Buy or Lease a Hotel or Resort in Thailand

Thailand As a Tourism Destination

Thailand is an established global tourism destination, complete with buzzing cities such as Bangkok, Pattaya, and Chiang Mai, and world-renown resorts and island marvels such as Phuket and Koh Samui. Also extensively recognized as South East Asia’s tourism capital, Thailand has a tremendous blend of universally-welcoming hospitality and culture, delicious food and drink, nightlife, and strong value for accommodation all across hospitality segments from economy to luxury, and boutique to wellness. On the hospitality side, Phuket and Koh Samui hotels host millions of tourists across the globe each year while international and local investors are also keen to buy hotel in Thailand and keep a lookout for distressed hotel for sale in Thailand as well.

Thailand Tourism and Investing in Thailand’s Hospitality Sector

With the COVID-19 pandemic, there are many opportunities for investment as hospitality properties have come to market for sale and lease. While the pandemic has been difficult for hospitality property owners alike, CBRE believes in the long-term viability of the sector given Thailand’s strong tourism and hospitality foundations, and historical resilience to local and international economic disruptions. Buying a hotel or distressed hotel in Thailand remains an appealing option for investors as Thailand’s combination of value and charm to international inbound travellers alike shall remain as borders open, potentially driving strong yields to potential investors vs. that of properties in major Asia Pacific markets such as Hong Kong, Singapore, and Japan with historically lower yield percentages.

Prior to the pandemic, Thailand had 39 million international tourist arrivals in 2019, representing a 4% year on year growth, and averaging 9% growth year on year over the last 5 years. Over 65% of Thailand’s tourists originate from within East Asia, followed by Europeans (18%) and other continents. And despite challenging international conditions affecting international and domestic travel over the past 15 years, such as the global financial crisis, SARS, or the Avian flu epidemic, Thailand accommodation rates and occupancies have been quick to bounce back over a shorter time period versus other countries in the region post-disruption, hence promoting greater investment stability in the eyes of investors. It can be expected that this trend of resilience will continue going forward to support strong hotel acquisition demand.

Hotel and Resort Classification and Understanding Hotel Assets

Hotels for sale in Thailand can be classified into the following categories according to ‘chain-scale’:

• Economy / Budget
• Midscale
• Upper Midscale
• Upscale
• Upper Upscale
• Luxury

Each chain-scale is differentiated by room size range, facilities offered, service level and staffing, and a variety of other factors, resulting in different levels of rate and occupancy. Bangkok’s overall market performance over 5 years from 2016 - 2020 follows, featuring a combination of independently-run, franchised, and managed hotels:

Average Daily Rate (ADR): THB 3,412 (2019) | 1.8% Y-O-Y Growth (5 years)

Occupancy (%): 78% (2019) (5 years average = 77.9%) | 3.1% Y-O-Y (5 years)

Successfully buying or leasing a hotel in Thailand (or resort or serviced apartments), however, requires more than just a view of the top line financials. Investors need to have an analytical comprehension of both external macro and micro level factors, the profitability potential of the asset, and of course, the physical asset itself, be it a hotel for sale in Thailand that is already existing, under construction, or in the planning stages. CBRE Hotels can support the investors in this.

Work with CBRE Hotels

With the broadest market knowledge, specialized capabilities, and deep experience in working with developers, investors, owners, and hotel operators alike, CBRE Hotels, a division under CBRE Thailand, has a professional team of Thailand-based hotel specialists to assist in selling, leasing and buying a hotel or distressed hotel in Thailand or resort or serviced apartments asset, or providing you with sound professional advice on all hotel property and management related matters.

We are looking forward to working with you. Please contact us.