Despite the number of existing hotels in Thailand such as the modern hotel in Rayong, the industry is still getting overwhelmed. In fact, last year was found to be a record year because the country has witnessed the highest number of hotel transactions. A total of 17 billion baht has been spent by investors for high-profile transactions in the hotel industry.
Based on the estimates of JLL, a property consultant firm, the volume of transactions for 2018 will not be as high as the previous year despite the fact that there is still a high level of interest among investors. This is because of the only limited number of hotels will be available in the market that is investment worthy.
According to the data provided by Hotels and Hospitality Group of JLL, there are 12 hotels that were put up in the market in 2017 and the total value of these hotels amounted to 17 billion baht. This number is higher by 70 per cent compared to the recorded figures in 2016. The number is also higher compared to the yearly average volume calculated for five years from 2012 until 2016 which is about 12.2 billion baht.
When looking at the value, Bangkok is the leading city when it comes to activities related to investment because there were six hotels, with a total value of 14 billion baht, listed on the market that is worth investing in. These six hotels already comprised almost 80 per cent of the entire market volume for 2017.
The six hotels are Edition Hotel, former Premier Inn, Somerset Lake Point, Swissotel Nai Lert Park, a serviced apartment located in Thonglor and a partially complete building with 34-storey. There are also high profile transactions outside of Bangkok including Dusit Island Resort Premier Inn Pattaya and Pilanta Resort.
Last year was also a big year for foreign investments with over 50 per cent of transactions coming from these investors. There is a higher competition for modern hotel in Rayong but it is also a good boost for the economy of Thailand. Foreign investments are mostly from United States, Japan and Singapore.