It is one of the most active and popular in Thailand, with international and domestic investors both interested.
Chiang Mai is expected to see a growth in hotel investments this year, according to JLL. Several assets have been put up for sale, but there has been a surge in investor sentiment as post-lockdown tourism in Thailand has a more positive outlook.
In 2018, Chiang Mai had only one hotel sale, which made THB85 million (USD2.5 million). No hotel investment activity was documented in 2019 and 2020. Last year, however, there was a hotel investment transaction worth approximately THB300 million (USD8.7 million).
“Chiang Mai has been one of the most dynamic tourism markets in Thailand,” said Chakkrit Chakrabandhu Na Ayudhya, Executive Vice President, JLL’s Hotels & Hospitality Group – Asia.
“The market has recently seen a number of new openings and completions of major renovation projects such as Melia Chiang Mai having opened early this year and InterContinental Chiang Mai Mae Ping scheduled for opening by the year end,” he added.
The hotel market in Chiang Mai is also one of the most active and popular in Thailand, with international and domestic investors both interested. Due to a lack of investment-grade assets for sale, investment activity in the city was generally lower than that in other major hotel markets.
Ultimately, Chakkrit said that Chiang Mai is projected to witness higher investment activity this year because of the assets being put up in the market.
The Nation recently reported that Chiang Mai’s tourism sector is on the path of recovery as the Centre for COVID-19 Situation Administration eased travel restrictions to attract more international travellers.
Watcharayut Kuawong, director of the Tourism Authority of Thailand’s Chiang Mai Office, said hotel and tourism operators are reporting improved business, rehiring employees to accommodate the steadily increasing number of visitors.
From May to September, referred to as the green season, he expects at least one million tourists to visit the province, bringing in at least THB1 billion (USD29 million) in revenue.
The Property Report editors wrote this article. For more information, email: email@example.com.