BREAKING NEWS Novotel Phuket Panwa Sold For THB 870 Million

One of the islands distressed hotel assets has transacted with the Novotel Phuket Beach Resort Panwa selling for THB 870 million. The per key sale equates to just over THB 4 million for the 216 room development, of which 77 are currently in operation and another 139 under construction (75% completion to date).
According to the notification to the SET (Stock Exchange of Thailand) Natural Park Public Company Limited who control the asset agreed to the sale to Ton Vassana Company Limited. Reportedly the book value as appraised last year was THB 747 million assuming full remaining construction completion hence a gain was made on the sale.
The expansion of the hotel had been delayed for some time after the insolvency of Lehman Brothers who were shareholders in a subsidiary.
Despite the financial downturn and political disturbances in the country, transactions within this year for hotel assets are expected to be higher than the past 2 years. Many market watchers are viewing the intended sale of the Baan Taling Ngam Hotel in Koh Samui with interest to gauge values.