By The Nation
That volume is higher than expected and well above the five-year average of Bt13.2 billion per annum recorded between 2013 and 2017, but failed to break the record of Bt17.1 billion witnessed in 2017, according to property consultancy JLL.
“Both local and international investors have continued to show keen interest in Thailand’s hospitality market,” said Nihat Ercan, managing director, JLL’s Hotels and Hospitality Group, Asia. “But the lack of investment-grade assets available for sale, and a wider gap between buyers and sellers’ pricing expectations, contributed to the lower investment volume recorded in 2018.”
Data from JLL’s Hotels and Hospitality Group shows hotel investment volume in Thailand last year was down by 22 per cent from the year before, with seven hotel assets sold in 2018, compared to 12 in 2017.
In line with the lower number of assets sold, sales activity in 2018 took place in fewer locations, including Bangkok, Phuket and Koh Samui, compared to 2017. That year, the sold assets were spread across six markets – Bangkok, Hua Hin, Chiang Rai, Nakorn Ratchasima, Pattaya and Krabi’s Lanta Island. Bangkok continued to lead the pack, with investment activity accounting for over 73 per cent of the country’s total volume last year.