New heights of investment have been reached for Thailand’s hotel industry.
Thailand’s hotel sector is booming. This is according to JLL Hotels & Hospitality Group. The firm have revealed that direct investment for the first six months of this year has reached THB 10.7 billion. To put this figure in context for 2016 the total investment was THB 9.6 billion. Consequently the real estate firm expects the total investment for this year to be in excess of THB 14 billion. This significant increase is a result of four transactions in Bangkok and Pattaya.
Mike Batchelor, head of investment sales Asia, JLL Hotels and Hospitality Group said, “The robust investment activity recorded in the first half reflects investors’ continued appetite for hospitality assets in Thailand and confidence in the long-term outlook for the country’s tourism industry”. Batchelor goes on to say, “Buyers comprised of both domestic and regional investors, with the latest hotel acquisitions being made by Carlton Hotel Group and Hotel 81, both from Singapore. This reaffirms Thailand’s position as one of the region’s most attractive hotel investment destinations”.
The sales of Bangkok Edition Boutique Hotel and Swissotel Nai Lert Park make up two of the transactions. But the deal that made up the main chunk of these figures was the acquisition of the Premier Inn portfolio by Hotel 81. Consisting of two hotels in Bangkok and one in Pattaya totalling 388 rooms.
Chakkrit Paul Chakrabandhu Na Ayudhya, senior vice president of investment sales at JLL Hotels and Hospitality Group, comments, “The portfolio was the first overseas transaction made by the buyer, Hotel 81, the largest owner of hotels in Singapore. The seller, Whitbread, is also the largest owner of hotels in the UK. We were able to facilitate cross-border transactions, resulting in the movement of capital between regions.”
The other sale this year was a hotel development project in Bangkok. Situated in the popular Sukhumvit area of Bangkok on the corner of Soi 27. The project is due to be completed in 2019 and expected to be operated by Carlton Hotel. All transactions signify the confidence within the hotel industry. A sentiment that is reaffirmed by spiralling tourist numbers that are not expected to slowdown anytime soon.