Exploring Opportunities: Hotels for Sale in Phuket

Given the island’s popularity as a tourist and lifestyle destination, investors are keeping a keen eye on hotels for sale in Phuket. Like the rest of the world, Phuket’s hospitality industry was hit hard by the pandemic. But the world-renowned resort destination is quickly returning to its pre-pandemic state of performance and appeal, demonstrating its long-term viability as a hospitality hotspot, as well as a key market and Tier 1 city for buying or leasing resorts.

It's no surprise that investors are keen on the Phuket market, as it has become a popular destination for travelers who are drawn to its combination of breathtaking natural beauty and modern commercial conveniences. With its pristine beaches, lush greenery and top-notch amenities, Phuket has become a prime destination for domestic and international tourists alike, leading to a surge in demand for hotels. To cater to this demand, many of the hotels for sale in Phuket are thoughtfully positioned to offer a range of experiences, from peaceful retreats away from the hustle and bustle to being conveniently located near popular shopping areas and top attractions, including world-class marine sports facilities and some of Thailand’s best golf courses. These properties are well-positioned to capitalize on Phuket’s continually growing popularity as a travel destination, and as the demand for hotels continues to increase, so too does the potential for profitability, making Phuket a highly attractive investment opportunity for those seeking to invest in the thriving tourism industry.

Phuket’s recent drive to improve its infrastructure is not just about expanding its existing facilities, but about creating a truly exception traveler experience that will keep tourists coming back for more. Expressways between the airport and coast, as well as between coasts, will make it easier and faster for tourists to get around, allowing them to spend more time exploring the natural beauty, rich local culture, and world-class facilities Phuket has to offer. Meanwhile, a second airport will increase the number of travelers who can reach Phuket at any given time, ensuring that this tropical paradise remains accessible and welcoming to visitors from all over the world. With these exciting new improvements on the horizon, Phuket is poised to become one of the most sought-after destinations in the region, with a corresponding increase in hotel demand and profitability.

The allure of a well-developed destination rich in beauty and culture is just one reason why investing in resorts and hotels for sale in Phuket can be a smart move. Historically, Phuket experiences a steady increase in tourists each year, generates strong hotel yields, and is a market that quickly rebounds from economic disruptions. In fact, Phuket hotel performance is exploding; key financial indicators in Q4 2022 have already surpassed that of pre-COVID Q4 2019 and continue to rapidly improve, putting long-awaited cash in the pockets of owners at a rapid clip, and allowing for significant potential returns for would-be hotel owners of all financial backgrounds.

Phuket’s real estate market has also become increasingly popular as a destination for meetings, incentives, conferences and exhibitions, collectively referred to as MICE. The island offers a unique and unforgettable setting for corporate events and gatherings, conventions, and even destination weddings and other special events. To accommodate this growing demand, hotels in Phuket are offering state-of-the-art conference facilities, spacious meeting rooms and flexible event spaces to meet the needs of businesses and organizations. Additionally, many of these hotels are strategically located near major transportation hubs, making it easy for attendees to get to the island and participate in these events.

Overview of Chain-Scale Classifications

There are a wide range of hotels for sale in Phuket, generally categorized by their offerings to various travelers of different age groups, cultures or lifestyles. One way these properties can be classified is by chain-scale ranking, ranging from economy to luxury, typically a function of room size ranges (e.g., 16 square meters for economy rooms and over 45 square meters for luxury rooms) and non-room facilities such as pools, restaurants, fitness centers, kids’ clubs and more. As such, room sizes, facilities on offer, physical appearance and the overall experience created by the hotel dictate the average daily rate (ADR), the amount guests pay per night. Hotels with a higher ADR may be seen as more upscale and desirable, while those with a lower ADR may appeal more to travelers looking for more affordable options.

Economy

Economy accommodations are those that offer minimum amenities. Properties can be room-only, but some may offer limited services and facilities, such as a gym or pool and a grab-and-go meal. Depending on the property, additional amenities may be available at an extra cost. Some brands at this level, which cater to budget travelers and those looking for short stays, include Days Inn, Travelodge, and Red Planet, among others.

Midscale & Upper-Midscale

Midscale and upper-midscale properties are a step up from economy accommodations, typically placing more emphasis on creating comfortable, yet no-frills, mid-tier, mass market stays for guests to quickly check-in, enjoy the city, return to rest, and check-out. These properties often have limited-service restaurants or cafes, and offer recreational facilities such as a pool or fitness center. Midscale hotels include brands like Best Western, Ibis, and Ramada, while upper midscale hotels include brands like Hilton Garden Inn.

Upscale & Upper-Upscale

Upscale and upper-upscale hotels provide full service and amenities for guests. Fitness centers, meeting rooms, restaurants, spa facilities and other services and amenities are common fixtures that enable guests to spend more time on the property, such as for events. Properties classified as upscale and upper-upscale include Amari, DoubleTree, Sheraton, Avani, and Hyatt.

Luxury

Luxury properties are accommodations that go above and beyond full-service offerings to provide enriching and enhanced experiences for guests. Rooms are lavish and modern or heritage, designed for function, aesthetics, and elegance, emitting a sense of opulence. Fitness centers and swimming pools are common features, as are multiple full-service dining options, spa centers, meeting rooms or community spaces, clubs or lounges, and services such as dry-cleaning. Some properties may also offer butler or concierge services. Banyan Tree, Four Seasons, Ritz Carlton, and W Hotel are among the brands categorized as luxury. 

Explore the resorts and hotels for sale in Phuket.

Areas of Phuket – Key Highlights

With improved transportation options and more travelers coming to experience the natural beauty and world-class facilities that this thriving island paradise has to offer, now is the perfect time to take advantage of the many hotels for sale in Phuket. However, choosing where to invest depends on the experience you hope to create. As Thailand’s largest and most developed island, different parts of Phuket have unique characteristics that suit various types of travelers.

Inland:

Phuket Town is the working heart of Phuket, offering a unique and local experience for travelers with its mix of tourist spots and local culture. This bustling neighborhood is a great option for travelers looking for less expensive accommodations and easy access to the rest of the island, as an abundance of songthaews provide convenient transportation to the beaches. Phuket Town is a destination in its own right, with its historic, Sino-Portuguese architecture and multiple night markets open throughout the week. Hotels for sale in Phuket’s town center provide an opportunity to tap into the area’s growing popularity as a tourist destination.

East Coast:

Phuket’s east coast can be split into two distinct regions: north and south.

The northern part of the east coast is home to Kung and Ao Po bays, as well as Yamu Cape. The area is known for its fishing villages, marinas, and other local fixtures, lending it a quiet, charming atmosphere. Meanwhile, the southern part boasts scenic landmarks such as Chalong Bay, Panwa Cape, Phuket Bay and Siray Island, as well as numerous resorts and wellness centers. Because of its abundance of beautiful scenery, this area is ideal for those seeking seclusion and a chance to connect with nature. Accommodations in this area are in high demand as the region continues to draw in tourists looking for a peaceful escape.

West Coast (North):

The west coast of Phuket can be divided into three sections: north, central, and south.

The northern part features tranquil beaches such as Mai Khao, Nai Thon and Nai Yang, as well as the stunning Sirinat National Park. This area is described as peaceful and private, making it a haven for honeymooners and families, and boasts the closest proximity to Phuket International Airport. 
 

More tourist-oriented beaches such as Bang Tao, Surin, and Kamala are located just south of Nai Yang, in the central portion of Phuket’s west coast. Surin, in particular, has a more upscale feel than neighboring beaches, while Bang Tao has one of Phuket’s longest beaches and more of a laid-back feel. Kamala is more upmarket, with an infusion of international branded food and beverage offerings and beach clubs.

The southern part is home to Phuket’s well-known nightlife destinations, such as Patong, Karon, Kata and Kata Noi beaches, attracting a young and lively crowd of backpackers, solo travelers and couples. Away from the main strip, numerous family-friendly activities are available, such as beach volleyball, snorkeling and other water sports. Demand for accommodations continues to be high here due to the area’s popularity and reputation as Phuket’s tourist hub.

South Coast:

Look no further than Phuket’s south coast, home to Rawai and Nai Harn beaches, for a glimpse of the island’s developing area. Over the past decade, the area has seen significant growth in terms of restaurants, resorts and local businesses, and more development is expected in the future, particularly in the form of residential projects. Hotels for sale in Phuket’s south coast provide a unique opportunity for investors to tap into the region’s growth potential and capitalize on the area’s growing popularity. 

 

Conclusion

In conclusion, investing in a hotel can be a great opportunity for those looking to enter the hospitality industry, expand their current holdings, or diversify their investment portfolio. When it comes to hotels for sale in Phuket, there are plenty of options to choose from, and the island’s infrastructure improvements and top-notch amenities will continue to pull in a wide range of visitors. With a range of locations throughout the island, at various points on the chain-scale, it’s easy to find a property that meets your needs, whether you’re interested in a beachfront resort or a downtown hotel. Ultimately, the best property for you will depend on your personal goals and preferences. Our team of experts at CBRE can help you find the perfect fit.