JLL Hotels & Hospitality Group has been going through the many numbers of the Thai hotel market, and with news about new hotels moving into the field of 5 star accommodation in Bangkok, the JLL group has confirmed that the country’s hotel market is in a good spot.
According to the data collected, the Thai hotel sector received a total of Bt10.7B in direct investments for the first half of the year 2017. The JLL Hotels & Hospitality Group attributes this large number primarily to four major transactions made during the time span, comprised of five hotels across Bangkok and Pattaya.
JLL Hotels say that it is a marked improvement from last year’s direct investment numbers, which totaled at Bt9.6B for the whole year. According to Mike Batchelor, JLL’s Head of Investment Sales for Asia, the investment activity in the sector is a sign of the investor’s attraction to the Thai hospitality market, as well as their confidence regarding the long-term standing of the country’s tourism sector, with Thailand reaffirming itself as one of SEA’s most attractive hospitality investment targets, to both domestic and international investors.
One of the latest hotel acquisitions was made by the Hotel 81 group from Singapore, which was facilitated by JLL themselves. This was the acquisition of the Premier Inn portfolio, which was involved in the field of 5 star accommodation in Bangkok, with 2 hotels in the capital and Pattaya. The addition of the portfolio marks Hotel 81’s entrance into the Thai hospitality market, and increases their key count to a total of 388. Travelodge has been appointed by Hotel 81 to manage both of these new hotels on their behalf.
Another major transaction in the Thai hotel market that JLL was involved in was the Carlton Hotel Group’s acquisition of a hotel development project in Bangkok, located at the corner of Sukhumit Road Soi 27. The new property is sized at 2 rai/3,200 m2, comprised of both freehold land, as well as a partial 34-floor hotel development project. For this Bt2.4B transaction JLL, represented the seller of the property, Bangkok Management Co. Ltd.
The other two major moves in the Thai hotel market was the sale of the Bangkok Edition Boutique Hotel and the SwissotelNaiLert Park in Bangkok.
JLL has predicted that the full year’s hotel investment total will hit around Bt14B.