Hotels are expected to see a large jump in earnings
Thai property giant Singha Estate predict a large jump in hotel revenue in 2022, and a considerable increase in real estate sales, following the return of international travellers after Thailand’s reopening. Once hotels revive, earnings from the hotel sector will increase from 4.5 billion baht in 2021 to 9 billion baht in 2022, according to the Chief Financial Officer of Singha Estate, Chairath Sivapornpan.
Hotel chains in Thailand, primarily those in Phuket and Koh Phi Phi, have performed well since the beginning of 2022, with occupancy rates rising between 70 and 80% in April due to local demand (although there are many hotels in both destinations that have not re-opened at this time, giving a false impression of the occupancy numbers).
“Last year, only hotels in the UK and Maldives could resume. But this year, all properties across the board are performing. Our hotel business in the second half will be very good as we saw good momentum starting in May.”
International travellers from European and Asian countries coming back to Thailand will help boost hotel occupancy rates in Q3, and there are hopes of high spending international visitors coming back later in Q4.
International investors have been given the green light to come back to Thailand to get properties transferred from condominium developments they bought, and the reopening on May 1 helped grow sales from the residential business this year.
Singha Estate is expected to earn 600 million baht later this year from its 3 billion baht low-rise housing project. Singha Estate aims to invest 20 billion baht in residential development between 2023 and 2025. Later this year, they will rent out Singha Complex, an office building on Asoke Road.
SOURCE: Bangkok Post
