Capsule hotel market shows growth potential
Updated October 10, 2017 – 12:00am
http://www.philstar.com/
MANILA, Philippines — The country’s capsule hotel market is still in the infancy stage, according to Jones Lang Lasalle Philippines head of research, consultancy and valuation services Claro Cordero.
According to a report by WiseGuy Research Consultants, the global capsule hotel market is projected at $226 million by the end of 2022 from $159 million in 2016.
The increase, according to the report, was driven by the interest from the Asia region, particularly from Southeast Asian countries other than Japan, who pioneered this type of accommodation.
Colliers International research manager Joey Roi Bondoc told The STAR the capsule hotel market in the Philippines is seen to cater to the backpackers and seafarers markets.
Bondoc said while there is demand for this type of accomodation, there is still a limited supply for the capsule hotel market in the Philippines.
“We have observed that although there is a demand from seafarers who undergo training and wait for renewal of their contracts, as well as from budget travelers or backpackers, there’s limited supply currently, “Bond,oc said.
The research manager said developers should explore this new market, adding that there are opportunities for this type of accommodation in the province.
Despite the presence of demand for capsule hotels, smaller developers are barred from entering the segment due to lack of land.
Bondoc said the capsule hotel segment has the potential to cater to a wide portion of the market.
