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Thailand remains attractive for hotel investment

Thailand is still one of the most attractive countries for investments in the hotel industry and for foreigners seeking a second home, a leading global real estate consultancy said last week.  The Thai hotel business remains “positive and healthy” despite political turmoil and military intervention in politics, according to Jones Lang LaSalle.
 
Andrew Langdon, executive vice president of the hotels and hospitality group at Jones Lang LaSalle (JLL) said the reasons for the Thai hotel industry’s resilience were wide ranging.  Although political events earlier this year drove tourist arrival numbers down, Thailand’s attractiveness as a destination remained strong and so visitor numbers are expected to rebound next year.  Real estate prices, construction costs and labor were also very competitive in Thailand.
 
Occupancy rates should pick up in the high season that begins in November, and daily room rates at mid- and large-size hotels have risen, he said.  During the first half of the year, occupancy rates at hotels on the island resorts of Phuket and Koh Samui dropped 4 percent to an average of 72 percent, according to C9 Hotelworks, another consultancy.
 
“Phuket is expected to benefit however from an extensive government-led oceanfront clean-up of illegal structures and an anti-corruption campaign which has resulted in a remarkable clearing of the island’s beaches,” said C9 Hotelworks’ managing director, Bill Barnett.
 
The government of Prime Minister Prayut Chan-o-cha has launched an aggressive campaign to crack down on vendors illegally setting up stalls on beaches and other public property, and on mafia-type scam artists who prey on tourists and try and extort money from them.  The campaign has won praise from those involved in the tourism industry.
 
Langdon from JLL said that Phuket is “the best choice for foreigners seeking a second home” in Asia.  Comparable homes in Singapore or Hong Kong sell for far higher prices.  And with Phuket now directly linked to a wider and greater number of destinations around the world by air, the island’s appeal to foreigners seeking a second or retirement home is steadily increasing.
 
Meanwhile, Thai-owned hotel chain Dusit International opened its first hotel in the United States last week, the 136-room DusitD2 Constance Pasadena in California. The hotel was redeveloped from a building that opened as a hotel in 1926 and was converted to a residential property in 1930.
 
Dusit International has 28 hotels worldwide, including six each in Thailand and China.
 
See the original article at the Thailand Focus Website.

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