LHHOTEL Trust invests in 2 additional new assets.

LHHOTEL Trust prepares to invest additionally in 2 new assets with high potential. “Grand Center Point Space Hotel Pattaya” and “Grand Center Point Hotel Pattaya” with a total value not exceeding 9,800 million baht, diversifying investment from Bangkok to Pattaya, a world-class tourist city welcoming the recovery of the hotel business. Supporting the total asset value to double to more than 20,000 million baht.

Mr. Kitti Worabanpot, Managing Director of LH Mall and Hotel Company Limited (LHMH), a subsidiary of Land and Houses Public Company Limited, as Sponsor of the Trust of the L.A. Leasehold Real Estate Investment Trust. Ch Hotel (LHHOTEL) revealed that Pattaya is considered a world-class tourist city that is popular with both foreign tourists and Thais. Can travel easily in just over 1 hour from Bangkok. Pattaya's tourism recovered quickly after the country opened at the end of last year. In addition, the overall economy and tourism of Pattaya also received positive factors from the Eastern Economic Corridor (EEC) development project in Chonburi Province. Rayong and Chachoengsao To be a leading economic zone in the ASEAN region and a leading tourist destination in the country. Including the development of infrastructure to support it, such as upgrading U-Tapao Airport to the third major international commercial airport,

Overall, the hotel business (all levels) and serviced apartments in Pattaya at the end of 2022 has a total of approximately 60,000 rooms, of which 22% are high-end hotels and only 1% are luxury hotels. The rest are Mid-range hotels 64%, budget hotels 11% and serviced apartments 2% by “Grand Center Point Space Hotel Pattaya” and “Grand Center Point Hotel Pattaya” which are developed and managed by the company. And it is an asset that LHHOTEL will invest in additionally this time. Classified as a luxury and high-end hotel with few competitors, the Grand Center Point Space Hotel Pattaya has 490 rooms, designed with the first space concept in Thailand.

It has a Space Water Park larger than 12,000 square meters, a spa and the first Sea View Onsen in Thailand. Since opening in August 2022, it has been well received by foreign and Thai customers. During the first 6 months of 2023, there was an average occupancy rate of over 91%. As for Grand Center Point Hotel Pattaya, there was Total of 396 rooms, located on Terminal 21 Pattaya Shopping Center, a shopping center in the heart of North Pattaya. Complete with shops, restaurants, movie theaters, supermarkets. and complete amenities Opened at the end of 2018. The highlight is that every room has a sea view and can travel in and out of the hotel easily via 3 main roads. There is a 6,000 square meter floating water park, with operating results recovering strongly during the first 6 months. of the year 2023 There is an average occupancy rate of more than 91% as well, even though Chinese people have not yet fully traveled to Thailand.

Mr. Monrat Phadungsit, Managing Director Land and Houses Asset Management Co., Ltd., as the manager of LHHOTEL REIT, revealed that the overall tourism and hotel scene in Thailand is recovering quickly, along with Thailand being a tourist destination, resulting in the first 6 months of this year There are 12.9 million foreign tourists traveling to Thailand, higher than in 2022, with 11.2 million foreign tourists throughout the year, while the Tourism Authority of Thailand (TAT) predicts that foreign tourists traveling to Thailand throughout 2023 will The total number is approximately 25 - 30 million people, although it is still not equal to the year 2019 before COVID-19 occurred. And Chinese tourists have not yet traveled to Thailand as much as previously expected. However, the new government has recently accelerated the implementation of policies to stimulate tourism for the high season, such as the visa-free policy, etc., which has a positive effect on the overall picture of tourism and business. hotel

Therefore, investing under the tourism theme of Thailand is interesting and is a good opportunity to invest in a hotel trust that will receive support from such policies. Moreover, at present the direction of interest rates is upwards and tends to approach the highest point. This will have a positive effect on investing in REITs that provide continuous dividend returns. Especially LHHOTEL Trust which has a policy to invest in hotel group assets with potential. Have good operating results Developed and managed by a company with expertise and standards. Recently, it is in the process of preparing additional investments in the Grand Center Point Space Hotel Pattaya and the Grand Center Point Hotel Pattaya, which are quality assets from LH Mall and Hotel Company, a subsidiary of B.M. Land and Houses Province

Dr. Natthakawin Jiamchotipattanakul Senior Director Infrastructure and Real Estate Mutual Fund Department Land and Houses Asset Management Company Limited, as the manager of LHHOTEL Trust, said that at present LHHOTEL Trust There are 3 main assets: Grand Center Point Hotel Terminal 21, 462 rooms, Grand Center Point Hotel Ratchadamri, with 497 rooms, and Grand Center Point Hotel Sukhumvit 55, with 442 rooms, with the operating results of the three Grand Center Point Hotels in the period 6 The first month of 2023 saw an average occupancy rate of approximately 90% and average room rates more than 20% higher than in the same period of 2019, while the operating results of LHHOTEL Trust recovered strongly after opening. country and return to pay benefits in the form of dividends to trust unitholders. Since the 3rd quarter of 2022, in the first half of 2023, the REIT has paid dividends 2 times, totaling 0.58 baht per unit.

This is from the overall picture of tourism that is recovering. Therefore, it is an appropriate time for LHHOTEL Trust to invest additionally in 2 Pattaya hotel projects, marking the first diversification of investment into Pattaya in high-potential assets that are landmarks in the North Pattaya area to provide opportunities for those interested in investing. After additional investment, LHHOTEL's total assets will double to more than 20,000 million baht and the remaining leasehold term will increase to approximately 22 years from the original 18 years, including better investment diversification. The proportion of assets is in Bangkok 55% and Pattaya 45%.

Miss Jittisa Charoenpanich, Investment Banking Executive Kasikorn Bank Public Company Limited, as a joint financial advisor, said that LHHOTEL is an interesting investment option at this time when the overall tourism landscape is bustling with the hotels that LHHOTEL currently invests in and will invest further. It is a 5 star hotel with high potential. Located in the central business district in the heart of Bangkok. and Pattaya which is a tourist city for both Thais and foreigners. And all hotels have good operating results and recovered quickly from the COVID-19 period. The hotels in which LHHOTEL has invested are developed and managed by Sponsors in the Land and Houses Group, leading project developers and hotel managers. and management by professional trust managers by asset management companies LH Fund In addition, the Sponsor also has a pipeline to develop new assets that provide opportunities for LHHOTEL to create continuous growth in the future. Currently LHHOTEL It is a hotel group trust fund. with total assets size and the highest market value on the stock exchange, capital increase And additional investment in new assets will help increase liquidity from the larger size of the REIT. and create growth for the trust's income By increasing capital this time The REIT will offer not more than 540 million trust units and will borrow money from financial institutions not exceeding 4,500 million baht for use in investing in the leasehold rights of the Grand Center Point Space Pattaya Hotel and Grand Center Point Hotel Pattaya, with a total investment value of not more than 9,800 million baht and an estimated financial return for benefits. After investing in additional assets, it is approximately 1.

Mr. Yosawee Suthikulpanich Head of Investment Banking and Capital Markets Siam Commercial Bank Public Company Limited, as a joint financial advisor, said that REITs are one of the most popular and interesting investments. Because there is an opportunity to receive investment returns that are consistent in the long term and have lower price fluctuations than equity instruments, especially LHHOTEL which invests in hotels with occupancy rates and operating results. including paying good dividends and was still able to recover strongly from the COVID-19 period. After announcing the opening of the country to welcome tourists at the end of last year. In addition, it is currently expected that the Federal Reserve (FED) is likely to be close to ending its interest rate hike. It will promote interest in investing in REITs, which are assets that provide dividend returns. Moreover, after a new government comes in to run the country. It will have a positive effect on the confidence of both domestic and foreign investors and is expected that There will be a flow of foreign investment (Foreign Fund) Flow) that will flow into the Thai capital market will also increase. For the progress of offering additional trust units. To be used to invest additionally in new assets of LHHOTEL. which will be offered for sale to existing trust unitholders and new investors After the SEC Office counted one application form for permission to sell trust units The registration form and draft prospectus (filing form) have been completed and are currently being considered to be effective. LHHOTEL will publicize important information. Including the subscription period to investors through various channels. Next. Has received one application form for permission to offer trust units for sale. The registration form and draft prospectus (filing form) have been completed and are currently being considered to be effective. LHHOTEL will publicize important information. Including the subscription period to investors through various channels. Next. Has received one application form for permission to offer trust units for sale. The registration form and draft prospectus (filing form) have been completed and are currently being considered to be effective. LHHOTEL will publicize important information. Including the subscription period to investors through various channels. Next.

Source: Thai News Agency