Hotel Investors May Seize Tourism Blow Opportunities

With hotels in prime areas taking a severe hit to their businesses , operators in Phuket and Chiang Mai say they are waiting for hotel investors to take advantage of the economic downfall from Covid-19 .

But for now, the notion seems to be nothing more than speculation reminiscent of any other economic downturn faced by investors having trouble deciding whether to invest in the stagnant economy.

La-iad Bungsrithong, president of the Northern Chapter of the Thai Hotels Association (THA), said that she did not refute the possibility that small and medium-sized hotels, or those based solely on a particular market, such as China, would be able to exit by selling their properties.

“Last year, only four hotels worth 5 billion baht were sold because of a shortage of attractive properties suitable for investment,” said Mr Phattarachai Taweewong, Associate Director of Research and Communications at Colliers International Thailand Real Estate Consultancy.

Mr Phattarachai said that the study showed a worshiping of the effect of the pandemic on hospitality business before June, with hotel operators losing more than 50% of bookings and revenues in the first half of 2020.

Thailand remains the favorite destination for global visitors, which will lead to a fast turnaround in the hospitality industry when the pandemic is under control, said Mr Phattarachai.

The anticipated recovery in tourism demand has prompted hotel investors to look at the acquisition of existing hotels in preparation for the return of travelers after the outbreak, he said.

Hotels located in the prime areas of Bangkok , Phuket , Koh Samui , Pattaya and Chiang Mai are popular with local and foreign investors.

Kongsak Khoopongsakorn, president of the Southern Chapter of the THA, predicted that tourism will resume in October, but only 30-40 per cent of demand compared to the usual situation, which may be inadequate for hotels to make a profit.

SOURCE: Bangkok Post

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