Kata Rocks
The Phuket News Novosti Phuket Khao Phuket

B14bn of hotel assets sold in Thailand in 2018

B14bn of hotel assets sold in Thailand in 2018

BANGKOK: Hotel investment transaction volume in Thailand reached B14 billion in 2018. Whilst the volume is higher than expected and well above the five-year average of B13.2bn per annum recorded between 2013 and 2017, it failed to break the record of B17.1bn witnessed in 2017, according to property consultancy JLL.

By The Phuket News

Thursday 31 January 2019, 05:20PM

Four Points by Sheraton Bangkok, a 268-key hotel currently offered for sale. Photo: JLL

Four Points by Sheraton Bangkok, a 268-key hotel currently offered for sale. Photo: JLL

“Both local and international investors have continued to show keen interest in Thailand’s hospitality market but the lack of investment grade assets available for sale and a wider gap between buyers and sellers’ pricing expectations contributed to the lower investment volume recorded in 2018,” says Nihat Ercan, Managing Director of JLL’s Hotels and Hospitality Group, Asia.

Data from JLL’s Hotels and Hospitality Group shows hotel investment volume in Thailand last year was down by 22% from the year before, with seven hotel assets sold in 2018, compared to 12 in 2017. In line with the lower number of assets sold, sales activity in 2018 took place in fewer locations, including Bangkok, Phuket and Koh Samui, compared to 2017 where the assets sold spread across six markets: Bangkok, Hua Hin, Chiang Rai, Nakorn Ratchasima, Pattaya and Krabi’s Lanta Island. Bangkok continued to lead the pack, with investment activity accounting for over 73% of the country’s total volume last year.

By transaction volume, Thai investors dominated investment activity, representing more than 80% of hotel buyers in 2018, almost 70% of these Thai investors were corporates outside the hospitality industry looking to diversify their investment portfolio, a trend that has emerged in recent years. Foreign investors participating in Thailand’s hotel investment activity last year were from Singapore and UK.

Mike Batchelor, CEO of JLL’s Hotels and Hospitality Group, says, “In recent years, Thailand has been one of the top hotel investment destinations in Asia. By transaction volume, the country was the region’s fifth most active hotel investment market in 2018 after Japan, China, South Korea and Hong Kong.

“We expect momentum in Thailand’s hotel investment market to continue into 2019,” he adds.

“Long-term prospects for the country’s tourism remain promising. Despite a drop in the number of Chinese tourists, international arrivals rose to 38.3 million in 2018, and are expected to hit 40.3mn in 2019.

“Asides from Thailand’s established reputation as one of the world’s most favourite holiday destinations, the Thai government’s continued efforts to encourage both local and international demand for tourism and improve related infrastructure, including airport expansions, will give a big boost to the country’s tourism industry,” says Mr Batchelor.

Comment on this story

* Please login to comment. If you do not have an account please register below by simply entering a username, password and email address. You can still leave your comment below at the same time.


Be the first to comment.

Have a news tip-off? Click here


Phuket community
Body of second missing Filipino found off Phuket

Koh Keow (Green Island) is 1 of 2 small islands in the south of Phuket next to Promthep Cape. Isnt i...(Read More)

Phuket readies for HM King’s birthday

Fascinated, it is clearly mentioned that no ban on alcohol sales has been announced SO FAR. What n...(Read More)

Cross Hotels & Resorts inks deal for new Phuket venue

To be clear, they are taking over an existing hotel, not adding a new one to Patong's already th...(Read More)

Phuket Poll: Environmental damage, prices too high

And what would Mr.K like officials to do about those high prices? Force everyone to sell food at low...(Read More)

PM Prayut calls out Phuket van driver for overcharging Aussie tourists

What has this water shortage talk from Mr.K to do with this article? And as he knows that there wil...(Read More)

Phuket airport van B3k fare ‘just a misunderstanding’, say police

As Mr.K knows the prices so well,maybe he could tell us what the published prices are at those desk...(Read More)

Phuket Opinion: Hit the dog

No one would deny that this was an appalling thing to do, but if you want to talk about legal ramifi...(Read More)

Phuket readies for HM King’s birthday

Err Capn Jack READ the last sentence there is CLEARLY mention of it....(Read More)

Bridging Supply: Officials reveal B3.5bn proposal to resolve island’s water shortage woes

Ahhhh Dkk- still as arrogant as ever I read. I've been waiting years for YOUR constructive comme...(Read More)

Phuket Poll: Environmental damage, prices too high

Great Phuket Poll. Now waiting for response of Phuket Officialdom as the outcome is significant. Sic...(Read More)