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

The following is a press release from JLL, a professional companies agency specialising in real estate and funding administration.

Ease of travel restrictions will lead to a brighter tourism market outlook and extra participation of international traders this year

The latest report from property marketing consultant JLL reveals that Thailand noticed 23 motels bought in 2021 with roughly three,000 keys and a mixed transaction value of thirteen.2 billion baht. This represents a rise of 550% from 2020 and 30% over the 10-year average pre-Covid quantity witnessed between 2009-2019. JLL’s report covers sale transactions of investment-grade lodge belongings in Bangkok and Thailand’s key leisure markets and do not embody 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 investment quantity of lower than 2 billion baht. However, the resort investment market rebounded strongly last 12 months with sales volume increasing nearly six occasions the amount recorded in 2020.”

“Interest from both local and worldwide traders in Thailand’s lodge market started choosing up within the second half of 2021 and has continued to develop. Investors have become more optimistic concerning the outlook for the country’s tourism market. Increased availability of investment-grade lodge assets offered on the market at extra realistic costs is one other key factor that has fuelled investor demand,” says Mr. Chakkrit.
Findings from JLL show that Thailand’s prime three lodge funding locations in terms on funding volumes final yr were Koh Samui, Bangkok and Phuket, representing forty four.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 highest resort funding destination in Thailand. But Koh Samui got here within the first place last yr because the island had more alternatives to offer in comparison with Bangkok and in addition noticed Thailand’s largest resort funding deal accomplished in 2021 on per asset basis.”

JLL’s data reveal that the typical worth of the 23 hotels sold last yr was circa 500 million baht to 600 million baht per asset, with just one resort in Samui offered at a worth above 1 billion baht, the average lodge transaction dimension witnessed in Thailand between 2010 and 2020.
Larger discounts on selling costs in resort markets where lodge house owners have felt a stronger influence from the tourism market slump was one extra reason explaining how Koh Samui attracted extra resort funding than Bangkok in 2021.
“Prices of investment-grade resort belongings in Bangkok have held their floor throughout the pandemic interval with typically no deep discounts relative to pre-pandemic ranges. Over 75% of the transaction quantity within the Thai capital city was considered to have only zero to 5% discount compared to the pre-pandemic degree and the remaining 25% was sold by the Legal Execution Department at a public public sale. On the opposite hand, property in Phuket and Koh Samui have seen a larger low cost,” Ms. Pimpanga explains.
JLL expects the momentum in Thailand’s lodge funding market to proceed this yr.
“We have seen several hotel funding deals that are at present beneath negotiation in Bangkok and key resort markets and a number of these offers are value over 1 billion baht. In โซล่าเซลล์ราคาถูก , the ease of travel restrictions throughout the region and Thailand will facilitate the participation of overseas buyers, leading to larger competition for high quality property. For these causes, we anticipate 2022 to be one other active 12 months for the investment market in Thailand with quantity doubtlessly surpassing that of 2021, to not point out that Thailand was probably the most active market in Southeast Asia in 2021,” Mr. Chakkrit concludes..

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