Thai hotels on the chopping block

By TTR WEEKLY

 

 

BANGKOK, 2 June 2020: Hundreds of hotels at beach resorts in Thailand are up for sale according to report in the Thai language news service Prachachat.net.

 

Claiming the country’s hotel business is now in free-fall due to the Covid-19 lockdown it reported that a slew of three to four-star hotels are on the chopping block as property owners run short of financial resources to service bank debts.

 

Most of the properties up for sale are in three main tourist provinces Phuket, Krabi and Samui. The report claims opportunist buyers from Singapore and China lead the list of foreigners who are ready to snatch up property bargains at prices that have dropped by around 50% of their pre-Covid-19 value.

 

Full story: https://www.ttrweekly.com/site/2020/06/thai-hotels-on-the-chopping-block/

 

-- © Copyright TTR Weekly 2020-06-02

 

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6 minutes ago, webfact said:

Claiming the country’s hotel business is now in free-fall due to the Covid-19 lockdown

It's not just the hotel business, it goes way, way further than that, with many other types of businesses closing down. And people think the government did a sterling job ???? 

If Thailand doesn't drastically change and simplify immigration policies, there will be very little tourists for this coming season!

Investing in hospitality business here is, considering the arrogant xenophobic attitude and selective market, suicidal.

Even if prices tumble to 50%, the ROI (Return Of Investment) will last forever!

Thailand Tourism Industry shut the doors already to potential markets long ago and concentrates now exclusively to target China as a recovery...

Well it will not happen!

The Golden Years are gone!

 

1 hour ago, Thaiwrath said:

It's not just the hotel business, it goes way, way further than that, with many other types of businesses closing down. And people think the government did a sterling job ???? 

Oh I'm sure that when the dust settles, and some significant portfolios have been amassed at bargain prices, there will be those who will regard it as a "sterling job".

Hopefully some of them use the downtime to renovate their tired old decor and facilities.

 

I've paid decent money in the past to stay in places that look like they were used for the set of The Shining. Third World facilities at First World prices is never going to be a winning formula. It used to be acceptable because it was offset by low prices and polite, smiling staff but the strong Baht and surly attitudes of the past few years have removed that advantage. 

Plenty of signs up in Pattaya "for sale."  Mostly smaller places but have seen a few midsize hotels that appear to be completely cleaned out with "closed" signs.

 

Wish the government would buy up all the older hotels in disrepair here in Pattaya and take them down.  They keep building new ones and new condo complexes, while the old hotel eye-sores remain.  

I think that less western companies like to invest in Thailand tourism at this time.

Therefore are a lot of reasons ( Gov., Baht and ..... ).

Farangs will look for other asian countries like Vietnam, Cambodia.

Maybe there will be a good more living for the future.

(sorry for my bad english, my home language is german).

Thailand has destroyed its economy over 58 deaths.

Yesterday 62 people died on the road.

Edited June 2, 20206 yr by Anton9

Oh goody goody, maybe the prices will be somewhere below 100 million with the 50% discount

2 hours ago, webfact said:

that have dropped by around 50% of their pre-Covid-19 value.

overpriced already

9 minutes ago, Anton9 said:

Thailand has destroyed its economy over 58 deaths.

Yesterday 62 people died on the road.

as long as they were wearing masks its ok

IN the last 10 years or perhaps less, 5 even, there's been an unprecedented building of hotels resorts ect everywhere, driving out in the middle of nowhere resorts every 10kms. There's just way too many to cater for the tourist demand even before this virus, well perhaps apart from very High season, public holidays and long weekends.

 

In and around Jomtien Bangsarey I seen many houses  in residential villages (as with condos) - turned over to the AirBnB or similar for weekend pool villa let's.

 

Theres a massive over supply in all markets, so the 500-1,000Bht range will struggle to make money in an already very competitive sector, with not much room to cut prices.

 

Desperate in deed.

1 hour ago, Jonny1959 said:

I think that less western companies like to invest in Thailand tourism at this time.

Therefore are a lot of reasons ( Gov., Baht and ..... ).

Farangs will look for other asian countries like Vietnam, Cambodia.

Maybe there will be a good more living for the future.

(sorry for my bad english, my home language is german).

It's better than some English I have seen from supposedly native English speakers.

3 hours ago, Thaiwrath said:

It's not just the hotel business, it goes way, way further than that, with many other types of businesses closing down. And people think the government did a sterling job ???? 

Well, the did a sterling job.  They did a sterling job destroying the economy.  More to come. 

Thailand needs urgently to step down on harsh immigration policies. These policies may give money and importance to many involved due to the jungle of confusing red tape, but end up in destroying the nations golden goose.

Look at the uncontrollable Baht.  That's the real reason.

1 hour ago, 19DL86 said:

IN the last 10 years or perhaps less, 5 even, there's been an unprecedented building of hotels resorts ect everywhere, driving out in the middle of nowhere resorts every 10kms. There's just way too many to cater for the tourist demand even before this virus, well perhaps apart from very High season, public holidays and long weekends.

 

In and around Jomtien Bangsarey I seen many houses  in residential villages (as with condos) - turned over to the AirBnB or similar for weekend pool villa let's.

 

Theres a massive over supply in all markets, so the 500-1,000Bht range will struggle to make money in an already very competitive sector, with not much room to cut prices.

 

Desperate in deed.

In the tourism business and in all his affiliated businesses, there's a massive oversupply. Except in quality and value for money. This is why it is so hard for everybody involved to make decent revenue.

Last thing is to sell to the Chinese. That would totally sickeningly dig them in deeper here. 

35 minutes ago, Isaan sailor said:

Look at the uncontrollable Baht.  That's the real reason.

AUD up against the baht again today, which home currency are you talking about?

32 minutes ago, Isaan sailor said:

Look at the uncontrollable Baht.  That's the real reason.

Sailor you are right.  At the moment tourism in EVERY COUNTRY is screwed.  I talk to my friends at home in Canada that live in a tourist city and they tell me they are planning for the worst year.  No one wants to travel as they are afraid of the bug.

 

The fact that you add in the high baht is killing the non tourism busineses because it is over pricing what they have to sell and stopping a lot of people from buying things even here.  I know I have slowed down on my purchasing of non essentials until I get a better return.

 

As to hotels and bars personally I think it id a good thing and that it is going to help the country in the long run.  There are were too many bars/gogo bars and such that were hanging on by the skin of their teeth and ripping off tourists.  As to hotels again there are too many and it is time for those that can survive to survive and those that were on life support to have the plug pulled.  

 

None of this is Thaicentric it is going to be the same in every country no matter where or how big.

Far too many of them. The beachfronts looks more like a ghetto than an enjoyable beach.

Driving around Phuket town the other day many hotels with for sale or for rent signs outside

Oh it will work. The sheer number of Chinese will ensure that.

They will first come and grab all these struggling businesses at rock bottom prices in anticipation of the 'great invasion'.

Thailand is, and will be desperate for tourists. They will make it easier for the Chinese tourists to enter, and offer big discounts to attract them.

Then the new hotel owners will be rubbing their hands with glee.

Far flung Europeans won't have the money or the inclination to travel here. Especially with the prices the long haul airlines will charge.

 

2 minutes ago, phetphet said:

Oh it will work. The sheer number of Chinese will ensure that.

They will first come and grab all these struggling businesses at rock bottom prices in anticipation of the 'great invasion'.

Thailand is, and will be desperate for tourists. They will make it easier for the Chinese tourists to enter, and offer big discounts to attract them.

Then the new hotel owners will be rubbing their hands with glee.

Far flung Europeans won't have the money or the inclination to travel here. Especially with the prices the long haul airlines will charge.

 

I get the feeling the Europeans will stay closer to home

Tourism was already in a state of decline. Then they deliberately shut down their economy, for the first time in recorded history. Two million tourists were here in December, another two million in January. Probably two million more until mid to late February when they shut it all down. Likely many were infected since 40% were from China and many from Europe. Yet, they ended up with 60 deaths. Break that one down. 

 

And now, millions of jobs have been lost and nobody knows when international tourism will return and what the restrictions will be. 

4 minutes ago, phetphet said:

Oh it will work. The sheer number of Chinese will ensure that.

They will first come and grab all these struggling businesses at rock bottom prices in anticipation of the 'great invasion'.

Thailand is, and will be desperate for tourists. They will make it easier for the Chinese tourists to enter, and offer big discounts to attract them.

Then the new hotel owners will be rubbing their hands with glee.

Far flung Europeans won't have the money or the inclination to travel here. Especially with the prices the long haul airlines will charge.

 

I think it might be that the whole nature of tourism might change, at least for a few years.

 

We live in Western South Dakota in the Black Hills. 

 

The tourists are coming, but they certainly aren't flying, I work at the airport, but I see the RV park by my house steadily filling up.

 

Here in the US, it seems that tourists are refocusing on the more remote, more hiking sort of vacation to avoid people.

 

It's not good for the hotel business, and I see a lot of the seasonal hotels haven't reopened yet.

 

So I just don't see any potential, at least for this year of Western tourists jumping on a plane to Thailand, and who knows what the airlines will charge after they (if they do) emerge from this nightmare

1 hour ago, Lacessit said:

It's better than some English I have seen from supposedly native English speakers.

 

      Native English teachers , can be so sensitive, they do have a heart ..

 

Edited June 2, 20206 yr by elliss

3 hours ago, Anton9 said:

Thailand has destroyed its economy over 58 deaths.

Yesterday 62 people died on the road.

Keep counting, scout. It's important.

3 hours ago, Pesche said:

Investing in hospitality business here is, considering the arrogant xenophobic attitude and selective market, suicidal.

Even if prices tumble to 50%, the ROI (Return Of Investment) will last forever!

Chinese investors will snap them up to service their own people... it's a long term investment for them.

Forget the overpriced condos, a multi room hotel will convert nicely.