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Published on : Wednesday, February 15, 2017
In terms of baht, the hotel investments have slumped from 11.3 billion in 2015 to 9.6 billion in 2016. However, this year, it is expected that the total would reach 20 billion baht, as believed by the JLL’S Hotels and Hospitality Group.
The firm has projected this kind of figures based on the number of hotel sales that are likely to be concluded this year. This includes the sale of the 10.8 billion baht Swissotel Nai Lert Park.
JLL said that Thailand had been a spectator to robust investment activity in the year 2016 with more than 10 hospitality and hotel assets that have been sold in Bangkok and major provinces. Out of these, five assets were brokered by JLL on behalf of the sellers.
However, the volume was down by 15% from last year.
This was mainly on account of a lack of hotels that were on sale after the Swissotel Nai Lert Park deal that was to be completed in 2017. The sale of hotels like Liberty Garden Hotel and Eight Thonglor were some of the key hotel sales that have been recorded over the year.
Other important hotel transactions were spread across other interesting tourist hubs that include Phuket, Pattaya, Chiang Rai, Hua Hin, Koh Samui and Phang Nga.
And the other hotel deals took place in Nakhon Ratchasima that is the northeast gateway city and the industrial town of Sri Racha. A majority of the hotels sold last year had been bought by Thais. On the other hand, institutional investors from Singapore and Hong Kong were also active buyers who were responsible for about 45% of the transaction volume.
The data released by the Tourism Authority of Thailand says that the increase in the number of tourists to Thailand has been constant with a 10-year compound annual growth rate of 8.9%.
For the first time in 2016, the total international arrivals in Thailand reached the 30 million mark.
It is expected to reach the 35 million mark in 2017. Mike Batchelor who is the managing director of Investment Sales Asia, JLL’s Hotels and Hospitality Group said that there has been a high degree of interest from both regional and international investors.