TO DISCUSS YOUR PROJECT OR LEARN MORE ABOUT OUR SERVICES:

  • This field is for validation purposes and should be left unchanged.

Holy Grail Phuket Hotels for Sale

Category: Hotels, Posted:13 May 2009 | 10:55 am

A chill swept through me yesterday despite the 30 degree weather as I read the front page of The Nation yesterday which announced more then 100 hotels for sale and touted a hospitality industry facing catastrophic crises. Phuket was mentioned to have 28 hotels for sale, though no names were mentioned and the article contained only vague references to a property sales representative in Koh Samui.
While things are grim for tourism at the moment I found the article a bit light on facts and written in a sensational manner that will only spur a series of unfortunate news about Thailand abroad. Again negative sentiment attracts the news more then reality and shotgun blasts are becoming far more common these days then direct and pinpoint accuracy.
Not a week has passed this year when an overseas or Bangkok investor calls, emails or visits the office and asks about a cheap distressed hotel for sale they can buy. More often then not the price they have in mind is a fraction of the development or replacement cost of existing product and they seem to think the island is a virtual 7-11 of hotels deals.
Over the past 3-4 years there have been a limited amount of hotel transactions. Banner sites sold included the Crowne Plaza which is now Moevenpick in Karon, Kamala Bay Terrace, two properties in Kata and the present Courtyards in Patong, Kamala and Surin which were purchased, renovated and branded by Destination Hotels. Lehman's was a big player a few years ago, including the Novotel in Panwa.
Today as we sit there are not that many new hotels which entered the supply stream in the boom years and are not struggling under debt. The island is a strong regional player performance wise, labor costs are low and gross operating profits when rates and occupancies are high hit the 40-50% and above. Like real estate the present market does have some distress in it and a handful of hotels are indeed for sale, though they are not in danger of immanent closure nor repossession by the banks.
At the end of the day Phuket's hospitality market is strong on fundamentals but currently suffers from an omnibus approach to being lumped into the entire Thai basket of issues and problems While we welcome hotel buyers here, and certainly there will be transactions in the near future the iconic 28 seems to have been plucked from thin air.

Other News

Read more

New C9 Hotelworks Bali Report Released

Category: , Posted:16 Mar 2024 | 08:49 am Bali is back and tourism is booming. Did you know in 2023 5.3 million international visitor arrivals and nearly 10 million domestic travelers went to Bali? Read the latest on one of Asia’s best-known travel destinations in C9 Hotelworks and Horwath HTL Bali Hotel and Branded Residences 2024 report. Top tourism source markets include Australia, […]
Read more

C9 Hotelwork’s Releases Philippines Branded Residences Report

Category: Real estate, Posted:25 Feb 2024 | 19:51 pm The Philippines branded residences market is experiencing a significant maturation, impacted by urbanization and a post-pandemic shift in lifestyle changes. The market is poised for a high level of growth. C9 Hotelworks newly released Philippines Branded Residences Market Update shows a 105% increase in the pipeline, translating to an additional 5,599 units supplementing the current […]
Read more

Phuket’s Largest Highway Interchange Expected To Attract Largescale Development

Category: , Posted:10 Feb 2024 | 09:42 am The release of plans for a massive highway interchange in North Phuket is spurring development activity in the Mai Khao area. A Mueang Mai interchange on the road leading to Phuket International Airport on the island’s main North-South artery will also have a  direct connection to the East Coast spur highway 4027.  (CLICK to see […]
SiaJai logo

Thailand's Leading Homecare Marketplace