Foreign investors eye business in Thailand as hotels face closure during new outbreak

Stock photo by Tim Mossholder for Unsplash

The new wave of Covid-19 infections this month has led to a drop in occupancy rates at Thailand hotels, some reporting drops of 5% to 30%, battering hoteliers that have already been struggling from a year of little to no foreign tourists. Some hotel operators have been forced to sell their businesses, according to the president of the Arjarnnar Asset Management Group, Thammajak Lenuangprasert.

Soft loans and the debt moratorium programme have helped keep some hotels running, but Thammajak says some have decided to sell their hotels to foreign investment groups who have been taking advantage of the low prices.

“Currently, there are European and Chinese companies looking to buy 4 to 5 star hotels in Thailand priced at over 2 billion baht, while 3 star hotels are also desirable provided they are in a prime location… Investors are eyeing hotels in Thailand as our country is a prominent tourism destination, while the outbreak has driven the selling price down and makes it an excellent opportunity to buy.”

While some foreign investors are putting money down on luxury resorts, others are investing in hostels in Southeast Asia. The Bodega Hostel Group, which runs hostels in Thailand, Indonesia, and Cambodia, was just bought out for 450 million baht by the Collective Hospitality Group.

With the new wave of Covid prompting travel restrictions and closure orders, hotel and hostel operators across Thailand are in need of financial aid, according to the president of the Thai Hotels Association, Marisa Sukosol Nunbhakdi.

“The government’s soft loan and debt moratorium programme only partly helped the hotel industry… What we really need is a co-payment programme that would help pay half of employee wages to keep the business afloat and maintain employment.”

SOURCE: Nation Thailand

Economy NewsThailand News

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