Pattaya, Phuket and the 5-star hotels

Mar 24, 2017 | Emerging Trends

For many years Pattaya was famous or rather infamous for its thriving nightlife and other nocturnal activities attracting single men from around the world. In fact, the city was probably not what you would naturally associate with luxury 5-star hotels with a reputation to maintain internationally. Spring forward just a few short years and the changes that the city has made are quite incredible with the city visited as much by families as any other group.

Phuket has always had much more of an upmarket feel and the film set locations have been a natural draw for visitors. The island has had to move with the times of course but the changes that were required to be able to widen its appeal were nowhere near as great as those needed by Pattaya. Nevertheless, Phuket and Pattaya stand almost toe to toe these days with the 5-star hotels desperate to make their presence felt in both resorts.

Pattaya, Phuket and the 5-star hotels
Pattaya, Phuket and the 5-star hotels

 

Thailand is witnessing an increase in tourist numbers every year and two of the most popular destinations are Phuket and Pattaya. This means that the amount of accommodation that is required increases annually as well – something that is good news for the developers and the hotels. As the number of developments increases, both condominiums and hotels, so too does the need for investors and with both locations being already popular, there is a need for the developers to offer incentives.

Developers have for a long time offered different incentives such as small discounts, holidays to faraway destinations and attractive payment terms with varying degrees of success. The problem is, with the Thai Baht being quite strong, there needed to be something a little more appealing to draw in more investors. Competition is quite high so the incentives need to be innovative and above all, secure.

With this is mind, the rental guarantee concept started to really take off. One of the first and initially most successful examples is offered by the New Nordic Group in Pattaya and has proved to be successful for over a decade. The scheme has been copied by various developers but it was the fact that some of the offers were available in the major 5-star hotels that made investors stand up and take note the most.

There are several of these offers available but there are three that stand out from the rest and these are available in Pattaya and Phuket. The first in Pattaya, is available in an already completed project that is owned by the Amari hotel. The deal available is a guaranteed return of 5% p.a. for five years with a predicted return of over 8% p.a. in the following years. This is the sort of offer that will appeal more to cautious investors and the returns reflect this but are still quite healthy.

The other two suggested offers are available on the island of Phuket in the south of Thailand and are in hotels from Ramada and Best Western, both of which as currently under construction. To reflect this fact and that the perceived level of risk is higher, the deals on offer are a guaranteed return of 7% p.a., again for five years with projected returns in future years of above 10% p.a.

If you are thinking about investing in a rental guarantee concept in Thailand, then these offers will be ideal for you. The investments are in 5-star hotels and have all the benefits associated with this such as being in a prime location, having excellent financial backing and they are superbly run properties. Why would you look elsewhere?

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