Thailand’s hotel sector recorded THB10.7 billion in direct investment during the 1st half of this year, according to new research from JLL Hotels & Hospitality Group. There were 4 major transactions during this time with 5 hotels in Bangkok and Pattaya involved.
“As a comparison, 2016’s full-year investment volume was only THB9.6 billion. The robust investment activity recorded in the 1st half reflects investors’ continued appetite for hospitality assets in Thailand and confidence in the long-term outlook for the country’s tourism industry,” says Mike Batchelor, Head of Investment Sales Asia, JLL Hotels and Hospitality Group
A large deal took place in June when Hotel 81 purchased the Premier Inn hotel portfolio which has a total of 388 keys. Hotel 81 is based in Singapore and this is their 1st venture into the Thai market. The company hired Travelodge to manage both properties.
“Buyers comprised of both domestic and regional investors, with the latest hotel acquisitions being made by Carlton Hotel Group and Hotel 81, both from Singapore. This reaffirms Thailand’s position as one of the region’s most attractive hotel investment destinations,” says Batchelor.
In May, Carlton Hotel Group purchased a hotel development project in the Bangkok city centre. The unfinished site has space for a 34-storey hotel and was available on a freehold basis. The new hotel is expected to be finished in 2019 and it will have 342 keys when completed.
“The acquisition by Singapore-based Carlton Hotel Group has been the largest hotel deal publicly announced in Thailand. Given that no hotels of a significant size have been traded on the main Sukhumvit Road, this deal has also set a new benchmark price,” says Karan Khanijou, Senior Vice President, Investment Sales, JLL Hotels and Hospitality Group, in a press release.
The Bangkok Edition Boutique Hotel and Swissotel Nai Lert Park in Bangkok were also sold during the 1st half of this year. JLL is predicting that direct investment in hotels will surpass THB14 billion by the end of the year.
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