Buying Hotel In Thailand During Pandemics
Buying a hotel in Thailand during pandemics may be a good idea.
Prior to the recent pandemics and COVID traveling restrictions, Thailand had thirty-nine million international tourist arrivals in 2019. This represents a 4% year-on-year growth. Over the last 5 pre-COVID years an average of 9% growth was demonstrated.
The great majority (more than 65%) of Thailand’s international tourists’ arrivals were originated from within East Asia. Europeans followed with 18%, while other continents’ share was 17% altogether.
Despite arduous international conditions influencing international and domestic travel over the past 15 years (global financial crisis, SARS, the Avian flu epidemic, and alike), Thailand accommodation rates and occupancies have been quick to bounce back over a shorter time period versus other countries in the region post-disruption, hence promoting greater investment stability in the eyes of investors.
It can be anticipated that this trend of stability will be standing strong to support powerful hotel acquisition demand once COVID restrictions are flagged down.
There are many opportunities now for investors looking into hospitality properties that become affordable now since the pandemic has been difficult for hotel owners
- Thailand’s combination of value and charm to international inbound travelers will potentially drive strong yields to potential investors, especially if compared to major Asia Pacific markets such as Hong Kong, Singapore, and Japan with historically lower yield percentages
- These yields maybe even stronger because prices for hospitality properties are on the lowerest level caused by pandemics.
Successfully buying a hotel or resort in Thailand today may require more than just evaluation of the business’s financial bottom lines. Investors today need to apply an analytical understanding of both external macro and micro level factors and predict the potential profitability of the hospitality property after COVID.
Additionally, investors must analyze the physical asset itself, be it a hotel for sale in Thailand that is already existing, under construction, or in the planning stages.
Contact RE/MAX CondoDee if you think about buying a hotel in Thailand – we are looking forward to working with you.
Teerawin (Win) Tthaviwatkhonsin
Founding Director at RE/MAX CondoDee