






{"id":26526,"date":"2021-12-24T09:24:09","date_gmt":"2021-12-24T02:24:09","guid":{"rendered":"https:\/\/www.asiapropertyawards.com\/?p=26526"},"modified":"2021-12-24T09:24:09","modified_gmt":"2021-12-24T02:24:09","slug":"thailands-hospitality-sector-expects-to-reach-357m-in-2021","status":"publish","type":"post","link":"https:\/\/www.asiapropertyawards.com\/en\/thailands-hospitality-sector-expects-to-reach-357m-in-2021\/","title":{"rendered":"Thailand&#8217;s hospitality sector expects to reach $357M in 2021"},"content":{"rendered":"<p><span data-contrast=\"auto\">Buoyant hotel\u00a0investment\u00a0activity is driven by\u00a0investment-grade assets and strong demand from investors<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<figure id=\"attachment_26527\" aria-describedby=\"caption-attachment-26527\" style=\"width: 1000px\" class=\"wp-caption alignnone\"><img decoding=\"async\" class=\"wp-image-26527 size-full\" src=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2021\/12\/processed-594f6f92-504d-4557-b921-92b6b164f5e4_K0K6MJYz.jpeg\" alt=\"\" width=\"1000\" height=\"667\" srcset=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2021\/12\/processed-594f6f92-504d-4557-b921-92b6b164f5e4_K0K6MJYz.jpeg 1000w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2021\/12\/processed-594f6f92-504d-4557-b921-92b6b164f5e4_K0K6MJYz-400x267.jpeg 400w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2021\/12\/processed-594f6f92-504d-4557-b921-92b6b164f5e4_K0K6MJYz-600x400.jpeg 600w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2021\/12\/processed-594f6f92-504d-4557-b921-92b6b164f5e4_K0K6MJYz-768x512.jpeg 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><figcaption id=\"caption-attachment-26527\" class=\"wp-caption-text\">JLL anticipates not only\u00a0continued\u00a0interest\u00a0from\u00a0foreign investors in the next few years but also higher\u00a0competition\u00a0for quality assets after cross-border travelling further resumes in 2022.\u00a0\u00a0DimaFadeev\/Shutterstock<\/figcaption><\/figure>\n<p><span data-contrast=\"auto\">According to <a href=\"https:\/\/www.jll.co.th\/\" target=\"_blank\" rel=\"noopener\">JLL<\/a>, hotel investment activity in Thailand is expected to reach THB12 billion (USD357 million) by the end of 2021, which is five times the growth seen last year.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">So far, 13 properties\u00a0valuing\u00a0THB5 billion have been sold, compared to the four properties worth THB1.9 billion sold last year.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">JLL\u2019s data tracks sale transactions of investment-grade hotels, resorts, and serviced\u00a0apartments\u00a0in Bangkok and Thailand\u2019s key leisure markets.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Chakkrit Chakrabandhu Na Ayudhya, executive vice president of investment sales at JLL Hotels &amp; Hospitality Group Asia, says \u201cHotel investment activity in Thailand has recovered to the pre-COVID-19 level. We anticipate the total investment volume this year to reach THB12 billion, if ongoing deals with THB7 billion of combined value are completed by year-end as expected. This means the total investment volume for 2021 could surpass the 10-year average of THB10 billion per annum witnessed between 2009 and 2019.\u201d<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">He continues, \u201cAt JLL, we have recently closed the sale of 138-key\u00a0Citadines\u00a0Sukhumvit 23 Bangkok and are working on more than 10 hotel deals with a combined value of over THB 17 billion. Of these, two are likely to be concluded by the end of this year.\u201d<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Resilience in hotel investment activity this year has been driven by many factors, which include strong demand from investors, availability of investment-grade assets for sale, and the narrowing gap between buyers&#8217; and sellers\u2019 price expectations.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">\u201cAs the pandemic prolongs, more hotel owners including property developers and hotel operators decided to dispose one or two assets in their portfolio\u00a0in order to\u00a0improve liquidity. These sellers have also shown more flexibility in pricing. On the other end, buyers have adopted a more realistic approach on price expectation,\u00a0realising\u00a0that light at the end of the tunnel is starting to show and discounts vary from asset to asset,\u201d said\u00a0Pimpanga\u00a0Yomchinda, vice president of investment sales at JLL\u2019s Hotels &amp; Hospitality Group Asia.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">JLL\u2019s observations indicate that luxury and iconic hotel assets offer little or no discount due to owners\u2019 profiles and irreplaceable nature. The pandemic also didn\u2019t impact these owners as much as others.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Moreover,\u00a0prices of investment-grade assets in Bangkok have\u00a0remained relatively\u00a0firm, compared to resort markets, and bigger discounts are witnessed in second-tier markets.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Local high net worth families, well-capitalised\u00a0corporates, and international private equity funds\u00a0make up 90 percent of\u00a0the number of transactions completed so far this year, as they look to\u00a0establish or expand\u00a0their hotel portfolio.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">By transaction value, foreign investors this year are expected to account for 62 percent of the hotel buyers in Thailand when considering the remaining hotel deals that are likely to be closed by year-end.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Yomchinda<\/span><span data-contrast=\"none\">\u00a0<\/span><span data-contrast=\"none\">adds, \u201cBy transaction value, Thailand\u2019s hotel investment has witnessed a remarkable increase in foreign participation this year, particularly when compared to the past 10 years that saw foreign participation account for 37% per annum on average.\u201d<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/www.asiapropertyawards.com\/en\/thailands-tax-rates-to-stay-for-another-2-years\/\" target=\"_blank\" rel=\"noopener\"><strong>More: Thailand\u2019s tax rates to stay for another 2 years<\/strong><\/a><\/p>\n<p><span data-contrast=\"none\">JLL anticipates not only\u00a0continued\u00a0interest\u00a0from\u00a0foreign investors in the next few years but also higher\u00a0competition\u00a0for quality assets after cross-border travelling further resumes in 2022.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">\u201cWith a number of larger deals in the pipeline and investor confidence in the long-term outlook for Thailand\u2019s tourism and hotel industry, it is quite realistic to expect hotel investment volume in 2022 to make a post-COVID-19 new high,\u201d Yomchinda concludes.<\/span><\/p>\n<div class=\"entry-content\">\n<p><em>The Property Report editors wrote this article. For more information, email:\u00a0<a href=\"mailto:propertyreport@propertyguru.com\" target=\"_blank\" rel=\"nofollow noopener\">propertyreport@propertyguru.com<\/a>.<\/em><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Buoyant hotel\u00a0investment\u00a0activity is driven by\u00a0investment-grade assets and strong demand from investors\u00a0<\/p>\n","protected":false},"author":12,"featured_media":26527,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[92,1],"tags":[114,2554,1964,133],"class_list":["post-26526","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-property-report","tag-hospitality","tag-hotel-investments","tag-market-insight","tag-thailand","news_country-thailand","news_author-property-report"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO 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