BANGKOK, 7 March 2022: Hotel property value held up in Bangkok during 2021 while Phuket registered heftier discounts in hotel property sales.
JLL Hotels & Hospitality GroupExecutive Vice President, Chakkrit Chakrabandhu Na Ayudhya, made the assessment and offered key statistics during the Thailand Tourism Forum 2022, attended by 500 delegates last week.
Speaking on ‘Thailand’s Hotel Transactions – How to Make A Deal Work’, Chakkrit said JLL saw 17 transactions, with 23 hotel properties sold in 2021. The combined transaction value reached 13.2 billion baht.
“When looking at the 17 transactions last year, it was almost seven times more than the previous year. Compared to the 10-year average, which spans from 2010-to 2019, it was above the 10-year average by 10%.”
The three main markets for hotels sales remained Bangkok, Phuket, and Samui, representing 80% of the overall volume.
Findings from JLL show that 76% of Bangkok hotels up for sale managed to find buyers last year, with prices discounted no more than 5% from the pre-Covid-19 level.
In Samui, 57% of hotels are sold at a 15 to 20% discount. For the rest, 25% of the deals had an up to 5% discount tag, and 13% were sold at a 30% or more discount.
The total value of hotel sale transactions in Samui last year reached THB5.8 billion, while Phuket witnessed only THB1.5 billion in volume transacted last year, as up to 78% of the deals were made at a 30% or more discount.
Outside of these three destinations, 63% of the deals were closed at a more than 30% discount, 20% had a medium discount of 15 to 20%, while 17% of the deals were sold at up to a 5% discount.
Meanwhile, according to a survey conducted by JLL, out of 175 APAC respondents, Thailand ranks second after Japan in terms of preferred choice for hotel investment in APAC. The research also found that Thai investors are still keen on investing domestically and 75% of them hope to complete a purchase this year.
