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Accor predicts surge in hotel conversions in Thailand post-pandemic
Picture courtesy of Bangkok Post.
A surge in hotel conversions is expected in the post-pandemic hospitality sector, according to Accor, an international hotel chain. This trend is in response to stricter lending rules from financial institutions and a slowdown in the construction of new establishments.
Andrew Langdon, Accor’s Chief Development Officer for Asia, detailed how the current supply of new hotels is slow and concentrated among a few major conglomerates across Asia. Small family companies, which typically account for the majority of hotel developers, are struggling to secure financing, especially in the past two to three years.
Langdon explained that only large conglomerates with strong cash flow and established relationships with banks are likely to receive financing. Hence, international hotel operators are turning to conversion strategies to…
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