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Cambodia improves and expands its hotel offering

A recent report from Bunna Realty Group notes that there has been significant growth and improvement in the service quality of Cambodia's hotel industry over the course of 2015's first nine months. The report also points out that high demand during peak season, in key destinations like Siem Reap, may signal an expansion opportunity.

Cambodia improves and expands its hotel offering

Bunna Realty Group recently released the findings of an online survey carried out across hotels in Cambodia.

According to the research's outcome, increased competition and improved coordination between the Ministry of Tourism and private sector training programmes have resulted in improvements to the hotel service quality and could also signal an expansion.

The report showed that as of Q3 of 2015, the distribution of hotel rooms across the key holiday destinations in Cambodia is as follows:

  • Siem Reap - 417 hotels with 17,000 rooms
  • Phnom Penh - 317 hotels with 15,000 rooms
  • Sihanoukville - 133 hotels with 4,000 rooms and
  • Battambang - 45 hotels with 1,600 rooms

Of these four destinations, the occupancy rate was highest in Battambang at 75 per cent and Siem Reap had an occupancy rate of 66 per cent while Phnom Penh and Sihanoukville reached 68 per cent and 74 per cent respectively.

The report went on to note that, as is to be expected, during the peak season (December to February) occupancy rates increase significantly across all destinations. This trend, according to the report, signals an opportunity for hotel expansion particularly in the country's most popular destinations like Siem Reap where the occupancy rate rises to 100 per cent during peak season.

Hen Socheat director of the Bunna Realty Group stated that,

"...the rate of hotel occupancy via online booking is about 71 per cent on average."

But he also pointed out that holidaymakers are more likely to get budget friendly hotel rates when booking through travel agencies than through private online bookings.

Ho Vandy, adviser to the Cambodian Chamber of Commerce, has, however, called the findings of the report into question stating that the methodological approach and the Group’s failure to consult with private hospitality companies rendered the results unreliable. Socheat has since conceded that the data could have been skewed.

Despite any potential discrepancies, statistics from Cambodia’s Ministry of Tourism lend credibility to the claim that the south east Asian country’s hotel industry is growing with the number of hotels in Phnom Penh, Siem Reap and Sihanouk having more than doubled within one year.

Cambodia is one of the best loved holiday destinations in Southeast Asia thanks in large part to unique and compelling attractions such as Ankor Wat and its rich culture and history and the white sandy beaches in resort towns like Sihanoukville.

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