23 hotels in Thailand sold for a complete of thirteen.2 billion baht in 2021

The following is a press launch from JLL, knowledgeable services agency specialising in actual property and investment administration.

Ease of journey restrictions will lead to a brighter tourism market outlook and more participation of overseas traders this yr

The latest report from property consultant JLL reveals that Thailand saw 23 motels offered in 2021 with roughly three,000 keys and a mixed transaction value of thirteen.2 billion baht. This represents an increase of 550% from 2020 and 30% over the 10-year common pre-Covid quantity witnessed between 2009-2019. JLL’s report covers sale transactions of investment-grade resort assets in Bangkok and Thailand’s key leisure markets and do not include non-arm’s size transactions.
Chakkrit Chakrabandhu Na Ayudhya, Executive Vice President, Investment Sales, Asia, JLL Hotels & Hospitality Group, says “In the wake of the pandemic, resort funding exercise in Thailand dipped in 2020 with an funding quantity of lower than 2 billion baht. However, the lodge funding market rebounded strongly final year with sales quantity rising virtually six occasions the quantity recorded in 2020.”

“Interest from each local and international investors in Thailand’s lodge market began selecting up in the second half of 2021 and has continued to develop. Investors have become more optimistic about the outlook for the country’s tourism market. Increased availability of investment-grade hotel belongings provided on the market at more practical prices is one other key issue that has fuelled investor demand,” says Mr. Chakkrit.
Findings from JLL show that Thailand’s high three resort investment locations in terms on investment volumes last yr had 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 feedback “Generally, Bangkok is the top hotel investment destination in Thailand. But Koh Samui got here within the first place final 12 months because the island had extra opportunities to offer compared to Bangkok and in addition saw Thailand’s largest resort investment deal accomplished in 2021 on per asset basis.”

JLL’s information reveal that the average worth of the 23 resorts sold final year was circa 500 million baht to 600 million baht per asset, with only one hotel in Samui offered at a value above 1 billion baht, the average hotel transaction size witnessed in Thailand between 2010 and 2020.
Larger discounts on selling costs in resort markets the place lodge house owners have felt a stronger influence from the tourism market stoop was another reason explaining how Koh Samui attracted extra hotel investment than Bangkok in 2021.
“Prices of investment-grade resort assets in Bangkok have held their floor throughout the pandemic interval with generally no deep reductions relative to pre-pandemic ranges. Over 75% of the transaction quantity within the Thai capital city was thought-about to have solely 0 to 5% discount compared to the pre-pandemic stage and the remaining 25% was sold by the Legal Execution Department at a public auction. On the other hand, assets in Phuket and Koh Samui have seen a bigger discount,” Ms. Pimpanga explains.
JLL expects the momentum in Thailand’s resort investment market to continue this yr.
“We have seen a number of lodge funding offers that are at present under negotiation in Bangkok and key resort markets and a selection of these offers are value over 1 billion baht. In addition, the benefit of travel restrictions throughout the region and Thailand will facilitate the participation of international buyers, resulting in higher competition for quality assets. For these reasons, we expect 2022 to be one other lively 12 months for the investment market in Thailand with volume probably surpassing that of 2021, not to point out that Thailand was probably the most lively market in Southeast Asia in 2021,” Mr. Controversial concludes..

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