BANGKOK, 1 February 2019:Hotel investment transaction volume in Thailand reached THB 14 billion in 2018, property consultancy JLL reported Thursday.
The volume was higher than expected and well above the five-year average of THB13.2 billion per annum recorded between 2013 and 2017.
However it failed to break the record of THB17.1 billion witnessed in 2017,
“Both local and international investors have continued to show keen interest in Thailand’s hospitality market, but the lack of investment grade assets available for sale and a wider gap between buyers and sellers’ pricing expectations contributed to the lower investment volume recorded in 2018,” said JLL Hotels and Hospitality Group Asia managing director, Nihat Ercan.
Data from JLL’s Hotels and Hospitality Group shows hotel investment volume in Thailand, last year, was down by 22% from the year before, with seven hotel assets sold in 2018, compared to 12 in 2017.
In line with the lower number of assets sold, sales activity in 2018 took place in fewer locations, including Bangkok, Phuket and Samui island, compared to 2017 where the assets sold spread across six markets: Bangkok, Hua Hin, Chiang Rai, Nakorn Ratchasima, Pattaya and Krabi’s Lanta Island.
Bangkok continued to lead the pack, with investment activity accounting for over 73% of the country’s total volume last year.
By transaction volume, Thai investors dominated investment activity, representing more than 80% of hotel buyers in 2018, almost 70% of the Thai investors were corporates outside the hospitality industry looking to diversify their investment portfolio, a trend that has emerged in recent years.
Foreign investors participating in Thailand’s hotel investment activity last year were from Singapore and UK.
JLL’s Hotels and Hospitality Group CEO, Mike Batchelor said: “In recent years, Thailand has been one of the top hotel investment destinations in Asia. By transaction volume, the country was the region’s fifth most active hotel investment market in 2018 after Japan, China, South Korea and Hong Kong.”
“We expect momentum in Thailand’s hotel investment market to continue into 2019. Long-term prospects for the country’s tourism remain promising,” he said.
Despite a second-half dip in Chinese tourists, international arrivals rose to 38.3 million in 2018, and are expected to hit 40.3 million in 2019.
“Asides from Thailand’s established reputation as one of the world’s favourite holiday destinations, the Thai government’s continued efforts to encourage both local and international demand for tourism and improve related infrastructure, including airport expansions, will give a big boost to the country’s tourism industry,” Batchelor concluded.
(Source: JLL)
