Hotel gold rush cools this year, but green deals heat up
JLL says Thailand’s 2025 hotel market is normalising sustainably
After a blockbuster year for Thailand’s hotel market in 2024, the pace of property deals is beginning to cool, but savvy investors are turning their eyes to greener pastures.
According to global real estate firm JLL, Thailand’s hotel transaction market in 2025 is undergoing a “normalisation” phase, with activity returning to sustainable levels. Following a record-breaking 22 billion baht in hotel transactions last year, this year’s total is expected to hit around 13 billion baht, which aligns closely with the country’s long-term market average.
“While the headline figures might seem like a slowdown, the reality is more nuanced,” JLL reported. “This is a strategic reset—fewer deals, but higher quality investments.”
Bangkok remains Thailand’s top destination for hotel investment, accounting for a dominant 60% of total nationwide transaction values. What’s changed is not just volume, but the nature of deals—this year’s average deal size stands at 1.8 billion baht, around 80% above the 10-year average. This signals a shift away from volume-based buying to high-value, single-asset acquisitions.
Gone are the days of sweeping multi-property portfolio buys. In their place? Single-hotel purchases like the headline-grabbing Hyatt Regency Sukhumvit deal set the tone for quality-focused transactions in the luxury segment.
But the real buzz is around green finance.
Alternative financing models are rapidly emerging as a lifeline for hotel developers looking beyond traditional banks. Flexible loan terms and access to non-bank funding channels are opening doors for projects with sustainable and forward-looking visions, reported The Nation.
JLL noted that Thai banks, as well as international financial institutions, are now offering eco-friendly development loans to hotel operators—guided by the Bank of Thailand’s green financing standards. These loans aren’t just for show. They’re becoming critical for brand credibility and long-term reputation in a market where ESG benchmarks are now a baseline.
“Green financing is no longer a niche concept—it’s a competitive edge.”
While the fever-pitch market of 2024 may have passed, 2025 could be the year smart investors secure future-proof deals in a landscape that rewards sustainability, innovation, and selectivity. The gold rush may be over, but the green boom is just getting started.
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