Top Thailand real estate firm says many investors interested in buying hotels in Pattaya post-Covid – The Pattaya News
A deputy managing director of a top real estate services firm has said that many investors have been approaching them recently inquiring about purchasing hotels in Pattaya post Covid-19, which has been decimated by the pandemic and lack of foreign tourists.
Mr. Jakkrich Chakraphan, the Deputy Managing Director for the Hotel Investment Service Business Unit Asia, JLL (Jones Lang LaSalle) stated to the Thai press yesterday that they have received many inquiries from investors interested in purchasing hotels in Pattaya. Many hotels have stood empty since the Covid-19 pandemic ground international foreign tourism to the city to a halt. Pattaya previously welcomed close to ten million tourists a year prior to Covid19 and was the 19th most visited city in the world.
Pattaya depends on foreign tourism for over 80% of its GDP.
Mr. Jakkrich did not disclose where the investors were coming from but stated that interest was high, showing many think there could be a high demand for travel when the pandemic resides and borders re-open. However, he said that many sellers, despite showing some interest, were not being flexible enough and many were not allowing buyers to split payments into installments or to extend delivery time of the property thus being potential roadblocks for any deals.
Prior to Covid-19, Jakkrich said Pattaya had not had any major hotels for sale since before 2018 as the market and economy were fairly strong in terms of the high and mid range hotels in Pattaya. Now, post Covid-19, interest was high again for long-term investors to re-enter into the market, hoping that when borders re-open the city will see a surge in visitors once more.
Jakkrich added that most investors are interested in 4-5 star high end properties which only comprise about 20% of the total properties in Pattaya. The majority of hotels are 3 star in Pattaya, he added, and is a very competitive market.
Ms. Pimphangyomjinda Vice President of Investment Services Asia, JLL, told the press that JLL had been approached since the Covid-19 pandemic by multiple Pattaya hotel owners on potentially selling. However, the previous roadblocks mentioned by Jakkrich and “unrealistic pricing” were holding back any true sales. She said JLL is meeting with hotel owners one on one and case by case to understand their needs. Many had not expected the crisis to last as long as it had, especially into the normally profitable high season and are now uncertain when tourists can return in larger numbers.
JLL notes that the average hotel size in Pattaya is 100 rooms and almost half have less than 50.
This content was originally published here.