Koh Samui Resort investors upbeat

Koh Samui Resort investors upbeat

Thailand‘s resort investment market remains attractive to both domestic and international investors with the confirmed sale of Koh Samui’s luxury Baan Taling Ngam Resort in May, says Jones Lang LaSalle Hotels.

Another hotel transaction in Thailand during the first half was the Novotel Beach Resort Panwa Phuket, sold by Natural Hotel Panwa Co Ltd, a subsidiary of listed firm Natural Park Plc.

Tom Oakden, senior vice-president of investment sales of Jones Lang LaSalle Hotels, said the transaction reflected positive investor confidence in the long-term prospects for Thailand‘s tourism market despite the present challenges facing the industry.

Resort destinations like Phuket, Koh Samui, Pattaya and Hua Hin continue to attract interest. Investors looking to acquire assets or develop land in these markets include Thai and Asian-based hotel companies, high net worth individuals or family companies.

Mr Oakden added the successful sale of the resort in Koh Samui and other resort properties in Asia this year represented a marked difference compared to 12 months ago when sentiment was extremely cautious and investors were adopting a wait-and-see attitude.

Hotel transactions in Asia hit US$2.6 billion in 2009, up from $2.2 billion in 2008. For the first six months of 2010, Asia-Pacific stands at $1.3 billion, with Japan and China the main contributors.

A high proportion of the region’s hotel investment capital will be sourced locally in coming years. During the recent boom, global and North American players started to make in-roads across Asia-Pacific, however domestic investors dominated in 2009 accounting for 58.2% of total transaction volume, compared to 33.5% in 2008 and 39.1% in 2007.

Source: Bangkok Post