TO DISCUSS YOUR PROJECT OR LEARN MORE ABOUT OUR SERVICES:

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

Hotel Investors Missing in Action

Category: Hotels, Posted:27 May 2009 | 09:27 am

Despite "The Nation's" banner front page news a few weeks ago about 100 distressed hotels for sale, the current search for hotel investors is becoming something akin to those looking for the next "American Idol. While Singapore's Jones Lang LaSalle Hotels current marketing of the 150 rai Laem Ka land which was to have been a Four Seasons Resort is attracting a number of overseas and Thai investors, the current transaction market has hit a standstill.
Talking to JLL's Managing Director of Investment Sales in Asia Mike Batchelor who summed up the regional state of play as very subdued with expectation of this trend well into 2010. Owners of existing properties and landowners who want to sell should prepare for write down asset values, though there look to be strategic opportunities emerging in the marketplace. Everyone is trying to figure out exactly where the bottom is at the moment so it's become a game of limbo.
The current debt market is for the most part frozen or term sheets simply are too unfavorable to pursue levering. This is resulting in cash sales with buyers looking to organize debt later once the lending market returns. The buyer's pool is limited with the collapse of firms such as Lehman's and a host of private equity and hedge funds; hence those acquiring assets are large Asian groups who are family ownered or high net worth individuals.
Here in Phuket we have seen over the past 12-24 months a dramatic shift from what used to by a market fueled by overseas listed institutions, and then petro dollars into now mainly Thai investors. There is little chance of a return to equilibrium until such time as the country opens up its policies and doors to international investors and sheds negative market sentiment.

Other News

Read more

The Future of Virtual Versus In-Person Hotel Events

Category: Hotels, Posted:25 Sep 2020 | 13:48 pm C9 Hotelworks and QUO have put together a short survey we hope you will take. As we look to the future of events for the hospitality and tourism sectors, we’re curious to understand more about your expectations and appetite. How far will you be willing to travel (if at all)? What subjects will you be […]
Read more

Project Rattan Focused On Restoring Thai Craft

Category: Tourism, Posted:20 Sep 2020 | 08:52 am If you find yourself in Bangkok from now until the end of December, you should take some time and visit Australian designer Patrick Keane’s Project Rattan exhibition at River City. Project Rattan is an exhibition of furniture design featuring Thai craftsmanship and aimed at restoring local artisans to create international level products. The exhibit is […]
Read more

Condo Hotels and TPO’s Hitting Bangkok

Category: Hotels, Posted:20 Sep 2020 | 08:47 am Bangkok’s hospitality market is set rapid growth in the emergence of condo hotels and third party management operators (TPO’s). The trend is best seen with the recent launch of The Wyndham Queen Convention Centre Hotel and Residences in Bangkok operated by Kew Green Management Company Thailand. Kew Green has seven properties in the pipeline in […]