Colliers International Thailand has revealed numbers that show Phuket is one of the top locations targeted by hotel brands and investors, in addition to Bangkok, Samui, Pattaya and Chiang Mai, totalling over 15 billion Thai baht.
The Director of Research and Communication Department, Colliers International Thailand, Pattarachai Taweewong, says the general outlook of the Thai tourism industry has improved in the first half year of 2022, with more of the world opening up, increased flight schedules and the removal of restrictions for getting into Thailand,
“Thailand has a large number of hotel investor buying hotels Thailand, especially, in Bangkok, Samui, Pattaya, Chiang Mai and Phuket.”
He said that Chinese investors are targeting hotel purcches in Phuket and Chiang Mai primarily, while the investors from the US, Singapore and Japan are looking to buy hotels in Bangkok.
“The investors are searching to buy a large number of potential hotels expecting to welcome more than 10 million tourists, both domestic and international.”
He said that the overall total hotel purchasing value for the past 10 years was about 99,650 million Thai baht. The highest was in 2017 and 2018 with about 20,000 million baht annually.
The report also outlined the factors that attract investors include…
1. More than 6% yield per year
2. The building should not be older than 15 years or better, less than 10 years
3. Offers more than 150 rooms to make the business fully viable
He explained that the investors would buy and renovate the hotels while also upgrading the projects or bringing in a hotel brand or management.
After the economic crisis following Covid-19, there are many hotel owners selling their properties and the prices from last year decreased from the year before by 30% but this year the prices are starting to rise again as the hotel owners see that the tourism industry improving – slowly but tangibly.
He noted that after the pandemic situation improves many countries around the world still target Thailand as a travel destination “…. and hotels are still a business that can keep growing in the future which can possibly make the prices increase in the future as well”.
SOURCE: Phuket Andaman News