Holiday Inn Launching Property Fund
Plans have been made public that the Holiday Inn Phi Phi Island is launching a property fund.
An IPO for the fund is in the works with the property valued at THB1.7 billion.
A 15 year term with expected returns of 7-8% have been set, with managed of the fund under Thailand-based Asset One.
Single asset hospitality property funds have not had a strong record in Greater Phuket back of the volatile trading history for the Luxury Real Estate Investment Fund. The fund featured a sole hotel, the Six Senses Hideaway Yao Noi and managed by TMB.
Resort market volatility is one of the reasons why fund typically focus on stabilized markets with a basket of assets to diversify risk.
That said Koh Phi Phi continues to experience a sustained high level of occupancy and rate demand.
While Thailand has tried to shift away from property funds into REITs, the take-up rate has been sluggish for hospitality assets.