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Thailand sees 3rd highest hotel investment in Asia Pacific

Thailand has experienced another active year recording US$335 million in hotel transactions, led by the capital, Bangkok.

Boris Sullivan

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Hong Kong leads Asia Pacific for hotel deals in first nine months of 2017 and Thailand ranks third after Japan

Hong Kong led Asia Pacific by volume of hotel investment transactions, with 11 deals worth a total of nearly US$1.5 billion in the year to September, according to the latest figures released by JLL. Japan and Thailand saw the second and third highest levels of activity across the region at US$1.2 billion and US$335 million in transaction volumes respectively.

Of the Hong Kong deals, several transactions have potential for conversion into residential or office space. Recently, hotel owners have been considering converting their assets given the strong demand for office space.

“For investors, Hong Kong hotels are appealing because of the discounted rate per square foot when compared to other asset classes, something that has been a factor in some recent transactions. Hotels such as J Plus Hotel has already been purchased for conversation, likely into an office,” says Mike Batchelor, Head of Investment Sales Asia, JLL Hotels & Hospitality Group.

Thailand has experienced another active year recording US$335 million in hotel transactions, led by the capital, Bangkok.

This is the highest total volume recorded since 2014. JLL acted as sole advisor on several hotel deals this year including the Premier Inn portfolio and Sukhumvit S27, selling for a combined US$111.5 million. Interest in Thailand is being buoyed along by the continuing stable political environment and relative affordability of hotels compared to a number of other Asian countries.

Domestic investors most active in Japan

Japan has remained a stellar performer in terms of hotel investment since 2013, with transaction volumes reaching more than US$1.2 billion as of September 2017. The lead up to the 2020 Tokyo Olympics will continue to boost tourism, with the government aiming to double the number of foreign visitors to 40 million by 2020.

“Domestic investors are traditionally the most active buyers in Japan’s hotel market,” explains Mr Batchelor.

“However, we are now witnessing international investors becoming increasingly active in Japan, as market fundamentals continue to improve and it remains one of the most attractive debt markets in the region. We expect a solid last quarter of 2017 in terms of investment activity.”

 

Regional picture

Australia remains a firm favourite for hotel investors globally, particularly for Chinese investors, due to its strong inbound tourism growth. Investment volumes were close to US$110 million as of September 2017. “Mainland Chinese buyers have purchased around US$1.4 billion of Australian hotels since 2015 but given the recent curbs on outbound capital by the Chinese government, this strong demand may somewhat slow down in the near term,” says Mr Batchelor.

Strong year-end volumes expected

Overall hotel investment volumes in Asia Pacific hit US$5.3 billion in the first nine months of the year, down 22 per cent year-on-year. In Q3 alone, sales activity reached US$1.2 billion across the region, with around US$1.5 to 2.0 billion in deals expected to close by year-end. A large component of this volume is expected to come via Japan.

“We expect total year-end hotel investment volumes to reach between US$7.5 and US$8.0 billion across Asia Pacific, slightly down from US$8.6 billion recorded last year,” says Mr Batchelor. “There is likely to be a decline of around 10 per cent in 2017 due to the lack of hotels for sale in the market and a pricing gap between buyer and seller expectations.”

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National

Thailand to further ease COVID-19 restrictions

The Cabinet approved to ease the level of control over the country under the COVID-19 situation including relaxing businesses and activities in 4 areas.

National News Bureau of Thailand

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The Cabinet approved to ease the level of control over the country under the COVID-19 situation including relaxing businesses and activities in 4 areas.

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Economics

BoI plans more efforts to promote BCG economy

National News Bureau of Thailand

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BANGKOK (NNT) – The Board of Investment (BoI) is working with related agencies to rev up promotion of the bio-, circular and green (BCG) economy to help drive growth over the next 5 years.

BoI Secretary-General Duangjai Asawachintachit said the BoI is looking into more business categories for high technology as part of efforts to promote the BCG economy.

She said the government is focused on developing the bio-economy as Thailand has more than 30 million people working in the farm sector, yet most of them remain in poverty.

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Asean

ASEAN, Canada, UN Women launch 5-year programme to advance Women, Peace and Security Agenda

Asean News

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Joint Press Release ASEAN, Canada, UN Women jointly launch 5-year programme to advance Women, Peace and Security Agenda
Jakarta/Ottawa/New York, 24 February 2021 – The Association of Southeast Asian Nations (ASEAN), Canada and UN Women jointly launched today a five-year programme to expand and strengthen women’s leadership and participation in conflict prevention, resolution and recovery in South-East Asia.

The CAD 8.5 million (US $6.36 million) programme, “Empowering women for sustainable peace: preventing violence and promoting social cohesion in ASEAN”, is funded by Global Affairs Canada to support ASEAN and the implementation of the ASEAN-Canada Plan of Action 2021-2025, with the support of UN Women as a lead UN partner.

“Canada is proud to launch this flagship initiative that uses the women, peace and security approach to promote inclusive and sustainable peace and security in the region, while addressing the systemic gender inequality,” said Diedrah Kelly, Canada’s Ambassador to ASEAN.

ASEAN has made important strides to advance women, peace and security agenda, including the adoption of the first ‘Joint Statement on Promoting Women, Peace and Security in ASEAN’ in 2017, the launch of the ASEAN Women’s Peace Registry in 2018, and convening the first ASEAN Symposium on Women, Peace and Security in 2019 and the ASEAN Ministerial Dialogue on Strengthening Women’s role for Sustainable Peace and Security in 2020.

Secretary-General of ASEAN Dato Lim Jock Hoi said, “ASEAN is working concertedly to advance women, peace and security agenda across the three ASEAN Community Pillars as part of our commitment to promote gender equality and the roles of women in the implementation of the ASEAN Comprehensive Recovery Framework.”

The COVID-19 impact has increased the risks for women and girls in fragile and conflict-affected contexts and this challenges us to re-examine threats to human security. “The pandemic highlights the important linkage between peace, humanitarian and development and the critical need for women’s leadership and participation to ensure effective and comprehensive response, from policy decision-making to peace building and pandemic response,” said Jamshed Kazi, UN Women Representative and Liaison to ASEAN.

The new programme reflects the commitment of ASEAN and Canada to promote gender equality and to respond to an increasingly widespread calls across the globe for women to be empowered to lead and participate in peace and development.

ASEAN includes Brunei, Cambodia, Indonesia, Lao People’s Democratic Republic, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Viet Nam.

For more information, please contact:
Montira Narkvichien
Regional Communications Specialist
UN Women Asia and the Pacific
Tel: +66 2 288 1579 | Mobile: +66 81 6688900 | Email: [email protected]

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