Sale of seven hotels in Thailand expected to mop up $388m in total

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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.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.