CLASSIFIEDS ONLY THB 2,500 + VAT FOR 3 LANGUAGES The Phuket News Kata Rocks The Phuket News
The Phuket News Business News
The Phuket News Phuket | Thailand | World | Business | Q&A | Weird World XML, RSS, Feed
The Phuket News The Phuket News
The Phuket News

Thailand hotel investment market sets new record in 2017

BANGKOK: Hotel investment transaction volume in Thailand hit an all-time high last year, totalling B17 billion, led by a number of marquee transactions, reports property consultancy JLL.

economics, tourism,


The Phuket News

Tuesday 27 February 2018, 03:24PM


Mike Batchelor, Chief Executive Officer at JLL’s Hotels and Hospitality Group Asia.
Mike Batchelor, Chief Executive Officer at JLL’s Hotels and Hospitality Group Asia.

Despite high levels of investor interest, transaction volume in 2018 is, however, unlikely to match 2017 as fewer investment grade hotel assets are put up in the market this year, the agency noted.

Data from JLL’s Hotels and Hospitality Group shows 12 hotel assets were sold last year with a combined value of B17b represented a 70% jump from 2016 and is 39.7% higher than the five-year average annual volume recorded between 2012 and 2016 of approximately B12.2bn.

By value, Bangkok dominated the investment activity with six hotel assets sold for almost B14bn, accounting for nearly 80% of the total market-wide volume last year. The six assets included the EDITION hotel at Thailand’s iconic Mahanakorn development, sold to a US private equity fund together with its observation deck; a 34-storey partially completed structure on Sukhumvit 27 sold to Carlton hotel group from Singapore; former Premier Inn on Sukhumvit sold to V Hotel Group from Singapore; Somerset Lake Point sold to JR Kyushu from Japan; Swissotel Nai Lert Park sold to Bangkok Dusit Medical Services; and a serviced apartment in Thonglor sold to a private investor.

Some of the major transactions outside Bangkok included Dusit Island Resort Chiang Rai, Pilanta Resort on Phi Phi Island, and Premier Inn Pattaya which was acquired as part of a portfolio by Singapore’s V Hotel Group, explained the JLL report.

In addition to another year of record-breaking transaction volumes, 2017 also witnessed an increase in foreign investment accounting for more than 50% of traded value. Buyers from Singapore, Japan and the US dominated the investment activity.

Mike Batchelor, Chief Executive Officer at JLL’s Hotels and Hospitality Group Asia, said, “Continued growth in visitor arrivals and healthy hotel trading performance supported by a stable political environment are the driving factors behind strong levels of investment in Thailand’s hotel market.”

According to the Department of Tourism and Sports, Thailand welcomed over 35 million visitor arrivals in 2017, up 8.6% from 2016 and an increase of more than 10mn in the past three years alone. The authority also expects 37.6mn visitors in 2018.

World Cup League @ BISP

“The Department of Tourism and Sports’ forecast is certainly achievable,” said Mr Batchelor.

“Bangkok was crowned the most visited city in the world by MasterCard where visitors’ number surpassed the 21 million mark on international tourist arrivals last year and is expected to strengthen its reputation as a culinary destination as the first edition of the Michelin Guide has recently been released for the city.

“Moreover, improving connectivity is a key theme with the planned and ongoing expansions of multiple international airports throughout Thailand, additions of new low-cost carrier flights and the high speed railway to enhance intercity connectivity,” he says.

Several airport expansions that are underway or nearing completion will help increase Thailand’s capacity to accommodate more visitors. Capacity for Don Mueang and Suvarnabhumi together will be 100mn passengers.

In 2018, U-Tapao Airport near to Pattaya in Rayong province will see a further expansion coming online. Khao Lak may see its own airport in future as the potential development of the Phang Nga Airport is under review pending Environmental Impact Assessment (EIA) approval. Hua Hin is also in discussion of opening an airport in future, said the JLL report.

“The unprecedented level of activity underlines Thailand as a market with strong investment fundamentals and a positive future outlook, however, with limited availability of investment grade assets on the market, we expect transaction volume in 2018 to taper off somewhat and normalize to around B10bn” Mr Batchelor concluded.

 

 

The Phuket News
The Phuket News
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.
Comments Here:

Comments Left: Characters
Username:
Password:
E-mail: (No Hotmail, Live, MSN and Outlook accepted at this time)
Security:
   => Forget password?

ematt | 28 February 2018 - 15:39:59

International hotel chains, real estate investment funds, and Thai property professionals would be foolish to rely on the statistics. Clearly, they should consult the PN resident experts who comment here instead. 

The Phuket News

Jor12 | 28 February 2018 - 10:32:25

Strange though, that investors and builders don't see it that way. Maybe the armchair critics know more than the army of professional investors.

The Phuket News

Foot | 28 February 2018 - 07:00:30

@khon kaen -- I wonder how many of those arrivals were actually tourists in Thailand.

Probably not too many with the Chinese New Year on 16 February.
High season is now only one month long - Mid December to mid January.  It was mid November to mid April.  5 months.

Bad for the incomes in Thailand, especially Phuket.

The Phuket News

Jor12 | 27 February 2018 - 21:46:35

Why does that matter? The article states, \"Continued growth in visitor arrivals and healthy hotel trading performance...\" which is the driving force in overseas investment in the hotel sector. We live in the 21st century now where travel is commonplace. One does not need to be a tourist to travel. There are multifarious reasons to visit anywhere.

The Phuket News

khon kaen | 27 February 2018 - 17:01:08

I wonder how many of those arrivals were actually tourists in Thailand.

The Phuket News
Matches 5 result(s)
The Phuket News
The Phuket News
The Phuket News
The Phuket News The Phuket News The Phuket News
The Phuket News
Share this
The Phuket News
Have a news tip-off? Click here
The Phuket News
Related stories
The Phuket News
Phuket community

Recent Comments


International Surf Lifesaving Association issues Phuket travel warning

Let's hope everyone's volunteer visa and work permits are in order. Ruffling a few feathers...(Read More)


Phuket condo market climbs after big hit

Anyone who can spin this data as a positive outlook is either in the property business or has no understanding of the property business, or maybe both...(Read More)


Phuket’s Emerald Group CEO on bail again, after missing court date

Absolute rubbish from the clowns who don't even bother to research the subject, nor have a clue about Court processes and the reasons for the same...(Read More)


Cops raid shady electronic waste plant

If you read the article the owner was Taiwanese, with overseas investors, not Thai....(Read More)


Phuket fugitive wanted for family shooting arrested in Satun

How many illegal firearms do the police think there is around Thailand ? What do police do to cut this number down ? I had a problem for some years ...(Read More)


International Surf Lifesaving Association issues Phuket travel warning

Mr. Jenner should be extra cautious after offending those who profit from ocean activities. Might wear a kevlar jacket as well as a life jacket on hi...(Read More)


Phuket monkey ‘birth control’ to go to public opinion

"They should be culled. They are a nuisance and a danger to the public". A bit harsh. I realise that Thai officials can be infuriatingly ...(Read More)


International Surf Lifesaving Association issues Phuket travel warning

"There is no one on standby to save you from crossing the road unsafely," seems like our small group of thai apolgists has another aka. The ...(Read More)


Senior monks defrocked after raids

Rotten to the core. Unfortunately it goes deeper than that. My girlfriend told her ageing mother is reaching the end of her life. But for a fee, they ...(Read More)


Phuket monkey ‘birth control’ to go to public opinion

They should be culled. They are a nuisance and a danger to the public....(Read More)

The Phuket News
PHUKET NEWS
Phuket
Thailand
World
Business
Q A
Weird World
ARCHIVE
POLL
CURRENCY
WEATHER
PHUKET TIDE TABLE
The Phuket News PHUKET LIFE
Phuket Arts
Phuket Community
Phuket Culture
Phuket Dining
Phuket Education
Phuket Entertainment
Phuket Environment
Phuket Health
Phuket People
Phuket Technology
Phuket Travel
World Entertainment
Photo Galleries
The Phuket News PHUKET SPORT
Phuket
Thailand
World
SURF REPORT
PREDICTIONS
The Phuket News PHUKET CLASSIFIEDS
Phuket Buy and Sell
Phuket Jobs
Phuket Property
Phuket Cars and Boats
Phuket Community
Phuket Services
SEARCH CLASSIFIEDS
POST CLASSIFIED
The Phuket News The Phuket News PHUKET EVENTS
Phuket Event listings
Phuket Event calendar
Buy Tickets
POST EVENT
The Phuket News PHUKET DIRECTORY
Phuket Bars, pubs and clubs
Phuket Hotels and villas
Phuket Restaurants
Phuket Yellow Pages
POST LISTING
The Phuket News BARGAINS
The Phuket News ABOUT US
The Company
Distribution points
Subscribe
Advertise with us
Pay for advert
Contact us
CONTESTS
Content Google Map
Site map
Australian Visa Services
 
Currency - The Phuket News   Weather Report - The Phuket News   Surf Report - The Phuket News
LinkedIn - The Phuket News   Twitter - The Phuket News   YouTube - The Phuket News   Facebook - The Phuket News
Copyright © 2018 Class Act Media. All rights reserved. | Website usage terms and conditions | Privacy and Confidentiality Statement.