Thai, Foreign Investors Eager To Buy Hotels In Bangkok, Major Tourist Cities

[webfact]

Kata Beach, Phuket. Photo: Mst7022 (CC BY 2.0)

 

by TNR Staff

 

AS a result of tourism having improved in the first half of this year both Thai and foreign investors are now keen on buying hotels in Bangkok and four key tourist cities, Phuket, Samui, Pattaya and Chiang Mai, with several deals having already been concluded, Matichon newspaper yesterday (July 27).

 

Mr. Phattarachai Thaweewong, research director at Colliers International Thailand, said while Chinese investors are interested in buying hotels in Phuket and Chiang Mai, those from the US, Singapore and Japan want to snap up the ones located in Bangkok.

 

The key issue is reasonable price and attractive location as over 10 million domestic and foreign tourists are expected to travel within the country this year.

 

Full story: https://thainewsroom.com/2022/07/27/thai-foreign-investors-eager-to-buy-hotels-in-bangkok-major-tourist-cities/

 

-- © Copyright  THAI NEWSROOM 2022-07-28

 

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[spidermike007]

Do they know something about a real recovery the rest of us don't? 

 

Bangkok is a greet city. But, I am not sure I would have the confidence to buy a hotel here, at this time. Maybe at 60% off? 

Edited July 27, 2022 by spidermike007

[zzaa09]

My first instinct would to be highly suspicious.

Wonder what these jokers have up their sleeve this time?

[jacko45k]

Yet more evidence of optimism in Thailand......

Part of a group of Asian countries on the up and up while European ones fail  in strikes and energy issues. 

[Iamfalang]

Bangkok isn't going away, ever.  Like any biggest city in any country,  you can't go wrong buying real estate there.  Every single big city in America has seen MASSIVE increases in real estate in the last 30 years.   They guys aren't flippers, sell next year.   They want it forever.   30-years ago buying land in Bangkok was the way.......land is power.   

 

Bangkok will be as expensive as NYC is today.   When?  Maybe 50-years.  

Edited July 28, 2022 by Iamfalang

[stoner]

21 minutes ago, jacko45k said:

Yet more evidence of optimism in Thailand......

Part of a group of Asian countries on the up and up while European ones fail  in strikes and energy issues. 

spot on. i was just home a few weeks ago in canada and it was not good. 

 

in the next 10 years on earth....90 percent of new consumers coming online are going to be from asia. the west is dead. 

[ezzra]

What the article don't tell us is what types of hotels are being bought and sold and how much are the changing hands for, fair price of fire sale? because they still building hotels everywhere so there's much more to the article than what it really says.. 

[ThailandRyan]

Plenty of closed down large Hotels around my Area in Sathorn. Been shuttered for over 2 years.....one wonders what the plans are. Yet they keep building new ones next to the closed ones....go figure.

[shackleton]

With most countries nearing recession everything going up in price everywhere 

Where are these tourists coming from 

There will be plenty of  empty hotels available for sale cheaper  prices, 

Do these investors know something we don't ????

[hotchilli]

8 hours ago, webfact said:

Mr. Phattarachai Thaweewong, research director at Colliers International Thailand, said while Chinese investors are interested in buying hotels in Phuket and Chiang Mai

And the revenue from tourists goes straight into Chinese pockets.

[BKKTRAVELER]

Not bad for long term investments. Real estate prices are going up and the land value will keep on increasing year on year. Foreign arrivals seem to be higher (although still not enough). If you can buy a failing hotel (due to Covid) at a low price and keep it for at least a decade, it should be profitable.

 

Problem is, you also need a good amount of cashflow because you would probably still loose money on the first few years. And we never know what will happen globally tomorrow: new pandemic, WW3 among other things which would kill tourism again.

 

Most important, good way to launder money... Hence why I'm not surprised a lot of investors are Chinese.

[Isaan sailor]

Thailand already has a huge oversupply of hotel rooms.  Just drive around coastal areas.  Or check prices at online booking agencies.  But if the price is right—anything will sell.

[xtrnuno41]

Dont think they will keep running the hotels. Hotels enough in BK.

But I guess they will turn it into condo's to sell at bigger prices.

Blackrock maybe less this year, as a lot of money has evaporated.

[newnative]

20 hours ago, hotchilli said:

And the revenue from tourists goes straight into Chinese pockets.

And nothing wrong with that.  That's how international business works.  The revenue from Disneyland Paris goes 'straight into' American pockets.  So, why would France want Disneyland Paris?  Why would America want a BMW factory when the revenue goes 'straight into' German pockets?   Easy answer. Jobs. 

[ThailandRyan]

17 hours ago, xtrnuno41 said:

Dont think they will keep running the hotels. Hotels enough in BK.

But I guess they will turn it into condo's to sell at bigger prices.

Blackrock maybe less this year, as a lot of money has evaporated.

However, Centara is in the process of building two new hotels here in Bangkok, one in Sathorn and the other on the other side of Town.  Add in the fact that The One Bangkok will also have a hotel on it's grounds as well which is in the process of being built now as well.  So many are closed currently like the Aetas Lumpini while next door they are building a brand new hotel and then across the street another one.  Makes no sense in reality.

[smutcakes]

31 minutes ago, ThailandRyan said:

However, Centara is in the process of building two new hotels here in Bangkok, one in Sathorn and the other on the other side of Town.  Add in the fact that The One Bangkok will also have a hotel on it's grounds as well which is in the process of being built now as well.  So many are closed currently like the Aetas Lumpini while next door they are building a brand new hotel and then across the street another one.  Makes no sense in reality.

I believe One Bangkok will have 5 hotels in the complex. Also people saying there are old hotels shut down- well yes because they are <deleted> and no one wants to stay in them. Give me a brand new Hyatt, Four Seasons any day over some piece of <deleted> old dump in Silom...  In the hotel market there are many brands, levels etc. Some might be performing better than others, but i am sure some sectors have demand. If these big brands are opening new i am sure they know there is a market, they have a lot better information on demand, supply, occupancy rates than anyone here.

[sammieuk1]

Eager has a new definition from what I'm seeing ????

[ThailandRyan]

31 minutes ago, smutcakes said:

I believe One Bangkok will have 5 hotels in the complex. Also people saying there are old hotels shut down- well yes because they are <deleted> and no one wants to stay in them. Give me a brand new Hyatt, Four Seasons any day over some piece of <deleted> old dump in Silom...  In the hotel market there are many brands, levels etc. Some might be performing better than others, but i am sure some sectors have demand. If these big brands are opening new i am sure they know there is a market, they have a lot better information on demand, supply, occupancy rates than anyone here.

The Aetas Lumpini was a very nice 4 Star hotel. Some would say it was 5 star. The restaurants were very good as well. The hotel was built in 2012, so it's not old nor a piece of <deleted>...

Edited July 29, 2022 by ThailandRyan

[newnative]

6 hours ago, smutcakes said:

I believe One Bangkok will have 5 hotels in the complex. Also people saying there are old hotels shut down- well yes because they are <deleted> and no one wants to stay in them. Give me a brand new Hyatt, Four Seasons any day over some piece of <deleted> old dump in Silom...  In the hotel market there are many brands, levels etc. Some might be performing better than others, but i am sure some sectors have demand. If these big brands are opening new i am sure they know there is a market, they have a lot better information on demand, supply, occupancy rates than anyone here.

     Absolutely.  Just because one hotel is doing badly, it doesn't mean that all are.  And, it doesn't necessarily mean an area is doing badly.  Some people scratched their heads when Grande Centre Point started a massive new Pattaya project--Centre Point Space--with covid raging.  They already had a large hotel on top of Terminal 21.  Why would they build another massive hotel right across the street?   Especially with some other older hotels in the same area shuttered for lack of business?   

     That rundown, small older hotel with little in the way of appeal or amenities might be lacking customers but Centre Point was attracting enough customers to warrant another hotel nearby.  Ditto for the Amari Group building both a large, new addition and the Ozo Hotel next door.  

[xtrnuno41]

7 hours ago, ThailandRyan said:

However, Centara is in the process of building two new hotels here in Bangkok, one in Sathorn and the other on the other side of Town.  Add in the fact that The One Bangkok will also have a hotel on it's grounds as well which is in the process of being built now as well.  So many are closed currently like the Aetas Lumpini while next door they are building a brand new hotel and then across the street another one.  Makes no sense in reality.

I was curious and looked in google maps. Indeed One Bangkok is busy there and i could find they are building a multi purpose building of 436 meters high.

Investing indeed. Trying to attract the super rich, i guess.

As Thai government promotes wealthy foreigners to come.

And if you want to compete with Dubai, then Thailand really need to do a lot.

As in Dubai there are less (no?) demands, you dont need to invest and even pay no tax.

Many super rich are already there. So Thailand is (too?) late.

A super rich only will be in Thailand, if he really needs to be in Thailand then or the buildings must have really so much more then in Dubai.

The area for that new tower(s) should be complete overhauled, as Dubai is way more nicer to live. But in Dubai they started with just sand and all is really new.

It shows in numbers of super rich living there.

 

Centara is competition then. so they must invest as well and also make such a building? Nice 2 towers facing each other. 

Then maybe connected to the Aetas or will it go down? Therefor temporarily closed (in google maps)?

I didnt find it on internet, only many sites still say you could book, well maybe if you enter sites they will tell, you cant.

 

In China they made cities, for "common" people and they are completely empty.

Prices too high, miscalculation. Also buildings made, sold apartments and then for other apartments they lowered price. Yeah the people who bought at full price didnt like that. 

And the biggest building company there bankrupt.

In Manila they had a very big mall built, to attract foreigners. Way out of Manila.

In the time I was there only about 5 shops were open and all other floors and shops unfinished and closed.

 

With that 463 meter high building in BK? Well maybe companies succeed, but i wouldnt bet on it. We will see in future. I think it is a  courageous step, as the building will cost more then a fleet of submarines with no engine or a flock F35's which cant shoot.