Thailand's hotel sector saw significant transaction activity in 2023, with 15 major hotels changing ownership for a total of 22 billion baht, according to real estate firms Jones Lang LaSalle (JLL) Thailand and Colliers International.

Krit Pimhataivoot, Head of Capital Markets at JLL Thailand, reported that last year's hotel transactions were significantly higher than the country's historical annual average of 10 billion baht since 2010. Approximately half of these deals involved properties in Bangkok, followed by Phuket and Chiang Mai.

The highest-value transaction recorded by JLL Thailand was the sale of the Hyatt Regency Bangkok Sukhumvit.

The hotel was acquired by Grand Residence International Co Ltd from Grande Asset Hotels and Property Plc for 5.055 billion baht, making it JLL Thailand’s highest-value single-asset hotel transaction to date.

Other notable deals managed by JLL included the sales of Lamai Samui Resort and Spa, Hilton Garden Inn Phuket, and Portfolio Service Apartment, a property comprising 1,800 rooms.

Colliers International Thailand, another real estate consultancy, also observed strong investor interest in Thai hotels, particularly in Bangkok, Phuket, Samui, Pattaya, Krabi, and Chiang Mai.

Pattarachai Taweewong, Director of Research and Communications at Colliers Thailand, stated that both domestic and international investors remain highly active in the market.

Colliers Thailand forecasts that hotel transactions in 2024 could reach approximately 18 billion baht, marking the highest transaction volume in five years.

Investors are particularly interested in acquiring hotels that meet specific criteria, including:

- A minimum return on investment of 6% per year.

- Buildings no older than 15 years, with a preference for those under 10 years old.

- Hotels with at least 150 rooms.

Experts indicate that Thailand's hospitality market remains an attractive investment opportunity, with continued demand for high-quality assets in prime tourist destinations.