Hotel transactions in 2025 cool to normal levels, expected to reach THB 13bn
Despite a record-breaking hotel market last year, 2025 is seeing a slowdown with transaction values returning to average levels, according to JLL, a global real estate services firm.
The company highlighted that new opportunities are emerging through alternative financing and increasingly tangible green initiatives.
JLL reported that Thailand’s hotel investment market in 2025 cooled off after the exceptionally hot year of 2024, when total hotel transaction values surged beyond 22 billion baht. The firm estimated that 2025 will be a year of “normalization,” with transactions expected around 13 billion baht—close to the long-term market average.
Bangkok Remains the Investment Hub
Bangkok continues to dominate as the primary investment center, accounting for 60% of nationwide transaction values. The average deal sizes this year is about 1.8 billion baht—80% higher than the 10-year average—reflecting a shift toward higher-quality capital deployment rather than volume.
Shift from Portfolio Sales to Single Hotels
Another key trend is a growing preference for deals focusing on single hotels rather than portfolios of multiple properties, as was common in the past. A clear example is the sale of the Hyatt Regency Sukhumvit, which was last year’s largest single-hotel deal.
Opportunities Amid the Slowdown
Although the number of deals may decrease, JLL noted that financial opportunities are expanding. Flexible loan terms, access to non-bank financing catering to projects that traditional banks may not support, and green financing aligned with sustainable development are all opening new avenues.
Green Loans Reflect Commitment
Thai banks and international financial institutions have begun offering environmentally focused development loans to hotel operators, guided by the Bank of Thailand’s central standards. This is not just a trend but a growing benchmark for corporate reputation and credibility.
Hotel Investment Strategy in 2025
While the market is less frenzied, it does not mean the end of opportunities. On the contrary, a cooling market may provide a solid foundation for strategic moves that better prepare investors for a rapidly changing future, JLL stated.
