Flashpacking inventory surges across SE Asia

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Lub d Phuket Patong

The number of beds in South-east Asia’s flashpacker segment has soared 42 per cent in the third quarter of this year compared to the same period in 2015, according to a report by C9 Hotelworks.

Thailand, Malaysia and Vietnam now boasts the most beds in the region, with Indonesia catching up with year-on-year growth of 73 per cent. Across South-east Asia, the market size has now grown to over 1,200 properties comprising nearly 52,000 beds.

Commenting on this up-and-coming accommodations space, C9’s managing director Bill Barnett said: “Hostels are unlike hotels as average rates are calculated on a per bed basis, compared to hotels which use a per room rate.

“Our research across South-east Asia shows that if comparing the two accommodation models side by side, the average room rates in newer hostel properties are matching or exceeding those in the more established budget hotel tier.”

Barnett adds that this is where future investments in the hospitality industry is likely to heat up.

“In Europe, chains such as Generator and Meininger have attracted institutional investment to spur expansion, and we are already seeing private equity players in South-east Asia start to chase the trail of what is arguably the region’s most exciting travel space,” he said.

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