JLL advises on the sale of Karnmanee Palace Hotel, Bangkok

BANGKOK, 17 JANUARY 2024 – JLL (NYSE: JLL) Hotels & Hospitality Group today announced that it has successfully advised a private owner on the sale of a 30-year lease interest in Karnmanee Palace Hotel in Bangkok, Thailand.

According to JLL, Urban Hospitality Group has secured a 30-year leasehold interest in the property for an unspecified amount. The property will undergo significant renovation and open as The Quarter hotel, Urban Hospitality Group’s main hotel brand.

Situated in northern Bangkok, Karnmanee Palace Hotel boasts a rich history with its traditional interior design and heritage façade. The hotel strategically located on Pradipat Road, in close proximity to the vibrant neighbourhood of Ari with its abundance of cafes and restaurants.

Significantly, the deal is one of the first open-market deals located outside of the traditional Bangkok’s core areas of Silom, Sathorn and Sukhumvit to ever be transacted. There have been other deals outside of Bangkok’s core, however most of the assets were for converted into condominiums.

“This landmark transaction demonstrates the enduring strength of Thailand’s well-established hospitality sector and the resilience amidst ongoing macroeconomic headwinds and high interest rates. We’re proud to have closed on a rare transaction outside the Bangkok core and to partner with Urban Hospitality Group on their wider hospitality ambitions,” says Orn Yomchinda, Senior Vice President, Investment Sales, Asia Pacific, JLL Hotels & Hospitality Group. 

The transaction marks the second leasehold hotel transaction advised by JLL in the past 12 months. This is the second deal JLL has completed with Urban Hospitality Group; JLL previously advised the group on a 30-year lease interest on a prime parcel of land in Phyathai, which is located in northern Bangkok.

Urban Hospitality Group (“UHG”) is an experienced real estate developer and management company that focuses on office buildings, hotels, residences, and mixed-use complexes in Bangkok CBD. The company’s notable track record includes Ari Hills, The Quarter Ari by UHG and Evergreen Place Siam by UHG Currently. UHG’s hotel portfolio consists of a total of 1,800 rooms across Bangkok. This acquisition marks a strategic move to enhance and elevate the property's full potential, which perfectly aligns with UHG's expansion plans in the northern Bangkok area.

The transaction marks a promising start to 2024, JLL has forecasted a total of THB9 billion (S246 million) worth of transactions this year.