la casa small luxury expats residence

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http://www.fitnessbh.com/en/product.php


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Backgrounds and Significance of the Project

According to the globalization, economics and social factors bring about them

relocating of the people and population. There are many reasons that force them to relocate to

stay in other places ; for example , someone from other places relocate to work in the

downtown of Bangkok ,then, they have to seek the places or residences to reside so this is the

reason that most of people have to rent the residences to stay in the place that they relocate to.

Thus, there are the reasons that many lodging businesses are created in the crowded area

which has a lot of infrastructures, offices, institutes and college and also the industrial parks

such as Bangkok , Chiang Mai, Phuket and also the suburb provinces ( Institute of Small and

Medium Entreprises Development, 2009)

According to the department of Employment mentioned that the reasons that the

people decide to relocate is to seeking out the place that has better economic status where

provides the higher salaries and employment opportunities; moreover, the globalization is the

main critical thing that connect everyone in the world to exchange to each other places.

The countries that support the investments from other countries in their own

countries, it depends on that how do the governments of those countries support theirinvestment policies. If there are a lot of investments from foreign countries, it can bring about

the flows of the foreign people and relocations of the people ( Colliers International

Research)

According to the GHB journal mentioned that, Thailand is viewed as the one of the

most prosperous country in the ASEAN countries, there are many foreign people buy or rent

the residences to stay in Bangkok metropolitan and other provinces such as Chiang Mai ,

Phuket ; moreover, a lot of foreign people from many countries round the world would like to

buy or rent the real estate in Bangkok

Moreover, the tourism industry is the critical that brings about the inflow to Thailand

or inbound tourists, the tourism is the activity that relates to the travelling to the specific

destinations with specific purposes ( Dhonburi Rajabhat University)

As mentioned earlier, Thailand is an effective country that much too enrichment of

cultures and infrastructures and has a good weather, food so this is the thing that can attractthe customers to Thailand.


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Bangkok Metropolitan is the capital city of Thailand where is the most prosperous

area in Thailand, This is not only the capital city but also this is a central economy area of

Thailand . Bangkok has 8,116,000 people in 2012 ( Institute of Population and Social

Research, Mahidol University). Moreover, there are many people relocate to work or study in

Bangkok and other foreign people in some part of Bangkok such as Sukhumvit, Silom.

According to the information from the Office of Foreign Workers Administration ,

Ministry of Labor (2010), Total amount of the foreigners that come to work and have the

work permit in Bangkok are as followings; (1). Japanese equals to 4,325 persons (2).

Chinese equals to 808 persons (3). India equals to 456 persons (4). American equals to 320

persons (5). Taiwanese equals to 245 persons. Sukhumvit always popular among the foreign

people who work in Bangkok because along the Sukhumvit road has many infrastructures

and any other facilities such as Supermarkets, Restaurants, International Schools while Silom

and Sathorn are very famous among French people who work in Bangkok .

Other opportunities of Serviced Apartment business is ASEAN Economic

Community (AEC) which is an policy that brings about the Single Production Base and

Single Market, will be opened in coming 2015 thus the relocating of the skilled labor and

other factors of production is going to be happened among this community ;furthermore, the

non ASEAN country companies will open their main Asian branch office in Bangkok and

move the investment base to Thailand , there are many international company chose Thailand

as a hub for operating their business in ASEAN community because Thailand has adequate

infrastructures and good logistic systems and cheaper cost of living when comparing with

other ASEAN countries as well as the number of tourists would be increased which are the

new opportunities for Serviced Apartment Business (Ksmecare, 2012)

The reason that why we study the feasibility of Serviced Apartment in Bangkok,

Sukhumvit 55 ( Thonglo Road ) because this area has many important places such as

Embassy of India , GMM Grammy Office Building, Soi Cowboy and any other

infrastructures such as BTS sky train and MRT underground train although there are a lot of

competitors around there but If we have a good strategic planning and service planning so we

can compete with other competitors easily because the Serviced Apartment business is a

business which relates to basic needs of people ( Ksmecare ,2012) .

According to the Prachachart Business Online (2012) mentioned that servicedapartment in Sukhumvit and Phayathai still be demanded ( demands for serviced apartment


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ares 89 percents and 84 percents in this area), the reason that make the demand of this area be

stable at high level because the customers was moving from Chid lom Ploenchit ,Silom and

Sathorn and the reason that make the customers move from those area because the rate of

serviced apartment in those area was increased(Prachachart Business Online, 2012).

Moreover, this area was not flooded because this area was protected from big flooding in

2011.

Project Objectives

The feasibility study on the Serviced Apartment in Sukhumvit 55 ( Soi Thonglor) all of

the processes of this projects is to collect the data and statistic data from reliable sources .

The project will be done in order to achieve the objective as per following;

1. To study how does this project feasible to invest.

2. To analyze the marketing and marketing strategic planning for this project.

3. To analyze the competitors of the project.

4. To analyze the service operation management for the project.

5. To create and designate the facilities and facilities management within the project

6. To analyze the finance of the project.

Benefits of the project

The benefits that we could get are to learn about how to create the Strategic Planning,

Marketing Planning Financial Planning, Operation and Service Planning and how to make this project

be feasible. Strategy is very important for this project; if the project has a good strategy, we can plan

for maximize the profitability.

Time Frame


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Table: 1-1 : Gantt Chart for the project

Activities

November December January February

1. Topic submission

2. Introduction

submission

- Introduction to

project feasibility

study

3. Study the industry

profile

- Product

Characteristic

4. Analyze the market

feasibility

- Market Analysis

5. Topic presentation

6. Study technical

Feasibility

- Production and

Operations

- Process of

Management


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7. Analyze the financial

of our business

- Financial

Statements

Generating

- Financial Statement

Analysis

Nature of the Industry


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Serviced Apartment is a mix one kind of apartment , normally the target group are

foreigners who earn high income . The length of stay normally is between 1 week to 1 year (

similar to the length of stay of Rental Apartment) . Serviced Apartment always provide the

luxurious service to the customers and other kinds of supplementary products such as

Fitness Center, Swimming Pool, Restaurant and Laundry service and Room service and in

room kitchen zone and decorate much larger than hotel rooms and more-home like .

Normally Service Apartment rate is more expensive than other kinds of normal rental

apartment. Basically, service apartments always locate in Central Business District such as

Sukhumvit, Silom, Ratchadamri ,Yen Arkard in Bangkok ( Sources: Institute Of Small and

Medium Enterprises Development Center& Ekamai Garden Serviced Residence)

According to Colliers mentioned that serviced Apartment is graded as per followings;

(1). A Grade (2).B Grade (3). C Grade

- A Grade Serviced Apartment; Are located in the prime location residential area

or where has a lot of high-end residences. Provide the high quality of facilities

similar to luxury hotel; ; moreover, the projects are managed by international

luxury brands or managed by the entrepreneurs who have adequate factors of

production to invest and manage such as Anantara Baan Ratchaprasong , Chatrium

Suites Bangkok

- B Grade Serviced Apartment; Normally located in the central business district

but in the less prime locations. Furnished with a high quality like Middle and

Upper scale hotel, always be managed by the entrepreneurs.

- C Grade Serviced Apartment; Located in secondary locations. Furnish in

standardized style but not luxury. Fewer facilities like the economy hotel.

Location of Serviced Apartment in Bangkok


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According to the information of Colliers International , serviced apartment locations

can be classified into 6 main areas as per following ;

I. Serviced Apartment in Central Business District (CBD) so the Central Business

District are Silom, Sathorn , Si Phraya, Surawong and Saladang, Soi Convent.

II. Central Lumpini Area (CLA) refers to the area along the Rama I road, Wireless Road,

Pleonchit , Rajadamri so there are a lot of lucrative serviced apartment and residences

around this area such as Anantara Baan Rajaprasong, St. Regis Residence Bangkok.

III. Early Sukhumvit area (ESA) refers to the section of Sukhumvit area between

Sukhumvit Soi1 to Sukhumvit Soi 35 for the North and between Sukhumvit Soi 2 to

Soi 24 for the South.

IV. Late Sukhumvit Area (LSA) refers to the section between Soi 37to Soi 77 for the

North and between Soi 26 to 50 for the South.

V. Southern Fringe Area (SF) refers to the area along the Chao Phraya River on Charoen

Krung Road and Naradhivas Rajanagarin Road and Rama III Road.

VI. Other areas cover Phayathai, Petchaburi, Rajadabhisek, Rajadhevi areas.

he Map of Serviced Apartment Zones in Bangkok

Serviced Apartment is the service business which totally relates to service

management, service psychology and service culture. Service Culture is to focus on serving


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and satisfying the customers; thus, everyone in lodging business has to have the service

culture, range from top management to front line staff, so the staff have to fulfill the

customers need and meet their expectations according to the missions of the lodging

organization that everyone in the organization has to know that what is our business?, who

are the customers? And whats the best value offered? So these questions are the questions

that everyone in the lodging organization has to answer.

Formerly, serviced apartment welcome for the guests who would like to rent the

rooms daily but the Act of Hotel B.E.2547 enforced on 12th May 2005 , Serviced

Apartment do not welcome the daily and weekly guests since the enforcement date. So

most of serviced apartment changed to welcome the monthly customers ; however, some

serviced apartment still position themselves as the hotel ( SOURCE: Thairath Online 13 th

Oct 2010:http://www.thairath.co.th/content/eco/118576 )

Service business is totally different from production business which offers the

intangibility products so the labor-intensity; then, labor and staff is the things and its the

main thing that is utilized in order to serve and satisfy the customers ;thus, the service

organizations has to focus on the human resources management ( Sources: University of

Thai Commercial Chamber)

Characteristics of Service

According to Phillip Kotler et al. mentioned that Characteristics can be described in

four main terms as per following ;

Intangibility

Alike the physical products, services cannot be seen, tasted, felt, heard or smelled before

they are purchased. Robert Lewis observed that someone who purchases the service may go

away with empty-handed, but they cannot go away with the empty-headed. They have the

memories in their brains to share to each others.

If the customers are going to buy or rent the room at serviced apartment , the customers

do not know what the customers will receive until they take the step in to the serviced

apartment to experience the services from the serviced apartment such as rooms, foods and

beverages and facilities, the customers always seen the tangible evidence that will provide

information and confidence about the service so the exterior of the serviced apartment is the

first thing that the arriving customers see but the condition of the grounds and landscape and
http://www.thairath.co.th/content/eco/118576http://www.thairath.co.th/content/eco/118576http://www.thairath.co.th/content/eco/118576http://www.thairath.co.th/content/eco/118576


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overall cleanliness of the place so this is the indication that identify the service management

within the serviced apartment.

Inseparability

The customers are the part of the product. An implication of the inseparability ,if the

service is that the customers and service providers have to understand the service delivery

systems because they are coproducing of the service.

Variability

Services are produced and consumed simultaneously; there are limits of the service

control. The fluctuating of the service demand makes it difficult to deliver in the peak

demand period. The high degree of contact between the service providers and the guests

means that the consistency depends on the service providers skills and the performance of

that time of exchange. The guests can receive the excellent service and mediocre in one day.

In the case of mediocre in service providing, the service person may not have felt well or

emotional problems, lack of communication and heterogeneity of the guests that brings about

the service variability.. Variability of lack of consistency is the thing that make the customers

upset.When variability is no longer so it means that we the service delivery process has the

consistency, this is the key thing that leads service business to be success.

Consistency means the customers receives the expected products without unwanted

surprise; for example, in the customers of the serviced apartment require a wake-up call at 7

A.M. so the service provider have to perform it according to the planned service.

Perishability

Services cannot be stored or kept or inventoried; for example, A 100-room serviced

apartment that sells only 60 rooms on a particular night cannot inventor the 40 unused rooms

and then sell 140 rooms on the next day so the revenues from those 40 rooms are lost forever.

If the service businesses are to maximize the revenues, they must manage the capacity and

the demand.

Situation of the Industry


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We will express the time line of the serviced apartment situation from the 1st half of

2009 till the 3rd quarter of 2012. ( SOURCES : Colliers International Research and Business

and Economics Forecasting Center, The University of Thai Commerce Chamber, Work

Permit Division, Ministry of Labor, Thailand )

: Situation of Serviced Apartment in the 1st

half of 2009 and the years before 2009

Due to the financial turbulences and problems affect toward the global economy and

the national political turbulences. There is a lot of the business that was affected by that

economic crisis. The key measures so far have included staff retrenchment and reduction of

housing budgets, which generally change in the demand of the serviced apartment market in

Bangkok.

The Historical Supply from 2004 until 1st

half of 2009 and the years before 2009

Total supply of serviced apartment was 14,043 units in the first half of 2009 which was

increased by 11.57% from 2008 and the sharp increase was found in the year 2007,

representing the increase of 17.76% from the total supply in 2006. The growth of supply was

13.04% from 2004 until 2009.

Moreover, In the first half of 2009, lots of A grade serviced apartment opened in

Bangkok ( Supply Added ) such as in Central Business Area (Silom and Sathorn), Central

Lumpini Area, Sukhumvit Area, Southern Fringe Area. The rest of the serviced apartments in

other areas are B & C grade serviced apartment such as in Phayathai and Phaholyothin ,

Petchaburi , Rama 9 Rd.

Supply base on Location

8500 8678 915610782

12587

15499

2004 2005 2006 2007 2008 2009(1sthalf)

Figure 3-1: Supply of Serviced Apartment Units from2004 till first half of 2009


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The highest supply base location reveals that the highest amount of supply is in the

Sukhumvit area, with approximately 6,792 units, (48%) and followed by Lumpini area , with

2,182 units (16%)and Central Business District area, with 1,991 units(14%), respectively.

Figure 4-1: The Supply of Serviced Apartment by Location Supplied.

Supply of Serviced Apartment based on Grade of Service

As mentioned in the first chapter that the serviced apartments can be classified into 3

grades, (1). A grade serviced apartment (2). B grade serviced apartment (3). C grade serviced

apartment so the grades of serviced apartment can determine the market share of the serviced

apartment . The market share of serviced for targeting expatriates can be categorized into A

Grade (8,908 Units) and B Grade (5,135 units).

Figure 5-1: The Supply of Serviced Apartment by Grade of Service

Demands of Serviced Apartment

Sukhumvit

49%

SouthernFringe

14%

Other Areas

9%

Central Bus

Area

14%

Central

Lumpini

14%

Supply of Serviced

Apartment based on

Location

B Grade,

8,908

A Grade,

5,135


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The demands for serviced apartment were normally from the expatriates who relocated

Thailand. Typical length of stay was range from one to three months, as the expatriates

required that time to select the permanent residence such as apartment ,single house or town

house to stay, The demand for serviced apartments market could be categorized into two

major groups; short-stay tourists and business travelers (short-stay market) and there was the

new expatriates arrivals to Bangkok (long stay market). Some of the expatiates who would

have formerly stayed in the hotels had shifted to serviced apartment because serviced

apartment offered the wide range of service with quality facilities but were offered with

reasonable prices in comparing with five-stars hotel. The regressions of the economics

brought about the prices concerns among the guests who were seeking the lower-priced

accommodation.

Number of New Expatriates in Bangkok

The office of foreign workers administration ( Work Permit),Department of Employment

revealed that Bangkok had lowest number of new expatriates in 2005 , with 1,872 persons

because the regressions of the economics which were caused by the increasing of the factors

of production , inflations and tsunami disaster; moreover, the slumps of the economics

brought about the decreasing of the expatriates in Bangkok because most of the companies

implemented the reorganization and retrenchment strategy and cash flow management

brought about the decreasing of the expatriates in Bangkok.

The Number of Tourists at Suvarnabhumi Airport in the year 2009

7,478

1,872

4,589 4,557

10,401

2004 2005 2006 2007 2008

Number of New Expatriates

Number of New Expatriates


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The short-stay demands for serviced apartments are from business travelers and leisure

tourists. According to the tourism department revealed that the number of international

tourists arrivals at Suvarnabhumi Airport during the first half of 2009 was 4,434,518 persons,

it was decreased by 26.8% from 5,623,119 persons in the first half of 2008.

From the breakdown of international travelers at Suvarnabhumi Airport, travelers from

East Asia (China, Japan) , South Asia ( India), Asean ( Malaysia, Singapore), Europe (

Germany, UK, France), USA, Australia and Middle East was a majority of inbound travelers

to Thailand.

Sukhumvit has the highest number of A Grade serviced apartments, with 1,801 units,

and followed by central Lumpini , with 1,770 units and Central Business District, with 995

units while B Grade serviced apartment are condensed in Sukhumvit area with 4,982 units,

followed by Southern Fringe Units and other areas as shown in the figure below.

Europe

22%Scadinavia

4%

America

8%

Ocenia

7%Others

4%

Africa

0%

Asean

16%

East Asia

33%

South Asia6%

International Tourists Arrivals at Suvarnabhumi

Airport based on Region

995

1770 1810

5600

996412

4982

1313 1205

0

1000

2000

3000

4000

5000

6000

Central Bus.

District

Central

Lumpini

Sukhumvit South. Fringe Other

A Grade B Grade


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The figure shows that in the Central Lumpini area has a lot of A Grade serviced

apartments; however, Sukhumvit has the most condense of serviced apartment in this area in

both A grade or B grade.

Occupancy and Rental Rates

Both Grades Occupancy rates of all serviced apartments in Bangkok was increased by

5.9% in comparing between the year 2004 and 2005 ( from 83.92% to 88.87%) but was

declined each year from 2006 to 2008

Figure: The average occupancy rates from the year 2004 till 2008

Grade A and B Occupancy Rates

The average for A Grade serviced apartments in Bangkok increased between 2004

and 2005 by 7.37% ( from 81.87% to 87.90%) , but declined each year from 2006 to 2008.

See the difference of A grade and B grade rental rate below. The graph shows that occupancy

rate for B Grade was highest in the year 2007.

83.92%88.87% 87.35%

80.48%71.40%

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

2004 2005 2006 2007 2008

Occupancy Rate

Occupancy Rate

2004 2005 2006 2007 2008

81.87%

87.90%86.06%

83.48%

78.38%

85.44% 86.26%82.31%

91.92%

76.69%

A Grade B Grade


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The Situation of the industry of the year 2009-2010

Historical Supply based on year

For the first half of 2010 only around 20 serviced apartment units were added, and

then around 180 units were supplied in Q3 2010, but approximately 340 units were added in

Q4 of 2010. Supply was in four locations, Central Lumpini, Early Sukhumvit, Late

Sukhumvit and Other areas. Total supply of serviced apartment units as of 2010 was

approximately 16,300 in around 125 apartments.

Since 1995 and up until now, Early Sukhumvit area has been by far the most

popular for serviced apartments. Although no mass transit system existed until the end of

1999, the appeal to western and Japanese expatriates meant that this area was the bulwark of

the sector. Other areas have also grown but on a lower trajectory. In the past few years the


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Late Sukhumvit area has become a new prime location especially due to the rise of Thong

Lor as a fashionable area to reside.

Overall Sukhumvit road and its vibrant sois contain over half of all serviced

apartment units in Bangkok with nearly 40% of total supply being located in Early

Sukhumvit area. The mix of good transport links, entertainment, retail and office facilities

creates a strong lure for people to stay in Sukhumvit.

Nearly half of total supply is in the grade B category in Bangkok.


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The distribution of serviced apartments differs according to location based on the

particular profile of each area. Central Lumpini contains many large embassies and is

therefore seen as being the most prestigious location to live and as such contains more grade

Aunits. Late Sukhumvit also contains more grade A units due to the location containing a

number of luxury branded apartments in Thong Lor road catering to the large Japanese

community there. Early Sukhumvit is the king of grade B apartments as it is a more

unpretentious, relaxed location which also explains the location of more Upper Scale ratherthan Luxury hotels. The Other areas contain more grade C products due to the distance from

the centre.


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Average occupancy rates in Q2 tumbled due to the April and May protests. This

is mainly a result of short term guests cancelling but also many longer term stays, especially

Japanese, leaving Thailand to escape from the perceived danger. While occupancy rates

soared back in Q3 2010 they have since lost their momentum and have even fallen back in

the case of grade Aapartments. The holiday season should be a strong period for the serviced

apartment market due to the numberof tourists. However this has not been translated into

increased occupancy. Higher spending tourists are choosing to avoid the city due to the

myriad of problems the city has in attracting this crucial demand segment.

In all locations occupancy fell during Q2 2010 but were more pronounced in some

areas than others depending on the proximity to the protest area. Therefore Central CBDand

Central Lumpini suffered the most. In both these areas occupancy has since picked up

especially in the Central CBDbut Central Lumpini still remains quite depressed and is far

behind the numbers recorded in Q1 2010. The protests may have dented the kudos of staying

in this area. However the situation is bright for the Late Sukhumvit area which can boast the

best occupancy rates throughout the year. The area is becoming increasingly fashionable,

especially Thong Lor with easy access to the BTS and now the Airport Link; but far away

from perceived trouble


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Expatriates represent the primary source of demand for the serviced apartment

medium and long stay market. The global economic crisis affected expat numbers in

Bangkok significantly in 2009, reducing the number by around 15,000. The number of

expatriates in Bangkok in Q1 2010 decreased very slightly from last year, but in Q2 2010

dropped more than 10,000, due to the political problems in the centre of Bangkok. However

in Q3Q4 2010 there was an increase but the total number is still similar to 2009 and below

2008 prior to the Global Financial Crisis or Hamburger Crisis.

After the protests in Q2 work permits issued picked up in Q3 - Q4 of 2010 which

indicates a more positive trend going forward combined with global economic recovery.


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Proportion of Expatriates in Bangkok in the 4st Quarter of 2010

The Japanese still represent the largest group of expatriates in Bangkok and are also

the main target group for serviced apartments with most of them staying along Sukhumvit

road. Other nationalities are often in the lower pay bracket and the rental rates of serviced

apartments would be beyond reach.

Rental Rates

The protests at Rajprasong intersection directly impacted the occupancy rate and

rental rate in Q2 2010. The average rental rate in Central Lumpini area decreased by nearly

20% in Q2 and has remained at these lower levels. In fact the area has gone from second to

fourth in terms of rates over the course of the year. In the Q4 2010 average rental rate in

Central CBD increased approximately 7.4% from Q 2 and 3 ain

similar to Q3.


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Rental rate of grade A and B by room type, Q4 2010

The average rental rate of grade A unit are greater than grade B by approximately

1.712.7% depending on room type.

.

Situation of the industry during 2010 till 2011

Approximately 470 units were completed in 2011 which was less than last yearstotal of more than 600 units and the lowest in the past two years. The total supply of servicedapartment units at the end of 2011 was approximately 17,300.

Additional Supply based on Quarter

Additional supply in Q4 was approximately 280 units bringing the total new

supply in 2011 while the supply of the 3rd quarter in 2011 was around 100 units. More than300 units were located in Early Sukhumvit area or approximately 65% of the total unitscompleted in 2011. This is mainly due to the location being very convenient for expatriateswho rely on using the Sky Train. In addition, many office buildings as well as shopping mallsand supermarkets are easily accessed from this location by Sky Train.

The Supply based on the location

The prime area or serviced apartment are Central Business District, Central LumpiniArea while the late Sukhumvit the prime area is Sukhumvit 55 or Thong Lor Road where hasan good infrastructures and entertainment complex and good transportation links such as Sky

Train, Airport Link but the main area where has a lot of serviced apartment is EarlySukhumvit Area which has 40% of the market.


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If we focus on the 29% of the other Central Business Zone so the Late Sukhumvit Area isthe main area that has 12% of serviced apartment while the southern fringe has only 6%

The Historical Occupancy Rates based on the quarter

The occupancy rates in Q1 Q3 2011 of both grades were similar and increasedaround 11% for Grade A serviced apartments in Q4 while only 0.5% for Grade B.

40%

18%

13%

29%

Serviced Apartment based on Location

Early Sukhumvit

Central Lumpini Area

Centra Business District

41%

38%

21%

Central Business Zone

Late Sukhumvit Zone

Southern Fringe

Other Area


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Due to the floods in Bangkok, displaced residents were forced to stay temporarily inserviced apartments for the last two months of 2011.

Another factor is that many serviced apartment buildings reduced their rental rates in

the last quarter of 2011 due to intense competition for residents between themselves, the hotelsector and the high-end apartments.

The Occupancy Rates based on the Area

All of the serviced apartment zones was not flooded at all so a lot of flood victims

evacuated to stay in serviced apartments in Bangkok because of the conveniences and good

of transportation commuting in Bangkok so the Late Sukhumvit Area has highest Occupancy

rates when compare with other areas ( See the figure in the last page)


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The number of the expatriates in Bangkok

Although, there was flooding in Thailand so there are a lot of foreign investors ,

especially the Japanese investors who was severe affected by the flooding but the number of

the expatriates still high and the number of the Japanese still at 8% , If we take a look at the

2nd quarter in 2010 there was the red shirt attack during the 2nd Q so there was a little number

of expatriates in Bangkok.

The Japanese people still be the main nation that reside in Thailand during the 4st

Quarter of the 2011.


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Bangkok Serviced Apartment Market, Q3 2012

Historical Supply, Q3 2012

Source: Colliers International Thailand Research

Note: F = Forecast

Approximately 420 units were completed in the first three quarters of 2012, and

nearly 156 units are scheduled to complete by the end of the year. The total supply of

serviced apartment units at the end of 2012 is expected to be around 18,259 units. GM

Serviced Apartment, on SukhumvitSoi 20, was completed in September 2012, with a total of

89 units ready to rent.

Supply by location, Q3 2012


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Source : Colliers International Thailand Research More than 50% of the serviced apartment supply in Bangkok is located along

Sukhumvit Road in the early and late Sukhumvit areas. The total supply in the early

Sukhumvit area has been more than in other locations for the past 20 years.

Historical occupancy rate by grade, 2010 toQ3 2012 by quarter

Source: Colliers International Thailand Research

The average occupancy rates in Q3 2012 for Grade Aand B serviced apartments

increased slightly from the previous quarter. However, the average occupancy rates in the

second and third quarters were still lower than in the first quarter of this year.


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Occupancy ratesby location, 2011 toQ3 2012 by quarter

The average occupancy rate in the third quarter in all locations was up slightly from

the previous quarter, except in late Sukhumvit and other areas which decreased slightly.

Serviced apartment projects are trying to retain their current clients for long periods by

renewing contracts before the expiration dates at the current rate. However, the Late

Sukhumvit Area is the most popular for the customers of serviced apartment.

Number of expatriatesin Bangkok, Q3 2012

The number of expatriates in Bangkok continues to rise. The EU debt crisis is still a

major concern for investors and affects the entire global economy. However, Asia has shown

it has potential for investment, especially in the ASEAN region. Bangkok is highly attractive

for investors who wish to take a first investment step into ASEAN, especially the sub-region

of Myanmar, Laos and Cambodia. As a result, several international companies are looking for


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regional office space in Bangkok. There is also good potential for serviced apartments. The

total number of expatriates in Bangkok in Q3 2012 was approximately 61,190.

Rental RateRental rate forone-bedroom unitsby location, 2011 toQ3 2012 by quarter

Source : Colliers International Thailand Research

Rental rates in Q3 2012 were similar to the previous quarter. Only the Central

CBDand early Sukhumvit areas saw rates fall by around 5% compared to Q2, although the

Central CBDstill commands the highest rental rates.

Average rental rate by grade, 2011 to3Q 2012 by quarter


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The average rental rate of Grade Aand B serviced apartments increased slightly from

the previous quarter, and the rental rates for Grade A serviced apartments are still higher than

for Grade B by more than 45%.

Products and Services of Serviced Apartment

Serviced Apartment is a part of service business normally provide the Tangible

Products and Intangible Products , Intangible Products means the things that cant be touched

or smelled so this case refers to service providing from service providers, the service

providers that be able to make the customers e pleasure at all times when they stay with us so

it relates to emotional factors so the service providers have to understand the customers

needs.

Understanding intangible Products

Physiological Needs

This type of need is an basic needs of the people comprises with Air, Water or

Residence, if someone deprives from some need , they will find out it for satisfying

themselves. If the human lack of it , the human body cannot function properly, and will

ultimately fail. Physiological needs are thought to be the most important; they should be met

first.


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Safety and Security Needs

Humans want to be away from the threats so they might need the of Physial and

Emotional crime such as living in the safety residence and have the security guards to take

care of the customers needs.

Love and Belonging Needs

It so called the social needs, all of the human need friends and the ne who love, the

people want to be accepted by any other people and become important or valued persons

Self-Esteem

Esteem may be classified into internal and external esteem such as self respect and self

achievement and external esteem is an social status , recognition and reputations.

Self- Actualization

It means the self peak experience that the humans want to have than lower needs of the

people such as Truth, Justice, Wisdom. On the other hand it refers to Born to be or Born to

do

Understanding intangible Products

The tangible products that the upper scale serviced apartment provides the wide range of

facilities and amenities such as

-1. Ipod docking station

2. Microwave Oven

3. Mini-bar with sink

4. Coffee and Tea making Failities

5. International Adapter in Every room

6. Bath Tub with separated room shower and hairdryers

7. Turndown Services

8. Internet access throughout the building and Video Conference in every room

Rooms Type can be classified as

1. Single Room

2. Twin Room

3. Hollywood Twin

4. Double Rom5. Triple Room


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6. Suite

Conclusion

Nowadays, serviced apartment businesses are compete together dramatically with

both direct competitors and indirect competitors( substituted products such as condominium)

so the last year (2011) the growth of the occupancy rates was slightly increase because some

of the investors was still suffered with the economics crisis( Hamburger crisis and Subprime

crisis) and the occupancy rates was at 85% ( especially at the Late Sukhumvit Area).

Moreover, the political crisis at the Central Business District and The Central

Lumpini Area at the Q,2 of 2010 brought about the decreasing of the expatriates in Bangkok

and the occupancy rates was decreased dramatically ; however, there was the silver line forthe serviced apartments in the Late Sukhumvit Area especially in the Thonglor road where is

the new zone of fashions and entertainment so the demand for the serviced apartment was

shifted from the Central Business Districts , Central Lumpini Area, Early Sukhumit( Has the

most percentages of supply side by serviced apartment ) to Late Sukhumvit area so the

occupancy rates of all grades of serviced apartment up to 80% until current time and most of

the serviced apartment zones were not flooded; then , this was the silver line for serviced

apartments because most of the flood victims choose to stay at serviced apartment in the year

2011.

Fortunately, the ASEAN Community will be opened in coming 2015 so the silver

line for serviced apartment because the market group of serviced apartment will be expanded

especially the foreign business persons from the investor groups (expatriates)


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Service Characteristic

G6421C RT AERO PRO

Hyper-size 12 cm stand post designThe

durable and firm oval-shaped stand

posts reach 12cm! It's the same level

with commercial use treadmill.

Except for enhancing the toughness

of frame, it could also prevent users

from injuries while exercising.

14 pre-set programswarm up and cool down are the basic principles of running

training, all the pre-set programs o f G6421C treadmill lower the intensity at the

beginning and end. It helps you to protect your body while exercising. Every

athlete has his/her own goal, and BH integrates the characteristics of different

needs to design different training pro grams with suitable speed and inclinesetting.

Motor 2.25 HP / 5.0HPP Green Power

motor

Speed 1- 20 km/h

Elevation 15 levels

Running surface 142 x 50 cm

Monitor Blue backlit Grid LCD design

Display Information distance/ time/ speed/ incline/

pulse/ calories/ programs

Instant speed keys 2/4/6/8/10/14/16 km/hr

Instant incline keys level 2/4/6/8/10/12/15


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Dimensions (L*W*H)

Not Folded 186 x 95 x 148 cm

Size Folded

Vertically

125 x 95 x 156 cm

Size Folded

Horizontally

(none)

Weight 108 kg / 238 lbs

Pre-set Programs 14 pre-set profiles, 1 manual, 1

HRC

G661 LUXOR Treadmill

Luxury, power and comfort combined Homey, Stylish treadmill

AmbilightBlue ambilight effect helps to create a unique ambient atmosphere and fully

presents high-tech design.

ButtonWith buttons easy to operate for more comfortable exercise

Four steps of cushioning system

Handrailinnovative design of eagle-wings handrails satisfies your fashionable taste.

Body Fat Program Helps to control your figure.


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HRC Program Ideal to achieve effective cardiovascular exercise.

SDS (Soft Drop System) safe vertical unfolding system powered by a hydraulic

system to prevent back injuries.

3.5HP motor(peak)

0,8 and 18km/h

Max. electric incline-15 level

Treadmill Length: 190 cm

Treadmill Width: 93 cm

Treadmill Height: 135 cmTreadmill Weight: 91 kg

Measures Folded V: L 120 x W 93x H 150 cm

Measures Folded H: L 190x W 93 x H 40 cm

Treadmill Running belt XXL: 135 x 51 cm

G235A NDE Elliptical

Contact pulse measurement

system

Grip pulse to measure pulse rate

during training

Recovery test

Helps to control your fitness and

conditioning through controlled

recovery


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Elliptical movement

Brings non-impact C.V. exercise to more than 200 muscles

Heart Rate Control (HRC)

Allows cardiovascular zones to be targeted during your workout

Telemetric pulse measurement system (Chest belt optional)

For an accurate and comfortable control of the heart pulse via use of a chest belt

Handpulse measure system

Four machines in oneCombines walking, running, cross training, stair climbing and push ups

at the same timeMagnetic brake system

No noise and a life time of resistance

Bottle holder

Specification

Dimensions: 149x67x159 cm

Weight: 47 kgs

Flywheel weight: 8.5 kg

Intensity level: 9

Data readout: Speed, RPM, Time, Calories,

Distance, Pulse

G865M Manual Crosstrainer

Oversized LCD monitor

- Displaying with time,

RPM,speed,distance,calories and pulse

helps track your workout progress


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- Ergomomic elliptical movement : Brings non-impact C.V.exercise to more than

200 muscles

- Magetic brake system : Provides quiet and smooth pedaling

- Equipped with tension knob with 8 levels : Allows users to select the most

suitable workout intensity

- 20" (50 cm) Stride training :Provides fit stretch to all muscle groups and helps to

slim your figure through training the muscles of hips and legs.

Ergonomic grips wih hand pulse control

- Enjoy more confortable exercise and provide accurate pulse measurement

Track and Track structure

- Combining 3-section assembly structure with heavy duty bearings brings non-

impact exercise to the joints and spinal cord and also arms, abodominals, thighs

and hips.

Dual tracks

- Combining with large-sized pulleys helps balance the pedals and offer greater safety

while exercising

- Oversized anti-slip foot pedals

- Transportation wheels

- Easy to move around the house

- Lowering the hight of the pedal structure :

Designed to offer easy access to the machine

- Space-saving structure design

- Front drive crosstrainer (easy access)

Specification

Weight: 85 kg

Flywheel weight:8 kg

L 185cm. / 72.8 W 70cm. / 27.6 H 170cm. / 67


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R306 Regatta

Total body stretch movement

Aluminum sliding track

Exclusive magnetic brake system

8 levels of resistance control

Multi Functions

Ergonomic saddle

user friendly LCD monitor : Displaying with time, calories, pulse, strokes per minute, total

strokes helps you track your workout progress

Total body stretch movement : Allows to train all muscle groups: arms, legs, abdominals and

waist and also provides fit back stretch.

Exclusive magnetic brake system : Provides quiet and smooth rowing through multiple tension

levels

Tension knob with 8 levels : Allows users to select suitable intensity of workout.

Aluminum sliding track : Extremely smooth, durable and no rust problem.

Ergonomic saddle : Comfortable and safe saddle helps users prolong training time

Telemetric pulse control (chest belt optional) : For an accurate and comfortable control of the

heart rate through the use of a chestbelt

Multi Functions : Frontal earflaps allow the possibility to make anaerobic training (i.e. biceps

curl).

Specification:

Weight: 26Kg / 57 lbs.

Flywheel weight: 5 kg / 11 lbs

Unfolded:Length: 187 cm / 73.6


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Width: 58 cm / 22.8

Height: 50 cm / 19.7

Folded:

Length: 80 cm / 31.5

Width: 58 cm / 22.8

Height: 133 cm / 52.4

G152X Home-Use Training Station

Specification

WEIGHT180 kg / 397 lbs.

LENGTH174 cm / 68.5"

WIDTH200 cm / 78.7"

HEIGHT212 cm / 83.5"


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The most complete home-use training station.

Combines a multistation with a seated leg press and abdominal flexor with dip Exercise

control with a maximum tension of 100 kg / 221 lbs.

Ample weight for progressive training.

Adjustable seated leg press with holding grips.

Maximum comfort and protection while training Foldable seat.

The multi-gym takes up very little space Completely streamlined.

Greater protection and safety whilst exercising Controlled exercise.

Due to its exclusive guided work system, exercise can be done with maximum security Use

of CAMS.

These profiles help to make the exercise ergonomically Pulley system with bearings.

Provides very smooth and direct exercise Special metal protection.

Allows quality and rigidity with the best looking design.


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http://www.i-bh.es/products/products_detail.php?cID=18&uID=7&Key=78&M=0

SK2000TV Stepper R200TV

Variable geometry low-impact steps

Concealed transportation wheels

Top quality finishes on all componentsThe fully featured SK Line monitor and convenient Handpulse

Programs: 40 different programs including Fitness Test and HRC Heart

Rate Control (for working cardiovascular target areas)

HR Monitoring: Monitored pulse control: POLAR hand-grip system and

POLAR telemetric system (optional chest-band)

Equipped with TV monitor

Casing:Painted ABS plastic using automobile technology

Technology: Steady rate technology SCT

Workload System:Independent workload system


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Specification

Length: 48

Width: 30

Height: 68

Gear ratio: 800 watts

Consumption: 350watts

Maximum user weight: 397 lbs.


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http://www.i-bh.es/products/products_detail.php?cID=18&uID=7&Key=56&M=0#

SK9900TV Recumbent BikeH990TV

Sliding motion and seat inclination controlled by reliable, precision

mechanisms

Ergonomically designed to provide easier use and total comfort

Rear seat fairing. Protection and stylish finish in a single component

2 SF (Double Speed Fan) for a rewarding exercise experience

The SK Line frame characteristic feature of a whole concept in

fitness

Programs: 40 different programs including Fitness Test and HRC Heart

Rate Control (for working cardiovascular target areas)

On-screen information: Time, distance, calories and pulse rate

HR Monitoring: Monitored pulse control: POLAR hand-grip system and

POLAR telemetric system (optional chest-band)

Equipped with TV monitor

Casing:Painted ABS plastic using automobile technology

Double comfort handlebar: Comfort with pulse sensors

Drive system: Easy maintenance Poly-V belt, with self tensioning system


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http://www.i-bh.es/products/products_detail.php?cID=18&uID=7&Key=56&M=0#

Specification

Length: 61

Width: 22

Height: 56

Gear ratio: 500 watts

Gear ratio: 1

Consumption: 250watts

Maximum user weight: 419 lbs.


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Triaxial vibration

Makes it easier to eliminate "cellulitis"

Recommended maximum user weight:120Kg.

Equipped with 1 powerful 550W DC motor

64x70cm vibration plate for a comfortable use

Made of fiber glass

Sturdy structure and easy transportation

Easy to use display(2 windows)

Programs: 8

Frequency: 20 levels(25-45Hz)

Amplitude: 2mm

Time: 1,3,5 and 10 minutes

Includes belts for excising upper extremities and training guide(poster

and manual)

Specification

L70 cm


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W64 cm

H125 cm

Weight45 kg


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2 machines in 1the definitive fitness solution for women Exclusive and unique fitness

machinecombines the vibration platform's advantages with the benefits of a belt massagemachine

L70 cm

W64 cm

H134 cm

Weight52 kg

Belt massage machine

Helps to relax stiff muscles and sore joints. Ideal for use both before and

after exercising. Improves blood circulation.

Six speed motor

Offers controlled massage settings based on the user and application area.


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3 massage and relax bands.

Designed to provide various types of massage to different parts of the

body.

Plexiglass platform and advanced stable structure.

Modern, attractive design for the home.

Fully enclosed and top quality material

Smooth, quiet operation


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http://www.johnson.co.th/product/product_detail.php?BID=2&id=127

Indoor Cycle S3

Proven bicycle ergonomics and features, make this bike smooth, elegant and comfortable.

- Adjustable seat (vertical and horizontal) and handlebar (vertical) help users with different

body shapes to find the perfect riding position.

- Micro-Adjustable tension control knows provides smooth resistance and easy push-down

emergency braking.

- Compact design and build-in transport wheels allow users to work out anywhere, anytime.

Features

Flywheel 22 kg / 48 lbs.

Transport wheel Yes

Water bottle holder Yes

Handlebar adjustment Vertical Adjustment

Seat adjustment Horizontal & Vertical Adjustment

Resistance system


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Resistance Friction Brake with Micro-Adjustable Knob

Drive system Chain Drive

Tech Specs

Overall dimensions LxWxH 110 x 47 x 90 cm / 43" x 19" x 35"

Product weight 43 kg / 95 lbs.

Max. user weight 130 kg / 286 lbs.


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Vibration Plate V109

The new Treo V109 Vibration plated, with their horizontal/ vertical movements, help

you lose weight and tone up your whole body. Combined with cardiovascular/ strength

routines, a controlled, balanced diet, you will start to look and feel great.

Features

Vibration type Horizontal

Color White

Vibration frequency 20 - 45 Hz

Programs 4 (Lower Body, Upper Body, Abdominals and Manual)

Speed Speed 1-16

No. of console 2

Handlebar Yes

Tech specs

Overall dimensions LxWxH 79 x 70 x 116 cm / 31" x 28" x 46"


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Product weight 26 kg/ 57 lbs.

Max. user weight 100 kg/ 220 lbs.


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www.abcoasterclub.com/

Ab Coaster CS3000

The flagship product of the Ab Coaster Commercial Series product line has been re-

designed for 2010. The new features of the Ab Coaster 3000 include stainless steel rails for

an ultra-smooth ride, adjustable hand grips, and a free-style motion seat.

FEATURES:

Heavy-Duty Steel Construction

Stainless Steel Rails

Ultra-Glide Nylon Rollers

Sealed Steel Bearings

Urethane Molded Foam Arm Pads

Adjustable Hand Grips

Free-style Motion Seat

450 lb. User Weight Capacity

40 lb. Olympic Weight Capacity

Easy-Move Casters

Extended Warranty
http://www.abcoasterclub.com/products/abcoaster_cs3000.shtmlhttp://www.abcoasterclub.com/products/abcoaster_cs3000.shtml


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www.abcoasterclub.com/

DIMENSIONS & WEIGHT:

L 61 W 33 H 58 Weight: 150 lb.


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http://www.ab-machine-reviews.net/ab-circle-pro-review/

Ab Circle Pro

The Ab Circle Pro is designed to be less taxing on the lower abdomen region while giving

the stomach muscles the same amount of exercise as achieved through conventional modes. It

is effectively the treadmill for your abs. Why perform countless crunches and sit-ups when

you can gyrate from side to side on the Ab Circle Pro and flatten down your bulging tummy?

Washboard abs are what any Ab Circle Pro review promises using a unique friction free track

that challenges the lower, middle and side abs while boosting the heart to give you a

complete cardio workout. The machine is also designed for obliques and it even acts on the

thighs, bums and hip regions. The Ab Circle Pro is fast, fun and relatively simple to use. The

Ab Circle Pro also provides you with three resistance levels for more challenging workouts,

and it features the much touted Loose Your Love Handles nutrition guide plus a 3 minutelong Express Workout DVD.

Ab Circle Pro Features & Parts

Gyrating motion from side to side ensures a full lower and upper abdomen workout.

Does not require more than 10 minutes of workout every day.

Small and compactperfect for domestic usage.

Works on the obliques too and tones calf muscles.


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http://www.ab-machine-reviews.net/ab-circle-pro-review/

1 Year Limited Warranty that does cover part replacements of any kind due to wear

and tear.


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http://www.rip60.com.au/Rip_60_Australia_Commercial_Product_Information.html

Rip 60

Week 1: Wake Up Your Body :During week 1, you'll prepare your

body for the upcoming workouts. You'll learn specific movements to correct

common physical imbalances.

Week 2: Hyper Burn :Turn it up in week 2 with a workout that

increases your stability and endurance. You'll perform exercises longer and

strengthen your stabilizer muscles.

Week 3: Turn and Burn

This week is full of exercises that require longer reps for increased

endurance. You'll utilize the Optimization Zone principle for your

dramatic transformation.

Week 4: Recharge :This week is about recovery. Filled with yoga

and tai chi, week 4 will change up your routine and give your body a break.


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http://www.rip60.com.au/Rip_60_Australia_Commercial_Product_Information.html

Week 5: Build it up :This is the beginning of the hypertrophy phase or muscle

growth. You'll be introduced to heavier weight with accessories

like kettlebells and prepare your body for more power.

Week 6: Power and Strength :This week will focus on power moves,

introducing faster movements and more reps.

Week 7: Pedal to the Metal :The Explosive Moves DVD utilizes the

moves you learned in week 6 and integrates them into longer reps. You'll

work in the Optimization Zone again, adjusting your angle to maximize

muscle activation.

Week 8: The Peak :This is the finale workout, the DVD that brings it all together.

You'll combine the strength, power and endurance you've gained for a timed

assessment-the rip:60 combination.

rip:60 Power Yoga Workout DVD : This DVD is designed with

lengthening and strengthening moves to improve your overall balance

and physical wellbeing. It's perfect for recovery after your 8-week body

transformation!

rip:60 for Runners Workout DVD : Strengthen your

stabilizer muscles with this DVD designed to enhance your running training. Led by

a rip:60 expert, you'll get the expertise you need to train for success!


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http://www.amazon.com/BodiPro-FIT-01480809-BodiRocker/dp/B002TLQYNU

BodiProBodiRocker

Product Features

Simultaneously trains total upper body and core to deliver a 2-in-1 fat-burning workout!

Offers more than 70 exercises to help you strengthen abs, chest, arms, shoulders and

back.

Your core stabilizing muscles are engaged to control the rocking and twisting motions

offered by Bodi Rocker.

Built-in Bodi Balance Meter with multiple grip positions for full-body toning!

Bonus: Includes a set of 10-Minute Workout Cards and a 30-Exercise Workout DVD


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http://cnczsenlong.en.made-in-china.com/product/CMKxyljckAUs/China-Gym-Ball-

Exercise-Ball-Yoga-ball-EN71-.html

Gym Ball

Product Description

Gym Ball / Exercise Ball/Yoga ball (EN71) _ For shaping, body building and fitness

purposes.

1)Material: Non-toxic PVC/Non-toxic Anti-burst PVC;

2)Diameter size: 45cm, 55cm, 65cm, 75cm, 85cm, 95cm 100cm, 120cm-

150cm;

3)Weights: 550g, 650g, 750g, 850g, 900g, 1000g, 1100g, 1200g-2600g or customerized

weights;

4)Color: Any color available or customized color as your minds;

5)Logo print: Can print any of your company's logo on ball and pump;

6)Accessories: Pump( foot and hand) poster chart, disk, etc;


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7)Package: 1PC/poly bag, then into PE bag or Color-bag;

8)MOQ: 1000 PCS, lead time: 2 days FOB Shanghai;


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~ 63~



DesJoyaux

Desco Casting

A strong and durable structure 10 year

guarantee under the verification of

Bureau Veritas, France

Pipeless Water Filtration System

Pipeless Water Filtration Unit is

Easy to maintain and crack free

No drilling and digging needed

Work silently and environmental friendly

Reinforced PVC Liner

Harmless and easy to clean up

Leakage protected

All colors and patterns of your choice


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~ 64~



Marketing Analysis

According to the last chapter the normal customer of the serviced apartment are

as followings ; (1). The expatriates who live and work in Bangkok (2). Foreign Tourist is a

secondary group. Bangkok is the big market for this kind of business because there are a lot

of international firms office locates in Bangkok, if there are a lot of investments from other

countries, it could bring about the increasing of the Occupancy Rates of serried apartment

General Environment Scanning is the strategic planning which is very

important for all kinds of business and investment selection and operation management.This is the first step for business running because we are able to identify the threats and

opportunities of the business which come from outside or external of the business so

opportunities are an advantage for the business while threats are the disadvantage for the

business.

Nowadays, Serviced Apartment should implement the General Environment

Scanning for our business running in order to know the external threats and opportunities of

the business so General Environment Scanning is comprised with four factors as followings;

(1) Political Factors (2).Economics Factors (3).Social and Environmental Factors (4).

Technological Factors.

Political Factors

According to the Government Housing Bank Journal mentioned that political

problems are the critical problems that affect directly to hotel and serviced apartment

because some of the political occurrences can affect to the decisions of the investorsfrom foreign countries. If any of the political problem happens, it may bring about the

bad attitude amongst the foreign investors then the serviced apartment and hotel

business and condominium business could be affected because all of these business

rely on the foreign business customers mainly but Thai politics are more stable than

ever so this case can attract the investors invest in Thailand( Colllier International) ;

moreover, tourism market is considered as a secondary market for serviced apartment

that the entrepreneurs have to consider ; then , the tourism plans from the government

should be unity in order to manage the tourism industry in Thailand.


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In addition ,the investment policy from the foreign direct investors (FDI) that

are supported by the government organization such as Board of Investment which

facilitates foreign investors and ability to invite the investors from foreign countries to

invest their capital and company in Thailand.

- Economic Factors

According to the Kasikorn Research Center (2012) mentioned that the main

economic opportunities are the coming AEC (ASEAN Economic Community) which

is the community that require the free flow of the production factors and Thai people

can work or invest in other ASEAN countries and another Aseaner from other

ASEAN countries can invest and work in Thailand, this case brings about the

advantage to the serviced apartment business so the benefit of ASEAN Economic

Community are as followings:

1. ASEAN Framework Agreement on Service which requires all of the ASEAN

countries must open the Free Service Agreement and include the real estate

business but for Thailand can use CPC 82101 and CPC 82201. (1) Renting or

leasing services involving own or leased residential property (CPC 82101). (2)

Residential property management services on a fee or contract basis (CPC 82201).

by the way the foreign shareholders must not hold the shares more than 49

percents and number of foreign shareholder must less than Thai people so these

could be the opportunities for entrepreneurs for expanding the market especially the

business persons or investors from other ASEAN countries who want to relocate

the factors of production to invest the business in Thailand ;then most of the

Serviced Apartment entrepreneurs would get the agency to promote their Serviced

Apartment to other Aseaners from other ASEAN countries.

2. Free Flow of Skilled Labor which requires to flow the skilled labors within the

communities , those labors are as followings ; dentistry, medicine, nursing,

accountancy services, engineering and architecture. Although the skilled labor that

are flowed from other ASEAN countries could can work and invest freely but they

dont have the right to buy the land so they need the rental lodging then the demand

for serviced apartment could be increased.

Thus, AEC is an advantage of the business doing for economic purpose which

brings about the Free Trade Agreement Area within the community; moreover, there


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are a lot of non ASEAN investors that are interested to invest in Thailand in order to

use Thailand as a hub for setting the plant or distribution center to distribute the goods

or product to other ASEAN countries so in the near future there are a lot of foreigners

come to Thailand so this is an advantage for serviced apartment business.

According to the Government Housing Bank and Kasikorn Research Center mentioned

that EU debt crisis which is the big problem that affects to many economy systems in many

economic regions in the world and brings about the drop down of the World GDP in 2012

so the EU debt crisis affects to Thai economy as well so the investors from EU countries

couldnt come to invest in Thailand too much or gain the investment back to their countries

during this moment so this is an threats that the entrepreneurs of serviced apartment shouldconcern

Although the EU debt brings about the regression of the economic but for Thailand it

does not affect to Thailand directly because the first 6 months of the year 2012 the number

of the European tourists increased when compare with the lat year ( Government Housing

Bank Journal)

- Social and Environmental Factors

According to the big flooding in Thailand last year that destroy or damage the town so

the new trend of the residence should be sky scrap which is the best choice for the

customers who want to avoid the threats from flooding; moreover, the area around

Sukhumvit and Phayathai are very popular because these area are not affected by flooding

situation( Bangkok Biz) .

Moreover, the natural disasters in some particular area can bring about the occupancy rates as

as the big flooding in 2011 there was bringing about the increasing of the Occupancy Rates of A

Grade serviced apartments in each area and some social occurrences such as the red shirt attack in

2010 brought about the demand of the serviced apartment.

- Technological Factors

According to Dr. Potjanee Muangsillapasart mentioned that business and

lodging business should be required to use the Property Management Systems for

storing the data or database and data mining or managing the wide range of room rates

and facilitate the customers which are use in the Front Office and Back Office serviced


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~ 67~



apartment is a kind of lodging business so Property Management System should be

conducted in order to facilitate the customers and business running

Moreover, the impact of the Internet and E-Commerce Marketplace toward

hospitality and lodging business by setting up the own website or join the marketing

website. Today, there are a lot of lodging businesses and serviced apartments have

invested in e-commerce and information technology to variety of degree. These

investments included in-room, high-speed internet online direct booking website.

Nowadays, there are a lot of e-hotels, offering services, including high-peed internet

access , video on demand system, limited videoconferencing in al rooms, wireless

access throughout the building; internet kiosk for the customers.

And the impact of 3G that provide

3Cs Analysis

Competitive Analysis

Since the year 2010 the demand for serviced apartment has shifted from Early

Sukhumvit and Central Lumpini Area and other business zones to Late Sukhumvit

Area especially Thonglor Road or Sukhumvit 55 so Thonglor is new darling for

serviced apartment especially in A Grade . Thonglor Area share the markets from the

Central Lumpini Area where has a tot of embassies and high-end serviced apartment

condominium while the Early Sukhumvit Area has a tot of B Grade Serviced apartment

and high number of the serviced apartment business when compare with other areas in

Bangkok ( The Early Sukhumvit has 40% of all serviced apartments in a whole

Bangkok ) while Late Suhumvit has only 12% of the portion of the serviced apartment

in a whole Bangkok.

Unfortunately, the Occupancy Rates of the serviced apartment in Early Sukhumvit

area has dropped down while the Occupancy Rates of the serviced apartment in Late

Sukhumvit has over 80% in all grades of the serviced apartments in those areas and the

markets of serviced apartment in Late Sukhumvit especially Thonglor Area (

Sukhumvit 55) would have a chance to growth from now on. However, the rival

competitors of serviced apartment are not the rival serviced apartment but also thecondominiums or leased residents are the competitors of the serviced apartment ;


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however, we can compete with the lease condominium by our services because the

customer who rent the lease condominium they cant get the services or assistances

from the condominium people so they have to contact the owner of the condominium

rooms.

Moreover, any rival competitors always renew the contract for their existing

customers so we have to find out the market gap for attract the new customers;

however, the politics and economic of Thailand in current time is more stable than

ever, there are a lot of new investments from foreign countries invest their capital and

companies in Thailand and some of their investment is in the development process and

especially , ASEAN community will be opened in coming 2014 that could bring about

the incoming of the expatriates in Thailand and Bangkok and moreover, the Japanese

people always rent the serviced apartment rather than buying the lease apartment. The

serviced apartment business today have to compete with direct and indirect competitors

( GHB Journal and Colliers international and KSMEcare) however, there are the

organization that act as the intermediaries or agency to contact between serviced

apartments itself and potential customers.

.


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Customers Analysis

Normally, the customers analysis is the analysis of the potential customers of the

serviced apartment by answering all of the questions as per following;

Who are the customers? The Expatriates who reside in Thailand .

What is objects that the customers

want?

The place to reside

Why the customers come to stay at the

apartment?

- Locate in a good/prime location.

- Good environment around the premise

- Able to access the transportation system

- Adequate and Good Facilities

- Good Safety Systems

When the customers rent the serviced

apartment?

When they relocate to work in Thailand

( When they become the expatriates)

Where the customers can contact? - The Website

- Agency Website

- Walk-in to contact

- Social Networks

Who is the decision maker? - The Customer themselves

- The Customers Friends or Siblings who

force the customers to choose the place

to stay.

How do the customers stay? - Good marketing and promotion

planning.


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( Sources: Institute of Small and Medium Enterprises Development and Chavalak

Phumphukhieo; The thesis on Apartment Rental Decision Proces of High Class

Foreign Customers Based on Bangkok Transit System in Sukhumvit Line)

- Competitor Analysis

In Thonglor road and late Sukhumvit area there are a lot of serviced apartments

for expatriates so they target at various markets of the customers so these are the lists

and the characteristics of the competitors who offer the same products and same rates.

The Oakwood Residence Sukhumvit Thonglor

The Products that they offers are Free WiFi, Restaurant, Safety Box, Elevator

,Kids, Room Services, Receptionist, Fitness Center, Meeting Room, Outdoor

Swimming Pool, Car Parking Service, Parking lot, Laundry Services, Pets are allowed

with 67 units(rooms)

The Location of the Oakwood Residence is in Soi Thonglor 13, Khlongton Nua,

Wattana District in the narrow sub-soi in Thonglor.

The review from Tripadvisor.com , most of the customers are the business

customers and most of them satisfy with this and consider it as an excellent residence.

The room rates and room type can be classified as per followings

Type Size (sqm) 4-6 Monthly 6-12Monthly Units

Studio Deluxe 46 66,000 B. 57,000 B. 7

Studio Excutive 53 72,000 B. 63,000 B. 5

1 Bedroom Superior 82 78,000 B. 69,000 B. 5

1 Bedroom Deluxe 76 84,000 B. 75,000 B. 14

1 Bedroom Excutive 88 90,000 B. 81,000 B. 6


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Source: Kobayashi serviced Apartment agency

Somerset Sukhumvit Thonglor Bangkok

Somerset is an serviced residence under the umbrella of the Ascot Limited who

provide the serviced residence properties management under the name Somerset

Residence and Citadines worldwide in Thailand there are 9 properties of Ascot Limited

as per following(1). Somerset Lakepoint (2). Somerset Park Suanplu (3).Somerset

Sukhumvit Thonglor (3). Asott Sathorn Bangkok (4). Citadines Sukhumvit 11 (5).

Citadines Sukhumvit 16 (6). Citadines Sukhumvit 23 (7). Citadines Sukhumvit 8

Bangkok (9). Vic3 Bangkok so the main competitor for this brand is Somerset

Sukhumvit Thonglor

The Location of Somerset Thonglor is located in Soi Thonglor 5 where is the

narrow sub-soi but near the main Thonglor road.

The products that the Somerset offers are the WiFi , Safety box , Bar and Pub,

Smoking Zone , Elevator, Kids Club, Meeting Room, Business Center, Bar Pool ,

Room Service, Laundry, Family Rooms, Kid Clubs, Swimming Pool for Kids, Steamed

Room, Sauna, Jacuzzi, Fitness Center,


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The Somerset Sukhumvit Thonglor provides 262 rooms (units)

Room Types Rates for Month

Studio Deluxe 85,000

Studio Room 90,000

Studio Premier 96,000

1Bedroom Executive 120,000

2 Bedroom Executive 190,000

Information from Kobayashi Company

According to the customer reviews from Agoda.com and Tripadvisors.com , most

of the customers satisfy with the Somerset Tangible products but some of the

customers are not satisfy with the foods and drinks and some of amenities.

Centre Point Sukhumvit Thonglor

Centre Point Sukhumvit Thonglor is under the umbrella of Centre point

Hospitality which manage the various properties in Bangkok such as Centre Point

Petchaburi, Centre Point Sukhumvit, Centre Point Silom , Centre Point Langsuan,

Centre Point Saadang, Centre Point Wireless road, Centre Point Sukhumvit

Thonglor , Grande Centre Point Ratchdamri, Grande Center Point Hotel and

Residence- Terminal 21


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The products that the Centre Point Sukhumvit Thonglor provides are the

Restaurant, Salon, Fitness Center, Elevator, Laundry Services, Rooms Services,

Business Center, Meeting facilities, Shuttle Services, WiFi, Fitness Center, Jacuzzi,

Swimming pool, Garden, Kids Club , Daily Maid Services.. The Centre Point

Sukhumvit Thonglor is located on the Main Thonglor Road

The Centre Point Thonglor has 156 units (rooms) and the room rates and rooms

type that the Centre Point provides are

Type Size (sqm) 1-3 Month 4-12 Month Units

Studio 38 52,000 B. 48,000 B. 19

1 Bedroom 68 78,000 B. 72,000 B. 19

1 Bedroom 80-87 80,000 B. 76,000 B. 80

2 Bedroom 131 130,000 B. 120,000 B. 19

Executive2 Bedroom 142 140,000 B. 130,000 B. 19

Capital residence

The capital residence is an Apartment for Foreigner where provides 74

units(rooms) with 24 floors , they provide Microwave, Electric stove, Exhaust hood,

Dishwahers, Ovens, Television, Refrigerator, washing machine, Swimming Pool, Gym

, Sauna Kids Club, Tuk Tuk service with 24 Hrs safety policy.


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This apartment is next to the Camilian Hospital its decorated with modern style

and have the separated area for the bathroom. The room rates for Capital Residence are

as per following;

Type Size (sqm) Monthly Units

1 bedroom 58 40-45,000 B. 14

2 bedrooms 93 65-75,000 B. 14

3 bedrooms 156-168 85-95,000 B. 41

4+1 bedrooms 318 150-160,000 B. 5

Pan Pacific Serviced Suite

The Pan Pacific is an premium serviced suites and hospitality brand worldwide in

which provide the excellent services with a wide range of rooms ; moreover, the

facilities provided for the customers as per following; bar and pub, family room,

restaurant , smoking area, airport transfer, coffee shop, elevator, laundry service, room

service, shops, baby sitting, Business Center, Concierge, Executive Floor, Meeting

Facilities, Poolside Bar, Safety Boxes, WiFi, Fitness, Massage Service, Jacuzzi,

Outdoor Pool, Sauna, Steamroom, Kids Club, Spa, Free LAN Access but has no in

room kitchen. The Pan Pacific Thonglor provide the services same as 5star hotel on the

other hand, the Pan Pacific Thonglor is a substitute products or Five Star hotels in

Bangkok.

Type Size (sqm) Monthly Units

Studio 37 69,000 36


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1Bedroom

61 77-87,000 67

2

Bedrooms

118-180 118-180,000 42

3Bedrooms

154 188,000 3

Grass Suites Thonglor

The Grass serviced suite is an small serviced suited in Thonglor where provides 46

rooms with three room types, the grass is decorated with the green grass surrounded.

The Grass is a boutique serviced suites does not provide the in room kitchen and

jus provide only Studio room and one-bedroom type. The Grass also provides Pub and

Bar, Restaurant, WiFi, Lan Services, Salon, Fitnes Center, Coffee shop, Elevator,

Laundry Service, Meeting Facilities, Safety Box, WiFi, Car Parking, Valet Parking

.The Grass Thonglor locates on the main Thonglor Road.

However, the customers of the grass dont satisfy with this apartment too much (

review from Tripadvisor and Agoda.com).

Type Size (sqm) MonthlyStudio 30 33-37,000 B.

1 Bedroom 58 48,000 B.

1 Bedroom Deluxe 65 52,000 B.

Ekkamai Garden Serviced and Residence

Ekkamai Garden is an apartment that provides for the executive and their families,

the Ekkamai Garden is operated by the Colliers International who seek a harmoniousbalance between work and life family. The room rates are as per following;


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Type Size (sqm) Monthly

1 Bedroom 100 55,000 B.

3 Bedroom 160-240 75,900-91,000 B.

3+Garden 240+64 101,000 B.

3+1 250 96,000 B.

3+1 Garden 250+64 103,000 B.

4 Bedroom 280 100,000 B.

4+1 Garden 290+170 140,000 B.

The Ascent Condominium ( Indirect Competitor )

As we have mentioned that the substitute

Documents

la casa small luxury expats residence