webfact Posted November 5, 2020 Share Posted November 5, 2020 EEC, high-speed railway airport link make Pattaya attractive to hotel investors By The Nation Chakkrit Chakrabandhu Na Ayudhya Pattaya will become a bright spot for hotel investors next year thanks to domestic demand potential, as well as the development of the Eastern Economic Corridor (EEC), property consultancy firm JLL said. The seaside town has been one of Thailand’s major tourism markets, with its 64,000 hotel rooms coming in just after Bangkok and slightly ahead of Phuket. Its proximity to Bangkok and development of the EEC has put Pattaya on the spotlight since the new economic zone is expected to stimulate demand for hotels from both leisure and corporate standpoints. Also, U-Tapao Airport’s aim to serve 5 million passengers and the planned high-speed railway linking it with Suvarnabhumi and Don Mueang airports will further make Pattaya more attractive to investors. The railway link is expected to be up and running in 2025. Despite suffering badly from the Covid-19 pandemic, the Pattaya hotel market is catching the attention of investors. “In recent months, we have been getting an unprecedented number of enquiries from investors looking for an opportunity to invest in hotels in Pattaya. Though we have yet to see a trend of deeply discounted hotels in the market, the situation is delicate and the landscape could potentially shift,” said Chakkrit Chakrabandhu Na Ayudhya, executive vice president of investment sales in Asia at JLL’s Hotels and Hospitality Group. “Owners are being pressured by the extended burn rate. As the crisis prolongs, the pricing gap between owners and investors will naturally become narrower,” he said. Pimpanga Yomchinda Pimpanga Yomchinda, vice president of investment sales in Asia for JLL, said: “Since the pandemic started, we have seen a lot of engagement from hotel owners. They want to understand the implications of various hold-and-disposal scenarios so they can make the most informed decisions. As there is no one-size-fits-all approach, the best way for us to understand the situation is to meet owners on the ground, look into their needs and help them customise their asset/portfolio strategy.” Chakkrit added: “The disposal process will need to be refined to accommodate the current situation by allowing more flexibility with additional deal features such as vendor financing, income guarantee, staged payments or delayed handover. This will, in turn, optimise deal certainty and proceeds.” Pattaya has seen no major hotel transactions since 2018 due largely to the lack of investment-grade assets being offered in the market. It remains to be seen whether the pandemic will unlock some of them over the next 12 months, said Chakkrit. According to JLL, the average number of keys for hotels sold in the last five years in Thailand was approximately 180. While hotels in Pattaya have approximately 100 keys on average, almost half of the hotels across the city have less than 50 keys. “With a lower-key count, it is harder to achieve sufficient economies of scales from an investor’s point of view. In addition, investors are more interested in Pattaya’s upscale hotel segment that accounts for less than 20 per cent of the city’s total hotel stock. The rest of the stock is in the midscale and budget segments, which faces strong competition. “Traditionally, investor demand for Pattaya hotels would lean more towards rarer and more sought-after upscale and upper-upscale segments because the midscale and budget segments are viewed as offering lower profitability and being difficult to differentiate due to large supply of rooms.” Domination of domestic investors “Due to border restrictions, we are naturally seeing more engagement from domestic investors compared to what we saw in almost 40 hospitality deals [worth over Bt40 billion] that we brokered in Thailand since 2010. We are also seeing more enquiries from corporates with diverse income streams and private equity funds since the pandemic started,” Chakkrit said. JLL’s Hotels and Hospitality Group in conjunction with the Thai Hotels Association has planned a series of hotel investment conferences in Thailand’s key hotel markets this year. The last event was held in Pattaya and the next is planned for Phuket on November 11. Source: https://www.nationthailand.com/property/30397398 -- © Copyright The Nation Thailand 2020-11-06 - Whatever you're going through, the Samaritans are here for you - Follow Thaivisa on LINE for breaking COVID-19 updates 1 Link to comment Share on other sites More sharing options...
Popular Post Destiny1990 Posted November 5, 2020 Popular Post Share Posted November 5, 2020 Seems to me that Pattaya has enough hotels.. 2 1 Link to comment Share on other sites More sharing options...
Popular Post ChrisY1 Posted November 5, 2020 Popular Post Share Posted November 5, 2020 This mornings joke of the day.......! It's just what Pattaya needs...more hotels!.....although it would be nice to have a hotel where our shoes don't stick to the carpets!! 1 5 Link to comment Share on other sites More sharing options...
bobbin Posted November 6, 2020 Share Posted November 6, 2020 They are talking about hotels changing ownership, not new hotels projected to be built. In the future however, with EEC and Utapao expansion, newly built hotels could be a factor.. 2 Link to comment Share on other sites More sharing options...
Popular Post canopus1969 Posted November 6, 2020 Popular Post Share Posted November 6, 2020 The railway link is expected to be up and running in 2025 ???? 2 1 Link to comment Share on other sites More sharing options...
Popular Post Henryford Posted November 6, 2020 Popular Post Share Posted November 6, 2020 20 minutes ago, canopus1969 said: The railway link is expected to be up and running in 2025 ???? It took them longer than that to build a tunnel under Pattaya Klang. 2 1 3 Link to comment Share on other sites More sharing options...
gwynt Posted November 6, 2020 Share Posted November 6, 2020 All hotel Casino new build?? 1 Link to comment Share on other sites More sharing options...
Popular Post mikebell Posted November 6, 2020 Popular Post Share Posted November 6, 2020 4 hours ago, webfact said: an unprecedented number of enquiries from investors looking for an opportunity to invest in hotels in Pattaya. All Chinese looking to buy bankrupt hotels having done the bankrupting themselves. 6 1 Link to comment Share on other sites More sharing options...
Darkside Gray Posted November 6, 2020 Share Posted November 6, 2020 With the massive glut of hotel rooms why would it? Link to comment Share on other sites More sharing options...
mickyr55 Posted November 6, 2020 Share Posted November 6, 2020 Yet another dream ???? Link to comment Share on other sites More sharing options...
BigStar Posted November 6, 2020 Share Posted November 6, 2020 2 hours ago, mikebell said: All Chinese looking to buy bankrupt hotels having done the bankrupting themselves. No. Read: Domination of domestic investors “Due to border restrictions, we are naturally seeing more engagement from domestic investors compared to what we saw in almost 40 hospitality deals [worth over Bt40 billion] that we brokered in Thailand since 2010. We are also seeing more enquiries from corporates with diverse income streams and private equity funds since the pandemic started,” Chakkrit said. 1 Link to comment Share on other sites More sharing options...
tinca tinca Posted November 6, 2020 Share Posted November 6, 2020 3 hours ago, Henryford said: It took them longer than that to build a tunnel under Pattaya Klang. does NOT go under pattaya klang.....go have a look on sukhumvit road.....i seem to remember last week I drove thru it..... 1 Link to comment Share on other sites More sharing options...
kingofthemountain Posted November 6, 2020 Share Posted November 6, 2020 7 hours ago, webfact said: Pattaya will become a bright spot for hotel investors next year thanks to domestic demand potential, as well as the development of the Eastern Economic Corridor (EEC), property consultancy firm JLL said. This guy needs a serious reality check Link to comment Share on other sites More sharing options...
champers Posted November 6, 2020 Share Posted November 6, 2020 12 hours ago, gwynt said: All hotel Casino new build?? Hard Rock Hotel has a casino style build. Some modifications at ground level might be required and a possible new structure on the spare land by 2nd Road. Link to comment Share on other sites More sharing options...
Popular Post redwood1 Posted November 6, 2020 Popular Post Share Posted November 6, 2020 13 hours ago, canopus1969 said: The railway link is expected to be up and running in 2025 ???? Trust me 2025 will come then go and it will be years and years and years more before this is finished if ever.... 3 Link to comment Share on other sites More sharing options...
wobblyjohn Posted November 6, 2020 Share Posted November 6, 2020 10 hours ago, tinca tinca said: does NOT go under pattaya klang.....go have a look on sukhumvit road.....i seem to remember last week I drove thru it..... Doesn't Klang mean middle As in middle of Pattaya he didn't say anything about center road Link to comment Share on other sites More sharing options...
3NUMBAS Posted November 7, 2020 Share Posted November 7, 2020 theres always investors with shed loads of hot money to cleanse .tea money needs a good home my friends 1 Link to comment Share on other sites More sharing options...
tinca tinca Posted November 8, 2020 Share Posted November 8, 2020 On 11/6/2020 at 9:47 PM, wobblyjohn said: Doesn't Klang mean middle As in middle of Pattaya he didn't say anything about center road go read his post again......... Link to comment Share on other sites More sharing options...
wobblyjohn Posted November 8, 2020 Share Posted November 8, 2020 On 11/6/2020 at 1:04 AM, Henryford said: It took them longer than that to build a tunnel under Pattaya Klang. On 11/6/2020 at 4:30 AM, tinca tinca said: does NOT go under pattaya klang.....go have a look on sukhumvit road.....i seem to remember last week I drove thru it..... On 11/6/2020 at 2:47 PM, wobblyjohn said: Doesn't Klang mean middle As in middle of Pattaya he didn't say anything about center road 4 hours ago, tinca tinca said: go read his post again......... I suppose it doesn't really go under anything I suppose, apart from the junction Link to comment Share on other sites More sharing options...
thaibeachlovers Posted November 8, 2020 Share Posted November 8, 2020 On 11/6/2020 at 12:26 PM, Destiny1990 said: Seems to me that Pattaya has enough hotels.. Will never be enough for those that actually believe the hi speed railway will be built to Pattaya. Will cost billions to build the railway and will IMO never recoup the cost. Far cheaper to double track the standard railway and run more trains. Of course less money probably negates the reason for building an un needed project. 1 Link to comment Share on other sites More sharing options...
jacko45k Posted November 9, 2020 Share Posted November 9, 2020 Oh great, more investment and 50 story buildings practically on the beach. Link to comment Share on other sites More sharing options...
Litlos Posted November 9, 2020 Share Posted November 9, 2020 Forget the casino in the middle of Pattaya idea. It will be the Ambassador Hotel in Na Jomtien. The spur from the new motorway extension practically at the front door. I believe they have kept two floors vacant in anticipation of a casino licence. From China to Swampy to the Ambassador and straight on to the gaming floor. Cheers 1 Link to comment Share on other sites More sharing options...
bkk6060 Posted November 9, 2020 Share Posted November 9, 2020 2030 at the earliest, but I bet never. 1 Link to comment Share on other sites More sharing options...
thaibeachlovers Posted November 9, 2020 Share Posted November 9, 2020 2 hours ago, bkk6060 said: 2030 at the earliest, but I bet never. I'm more inclined to the opinion that after enough working groups and consultants etc, the entire thing will be quietly forgotten. Link to comment Share on other sites More sharing options...
DekDaeng Posted November 9, 2020 Share Posted November 9, 2020 On 11/6/2020 at 11:30 AM, tinca tinca said: does NOT go under pattaya klang.....go have a look on sukhumvit road.....i seem to remember last week I drove thru it..... Technically, it does - under that part of the Suk / Klang intersection common to both Suk and Klang - Link to comment Share on other sites More sharing options...
tinca tinca Posted November 9, 2020 Share Posted November 9, 2020 4 hours ago, DekDaeng said: Technically, it does - under that part of the Suk / Klang intersection common to both Suk and Klang - it does not go under KLANG end of story..... Link to comment Share on other sites More sharing options...
thaibeachlovers Posted November 10, 2020 Share Posted November 10, 2020 17 hours ago, tinca tinca said: it does not go under KLANG end of story..... What are you guys on about? The railway doesn't go along Sukhumvit. Link to comment Share on other sites More sharing options...
jacko45k Posted November 10, 2020 Share Posted November 10, 2020 1 hour ago, thaibeachlovers said: What are you guys on about? The railway doesn't go along Sukhumvit. The tunnel... 1 Link to comment Share on other sites More sharing options...
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