Seven hotels in Thailand’s four key tourism destinations are up for sale with an indicative price of $230,000 per key, marking one of the largest hotel portfolio deals in Asia worth a total of $388.24 million.
Colliers International, a global real estate services firm and advisor to this deal, said on Monday that the portfolio consists of four hotels in Phuket and one each in Bangkok, Hua Hin and Koh Samui. With 1,688 rooms in combination, the hotels have an average occupancy rate of 80 per cent.
“We expect the seven hotels to offer healthy recurring income streams with further potential upside, owing to the tourism boom in Thailand. Tourism will continue to be a growth catalyst for the Thai economy, with the Thai government targeting 37 million visitors this year. This forecast trumps the record 35 million international visitors in 2017,” Jerome Wright, Director for Capital Markets & Investment Services at Colliers International, said in the statement.
The diversified portfolio features freehold hotel assets that cover the upscale to midscale tourism segments, enabling the purchaser an immediate market leader in such segment in Thailand, it said.
The consultancy firm cited that direct investments in Thailand’s hotel sector reached an estimated 22 billion baht ($689 million) in 2017, up from 13 billion baht ($407 million) in 2016. It expects the potential for capital gains to continue driving investors’ interest and motivate transactions in hotels in Thailand this year.
The four hotels in Phuket are Swissotel Resort Phuket Kamala Beach, Swissotel Resort Phuket Patong Beach, Novotel Phuket Karon Beach Resort & Spa and Novotel Phuket Surin Beach Resort.
The other three are Four Points by Sheraton Bangkok, Novotel Hua Hin Cha Am Beach Resort & Spa, and the upcoming Ibis Styles Koh Samui Chaweng Beach, which will open later this year.