Colliers International to lead major Thai hotel portfolio sale

The Four Points by Sheraton Bangkok, along with the other six hotels, maintain occupancy at 80 percent. Photo Credit: Destination Resorts

Commercial real estate firm Colliers International has been chosen to facilitate the sale of one of the largest hotel portfolios in Asia. The lineup includes seven internationally branded hotels in Bangkok, Phuket, Hua Hin and Koh Samui: The Four Points by Sheraton Bangkok, Swissotel Resort Phuket Kamala Beach, Swissotel Resort Phuket Patong Beach, Novotel Phuket Karon Beach Resort & Spa, Novotel Phuket Surin Beach Resort, Novotel Hua Hin Cha Am Beach Resort & Spa and the upcoming Ibis Styles Koh Samui Chaweng Beach, which will open later this year.

AccorHotels Group manages six of the hotels, while Marriott International operates the seventh. The portfolio has a total of 1,688 guestrooms and the hotels have maintained an average occupancy rate of 80 percent.

Colliers expects that the portfolio will attract many offers with its average price of $230,000 per room. “This presents a rare opportunity to invest in one of the most desirable hotel property markets in the region," Jerome Wright, director for capital markets & investment services at Colliers International, said in a statement. “Tourism growth in Thailand will help to drive occupancies and higher room rates across the portfolio. We expect to see strong interest from global, regional and domestic investors, who will be attracted by the potential to use the portfolio as a platform for growth in the wider region, and to realize capital gains on non-core assets." 

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the pool at Swissotel Resort Phuket Kamala Beach, Photo Credit: Destination Resorts

New tourism initiatives set to heat up Thailand's already booming hotel investment market 

Direct investments in Thailand’s hotel sector reached approximately $689 million last year, up from $407 million in 2016. Colliers expects the potential for capital gains to continue to attract investors’ interest while sparking even more hotel sales in Thailand this year. “A hotel portfolio with growing cashflow, occupying prime locations in Thailand and of this scale [is] very hard to come by,” Wright said. “We expect the seven hotels to offer healthy recurring income streams with further potential upside, owing to the tourism boom in Thailand. Tourism will continue to be a growth catalyst for the Thai economy, with the Thai government targeting 37 million visitors this year. This forecast trumps the record 35 million international visitors in 2017.”  

Tourist numbers to Thailand are also expected to drive investor interest. Traveler numbers have jumped from 10 million visitors a year in 2000 to 35 million in 2017. Colliers expects those numbers to reach 45 million by 2020. 

Airports of Thailand has planned to spend billions of dollars to update and expand the country's six main airports over the next 10 years to accommodate the rising traveler numbers. The company aims to serve 150 million passengers a year—up from 71.5 million in 2016—at its airports by 2030. Thailand is also investing in improving rail connectivity through the new Sino-Thai high-speed railway.