit 24
2 BR - 80, 84 Sq.m.
1 BR - 55.5 Sq.m.
Premier Thonglor Sukhumvit Soi 55/9 2007 60 2 BR - 69.37 Sq.m.
2 BR - 83.25 Sq.m.
Studio - 44 Sq.m.
2 BR - 88 Sq.m.
Prommitr Place Sukhumvit Soi 39 Feb-07 16
3 BR - 132 Sq.m.
PH - 168 Sq.m.
Studio - 40, 45, 50 Sq.m.
The Tropical Residence Sukhumvit Soi 49 Jun-07 59
2 BR - 80 Sq.m.
1 BR - 60 Sq.m.
The Alcove Sukhumvit Soi 55/23 Mar-07 20
2 BR - 110 Sq.m.
Studio - 35, 40, 45,
Unico Grand Sukhumvit Sukhumvit Soi 1 Nov-07 98
65 Sq.m.
Total : 15 properties 1,596 units
COLLIERS
International 9
NEW SUPPLY
Sukhumvit area is considered a residential area interesting that there will be new supply in
for expatriates residing in Bangkok, similar other areas for the amount of 1,332 units, of
to South Kensington in London. Thus, new which 36% of total new supply will be located
supply of serviced apartments has focused nearby Suvarnabhumi International Airport
on this area recently. By 2011, there will be which will be managed by an international
additional new supply of serviced apartments chain. Within four years, an additional 6,580
in Sukhumvit of approximately 3,659 units, serviced apartment units in 38 projects will be
representing an increase of 69% of total supply added in all areas.
of serviced apartments in this area. The new
supply in Central Lumpini area will be 578
units, and in CBD area about 451 units. It is
By 2011, an additional
6,580 serviced apartment
units in 38 projects will
be added in all area. Figure 5 : Future supply of serviced apartments in Bangkok
by location between 2008 & 2011
No. of units
4000
3500
3,659
3000
2500
2000
1500
1,332
1000
560
500
578
451
0 Location
Lumpini
The increasing number of new supply of for short stay periods. Though, many serviced
serviced apartments as well as the existing apartments have not yet applied for the hotel
With a huge amount of new supply will increase competition in the licences since the properties are unable to pass
Sukhumvit area. Not only is there a huge the standard qualitification to receive the hotel
supply of serviced apartments amount of new supply of serviced apartments, licences, these serviced apartments still offer
and hotels will increase but also a large number of new hotels will be daily rates in order to get the better occupancy
competition in this area. added in this area by 2011. The competition rate as well as higher yields. The extreme
will not exist only between serviced apartments competition will start in Sukhumvit area in
themselves, but between serviced apartments the very near future. The reason why serviced
and hotels as many serviced apartments have apartments focus more on short stay customers
applied for hotel licences in order to cater to is as follows:
the tourists and business travelers who travel
• The number of supply exceeded the number of new expatriates or

• The higher yield from getting a daily rate.

The increasing new supply of serviced in 2007 & 2008 with 17.56% & 25.44%
apartments was approximately 3-7% between respectively as illustrated in the following
2004 & 2006. The sharp increase started table:
CURRent & new supply of serviced apartment units between 2004 & 2011
Year Current supply New supply % change y-o-y
2004 7,708 247 3.2%
2005 7,955 537 6.8%
The highest increase supply 2006 8,492 597 7%

of serviced apartments will 2007 9,089 1,596 17.56%
be in 2008 with 25.44%
yeay-on-year in 2007. 2008 10,685 2,718 25.44%
2009 13,403 2,106 15.71%
2010 15,509 1,006 6.49%
2011 16,515 750 4.54%
Figure 6 : Number of current and new supply of

serviced apartments between 2004 & 2008F
No. of units
14,000
2,718
12,000
10,000 1,596
10,685
597
9,089
537
8,000 247 8,492
7,955
7,708
6,000
4,000
2,000
0 Year
2004 2005 2006 2007 2008F
Current supply
New supply added in the year
COLLIERS
International 11
Summary of new supply of serviced apartments in Bangkok by 2011
No. Project Name Location No. of units Est. completion

1 Admiral suites II Sukhumvit Soi 31 122 2008
2 Baan Rajchaprasong Soi Mahadlekluang 3 70 2008
3 Benchasiri Place by Marriott Sukhumvit 92 2010
4 Bliss Residence Soi Ruamrudee 78 2008
5 Chamchuree Square Rama IV 120 2008
6 Citadines 8 Sukhumvit Soi 8 130 2008
7 Citadines 11 Sukhumvit Soi 11 134 2008
By 2011, there will be 8 Citadines 23 Sukhumvit Soi 23 138 2008
approximately 6,580 units in 9 Column Residence Sukhumvit Soi 16 238 2008
38 projects added the supply 10 Compass Sukhumvit Soi 24 340 2008
of serviced apartment. 11 Eight Thonglor Sukhumvit Soi 55 148 2009
12 For your residence Silom Soi 17 24 2008
13 Four Wing Residence Srinakarin 128 2008
14 Fragrant Real Estate Makkasan 350 2009
15 Fraser Suites Sukhumvit Sukhumvit Soi 6 250 2010
16 Istitmar Residence Sathorn 77 2010
17 Jasmine Resort & Park Hotel Sukhumvit Soi 69 300 2010
18 L&H Sukhumvit 19 Sukhumvit Soi 19 600 2011
19 McKenna Serviced Apartment Phayathai 169 2008
20 Metro Sathorn Tower Soi Saint Louise NA 2011
21 NA Sukhumvit Soi 19 42 2008
22 NA Ploenchit Road NA 2011
23 Noble Ambience Ruamrudee Ruamrudee Soi II 108 2008
24 Oakwood Residence Garden Tower Bangna 340 2009-2010
25 Oakwood Residence Thonglor Sukhumvit Soi 55 NA 2009
26 Planned Project Ploenchit Road 150 2011
27 Radisson Suite Narathiwat Road 300 2009
28 Riverside Garden Marina Charoenkrung Road 260 2008
29 Sathorn Garden Sathorn Road 155 2009
30 Sathorn Vista - Marriott Soi Suanplu 195 2008
31 Siam Kempinski Rama I Road 150 2009
32 Somerset Amar Garden Sukhumvit Soi 3 122 2008
33 Somerset Grand Sukhumvit Sukhumvit Soi 23 265 2010
34 Somerset Ratchathewi Phayathai 225 2009
35 Somerset Sukhumvit Thonglor Sukhumvit Soi 55 268 2009
36 St'Regis Rajdamri 22 2010
37 Sukhumvit Park by Marriott Sukhumvit Soi 24 300 2008
38 The Royal Suite Serviced Apartment Sukhumvit Soi 13 170 2009
Total : 38 properties 6,580 units

DEMAND
Currently, the demand for the serviced apartment market can be divided into two groups which
are short stay tourists & business travelers and new coming expatriate arrivals in Bangkok each
year.
• New expatriates moving to Bangkok
The amount of demand from expatriates we have undergone our study, the average
for serviced apartments market comes from length of stay of expatriates staying in serviced
the increasing number of expatriates each apartment is three months or 90 days. The
year since the serviced apartments are the data from the Office of Foreign Workers
temporary residences for expatriates once Administration (Work Permit), Department
they have moved to Bangkok. They will stay of Employment of The Ministry of Labour
for a length of one - three months until they has shown the total number of expatriates in
The demand of serviced can select their permanent residences such as Bangkok between 2004 and 2007. The new
apartments market can Apartments and Single houses. Though, there work permits issued was estimated from the
be devided into two are some expatriates choosing to stay on a proxy of growth in demand between 2004 &
groups which are yearly contract at serviced apartments, after 2007 as shown in the below chart:
I. New expatriates
II. International tourists -/- Figure 7 : New work permits issued, Bangkok 2004-2007
business travelers.
No. of new work permits
10,000
8,670
8,000
7,592 7,574
6,000 6,928
4,000
2,000
0 Year
2004 2005 2006 2007
Source : Office of Foreign Workers Administration (Work Permit)

Department of Employment,The Ministry of Labour
& Colliers International Thailand Research
From the assumption that the average length have estimated the number of room nights
of expatriates staying in serviced apartments is expatriates residing in serviced apartments
3 months and another 2% of the total number between 2004 & 2007 as follows:
of existing expatriates staying in a yearly
contract at serviced apartment, therefore we
Figure 8 : Annual room nights for long stay in

Bangkok serviced apartments between 2004 & 2007
No. of room nights
1,200,000
372,942 486,808
436,233
1,000,000 317,521
800,000
780,300
683,280 681,660
600,000 623,520
400,000
200,000
0 Year
2004 2005 2006 2007
3 months length of stay

1 year length of stay
Source : Executive Serviced Apartment Alliance (EXSAM)

COLLIERS
International 13
If we compare the room nights growth of new of expatriates based in Thailand without
supply of serviced apartment with the room working permits. However, the majority of
nights growth of demand from expatriates these do not have accommodation budgets
relocating to Bangkok. It is shown that the large enough to account for a significant
growth rate of new supply increased in a amount of demand in the serviced apartment
higher rate than the growth rate of demand sector. There are, of course, also a number of
from new expatriates. The growth rate of expatriates relocating to Bangkok who do not
room nights of new supply increased by 167% stay in serviced apartments. Nevertheless, new
year-on-year in 2007 while the growth rate of work permits issued can serve as a proxy for
room nights demand increased by 9.3% year- serviced apartment supply on a relative basis.
on-year. However, the number of expatriates The below graph is the comparison of the
are exclusive of diplomatic or United Nation growth rate of supply and the growth rate of
expatriate staff. Therefore, this figures are not demand.
Another demand of serviced entirely representative of expatriates based in
apartments comes from short Bangkok. We believe that there are a number
stay visitors which are tourists
Figure 9 : Estimated growth in room nights
and business travelers for demand & supply, 2004 & 2007
leisure and business purposes.
No. of room nights
780,300
800,000
683,280 681,660
623,520
582,540
600,000
400,000
196,005 217,905
200,000
90,155
0 Year
2004 2005 2006 2007
Growth in room nights demand

Growth in room nights supply
Source : Executive Serviced Apartment Alliance (EXSAM)

The core business of serviced apartment is to catch up the high increase in supply, as a result,
serve the demand residing in Bangkok in a the serviced apartments have moved more
period of more than a month. However, the into the short stay from tourists -/- business
slightly increase in demand was unable to travelers.
• Number of tourist arrivals at Bangkok

accommodation
Another demand of serviced apartments comes travelers arriving Bangkok accommodation
from short stay visitors which are tourists between 2004 & 2007 with the average length
and business travelers for leisure and business of stay between 2004 & 2007, we can get the
purposes. Official figures from the Tourism anually number of room nights as shown in the
Authority of Thailand (TAT) has revealed following chart:
that the number of tourists-/-business
No. of tourist arrivals at Bangkok

Year Avg. length of stay Total room nights
accommodation
2004 9,907,832 2.01 19,914,742
2005 10,519,754 1.97 20,723,915
2006 10,673,145 1.83 19,531,855
2007 9,678,773 1.87 18,099,305
Source : Tourism Authority of Thailand (TAT), Thai Hotels Association (THA)


Though, the number of tourists at Bangkok accommodation increased annually between 2004
and 2006, the decrease in average length of stay in 2006 caused the decrease of room nights at
Bangkok accommodation in 2006. We have assumed that each tourist occupied a single room.
With the high increase in supply of both hotels and serviced apartments, while the decrease in
annual room nights of demand from tourists -/- business travelers, the extreme competition will
exist in the near future
PROPORTION OF DEMAND OF SHORT TERM AND LONG TERM

With the average occupancy rate of serviced apartment markets between 2004 & 2007, we can
estimate the total room nights in a year between 2004 & 2007 as shown on the following table:
OVERALL AVERAGE OCCUPANCY RATE OF SERVICED APARTMENTs

Though, the number BETWEEN 2004 & 2007
of tourists at Bangkok Avg. occupancy Total supply Take up units / Take up units /
Year
accommodation increased rate units day year
annually between 2004 and 2004 86.33% 7,955 6,868 2,506,820
2006, with the decrease in
2005 89.81% 8,492 7,627 2,783,855
average length of stay in
2006 caused the decrease 2006 85.06% 9,089 7,731 2,821,815
of room nights at Bangkok 2007 83.33% 10,685 8,904 3,249,960
accommodation in 2006.
Source : Executive Serviced Apartment Alliance (EXSAM) &
Colliers International Thailand Research
With the average occupancy rate of serviced apartment between 2004 & 2007, it is noticeable
that the proportion of short term was greater than the proportion of long term and the trend of
short term increased annually between 2005 & 2007. The future trend of serviced apartments is
to serve short stay which is the core market of hotel. Below chart shown the average proportion
of customers staying in serviced apartments for the length of

1. Between 1-3 months period.
2. Minimum 1 year period.
3. Daily / weekly period.
Figure10 : Proportion of the length of stay at serviced apartment

between 2004 & 2007
Percentage
100%
90%
It is noticeable that proportion
of short term was greater 80%
than the proportion of long 70% 60% 59% 62% 64%
term and the trend of short 60%
term increased annually 50%
between 2005 & 2007. 40%

13% 13%
15%
30% 15%
20% 27% 28%

22% 21%
10%
0% Year
2004 2005 2006 2007
LT (1-3 months) LT (1 year) ST (daily)

COLLIERS
International 15
OCCUPANCY RATE:
Grade A Grade B
Year Central Central Outer
Overall CBD Sukhumvit Overall CBD Sukhumvit
Lumpini Lumpini CBD
2004 82.70% 69.57% 87.63% 80.44% 91.86% 82.80% 94.98% 85.16% 80.98%
2005 90.24% 85.75% 93.07% 89.20% 91.38% 77.42% 93.57% 90.02% 84.65%
2006 85.47% 78.53% 86.94% 86.35% 85.47% 77.83% 82.90% 81.69% 82.88%
2007 84.01% 81.45% 84.73% 84.31% 86.01% 79.18% 87.23% 88.94% 74.84%
The occupancy rate of Grade Source : Executive Serviced Apartment Alliance (EXSAM) & Colliers International Thailand Research
A serviced apartment decreased
annually between 2005 &
The occupancy rate of Grade A serviced apartment decreased annually between 2005 & 2007.
2007, However, the average There are several factors that caused this which are as follows:
occupancy rate of Grade
A in the CBD increased in • The revaluation of Thai baht which made Grade A serviced apartment rent go over the
accommodation budget after visitors converted their currency into Thai baht, so
2007 which was different that the amount they got was less. The demand of long stay shifted to Grade B serviced
from Grade A in other areas apartment.
due to little supply of serviced
apartments in this area. • The trends of the Grade A serviced apartment focused on short stay, thus the occupancy
rate varied from the number of tourist arrivals at Bangkok accommodation, rather than
the number of new expatriates coming to Bangkok, since there was an increase of
number of expatriates in 2007 but the demands poured to Grade B serviced apartment.
• The political uncertainty in Thailand in 2006 & 2007 has slowed down the foreign
business interests as well as the international tourist arrivals at Bangkok accommodation.
However, the average occupancy rate of Grade A in the CBD increased in 2007 which was
different from Grade A in other areas due to little supply of serviced apartments in this area.

The Knowledge Report | March | 2008 | Bangkok Serviced Apartment
ACHIEVED RENT
For the overall market, the big difference of of supply of serviced apartment added with
the average achieved rent of Grade A & B approximately 1,596 units, with 943 units of
serviced apartment was 14% in 2004. The Grade A and 653 units of Grade B. During
slight difference between Grade A & Grade the opening of new properties, the new supply
B rent was found in 2006 which was just 2.7% offered special prices which affected Grade B
difference. In 2007, the average rent of Grade B serviced apartments.
decreased by 4% since there was an additional
Figure 11 : Average achieved rent of Grade A & B serviced apartments

The slight difference between between 2004 and 2007
Grade A & Grade B rent THB / SQ.M.
was found in 2006 which 1,400
was just 2.7% difference. 1,200 1,132 1,157
1,045
975 1,102
1,000 1,058
962
800 853
600
400
200
0 Year
2004 2005 2006 2007
Grade A Grade B

• THE AVERAGE ACHIEVED RENT OF GRADE A SERVICED APARTMENTS

The highest achieved rent in 2007 was found respectively. There was a huge supply of
in Central Lumpini, with THB 1,222 / sq.m. serviced apartments in the Sukhumvit area
followed by the CBD and Sukhumvit area, which increased the competition.
with THB 1,210 / sq.m. & THB 1,093 / sq.m.
Figure 12 : Average achieved rent of Grade A serviced apartments in

CBD, Sukhumvit and Central Lumpini area between 2004 & 2007
Average achieved rent of Grade A

- Central Lumpini = THB / SQ.M.
THB 1,222 / sq.m. 1,400
- CBD = THB 1,210 / 1,200
sq.m. 1,000
- Sukhumvit = THB 1,093 / 800
sq.m. 600
400
200
0 Year
2004 2005 2006 2007
CBD Sukhumvit Central Lumpini

COLLIERS
International 17
• THE AVERAGE ACHIEVED RENT OF GRADE B SERVICED APARTMENTS

The highest achieved rent of Grade B serviced apartment units in Sukhumvit have compact
apartments was found in Central Lumpini, with size which gives a higher rate per sq.-m.-,
THB 1,100 / sq.m., followed by Sukhumvit and therefore the achieved rate of Grade B in
the CBD, with THB 1,057 / sq.m. & THB Sukhumvit was in the second rank between
738 / sq.m. respectively since there were only 2004 & 2007
a few Grade B serviced apartment in Central
Lumpini. The majority of Grade B serviced
Figure 13 : Average achieved rent of Grade B serviced apartments in

CBD, Sukhumvit, Central Lumpini area between 2004 & 2007
The highest achieved rent
of serviced apartments in
THB / SQ.M.
2007 was found in Central
Lumpini, with THB 1,100 / 1,400
sq.m., followed by Sukhumvit 1,200
and the CBD, with THB 1,000
1,057 / sq.m. & THB 800

738 / sq.m. respectively. 600
400
200
0 Year
2004 2005 2006 2007
CBD Sukhumvit Central Lumpini


Notes 267 offices in 57 countries

on 6 continents
The serviced apartment rating used in our research is solely based on property rating and
achieved rates obtained from market research. The rating system used in our report is USA 95
not by Colliers International. Canada 17
Latin America 17
Asia Pacific 53
EMEA 85
US$1.6 billion in annual revenue

673 million square feet under
management
10,171 Professionals
Contact information
THAILAND: RESEARCHER:
Bangkok Risinee Sarikaputra
Patima Jeerapaet Manager | Research
Managing Director
Colliers International
17/F Ploenchit Center
Klongtoey
Bangkok 10110
Tel: 662 656 7000
Fax: 662 656 7111
This report and other research materials may be found

on our website at www.colliers.com/thailand. Questions
related to information herein should be directed to the
Research Department at the number indicated above. This
document has been prepared by Colliers International
for advertising and general information only. Colliers
International makes no guarantees, representations or
warranties of any kind, expressed or implied, regarding
the information including, but not limited to, warranties of
content, accuracy and reliability. Any interested party should
undertake their own inquiries as to the accuracy of the
information. Colliers International excludes unequivocally
all inferred or implied terms, conditions and warranties
arising out of this document and excludes all liability for loss
and damages arising there from. Colliers International is a
worldwide affiliation of independently owned and operated
companies.
www.colliers.com/thailand Colliers International 19

w w w. c o l l i e r s . c o. t h
This report and other research materials may be found on our website at www.colliers.co.th Questions related to
information herein should be directed to the Research Department at the number indicated above. This document
has been prepared by Colliers International for advertising and general information only. Colliers International makes
no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including,
but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own
inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied
terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising
there from. Colliers International is a worldwide affiliation of independently owned and operated companies.
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BANGKOK SERVICED APARTMENT SECTOR OVERVIEW | M arc h | 2 0 0 8

B a n gko k s e rv i c e d a pa rt m e n t M a r k e t | march | 2008

BANGKOK SERVICED APARTMENT

• Total new investment in these 38 projects is estimated at around THB 27 billion.

2 Colliers International COLLIERS INTERNATIONAL 2

• Central Business District Area (CBD)

New supply in Central business district area (CBD)

- Silom Road For your residence Silom Soi 17 24 2008

Metro Sathorn Tower Soi Saint Louise NA 2011

Source : Colliers International Thailand Research

• Central Lumpini Area

New supply in Central Lumpini

Serviced Apartment Name Location No. of units Expected completion

Bliss Residence Soi Ruamrudee 78 2008

Baan Rajprasong Soi Mahadlekluang 3 70 2008

Noble Ambience Ruamrudee Soi Ruamrudee 2 108 2008

Siam Kempinski Rama I 150 2009

St'Regis Rajdamri Road 22 2010

- Rajdamri Road Planned Project Ploenchit Road NA 2011

Sukhumvit Area covers New supply in Sukhumvit

Admiral Suite II Sukhumvit Soi 31 122 2008

Citadines 8 Sukhumvit Soi 8 130 2008

Citadines 11 Sukhumvit Soi 11 134 2008

Citadines 23 Sukhumvit Soi 23 138 2008

Column Residence Sukhumvit Soi 16 238 2008

Somerset Amar Garden Sukhumvit Soi 3 122 2008

Eight Thonglor Sukhumvit Soi 55 148 2009

The Royal Suite Serviced Apartment Sukhumvit Soi 13 170 2009

Somerset Sukhumvit Thonglor Sukhumvit Soi 55 268 2009

Oakwood Residence Thonglor Sukhumvit Soi 55 NA 2009

Somerset Grand Sukhumvit Sukhumvit Soi 23 265 2010

Jasmine Resort & Park Hotel Sukhumvit Soi 69 300 2010

Benchasiri Place by Marriott Sukhumvit 92 2010

Fraser Suites Sukhumvit Sukhumvit Soi 6 250 2010

L&H Sukhumvit 19 Sukhumvit Soi 19 600 2011

Source : Colliers International Thailand Research

4 Colliers International COLLIERS INTERNATIONAL 4

• Outer Central Business District (Outer CBD) Area

New supply in OUTER CENTRAL BUSINESS DISTRICT (Outer CBD) AREA

New supply in Other Areas

Serviced Apartment Name Location No. of units Expected completion

Four Wing Residence Srinakarin 128 2008

McKenna Serviced Apartment Phayathai 169 2008

Fragrant Real Estate Makkasan 350 2009

Somerset Ratchatewi Phayathai 225 2009

Chamchuree Square Rama IV 120 2008

Oakwood Garden Tower Bangna 340 2009-2010

Source : Colliers International Thailand Research

Source : Colliers International Thailand Research

Recently, there were 22 projects of Grade A apartments had 53 projects in Bangkok as of

Figure 2 : Number of serviced apartment projects

Source : Colliers International Thailand Research

6 Colliers International COLLIERS INTERNATIONAL 6

Source : Colliers International Thailand Research

Figure 4 : Number of projects of Grade A & B serviced apartments

There are approximately 30

Source : Colliers International Thailand Research

8 Colliers International COLLIERS INTERNATIONAL 8

New serviced apartments added in the year 2007

Project Name Location Opened No. of units Room Type

Source : Colliers International Thailand Research