23 resorts in Thailand bought for a complete of thirteen.2 billion baht in 2021

The following is a press launch from JLL, an expert providers firm specialising in actual property and investment administration.

Ease of travel restrictions will result in a brighter tourism market outlook and extra participation of foreign buyers this year

The newest report from property advisor JLL reveals that Thailand saw 23 hotels sold in 2021 with roughly three,000 keys and a combined transaction value of 13.2 billion baht. This represents a rise 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 hotel 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, lodge investment exercise in Thailand dipped in 2020 with an funding volume of less than 2 billion baht. However, the lodge funding market rebounded strongly final yr with sales quantity increasing almost six times the quantity recorded in 2020.”

“Interest from both local and worldwide buyers in Thailand’s hotel market began picking up within the second half of 2021 and has continued to grow. Investors have turn out to be extra optimistic concerning the outlook for the country’s tourism market. Increased availability of investment-grade hotel assets offered on the market at extra sensible costs is one other key factor that has fuelled investor demand,” says Mr. Chakkrit.
Findings from JLL present that Thailand’s high three lodge funding destinations in terms on investment volumes final year were Koh Samui, Bangkok and Phuket, representing 44.3%, 24.6% and 11.7% of the countrywide volume, respectively.
Pimpanga Yomchinda, Senior Vice President – Investment Sales, JLL’s Hotels & Hospitality Group comments “Generally, Bangkok is the top resort funding vacation spot in Thailand. But Koh Samui got here within the first place last 12 months as a end result of the island had extra opportunities to supply compared to Bangkok and likewise noticed Thailand’s largest lodge investment deal accomplished in 2021 on per asset foundation.”

JLL’s information reveal that the typical worth of the 23 motels bought final yr was circa 500 million baht to 600 million baht per asset, with just one hotel in Samui sold at a price above 1 billion baht, the average hotel transaction dimension witnessed in Thailand between 2010 and 2020.
Larger reductions on promoting prices in resort markets the place resort owners have felt a stronger impression from the tourism market droop was one more reason explaining how Koh Samui attracted extra resort investment than Bangkok in 2021.
“Prices of investment-grade lodge assets in Bangkok have held their ground all through the pandemic interval with usually no deep discounts relative to pre-pandemic ranges. Over 75% of the transaction volume within the Thai capital city was thought of to have solely zero to 5% low cost compared to the pre-pandemic degree and the remaining 25% was bought by the Legal Execution Department at a public auction. On Black market , belongings in Phuket and Koh Samui have seen a larger low cost,” Ms. Pimpanga explains.
JLL expects the momentum in Thailand’s resort investment market to continue this year.
“We have seen a number of resort funding offers which are currently under negotiation in Bangkok and key resort markets and a quantity of these offers are worth over 1 billion baht. In addition, the benefit of travel restrictions across the area and Thailand will facilitate the participation of international traders, resulting in higher competition for quality property. For these reasons, we anticipate 2022 to be one other lively yr for the funding market in Thailand with volume potentially surpassing that of 2021, to not point out that Thailand was essentially the most energetic market in Southeast Asia in 2021,” Mr. Chakkrit concludes..

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