2016 Hotel & Resorts Newsletter (March 2016 Part 6)
Newsletter Juslaws & Consult (J&C) – March 2016 2016 Acquisition of Hotels & Resorts in Thailand and Due Diligence Report
Juslaws & Consult have published recently the “2016 Acquisition of Hotels & Resorts in Thailand and Due Diligence Report” at the end of this month, a document that will help to understand the main key upcoming acquisitions. We have advised and conducted several due diligences of the most notorious acquisition of hotels and licensing in the history of Thailand
Nowadays tourism makes a larger contribution to Thailand’s economy. Tourism contributes almost 10% of GDP and it is forecast to rise to THB 4,496.7 bn by 2025 (25.8% of GDP). Travel & Tourism attracted a capital investment of THB 235.3bn in 2014, rising 5.4% in 2015, and is expected to rise by 6.0% pa over the next ten years till THB 444.2bn in 2025. According to MasterCard’s 2015 Global Destination Cities Index, Bangkok was the most visited city in Asia. This had a positive effect on hospitality.
4 and 5 star Hotels Return on Investment rose to 8 to 10% in 2015.The forecast of 2016 looks fantastic with an increase of tourism revenue from this year’s originally projection of Bt2.3 trillion to Bt2.4 trillion.
Tourism Authority of Thailand (TAT) expects to increase arrivals of tourists by 4 % but revenues by 8 % during 2016. Tourism will have a positive effect on construction because new development projects will be seen in Bangkok, Chiang Mai and Phuket Island. The real estate market in Thailand will experience stable growth of 3-7 per cent annually over the next 10 years.
Thailand remains an excellent hub for the hospitality industry. The return on investment for hotels in Bangkok increased in 2015. The 4- and 5 stars hotels in Bangkok rose to 8-10% last year from 7-9% in 2014, with three-star Return on Investment rising to 7- 9% from 6-8%. 2015 was an excellent year with international tourist arrivals from January-October 2015 increasing by 24.8% year-on-year to 24.4 million.
Part 1: Petroleum Concessions in Thailand
Part 2: GTCC Membership
Part 3: Boi Seminar
Part 4:Thailand Japan Young Entrepreneurs Networking
Part 5: PPP and Civil Construction Projects in Thailand
Part 6: 2016 Acquisition of Hotels & Resorts in Thailand and Due Diligence Report