JLL< a major investment-management company who specialises in real estate, says investment in real estate remains high. More than 10 hotels and hospitality assets have been sold in Bangkok and other major provincial areas.
JLL brokered 5 asset sales on behalf of sellers. Even though investment fell 15% in 2016, JLL puts this down to the lack of major assets for sale in the market.
JLL’s hotels and hospitality group said this year will see a big jump due to the conclusion of the Swissotel Nai Lert Park sale.
Mike Batchelor, Managing director of investment sales in Asia for JLL, said that “Investment appetite by foreign and local investors has remained upbeat and has shown no signs of subsiding on long term fundamentals in this ever resilient market”.
The tourism Authority of Thailand released data showing inbound visits to Thailand has been consistent with a growth rate of 8.9% over a 10 year period.
International visitor arrivals broke 30 million for the first time last year and is expected to reach 35 million this year. This is expected despite crackdowns on zero dollar tours that has impacted the number of arrivals from China since the latter part of 2016.
Bangkok is leading the way with hospitality transactions accounting for almost 50% of total volume last year.
Across the city deals recorded over the year included the sales of 8 Thonglor (including former Pan Pacific Residence, since rebranded as Akyra Thonglor), Liberty garden hotel & Park 24 condominiums in Sukhumvit which is going to be rebranded and managed as serviced apartmentsv by ascott.
Pattaya, Phang Nga, Koh Samui, Phuket, Chang Rai and Hua Hin shared in the other transactions with additional transactions in the city Nakkon Ratchasima and the industrial town of Sri Racha.
Institutional investors from Singapore and Hong Kong were active investors accounting for around 45% of the total transaction volume. Most of the hotel deals last year were still transacted by Thai investors
“Interest from both domestic and regional investors [was] strong in 2016, a trend that is expected to continue into 2017,” Batchelor |said.
“More Asian corporates are looking to place large capital reserves into alternative investment classes in some of Thailand’s real-estate sectors that enjoy healthy trading performance and returns,” he said.
“Buoyed by strong long-term growth prospects for the country’s tourism industry, some of these corporates have [shown] keen interest in the hospitality sector, as evidenced from strong levels of bids for some of sought-after hotel assets currently offered for sale in Thailand.”
Source : Thenation
Content : LovePattayaThailand