Strong interest to buy courtyard hotels

Kulwadee Sawangsri, head of investment and land services at CBRE Thailand, added that the bidders come from a wide geographical area and the Patong 390-room hotel has attracted strong local, regional and international interest.

The Patong hotel is particularly attractive as a strong cash-producing asset coupled with the Hard Rock Café, and Shop Patong which is also being separately offered for sale. Many investors are looking to international operators to re-brand this property given that it is being sold free and clear of management.

Chairman of CBRE Thailand, David Simister, said that Phuket has fantastic international appeal, record tourist arrivals and if you want a secure long-term income-generating property asset you could do no better than buy a tourist hotel in Patong. Phuket arrivals grow year-on-year and the strongest market sector is mainstream tourism focused on Patong, West coast Phuket, he said.

The Cha-am hotel, with 243 recently refurbished ocean-view rooms, is less than two hours’ drive from Bangkok, is pure beachfront and enjoying the Cha-am/Hua Hin boom in popularity. 

“This area will always remain a more upmarket destination for Bangkokians,” said Kulwadee said.

These types of properties are rarely available for sale, particularly as they are offered for sale without long-term management agreements, providing the buyer with the opportunity to introduce their preferred operator. 

Many international brands have expressed interest in managing both the Patong and Cha-am hotels. Hotels continue to be an extremely popular form of long-term property investment. To acquire prime land in Patong with prices above Bt200 million per rai and Bt50 million per rai in Cha-am indicates the excellent opportunity these income-producing assets represent, CBRE said.

CBRE is conducting the sale of both hotels and the Hard Rock Café by separate tender and the tender date is by noon on March 1, 2012.