23 hotels in Thailand sold for a total of 13.2 billion baht in 2021

The following is a press launch from JLL, an expert companies agency specialising in real property and funding administration.
Ease of Basic will lead to a brighter tourism market outlook and more participation of foreign traders this year
The newest report from property consultant JLL reveals that Thailand noticed 23 resorts bought in 2021 with roughly three,000 keys and a combined transaction worth of 13.2 billion baht. Picnic 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 embrace non-arm’s length 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 investment volume of lower than 2 billion baht. However, the resort funding market rebounded strongly final yr with gross sales quantity rising almost six occasions the volume recorded in 2020.”
“Interest from both local and international investors in Thailand’s resort market started picking up within the second half of 2021 and has continued to develop. Investors have turn out to be extra optimistic concerning the outlook for the country’s tourism market. Increased availability of investment-grade hotel property provided on the market at more practical prices is one other key factor that has fuelled investor demand,” says Mr. Chakkrit.
Findings from JLL show that Thailand’s high three hotel investment locations in terms on investment volumes last year 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 lodge funding destination in Thailand. But Koh Samui got here in the first place final year as a end result of the island had more alternatives to supply in comparability with Bangkok and also saw Thailand’s largest hotel investment deal accomplished in 2021 on per asset foundation.”
JLL’s knowledge reveal that the common worth of the 23 motels sold last 12 months was circa 500 million baht to 600 million baht per asset, with only one resort in Samui bought at a price above 1 billion baht, the typical hotel transaction measurement witnessed in Thailand between 2010 and 2020.
Larger discounts on selling costs in resort markets the place lodge owners have felt a stronger impression from the tourism market droop was one more reason explaining how Koh Samui attracted more lodge investment than Bangkok in 2021.
“Prices of investment-grade resort property in Bangkok have held their ground throughout the pandemic interval with typically no deep discounts relative to pre-pandemic levels. Over 75% of the transaction quantity in the Thai capital city was thought-about to have solely zero to 5% low cost compared to the pre-pandemic level and the remaining 25% was bought by the Legal Execution Department at a public public sale. On the opposite hand, property in Phuket and Koh Samui have seen a bigger low cost,” Ms. Pimpanga explains.
JLL expects the momentum in Thailand’s lodge funding market to proceed this year.
“We have seen a quantity of resort investment deals which are currently beneath negotiation in Bangkok and key resort markets and a selection of these offers are value over 1 billion baht. In addition, the benefit of journey restrictions throughout the region and Thailand will facilitate the participation of foreign traders, leading to greater competition for quality assets. For these reasons, we expect 2022 to be another active year for the investment market in Thailand with volume potentially surpassing that of 2021, not to mention that Thailand was probably the most energetic market in Southeast Asia in 2021,” Mr. Chakkrit concludes..

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