Thailand hotel investment nears Bt11 billion in first half

The figure is attributed to four major transactions involving five hotels in Bangkok and Pattaya.
“As a comparison, 2016’s full-year investment volume was only Bt9.6 billion,” Mike Batchelor, head of investment sales for Asia, said in a press release. 
“The robust investment activity recorded in the first half reflects investors’ continued appetite for hospitality assets in Thailand and confidence in the long-term outlook for the country’s tourism industry.
“The buyers were both domestic and regional investors, with the latest hotel acquisitions being made by Carlton Hotel Group and Hotel 81, both based in Singapore,” he said. “This reaffirms Thailand’s position as one of the region’s most attractive hotel-investment destinations.”
JLL last month facilitated Hotel 81’s acquisition of the Premier Inn portfolio, including two hotels in Bangkok and Pattaya. 
With a combined 388 rooms, the portfolio marks Hotel 81’s first venture into the Thai market. Hotel 81 has appointed Travelodge to manage both properties.
“The portfolio was the first overseas transaction made by Hotel 81, the largest owner of hotels in Singapore,” noted JLL senior vice president Chakkrit Paul Chakrabandhu Na Ayudhya. “The seller, Whitbread, is the largest owner of hotels in the UK. We were able to facilitate cross-border transactions, resulting in the movement of capital between regions.”
In May, Carlton Hotel Group acquired a hotel-development project in Bangkok. Situated at the corner of Sukhumvit Road Soi 27, the property accommodates more than two rai of freehold land and a partial 34-storey hotel development. 
JLL represented the seller, Bangkok Management Co, a subsidiary of Principal Capital, in this Bt2.4-billion transaction. Planned for completion in 2019, the 342-room hotel is expected to carry the Carlton Hotel brand.
“The acquisition has been the largest hotel deal publicly announced in Thailand,” said Karan Khanijou, another JLL senior vice president. “Given that no hotels of a significant size have been traded on the main Sukhumvit Road, this deal has also set a new benchmark price.”
The other hotels sold in the first half of 2017 are the Bangkok Edition Boutique Hotel and Swissotel Nai Lert Park, also in Bangkok. While the acquisition of the latter was announced in 2016, the transaction was only completed this year.
JLL expects 2017’s full-year hotel investment volume in Thailand to top Bt14 billion.
Last year more than 10 hotels and hospitality assets were sold in Bangkok and other major destinations of Thailand with a combined value of Bt9.6 billion. Of these, five were sold by JLL, in Bangkok, Phuket, Samui, Sri Racha and Chiang Rai.