Shangri-La Jumps Into Thonglor Feeding Frenzy
Bangkok’s trendy Thonglor district is experiencing skyrocketing land prices being driven by high-levels of demand for new hotel and condo projects.
Turning heads recently is Thai-listed Shangri-La PCL’s acquisition of just over a 1.2 rai set of connected plots with a total transaction value of THB1.885 billion (roughly USD60 million). On a per square meter basis the land is over THB2.8 million a square wah (about USD22,000 per square meter).
According to documents filed with the Stock Exchange of Thailand (SET), Shangri-La plans a four-star lifestyle -oriented Hotel Jen branded property with approximately 350 room in a 27-story building.
The most recent hospitality opening in the area has been the debut of the 301 room Hotel Nikko.
There is no indication in the current uptick in Bangkok land appreciation, as most the outlook of most developers is that land values are going to continue to move upwards.
Common thought would have been that highest and best use for this premium-type of land would have been on condominium residences, but Shangri-La is taking an alternative view on Bangkok’s tourism sector.