Travellers hoping to visit Thailand often look for the best value hotel in Sukhumvit, Downtown, Bangkok Riverside, and Chinatown. With the influx of tourists come the higher demand for lodging and accommodation, and property developers have seen Thailand as a growing market for the industry.
According to JLL, transactions related to hotel investments in the country reached up to THB 17 billion last year. There were up to twelve hotels that were sold in 2017, which contributed to the THB 17 billion value, a 70% increase from that of 2016’s.
Six hotels were sold for about THB 14, which made up 80% of the market volume for 2017. The sales included a 34-story property on Sukhumvit 27 that was sold to Carlton Hotel Group, the Edition Bangkok hotel which was bought by a private equity fund based in the United States, the Somerset Lake Point Bangkok which was acquired by JR Kyushu, a company based in Japan, Swissotel Nai Left Park bought by the Bangkok Dust Medical Services, Premier Inn acquired by V Hotel Group from Singapore, and an apartment complex in Thonglor that a private investor bought. Apart from these major acquisitions, other transactions also included the Premier Inn Pattaya, Dust Island Resort Chiang Rai, and Pilanta Resort.
Mike Batchelor, JLL’s Hotels and Hospitality Group CEO own Asia, explains that the record was unprecedented, and highlights the country as a thriving market with a bright future ahead. He also explains that the country has strong fundamentals in investment, but they do not expect the trend to continue towards 2018. He points out that the limited assets in the country that developers would consider worth investing in would taper off the sales in the industry, and would settle at around THB 10 billion. These properties include luxury and value hotel in Sukhumvit, Downtown, and other famous tourist destinations in the country.
Apart from the record high sales volume for hotels last year, there was also a notable increase in foreign investment in the country, with contributed to above 50% of the traded value. Some countries that had the highest investment activity were the United States, Japan, and Singapore.