Saint in the City
Bangkok’s luxury property sector expands with the introduction of St Regis
| Text : Elizabeth Kerr | Photo : St Regis |
I n a case of a trend moving, perhaps oddly, from rural to urban centres the branded residence has been making its mark in the city for some time. Widely perceived as a resort-friendly property, branded hotel residences are increasingly popping up in the downtown core of the world’s major urban areas. Hotels are getting into residences in such large numbers these days — in leasing if not sales — it seems as if they’ve become the standard for luxury living. The Four Seasons, W, Ritz-Carlton, The Mandarin Oriental and St Regis are just a few.
To that end the latest on the landscape in Asia is the St Regis Hotel & Residences Bangkok, Starwood’s first St Regis property in Thailand, which opens its doors in early 2011; the 53 private residences will be available for purchase at the end of this year. The homes will sit on the 25th level and above, with four deluxe penthouses on levels 40 and 41, all outfitted with private swimming pools. Prices start at 62 million Baht (HK$16 million).
The St Regis in Bangkok was developed by Rajadamri Residence Co., Ltd., a subsidiary of Minor International PCL, which already owns or operates over 4,000 five-star hotel rooms in Asia, the Middle East and eastern Africa. Minor’s vast experience is all well and good, but with the branded residence market becoming so crowded, what is it doing to set itself apart?
“Minor International (MINT) is a lifestyle innovator. Having been in this business for nearly 50 years, we are attuned to the changing global trends that have helped us to anticipate changing lifestyle demand and identify new emerging markets,” explains William E. Heinecke, chairman, CEO and founder of Minor International PCL of St Regis’s means of standing out from the crowd. Another key is staying boutique; the hotel segment of the property will have just 203 rooms. “MINT’s residential property portfolio is unique in many ways. Firstly, specifically, very limited in numbers. At St Regis Bangkok Residences we have only built 53 very exclusive and luxurious residences … Our Estates at Four Seasons Samui only have 14 Estates in total,” Heinecke points out.
As is par for the course with hotel residences, the St Regis Bangkok will provide owners access to all the amenities and services the hotel offers its guests: its signature restaurant, The Decanter wine cellar, 10,000 square feet of function space, the luxury spa, (which offers a menu of customised treatments complemented by decadent touches like Champagne and truffles) and the exclusive Astor Residence Lounge which includes a meeting room, state-of-the-art fitness centre Jacuzzi, sauna rooms, pool and panoramic views of Bangkok.
For Heinecke, Bangkok seemed like the natural progression for MINT in Asia, and the property market in general in the city would seem to bear that out. Bangkok is blessed with a relatively high standard of living at a low cost, and the property market is one of the most stable in the region despite Thailand’s fractious political scene. As Heinecke sees it, “Like any other company in Thailand, we were affected by the political challenges of May and June this year, but we remained very positive about the rapid return of business and have seen the steady increase in arrivals into Thailand.” Hotel occupancy plunged during the riots in the wake of travel advisories from around the world, which many professionals in the country saw as slightly hysterical. But as it did in years past, Thailand bounced back. “Thailand has always proved itself to be wonderfully resilient and [a] continued strong economy, stock market and demand for our real estate is testament to that. We remain very confident that we will have a strong fourth quarter and are looking forward to a very bright 2011,” Heinecke concludes.
As Bangkok continues to grow into a major cosmopolitan centre and sinks more and more resources into infrastructure, a residence there was the next logical for MINT’s portfolio. “Bangkok has been establishing itself as a global city, developing more high-end residential and hotel developments in order to become a financial and tourist hub. It is thus timely to introduce the premium St Regis brand to discerning local and international clientele.” In Heinecke’s experience, people who simply love Thailand are often first to line up for properties. “More often than not, we find that it is more than just investment in terms of dollars for these buyers. Rather it is an investment in terms of lifestyle for the owners. These buyers love Bangkok and Thailand as a destination for living and working in, and travel here so often that it does make sense for them to have a premium home or a second or vacation home for their future trips,” he theorises. In that light, Heinecke expects purchasers of the Bangkok property to be “discriminating homebuyers” who view the investment value as an added bonus, not necessarily the top priority.
Which brings up the inevitable question of that other kind of exclusivity. More often than not, owners of branded residences can expect their property to revert back to hotel stock when they’re absent, with a guarantee of a certain number of nights per year and preferred rates any other time. “We made a very conscious decision not to develop or position our properties as hotel condominiums,” Heinecke begins. “There is strong demand from the premium leasing market for our properties and some owners will undoubtedly lease their properties when they are not in Residence but they have been designed and developed to sell directly to end users who will personally enjoy what we have lovingly created down to the finest details of finish and service.”
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