Koko Global Hospitality plans to open two more hotels in Thailand and Laos and sign eight management contracts this year as tourism growth driven by low-cost carriers is expected to create more opportunities for mid-scale accommodation providers.
Rei Matsuda, founder and chief executive of Koko Global Hospitality, a Japanese management company that operates Kokotel hotels, said there is still room for mid-scale accommodation to grow as this segment can bank on tourism recovery, especially the opportunities driven by aggressive expansion among low-cost carriers.
Mr Matsuda said there isn't an oversupply in this segment of the market, noting that the company, which has 24 hotels either in operation and in the pipeline at present, plans to open at least two new hotels in Thailand and Laos, while signing up to manage eight more hotels by the end of the year.
The three-star Kokotel hotels have around 50-200 rooms per property, while the location of the properties in its current portfolio are in Bangkok, Krabi, Phuket and Chiang Mai.
Mr Matsuda said after Thailand reopened hotels had performed better in terms of occupancy, particularly in major destinations, such as Phuket, where it achieved an occupancy rate of 70-80% during high season. This was also true for prime locations in Bangkok, such as Kokotel Bangkok Dheva Thonglor, which achieved an occupancy rate of around 80-85%.
Mr Matsuda said the company is also interested in attracting more guests from China which had previously accounted for 30% of all Kokotel's guests before the pandemic.
He said under the current circumstances there is an opportunity to increase room rates as demand in Thailand keep rising.
Pete Dheva-Aksorn, the owner of Kokotel Bangkok Dheva Thonglor, said the average room rate for the Thong Lor property has increased from 1,000 baht before the pandemic to 1,800-2,000 baht per night during certain periods, even without Chinese tourists, thanks to a diversified market strategy.
He said the hotel did not have a significant employee shortage like other operators as it is able to hire staff who live locally.
However, for senior positions, such as general manager, it has been more difficult to recruit as many hotels are competing to attract experienced staff by offering candidates annual leave entitlement close to that offered by five-star hotels.
Mr Pete said in the next three to five years, the firms plans to secure 100 properties -- 50% under the Kokotel brand and 50% under a new four star brand called Vivtel.
Mr Matsuda said about 80% would be in Thailand, while international expansion would focus on English-speaking countries such as Australia, along with India, Malaysia and the Philippines, so the firm could easily share human resources from its headquarters in Thailand.
