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Investment Opportunity in Cambodian Hotel Industry

Cambodia’s accomodation industry has upsurgued greatly by the end of June, 2011, the number climbed up to 444 hotels, and 1,133 guesthouses accross the coutry whereas only 440 hotels (2,439 rooms), and 1,087 guesthouses (15,321 rooms) existed in 2010, according to Kong Sopheareak, official of Statistic depatment , Cambodia’s Ministry of Tourism, as quoted from a Cambodian local media.

Hotel De la Paix - Siem Reap

“Within this six months, 2011, 4 hotels increased, and 46 guesthouuse more opened comparing to the period in 2010,” Sophearak said. Adding that, “10 hotels were ranked as 5- stars, 25 hotels rated as 4- stars,18 hotels are 3-stars, 3 hotels are two-stars, and at least 3 are one-star hotel.”

It should be addressing that, the soaring trend of accomodation services is contributed greatly by the local and internatioal investors who have vigourously poured huge capitals on this sector by having observed the positive tourism trend both from the locals and inbound visitors gradually year by year.

To his own perspective the soaring arrivals of international visitors so as the positive domestic tourist movements are related to the creations and developments of the wonderfully recrational sites such as the beautiful 440 km coastlines where recently have been recognized as a member of the Club of World’s Most Beautiful Bays stretching along the Sihanoukville, Kompot, Kep, and Koh Kong Province, the eco-tourism zone of the northeastern provinces, which are all potencially for tourism, yet still lack shelters for over-night stay visitors during major holidays.

Song Saa Island - Sihanoukville

It is a remarkable true that coastal province such as Koh Kong is rich for visitation but poor for accomodations, espeiallly during the major holidays like Khmer new year, chinese new year, Pchum Ben, the occasion in which no more rooms in hotels and guesthouses available for guests since tourists usually reserved the rooms days or even weeks before their arival to this far remote province, but rich in natural beauty.

4 Rivers Floating Eco-Lodge

It is so funny sometimes to know that tourists who visit province like Koh Kong during the long holidays, sometimes have to ask for share accomodaitons with the people, pagodas, or even anywhere available, simply because all rooms in the accomodaiton buildings are occupied. But it is true for the sites in which potentially rich for visitations, yet lack tourism infra-structure to serve.

Uy Vang Song, Owner and Manager of Srey Tmey Hotel, located in Chruy Changva, Phnom Penh, said he innaugurate the hotel in 2010, and since than on he admits, the guest amount is acceptable for the business existence and continuity.

Vang Song reveals the initiative to establish accommodaiton business as it is easy for him to employ labor force for hotel construction saying that , “while the world economy is on downturn direction, it is a comfortable opportunity to absorb labor forces with affordable cost to have my hotel built.”

He continued, during the economic recession, many workers are jobless, and it is an opportunities for me to absorb workers to build this hotel building, and by the time the construction completed, the economy was already bounching back to its positive direction, and noticibly, he recieves an acceptable amount of guests to stay in his hotel.”

Addressing that by the fist semester of 2011, the kingdom recieves 2.4 million international visitors, and It is expected by Tourism Ministry to receive about 2.8 millions by the end of 2011, 3 millions-2012, 3.5 millions-2013, 4 millions-2014, and 4.5 millions-2015, and 7 millions in 2020.

In sum, more tourists will come, and more opportunities to open accommodation services are expanded too.

If you are looking for a room reservation, check out Cambodia Hotel Reviews, they also provide free comparison price from best hotel booking websites, to get you a good room with the cheapest price possible.

Click the link below for details:

Cambodia Hotels – All Destinations in Cambodia

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About Vutha Tim

Vutha finished his study in major of Tourism at National University of Management, Phnom Penh, Cambodia. He joined KhmerBird to share his writings on Cambodian developments such as Tourism, Trading, and Social Welfare.

  • KURO

    Thank you for good reports about hotel business in Cambodia
    I have a question.
    How much does it cost to build new hotel in Phnom Penh ?How much about construction cost per square meter ? 

    • http://khmerbird.com/ khmerbird

      Hi Kuro, I will come back to you as soon as I have more information about the cost you have asked, thanks

    • http://khmerbird.com/ khmerbird

      Hi Kuro,
      I got a good reference from a closed friend of mine, the cost should be go around from 250-300$ per square meter.

      I hope this would give you an idea.

  • Maxime

    This is an amazing report, very helpful. Thank you for that. I am currently doing an independant research regarding tourism and hotel industry in Siem Reap. Which sources did you use to forecast the numbers of international tourist (…7m in 2020) ? I did not find it on the ministry of tourism website :(
    Also, do you know how it cost approximatively to build an hotel in Siem Reap (per square) ? I heard something like $170 but it does not seem high enough. If you had report/website to suggest I would be grateful :) , especially regarding hotel in Siem reap (something like average room rates, occupancy following the season, average lenght of stay…).

    Thank you again for this article.

    Look forward to Hearing from you !

    Max

    • http://khmerbird.com/ khmerbird

      Hi Max, 

      Sorry I was busy these days, that’s why I missed your comment yesterday.

      I cannot assure you 100% correct but the cost to build the hotel can go up to 250-300$ per square meter.

      For the estimated passengers for 2020, it come from the ministry of tourist but I cannot find the original source online. I will look for more info but you can check eventually the Cambodia Airports website: http://www.cambodia-airports.aero.

      I don’t have much information for the average of how long tourist will stay in Siem Reap but I can have an idea from one week or more. 

      • Maxime

        Thanks for your prompt reply which was helpful. I’m currently looking for average daily rate which is hard to find, as well as occupancy and Revenu Per Room Available (RevPAR) which are the most significant measures. If you have any idea, suggestion or recommendations to find these kind of indicators (per hotel I guess), I’d be happy to welcome them !

        Anyway, many thanks for your reply and you are doing great with your blog.

        Max