In a surprising turn, Thailand's hotel investment market is expected to cool down in 2025, with transactions projected to reach 13 billion baht, signaling a return to long-term averages after a record-breaking 2024. This shift highlights emerging opportunities in alternative financing and green initiatives, as reported by JLL.

Bangkok: The Unrivaled Investment Hub

Bangkok continues to lead the nation's hotel investment scene, capturing 60% of the total transaction values. The average deal size has seen an 80% increase compared to the past decade's average, indicating a strategic move towards higher-quality investments.

The Rise of Single Hotel Deals

The market is witnessing a notable preference for single hotel transactions over portfolio sales, exemplified by last year's landmark deal involving the Hyatt Regency Sukhumvit.

Navigating the Slowdown: New Financial Pathways

Despite a potential decrease in deal volume, JLL points to the expansion of financial opportunities, including flexible loan terms and green financing, as key drivers for future growth.

Green Loans: A Benchmark for Sustainability

Thai and international financial institutions are now offering green development loans, aligning with the Bank of Thailand's standards, marking a significant step towards sustainable hotel operations.

Strategic Moves in a Cooling Market

JLL emphasizes that the current market normalization presents a unique opportunity for investors to make strategic decisions, preparing for the evolving landscape of the hotel industry.