JLL to sell high-end hotels in Phuket and Sukhumvit

Four Points by Sheraton Bangkok, Sukhumvit 15

Through an international tender sale, two high-end hotels in Sukhumvit and Phuket, Thailand have been put on the market. JLL’s Hotels & Hospitality Group is conducting the sale of The Four Points by Sheraton Bangkok Sukhumvit 15 and Novotel Phuket Karon Beach Resort & Spa.

The 268-guestroom Four Points by Sheraton Bangkok Sukhumvit 15, which is managed by Marriott International, is on a 38,750 square-foot plot in Sukhumvit Soi15. Meanwhile, the 224-guestroom Novotel Phuket Karon Beach Resort & Spa, which is managed by AccorHotels, is on a 200,316 square-foot site near Karon Beach’s northern end.

Mike Batchelor, ID of investment sales at JLL Hotels & Hospitality Group Asia, told the Bangkok Post that Thailand already has a well-developed infrastructure, a strategic location and a strong reputation as one of the world’s most popular vacation hotspots. Although these factors have all played into attracting investors, these investors have been vying to take over investment grade assets, especially in major cities, like Bangkok and Phuket. “For this reason, we expect high interest from both regional and domestic investors attracted by a seldom-offered opportunity to acquire hospitality assets with strong in-place cashflow and the benefit of management under two of the world’s largest hotel management companies,” Batchelor said.

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MasterCard named Bangkok the world’s most visited city in 2016 as its total tourist numbers reached 20.8 million. Its hotel market can further benefit from its location as a regional hub supported by ongoing airport expansions aiming to accommodate 100 million passengers by 2022.  

Phuket's airport currently services direct flights from over 70 cities in 21 countries, allowing the island to remain one of Thailand’s most favorite beach getaways. As a result, a number of the world’s leading hotel brands have opened properties in the island. Both the Four Points in Sukhumvit 15 and the Novotel in Phuket have consistently sustained strong performance with occupancies over 80 percent as evidence to the island’s popularity. According to JLL, Phuket has continued substantial growth between 2011 and 2016, with a five-year compound annual growth rate of 7.4 percent in visitor arrivals. The province has planned to keep its tourism industry growing and on the map with significant infrastructure spending for various projects, including the proposed light rail system and ongoing renovations of Phuket International Airport’s domestic terminal.