Thailand's Real Estate Outlook

JLL said Thailand’s commercial real estate industry is poised to perform strongly in 2024, driven by the ongoing recovery in the country’s tourism market, growing manufacturing sectors, and flight to quality and flight to green movements into prime assets across core sectors. Tourist arrivals rose by 152% in 2023 compared to the prior years, exceeding the government’s target. JLL is projecting that Thailand and Southeast Asia’s real estate market will be influenced more in 2024 by strategic improvements in infrastructure and the quality of Grade A real estate in Bangkok. Several world-class mixed-use development projects will transform Bangkok’s real estate market bringing in over 900,000 sqm of Grade A office space, 300,000 sqm of retail centers, 5,400 units of luxury condos, and 5,900 keys of luxury hotels to Bangkok’s Central Business Area.

Fosun International is looking to sell all or part of its Atlantis luxury resort in southern China, according to Reuters. Fosun, like every other Chinese developer, is trying to reduce debt. Atlantis Sanya, on Hainan Island, has more than 1,300 guest rooms. Reuters said Fosun has sent information to prospective buyers and advisers and has been in informal discussions with them in recent months. In 2018, Fosun said they invested US$1.5 billion in the resort. As of last June, Fosun had US$30 billion in debt. Fosun also has been reported to be shopping around the sale of a stake in their Club Med unit. As for the Atlantis, Reuters said their sources suggest Fosun is targeting mainly Chinese state-backed firm and deep-pocketed investors from the Middle East as potential buyers.

Mori Trust has acquired the Fairfield by Marriott Osaka Namba hotel from investment firm PAG in a strategic move ahead of a projected tourism boom in the city and Japan. Osaka is the host of the World Expo in 2025 and sometime in the 2030s is supposed to have the country’s first casino resort. The Fairfield by Marriott Osaka Namba was built in 2020, has 14 floors with a gross floor area of 10,362 square meters.

Radisson Hotel Group will introduce its Radisson RED brand to Auckland, New Zealand. The purpose-built 322 key Radisson RED Auckland will be located in the heart of Queen Street, offering a modern lifestyle experience to its guests. The new launch draws inspiration from Aotea’s surrounding arts and entertainment venues, creating social spaces designed for guests to unwind and relax in the informal and inviting hotel environment. The property is owned by Stonewood Group and will be New Zealand’s largest leased project. The hotel is expected to open its doors in 2025. Guests can choose from Standard Rooms to spacious two-bedroom suites. There will be an all-day dining restaurant, a wellness facility as well as four function rooms for meetings and events. The hotel forms an integral part of a mixed-use commercial development, incorporating dining establishments including a rooftop specialty restaurant and retail outlets.

Bloomberry’s Solaire North casino project in Quezon City in the Philippines is set to open in late May. That is about two months from the previously scheduled opening that was supposed to be in the current month. Solaire North sits on a 15,000 square meter lot in Quezon City, involving an investment of around US$1 billion. The property is set to include a hotel tower with up to 550 rooms, and a casino with approximately 200 gaming tables and up to 3,000 slot machines. Bloomberry Resorts broke ground on the project in 2019 but faced numerous delays due to the pandemic and subsequent supply side shortages over the past couple of years.

Hilton announced the opening of DoubleTree by Hilton Bengaluru Whitefield in Bengaluru, Karnataka in India. The hotel was developed by Kalyani Developersand includes 180 rooms. The hotel is located within the upscale residential enclave, Whitefield neighborhood. Hilton has over 25 operating hotels in India with about 20 in the pipeline. They recently said they are aiming to have 75 operating and under development hotels in the next few years. This hotel marks the debut of the DoubleTree brand in one of the region’s most diverse destinations. This is also Kalyani Developers’ first hotel.

Concept Hospitality plans to open 20 hotels this year. They also expect to add at least five hotels to their Indian pipeline in 2024. The growth of the company has been terrific, rising from 54 hotels in 2020 to 103 now. Due to the pandemic, the company had a lot of disruptions to their development pipeline, so they went out and purchased the Bhanu The Fern Forest Resort & Spa in Jambughoda. In the last four years, they have been opening between 15 to 18 hotels. In 2023 they added 17 new properties. They are concentrating on properties that have a minimum of 60 keys. 60% of their Fern inventory is in Gujarat and Maharashtra but they are seeing significant development happening in Karnataka with six properties there and another three set to open this year. The first Fern hotel opened in Jaipur in 2009 and they now have two owned assets there with 6,000 keys.

OYO has launched a curated range of hotels handpicked by Founder and Group CEO Ritesh Agarwal following his appearance on Shark Tank India. The ‘Shark Fav’ collection is spread across 10 cities and includes Bengaluru, New Delhi, Mumbai, Gurugram, Lucknow, Pune, Chennai, Noida, Hyderabad, and Kolkataand is an exclusive range of hotels comprising some of OYO’s top-performing properties. Most of them include hotels from the company’s Super OYO category. Shark Fav is OYO’s second Shark Tank-inspired initiative since Agarwal’s maiden appearance on the show in January. They also recently announced ‘Wizard Shark’, a limited-edition version of its loyalty program, available for a token amount of Rs 1. The program comes with multiple benefits such as guaranteed discounts, upgrades, and rewards including a free night’s stay after seven room nights.

TreeHouse Hotels & Resorts, a hospitality chain owned by Karma Hospitality LLP, announced the signing of TreeHouse Morina in Ahmedabad, Gujarat. The TreeHouse Morina will be located in Ahmedabad’s primary business location and will offer convenient access to key commercial and industrial zones. TreeHouse Morina will feature 77 rooms, catering to both business and leisure travelers. Amenities will include a multi-cuisine restaurant, swimming pool, gym, spa, and more. The hotel will also have a 1,000-square-foot banquet hall, a spacious lawn with a capacity of 350 guests, and a conference room for MICE and parties.