The director of Investment Sales Asia, for JJL’s Hotels and Hospitality Group, Mike Batchelor, recently released a positive statement regarding the continued demand from both domestic and regional investors. “Investment appetite by both local and foreign investors in Thailand’s hospitality market has showed no signs of subsiding as these investors have remained upbeat on long-term fundamentals in the ever resilient market.” During 2016 Thailand’s hotel investment activity was again robust, with more than 10 hotels and hospitality assets sold in Bangkok and major provincial destinations. However, it is estimated that in 2017 the market will see a huge jump in investment volumes as the 11 billion baht sale of Swissotel Nai Lert Park is scheduled for completion in 2017.
Data received from 2016 figures of the Tourism Authority of Thailand shows that the inbound visitors coming to the Kingdom has been on course to match the target set of 8.9% growth. This meant that tourist figures in 2016 exceeded the 30 million mark for the first ever time, and projected figures for this year are expected to reach 35 million. This is quite remarkable considering the crackdown on the Chinese Zero-Dollars Tours.
Although in 2016, 55% of the transactions were from Thai nationals, still there was positive activity from Singapore and Hong Kong investors accounting for the other 45% transaction volume. Obviously the growth of ASEAN is spurring on more Asian corporate entities to place large capital reserves into different investment opportunities including Thailand’s real estate sectors. These sectors have been highlighted due to their ongoing healthy trading performances and returns. Predictably Bangkok was at the head of these investments, but other transactions were spread across the major tourist destinations including Pattaya, Phuket, Samui, Hua Hin and Chiang Rai.
Bangkok lead the way in 2016 and was the star performer with hotel and hospitality transactions, with over 50% of the deals based in the capital. These included the sale of Eight Thonglor, Liberty Garden Hotel and Park 24 Condominium, which was immediately rebranded and now are serviced apartments managed by Ascott. So what does all this mean when we consider the real estate market in Pattaya? Well the announcement of the first luxury Hotel & Resort by Best Western in the whole of Asia being built in Pattaya, shows that investment is not solely restricted to Bangkok. Good advice if you are thinking of getting onboard and to invest in property in Pattaya is to contact the professionals. People like the Global Top Group have investment advisors that can point you in the right direction of the best developments and areas to invest in. Learn from their market knowledge and make the correct decisions on fact not by chance.