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

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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

 

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16 Comments

16 Comments

  1. Avatar

    Beavis Cornholio

    Tuesday, April 27, 2021 at 3:03 pm

    Regardless of where SARS2 actually started, this is why the CCP consciously decided to allow international travel from Wuhan while they restricted domestic travel. They wanted the virus to spread & cause destruction. They wanted the economies of other countries to crash so they could buy it all up. If the Thai government doesn’t stop this (which they won’t) China will own everything in this country soon.

  2. Avatar

    Gt

    Tuesday, April 27, 2021 at 3:59 pm

    I am an investor, and could easily buy up lots of these hotels, and live in Thailand currently but no way would I invest in Thailand.

  3. Avatar

    Ben

    Tuesday, April 27, 2021 at 5:22 pm

    Looks like the right time to scoop up prime properties when the local owners are down and out and can’t take it anymore. Buy with an eye towards where we’ll be five years from now.

    Smart people are moving in now. At once in a lifetime discounts.

  4. Avatar

    John_2

    Tuesday, April 27, 2021 at 5:32 pm

    Looks like a smart move for people who have no understanding of real risk assessment and where this is likely heading.

  5. Avatar

    Bruno

    Tuesday, April 27, 2021 at 5:58 pm

    @Gt – IC and am thinking about the same. . but why dont u want to invest in thailand ?
    where else ? Vietnam ? has also hard rules fro foreigners..
    but true its feelings sometimes like we are treated as unwanted in Thailand,, ,

  6. Avatar

    Dreqo

    Tuesday, April 27, 2021 at 6:00 pm

    Chinese ya say? Oh, weird, didn’t see that coming. Those darn coincidences.

  7. Avatar

    Simon Small

    Tuesday, April 27, 2021 at 8:16 pm

    I’m sure Thailand will survive without you, @Gt – plenty of others are happy to do so.

  8. Avatar

    Toby Andrews

    Tuesday, April 27, 2021 at 8:29 pm

    This would be a risky investment. The government could change the rules of foreign ownership and any time, and the investment would lose money.
    Simply increasing the tax liabilities for foreigners would be enough.

  9. Avatar

    David Mann

    Tuesday, April 27, 2021 at 9:17 pm

    I think another piece of spin going on here. I’m not sure many people are buying hotels in Thailand right now. There are plenty of rich Thais who could snap up the “cheap deals”. Just spin to try and encourage foreigners to buy a lemon

  10. Avatar

    Ben

    Tuesday, April 27, 2021 at 9:23 pm

    If you don’t take risk then you don’t get much reward. That’s why prices are so low. These are big money buyers with a lot of experience and good lawyers. If things go right you end up with a profitable hotel and a terminal value that is a multiple of what you paid.

  11. Avatar

    Toby Andrews

    Tuesday, April 27, 2021 at 10:46 pm

    @Simon Small – How do you know that Small Simon, about GT, or is it you cannot think of a constructive post so you resort to abuse. Lame abuse also . . .

  12. Avatar

    Gt

    Tuesday, April 27, 2021 at 11:58 pm

    1. There will be no tourism for Thailand until end next year. It’s unrealistic to expect anything in the next 12 months, and even then it will take a few years to get back to anything normal.

    2. Thai baht is way over priced. Another year plus with no tourists expect to see a re pricing so makes buying much cheaper. High Thai baht makes exports less competitive.

    3. Then you have a Thai government does not like foreigners and goes out of its way to discourage foreigners living in Thailand.

    4. The bargains will come but not now, a year from now possibly. But personally I would not invest in Thailand with current government in charge to many unknowns.

  13. Avatar

    RA

    Wednesday, April 28, 2021 at 8:41 am

    @Toby Andrews – Toby, this comment coming from you is a real laugh. Don’t throw rocks if you live in a glass house.

  14. Avatar

    Bobby

    Wednesday, April 28, 2021 at 1:30 pm

    @David Mann – you are so right David. It’s a spin to stir up and encourage investors. However, investors are wealthy for a reason. They made good investments and not bad ones. Spin spin spin buddy.

  15. Avatar

    Ian

    Thursday, April 29, 2021 at 6:12 pm

    @Gt – idiot

  16. Avatar

    Timmytime

    Wednesday, May 5, 2021 at 2:02 pm

    Invest in Thailand….OH HELL NOO. The CCP mafia is going to buy up the whole country pretty soon and then the thai’s will stand there with there pants down and wonder WTF happend. Not that they have been warned about this for years but when you never learned what communism really is all about and got fed by the government etc the CCP propaganda lies since childhood this is the result. Time to wake up Thailand or is it all too late???.

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