Phuket hotel investment to exceed Bt10 bn this year.
Investment in the hotel property sector in Phuket is expected to exceed Bt10 billion (US$315 million) this year after the first six months recorded nearly half the estimate for the whole of 2012, according to research by Jones Lang LaSalle Hotels.
The company’s managing director for investment sales, Mike Batchelor, said Phuket had seen record investment in the first half of the year and the market looked on track to enter a renewed period of growth as savvy international investors strategically secure landmark properties in Asia’s premier resort destination.
Since the start of the year, Jones Lang LaSalle Hotels has advised on and managed the sale of three prominent properties in Phuket, including the acquisition of the 368-room Moevenpick Resort and Spa by Malaysia-based TA Global in April.
The next deal was the 260-room Evason Phuket and Bon Island at Rawai by Singapore-based Lum Chang in May. The last one was the 254-room Laguna Beach Resort by Hawaii-based Outrigger Hotels and Resorts, announced this Tuesday.
"With international passenger volumes surging 30 per cent in 2011, the island’s international appeal remains strong. In fact, international visitors to Phuket exceeded domestic arrivals for the first time. This growth has been fuelled by excellent air links and the expansion of low-cost carriers across the region," Batchelor said.
Other factors driving growth in the region include a planned US$180m Bt5.7-billion airport upgrade slated to commence this year, which will double the existing capacity to 12.5 million passengers per annum. In addition, political stability in the Kingdom since last year’s elections has seen international confidence return to the region, as evidenced in the spate of recent sales.
Further activity is expected in the second half of this year with Jones Lang LaSalle Hotels launching a five-star property on Phuket’s west coast this week, which is scheduled to open ahead of the peak season this year.
