BANGKOK, March 7, 2022: Value of hotel properties held steady in Bangkok in 2021 while Phuket saw higher discounts on hotel property sales.
JLL Hotels & Hospitality Group Executive Vice President Chakkrit Chakrabandhu Na Ayudhya made the assessment and presented key statistics at the Thailand Tourism Forum 2022, which was attended by 500 delegates last week.
Speaking on “Hotel deals in Thailand – How to make a deal work”, Chakkrit said JLL had recorded 17 deals, with 23 hotel properties sold in 2021. The combined deal value reached 13.2 billion baht.
“Looking at the 17 deals last year, that was almost seven times more than the year before. Compared to the 10-year average, which spans from 2010 to 2019, it was 10% higher than the 10-year average. »
The top three markets for hotel sales remain Bangkok, Phuket and Samui, accounting for 80% of overall volume.
JLL’s results show that 76% of Bangkok hotels put up for sale successfully found buyers last year, with prices reduced by no more than 5% from pre-COVID-19 levels.
In Samui, 57% of hotels are sold with a discount of 15 to 20%. For the rest, 25% of the offers had a discount of up to 5% and 13% were sold with a discount of 30% or more.
The total value of hotel sales transactions in Samui last year reached 5.8 billion baht, while Phuket recorded only 1.5 billion baht in transaction volume last year, since up to 78% of transactions were closed with a discount of 30% or more.
Outside of these three destinations, 63% of deals were concluded with a discount greater than 30%, 20% with an average discount of 15 to 20%, while 17% of deals were sold with a discount of up to 5%.
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 revealed that Thai investors are still eager to invest domestically and 75% of them hope to complete a purchase this year.