The Thai island of Phuket is experiencing a surge in hotel growth, according to a new report from Jones Lang LaSalle. The first half of 2012 saw record sales and experts are betting the new levels of attention from investors will make the island the next hot spot in the Asia Pacific. Phuket has long been a resort destination in the area, but tourism volume skyrocketed 30% in 2011 thanks to lower transportation costs throughout the area. A new $180 million airport expansion is expected to make things even easier for tourists in the coming years and investors are lining up to buy premium properties to accommodate them. For more on this continue reading the following article from Property Wire.
Phuket hotel investments have surged and are predicted to reach a record THB10 billon in 2012 as international investors target landmark properties, according to Jones Lang LaSalle Hotels.
The firm says that the Thai island is set to be one of Asia Pacific’s hotel investment hot spots in 2012 following record sales in the first half of the year.
‘Phuket has seen record investment in the first half of 2012 and the market looks on track to enter a renewed period of growth as savvy international investors strategically secure landmark properties in Asia’s premier resort destination,’ said Mike Batchelor, managing director of investment sales at Jones Lang LaSalle Hotels.
Since the start of the year, Jones Lang LaSalle Hotels has advised on and managed the sale of prominent properties in Phuket, including the acquisition of the 368 room Movenpick Resort and Spa, the 260 room Evason Phuket and Bon Island at Ravai, and 254 room Laguna Beach Resort.
‘With international passenger volumes surging 30% in 2011, the island’s international appeal remains strong. In fact, international visitors to Phuket exceeded domestic arrivals for the first time. This growth has been fuelled by excellent air links and the expansion of low cost carriers across the region,’ Batchelor added.
Other factors driving growth to the region include a US$180 million planned airport upgrade slated to commence later this year, which will double the existing capacity to 12.5 million passengers per annum. In addition, political stability in Thailand since the 2011 elections has seen international confidence return to the region as evidenced in the spate of recent sales.
Further activity is expected in the second half of 2012 with Jones Lang LaSalle Hotels launching a five star asset on Phuket’s west coast this week, which is scheduled to open ahead of the peak season this year.
This article was republished with permission from Property Wire.