Report
Siem Reap Hotel & Branded Residences
Siem Reap, the provincial capital in northwestern Cambodia, is best known for the Angkor Wat temple ruins, a UNESCO World Heritage Site.
As Cambodia's prime tourist destination, Siem Reap has benefited significantly from the Belt and Road Initiative, leading to substantial infrastructure improvements, including road upgrades and a new airport facility.
International Arrivals
International arrivals to Siem Reap grew at an average annual rate of 3.4% between 2016 and 2019, supported by increased flight connectivity and marketing efforts. However, the COVID-19 pandemic caused a sharp decline in arrivals. By Q2 2023, daily flights to Siem Reap ranged between 12-16, down from approximately 50 pre-pandemics. The new Siem Reap Angkor International Airport, slated for completion in Q4 2023, aims to increase passenger capacity to up to 10 million annually, addressing current limitations and mitigating the impact on historical sites.
Top-Tier Hotel Performance
Top-tier hotels in Siem Reap, typically achieving an average daily rate (ADR) of USD 150 or above, saw no new additions since 2017. The pandemic severely affected demand, which fell by 70% in 2020. Despite Cambodia’s early relaxation of entry rules, demand remained weak through 2022 due to limited flights and the closure of key hotels. Recovery has been gradual, with a positive rate sentiment driven by high inflation and market renovations.
Nationality and Demand Mix
- Nationality Mix (2019 Data): The USA contributed nearly one-third of demand, followed by Europe (23%), China (14%), Other Asia (18%), Oceania (10%), and Others (4%). Long-haul visitors and expatriates from the USA and Europe were particularly significant due to their spending propensity on rooms and ancillary services.
- Demand Mix: Direct FIT (Free Independent Travelers) made up 51% of demand, driven by the global reputation of Angkor Wat and loyalty programs of professional management companies. Wholesale FIT accounted for 25%, while Leisure Group and MICE (Meetings, Incentives, Conferences, and Exhibitions) contributed 19% and 5% respectively.
Seasonality and Average Length of Stay
Siem Reap experiences two distinct seasons: a wet season from May to October and a dry season from November to April. The dry season, particularly from late November to early April, is the peak period due to favourable weather and holiday schedules of key source markets. The average length of stay (ALOS) in Siem Reap is typically two to three nights, expected to increase with expanded tourism offerings and improved facilities.
New Supply and Market Outlook
No new top-tier hotel projects are expected to be completed within the next five years. The reopening of China and the end of the COVID-19 public health emergency are expected to drive a rebound in 2023, with occupancy anticipated to reach 70% of 2019 levels. Full recovery and stabilization are projected by 2027, with market occupancy expected to peak at around 60%. The new Siem Reap Angkor International Airport and reopening of La Résidence d’Angkor will support this recovery.
Hotel-Branded Residences
Siem Reap’s real estate market, particularly in hotel-branded residences, is evolving. Recent property development projects indicate growing interest in upscale and mixed-use developments. Angkor Grace Residence & Wellness Resort is a notable example. The residential market remains dominated by affordable landed properties, but political stability, infrastructure improvements, and new city plans are expected to boost demand and land prices.
Buyer’s Profile and Preferences
Domestic buyers dominate the market, with significant interest from foreign buyers, especially from Mainland China, Taiwan, Singapore, and Hong Kong. The quality of property has become a crucial consideration for buyers, indicating increasing financial literacy and discernment among property purchasers. Most buyers are seeking second homes or investment opportunities, with recommendations from friends and family heavily influencing purchase decisions.
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