Thailand’s hotel investment activity remained robust in 2016 with more than 10 hotels and hospitality assets sold in Bangkok and major provincial destinations.
Of this, five assets were brokered by JLL on behalf of the sellers. However, investment volume fell 15 percent from 2015 to THB 9.6 billion due to the lack of large assets being offered to the market.
2017 will see a big jump in investment volume as the THB-10.8-billion sale of Swissotel Nai Lert Park is scheduled for conclusion this year, according JLL’s Hotels & Hospitality Group.
Positive outlook for 2017 with continued demand from both domestic and regional investors
Mike Batchelor, Managing Director of Investment Sales Asia, JLL’s Hotels and Hospitality Group, says
“Investment appetite by both local and foreign investors in Thailand’s hospitality market has showed no signs of subsiding as these investors have remained upbeat on long-term fundamentals in this ever-resilient market.”
Data from the Tourism Authority of Thailand suggests that the growth of inbound visitors into Thailand has been consistent with a 10-year compound annual growth rate of 8.9%.
Total international visitor arrivals breached the 30 million mark for the first time in 2016 and are expected to reach 35 million in 2017 despite the crackdown on zero-dollar tours that has impacted the number of arrivals from China since the latter part of 2016.
Both domestic and regional investors were active buyers
While most of the hotel deals last year were transacted by Thai investors, institutional investors from Hong Kong and Singapore were also active purchasers, accounting for around 45% of the total transaction volume.
“Interest from both domestic and regional investors were strong in 2016, a trend that is expected to…
