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News Release

Bangkok

Thailand’s hotel investment volume exceeds THB10b in 1H2017


Bangkok 26 July 2017 – Direct investment in Thailand's hotel sector reached THB10.7 billion in the first half of 2017, according to JLL Hotels & Hospitality Group. This figure is attributed to four major transactions, comprising five hotels in Bangkok and Pattaya.

 

"As a comparison, 2016's full-year investment volume was only THB 9.6 billion," says Mike Batchelor, Head of Investment Sales Asia, JLL Hotels and Hospitality Group. "The robust investment activity recorded in the first half reflects investors' continued appetite for hospitality assets in Thailand and confidence in the long-term outlook for the country's tourism industry."

 

"Buyers comprised of both domestic and regional investors, with the latest hotel acquisitions being made by Carlton Hotel Group and Hotel 81, both from Singapore. This reaffirms Thailand's position as one of the region's most attractive hotel investment destinations," adds Mr. Batchelor.

 

In June, JLL facilitated Hotel 81's acquisition of the Premier Inn portfolio, including two hotels in Bangkok and Pattaya. With a collective key count of 388, the portfolio marks Hotel 81's first venture into the Thai market. Hotel 81 has appointed Travelodge to manage both hotels on its behalf.

 

Chakkrit Paul Chakrabandhu Na Ayudhya, Senior Vice President, Investment Sales, JLL Hotels and Hospitality Group, comments: "The portfolio was the first overseas transaction made by the buyer, Hotel 81, the largest owner of hotels in Singapore. The seller, Whitbread, is also the largest owner of hotels in the UK. We were able to facilitate cross-border transactions, resulting in the movement of capital between regions."

 

In May, Carlton Hotel Group of Singapore acquired a hotel development project in Bangkok. Situated at the corner of Sukhumvit Road Soi 27, the property comprises 2 rai, 2 ngan and 34.3 square wah of freehold land and a partial 34-storey hotel development. JLL Hotels and Hospitality Group represented the seller, Bangkok Management Company Limited, a subsidiary of Principal Capital Public Company Limited in this THB2.4 billion transaction. Planned for completion in 2019, the 342-key hotel is expected to carry the Carlton Hotel brand.

 

Karan Khanijou, Senior Vice President, Investment Sales, JLL Hotels and Hospitality Group, explains: "The acquisition by Singapore-based Carlton Hotel Group has been the largest hotel deal publicly announced in Thailand. Given that no hotels of a significant size have been traded on the main Sukhumvit Road, this deal has also set a new benchmark price."

 

The other two hotels sold in the first half of 2017 include Bangkok Edition Boutique Hotel and Swissotel Nai Lert Park in Bangkok. While the acquisition of the latter was announced in 2016, the transaction was only completed this year.

 

JLL expects 2017's full-year hotel investment volume in Thailand to reach over THB14 billion by the end of 2017.

 

Last year, more than 10 hotels and hospitality assets were sold in Bangkok and the major provincial destinations of Thailand with a combined value of THB 9.6 billion. Of these, five assets were sold by JLL Hotels and Hospitality in Bangkok, Phuket, Samui, Sri Racha and Chiang Rai.

 

- ends -

 

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Photos of the hotel development project acquired by Carlton Hotel Group:

http://www.jll.co.th/thailand/PublishingImages/PR/s27-JLL.jpg

http://www.jll.co.th/thailand/PublishingImages/PR/s27-sold-by-jll.jpg

 

Photo of Mike Batchelor

http://www.jll.com/thailand/PublishingImages/People/mike-batchelor-jll-hoteles-and-hospitality-group.jpg

 

 

About JLL

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. A Fortune 500 company, JLL helps real estate owners, occupiers and investors achieve their business ambitions. At the end of the first quarter of 2017, JLL had nearly 300 corporate offices, operations in over 80 countries and a global workforce of more than 78,000. As of March 31, 2017, LaSalle Investment Management had $58.0 billion of real estate under asset management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit www.jll.com.

 

JLL has over 50 years of experience in Asia Pacific, with 36,800 employees operating in 95 offices in 16 countries across the region. The firm won the 'World's Best' and 'Best in Asia Pacific' International Property Consultancy at the International Property Awards in 2016 and was named number one real estate investment advisory firm in Asia Pacific for the sixth consecutive year by Real Capital Analytics.  www.ap.jll.com.

 

For more information, please contact

 

Winai Jaiton

Marketing and Communications

T +66 2 624 6400

winai.jaiton@ap.jll.com

 

Pimpanga Yomchinda (Orn)    

JLL's Hotels & Hospitality Group           

T +66 2 624 6565 M +66 85 363 3360

pimpanga.yomchinda@ap.jll.com