Competitively-priced portfolio will provide the investor with an immediate market-leading presence
• One of the largest hotel portfolio opportunities to be brought to market in Asia
• Rare freehold hotels in the thriving tourism bright spots of Bangkok, Phuket, Hua Hin and Koh Samui
• Direct investment into Thailand’s hotel real estate sector to stay robust, with potential for capital gains to continue to drive strong investor interest.
• Tourism boom in Thailand in the coming years will further spur hotel industry
Singapore, 22 January 2018 – Leading global commercial real estate services firm, Colliers International (NASDAQ and TSX: CIGI) has been appointed to steer the sale of one of the largest hotel portfolio opportunities in Asia, comprising seven internationally-branded hotels in four of Thailand’s thriving travel destinations: Bangkok, Phuket, Hua Hin and Koh Samui.
The portfolio comprises one hotel in Bangkok, four in Phuket, and one each in Hua Hin and Koh Samui. They are: 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.
The seven hotels are managed by established global operators – six by AccorHotels and one by Marriott International/Starwood – comprising a total of 1,688 rooms, which will give the incoming purchaser an immediate market-leading presence in major tourism hotspots in Thailand. The diversified portfolio features an exquisite slate of freehold hotel assets that covers the upscale to mid-scale tourist segments.
Colliers International will be receiving offers for the portfolio of assets in writing by way of Private Treaty. With a highly competitive average indicative price of USD230,000 per key, the portfolio is expected to attract a number of offers.
Mr. Jerome Wright, Director for Capital Markets & Investment Services at Colliers International, says, “This presents a rare opportunity to invest in one of the most desirable hotel property markets in the region. 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 realise capital gains on non-core assets.”
The seven hotels which are operating under leading global brands – Swissotel, Novotel, Four Points by Sheraton and Ibis – have successful loyalty programmes with over 132 million members in total. Well-located in high profile tourists’ destinations and easily accessible to varied amenities, the seven hotels enjoy a high average occupancy rate of 80% - in line with, or outperforming their competitors in the respective areas.
Direct investments in Thailand’s hotel real estate sector reached an estimated 22 billion baht (USD 689 million) in 2017, up from 13 billion baht (USD 407 million) in 2016. Colliers International expects the potential for capital gains to continue to drive investors’ interest and motivate transactions in hotels in Thailand this year.
Mr. Wright adds, “A hotel portfolio with growing cashflow, occupying prime locations in Thailand and of this scale are very hard to come by. 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.”
Thailand, with its golden temples, white-sand beaches, well-developed infrastructure and reputation of hospitality excellence, will continue to be a major tourism draw. Tourist numbers to Thailand have risen rapidly from 10 million visitors a year in 2000 to 35 million in 2017, mainly driven by visitors from China and Malaysia. This will likely climb to 45 million by 2020. In particular, Bangkok has recently been rated as the most visited destination in the world according to the 2016 MasterCard Global Cities Index.
To accommodate the spike in tourist arrivals, Airports of Thailand has said that it plans to pour billions of dollars into upgrading and expanding the six main airports in Thailand over 10 years. These efforts will help to reinforce Thailand’s position as one of the world’s top travel destinations. It is predicted that by 2030, Thailand’s six main airports will be able to serve 150 million passengers a year up from 71.5 million in 2016. In addition, Thailand is also investing in improving rail connectivity, via the new Sino-Thai high-speed rail network, which will further bolster investor confidence.
The appointment of Colliers International to lead the hotel portfolio sale in Thailand is a testament to the company’s proven track record in capital markets and investment sales. It builds upon a series of residential collective sales in Singapore which Colliers had successfully brokered, as well as recent appointments to sell hotels in Singapore and in Sri Lanka.
For media query, please contact:
Ms. Wong Siew Ying
Associate Director, Marketing and Communications
Direct: +65 6531 8617
For queries pertaining to the private treaty, please contact:
Mr. Jerome Wright
Director for Capital Markets & Investment Services
Direct: +65 6531 8683
Mr. Govinda Singh
Director for Valuation and Advisory
Direct: +65 6531 8566