BANGKOK, 7 March 2022: Hotel property value held up in
Bangkok during 2021 while Phuket registered heftier discounts in hotel property
sales.

JLL Hotels & Hospitality GroupExecutive Vice President,
Chakkrit Chakrabandhu Na Ayudhya, made the assessment and offered key
statistics during the Thailand Tourism Forum 2020, attended by 500 delegates
last week. 

Speaking on ‘Thailand’s Hotel Transactions – How to Make A
Deal Work’, Chakkrit said JLL saw 17 transactions, with 23 hotel properties
sold in 2021. The combined transaction value reached 13.2 billion baht.

“When looking at the 17 transactions last year, it was
almost seven times more than the previous year. Compared to the 10-year
average, which spans from 2010-to 2019, it was above the 10-year average by
10%.”

The three main markets for hotels sales remained  Bangkok, Phuket, and Samui, representing  80% of the overall volume.

Findings from JLL show that 76% of Bangkok hotels up for
sale managed to find buyers last year, with prices discounted no more than 5%
from the pre-Covid-19 level.

In Samui, 57% of hotels are sold at a 15 to 20% discount.
For the rest, 25% of the deals had an up to 5% discount tag, and 13% were sold
at a 30% or more discount.

The total value of hotel sale transactions in Samui last
year reached THB5.8 billion, while Phuket witnessed only THB1.5 billion in
volume transacted last year, as up to 78% of the deals were made at a 30% or
more discount.

Outside of these three destinations, 63% of the deals were
closed at a more than 30% discount, 20% had a medium discount of 15 to 20%,
while 17% of the deals were sold at up to a 5% discount.

Meanwhile, according to a survey conducted by JLL, out of
175 APAC respondents, Thailand ranks second after Japan in terms of preferred
choice for hotel investment in APAC.
The
research also found that Thai investors are still keen on investing
domestically and 75% of them hope to complete a purchase this year.