LHHOTEL Trust has announced the final offering price of 10 Baht per unit for its capital increase trust units, following a strong response from existing unit holders/1, reflecting confidence in the potential and investment plans for new assets. The public subscription will be open from October 24 – 27, 2023. Highlighting the potential of the hotel trust with the largest asset value in Thailand, it is set to invest in two new projects: “Grand Center Point Space Pattaya” and “Grand Center Point Pattaya”, which have an average occupancy rate of over 91% in the first six months of 2023, supporting an estimated first-year return of over 10.5%/2.

Ms. Jittisa Charoenpanit, Executive of Investment Banking at Kasikornbank Public Company Limited, as the financial advisor and co-distributor, revealed that after the LHHOTEL real estate investment trust offered capital increase units to existing unit holders/1 who had the right to subscribe from October 16 – 20, 2023, the response was very positive. Recently, LHHOTEL has set the final offering price of the capital increase trust units at 10 Baht per unit, and will open for public subscription from October 24 – 27, 2023, at Kasikornbank Public Company Limited, Siam Commercial Bank Public Company Limited, and other distributors including CIMB Thai Bank Public Company Limited, Krung Thai Bank Public Company Limited, Innovest X Securities Company Limited, Maybank Securities (Thailand) Public Company Limited, Dao Securities Public Company Limited, Pie Securities Public Company Limited, and Land and Houses Securities Public Company Limited. It is expected that the capital increase trust units will be traded on the Stock Exchange of Thailand within November.

Mr. Yosweer Suthikulpanit, Executive of Investment Banking and Capital Markets at Siam Commercial Bank Public Company Limited, as the financial advisor and co-distributor, stated that the LHHOTEL Trust is moving forward with additional investments in two hotels in Pattaya: Grand Center Point Space Pattaya and Grand Center Point Pattaya from LH Mall and Hotel Company Limited, a subsidiary of Land and Houses Public Company Limited. The positive response to the capital increase trust unit offering to existing unit holders reflects investor confidence in this additional investment. LHHOTEL is a leading hotel trust with the largest asset value in Thailand, and after this additional investment, the asset value will double to over 20 billion Baht, with an estimated first-year distribution rate of approximately 10.5%/2. The past performance of LHHOTEL has rapidly recovered following the easing of the COVID-19 situation and the reopening of the country, and the new assets to be invested in also show outstanding performance.

Mr. Monrat Phadungsit, Managing Director of Land and Houses Fund Management Company Limited, as the manager of LHHOTEL Trust, stated that the tourism outlook for Thailand in the latter part of this year will benefit from entering the high season and tourism stimulus policies, making it a good time for investment in hotel-type trusts that benefit from the overall recovering tourism landscape. Additionally, the upward trend in interest rates nearing their peak positively impacts investments in trusts that provide continuous dividend returns, especially for LHHOTEL Trust, which has shown rapid recovery. Currently, it has already invested in three Grand Center Point hotels in Bangkok and is moving forward with additional investments in two Grand Center Point hotels in Pattaya.

Dr. Natthakawin Chiamchotipatanakul, Senior Director of the Infrastructure and Real Estate Fund Division at Land and Houses Fund Management Company Limited, as the manager of LHHOTEL Trust, stated that LHHOTEL Trust currently has three projects: Grand Center Point Terminal 21, Grand Center Point Ratchadamri, and Grand Center Point Sukhumvit 55, with a total of 1,401 rooms. The performance of these three hotels in the first six months of 2023 has an average occupancy rate of approximately 90%, and the average room rates are over 20% higher than the same period in 2019. LHHOTEL Trust has resumed distributing benefits (dividends) to unit holders since the third quarter of 2022, with a total dividend of 0.88 Baht per unit paid in the first eight and a half months of 2023, marking the highest record for the same period since the establishment of the trust. The trust is now preparing to invest further in Grand Center Point Space Pattaya and Grand Center Point Pattaya, marking its first investment expansion into Pattaya, which will double the asset value to over 20 billion Baht, while the remaining lease term will increase to approximately 22 years from the previous 18 years, and the asset distribution will improve, with 55% in Bangkok and 45% in Pattaya.

************************************

Note

  1. As listed in the unit holder register as of September 27, 2023.
  2. Referring to the estimated returns of the trust from January 1, 2024, to December 31, 2024, as stated in the prospectus, based on the assumption of a maximum offering price of no more than 10.5 Baht per unit.

Warning: Understand the nature of the product, terms, returns, and risks before making an investment decision.