Thailand and India are two of the world’s most popular tourist destinations with hotels being in high demand throughout the country. A portfolio of hotels located in the most visited cities are being offered for sale through an international tender process led by JLL’s Hotels & Hospitality Group.
The Premier Inn portfolio contains hotels in Bangkok and Pattaya, two of Thailand’s most popular cities for tourists. In India, the portfolio has hotels in New Delhi, Chennai, Bangalore, Pune and Goa.
This year will be another record year for Thailand’s tourism industry with approximately 33.8 million international visitor arrivals. Similarly, India is ranked as one of the fastest growing economies in the world with a 2016 forecast GDP growth of 7.6 percent. It is these numbers that are among the reasons the portfolio will appeal to investors
“With vacant possession and prime central locations, portfolios of this size and scale were rarely offered to market,” Mike Batchelor, Managing Director of Investments Sales, JLL’s Hotels & Hospitality Group for Asia, said. We expect interest from global, regional and domestic investors attracted by a platform opportunity allowing for immediate re-branding to the operator of their choice.”
There are two hotels in Thailand and the pair have the rare privilege of 100 percent foreign ownership. The country usually restricts foreign ownership to 49 percent of freehold real estate. The Bangkok property should be finished in the first half of 2017 and is located along Sukhumvit Soi 11. The Pattaya property was re-branded in 2015 and is near the city’s Second Road.
The Premier Inn India portfolio has a total of 583 keys in five of India’s strategic cities. The sale will be among the largest hotel portfolios offered in the country during the past few years.
“Given that we are witnessing the beginning of the upcycle in the sector and the renewed interest in Indian hospitality assets by global institutional investors, the Premier Inn opportunity of unencumbered income generating assets in top Indian cities is sure to be keenly contested,” Paul Chakkrit, Senior Vice President, JLL’s Hotels & Hospitality Group, Asia, stated.
