23 hotels in Thailand offered for a total of 13.2 billion baht in 2021

The following is a press release from JLL, a professional services firm specialising in real estate and funding management.
Ease of travel restrictions will result in a brighter tourism market outlook and extra participation of foreign investors this yr
The latest report from property marketing consultant JLL reveals that Thailand noticed 23 resorts sold in 2021 with approximately three,000 keys and a mixed transaction worth of thirteen.2 billion baht. This represents an increase of 550% from 2020 and 30% over the 10-year average pre-Covid volume witnessed between 2009-2019. JLL’s report covers sale transactions of investment-grade hotel property in Bangkok and Thailand’s key leisure markets and do not include non-arm’s length transactions.
Chakkrit Chakrabandhu Na Ayudhya, Executive Vice President, Investment Sales, Asia, JLL Hotels & Hospitality Group, says “In the wake of the pandemic, resort funding activity in Thailand dipped in 2020 with an funding quantity of less than 2 billion baht. However, the hotel funding market rebounded strongly final 12 months with sales quantity increasing virtually six times the quantity recorded in 2020.”
“Interest from each local and international traders in Thailand’s hotel market began choosing up within the second half of 2021 and has continued to develop. Investors have turn out to be extra optimistic concerning the outlook for the country’s tourism market. Increased availability of investment-grade hotel assets offered for sale at extra practical costs is one other key issue that has fuelled investor demand,” says Mr. Chakkrit.
Findings from JLL present that Thailand’s high three lodge funding destinations in phrases on funding volumes final 12 months have been Koh Samui, Bangkok and Phuket, representing 44.3%, 24.6% and eleven.7% of the countrywide volume, respectively.
Pimpanga Yomchinda, Senior Vice President – Investment Sales, JLL’s Hotels & Hospitality Group comments “Generally, Bangkok is the highest lodge investment vacation spot in Thailand. But Koh Samui got here within the first place last 12 months because the island had extra alternatives to offer in comparison with Bangkok and in addition noticed Thailand’s largest hotel funding deal completed in 2021 on per asset foundation.”
JLL’s information reveal that the average value of the 23 motels sold last 12 months was circa 500 million baht to 600 million baht per asset, with only one resort in Samui offered at a value above 1 billion baht, the typical resort transaction size witnessed in Thailand between 2010 and 2020.
Larger discounts on promoting costs in resort markets the place resort house owners have felt a stronger impact from the tourism market slump was another excuse explaining how Koh Samui attracted more hotel funding than Bangkok in 2021.
“Prices of investment-grade resort belongings in Bangkok have held their floor all through the pandemic period with generally no deep reductions relative to pre-pandemic ranges. Over 75% of the transaction quantity within the Thai capital metropolis was considered to have solely zero to 5% low cost compared to the pre-pandemic level and the remaining 25% was bought by the Legal Execution Department at a public auction. On the other hand, property in Phuket and Koh Samui have seen a bigger low cost,” Ms. Pimpanga explains.
JLL expects the momentum in Thailand’s hotel funding market to continue this year.
“We have seen several hotel investment deals which might be at present under negotiation in Bangkok and key resort markets and numerous these deals are price over 1 billion baht. In addition, the convenience of travel restrictions throughout the area and Thailand will facilitate the participation of overseas traders, resulting in greater competition for high quality property. For these reasons, we anticipate 2022 to be another energetic yr for the investment market in Thailand with volume probably surpassing that of 2021, not to mention that Thailand was the most energetic market in Southeast Asia in 2021,” Mr. Astonishing concludes..