Hotel investment activity in Thailand rebounding strongly, says JLL report

[snoop1130]

 

Bangkok, 14 December 2021 – Investment volume in Thailand’s hospitality sector in 2021 is expected to grow more than five times the volume witnessed in 2020, reaching THB 12 billion by year-end, JLL (Jones Lang LaSalle Incorporated) predicts.  Year to date, 13 properties have been sold, totaling THB5 billion of combined value, compared to four properties worth THB1.9 billion in total sold last year.

 

JLL’s data tracks sale transactions of hospitality assets that are operated to international standards. These include investment-grade hotels, resorts, and serviced apartments in Bangkok and Thailand’s key leisure markets.

 

Chakkrit Chakrabandhu Na Ayudhya, Executive Vice President, Investment Sales, Asia, JLL Hotels & Hospitality Group, says “Hotel 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.”

 

“At JLL, we have recently closed the sale of 138-key Citadines Sukhumvit 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,” he continues.

 

Buoyant hotel investment activity this year has been driven by the availability of investment-grade assets for sale, strong demand from investors, and the narrowing gap between buyers’ and sellers’ price expectations, according to JLL.

 

Pimpanga Yomchinda, Vice President, Investment Sales, Asia, JLL’s Hotels & Hospitality Group, comments “As the pandemic prolongs, more hotel owners including property developers and hotel operators decided to dispose one or two assets in their portfolio in order to improve liquidity. These sellers have also shown more flexibility in pricing. On the other end, buyers have adopted a more realistic approach on price expectation, realizing that light at the end of the tunnel is starting to show and discounts vary from asset to asset.”

 

Based on observations by JLL, luxury and iconic hotel assets offer little or no discount due to their irreplaceable nature and owners’ profiles. In addition, owners of these hotels are generally less affected by the pandemic compared to others.

 

JLL’s observations also show that prices of investment-grade assets in Bangkok have relatively remained firm, compared to resort markets, and bigger discounts are witnessed in second-tier markets, especially in midscale properties.

 

Full Story: https://thepattayanews.com/2021/12/15/hotel-investment-activity-in-thailand-rebounding-strongly-says-jll-report/

 

-- © Copyright The Pattaya News 2021-12-15

 

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[hotchilli]

Predictions predictions.

[khunjeff]

13 hours ago, snoop1130 said:

Based on observations by JLL, luxury and iconic hotel assets offer little or no discount due to their irreplaceable nature and owners’ profiles.

Not sure why the "owners' profiles" would have any effect on the price of their property, but this is Thailand...