Regulatory bodies and the private sector are studying viable options, such as asset management funds, to help hotels overcome the pandemic and retain employment.
Hotels are among the most affected by the economic fallout caused by the pandemic.
Foreign tourist arrivals are estimated to total only 6.7 million this year, a significant fall from almost 40 million last year, with tourism income losing about 1.6 trillion baht or 10% of GDP, according to the Bank of Thailand.
The central bank forecasts foreign tourist arrivals of 8-9 million in 2021, a drastic drop.
Thailand has recorded almost zero foreign visitors since April as a travel ban has been imposed by the government.
Revenue from foreign tourists accounts for 11-12% of Thailand's GDP.
There are some options to aid this business sector, said a source in the financial industry who requested anonymity.
Debt restructuring by financial institutions is a basic method to relieve financial burdens, said the source.
The Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) has proposed the government set up a fund to help hotels, which have business potential but are facing a liquidity shortage because of the outbreak.
Private companies, both local and offshore firms, are also planning to set up asset management funds, buying the assets of hotels that are facing a liquidity crunch, said the source.
Two companies are aggressive in this business segment, said the source.
One of them is SET-listed Asset World Corp (AWC), a property arm owned by the Sirivadhanabhakdi family, and the other is an undisclosed Singaporean company.
"Given the greater flexibility, speed and professional management of such private funds, there are several hotels expressing interest in joining [these funds], which are a less complicated process than funds proposed by regulatory bodies," said the source.
"Hotel operators should consider looking at the fund models, especially in terms of pricing and buy-back conditions for owners."
Wallapa Traisorat, chief executive and president of AWC, said recently the company is continuing with its investment plan of 30 billion baht for 2021-25 and is keen to buy cash-strapped hotels in Thailand.
The investment plan is on track, but the timing may be slightly delayed as the pandemic gutted the tourism sector, said Mrs Wallapa.
The Bank of Thailand is also studying an asset management model for hotels and other industries reeling from the crisis using warehousing.
Few details of the suggested measures have surfaced from the central bank.
Payong Srivanich, chairman of the Thai Bankers' Association, said the JSCCIB has proposed the government set up a hotel fund because of the benefits to the economy from this business sector.
Retaining the hospitality industry's employees is the key objective, said Mr Payong.
Although several options are on the table to help hotels overcome the pandemic economic crisis, the outcome still depends on market mechanisms, he said.
Surat Leelataviwat, executive vice-president at Kasikornbank (KBank), said the bank will consider all options to help hotel clients overcome the crisis.
KBank needs to wait for clear models and conditions for any asset management funds before it makes a decision, he said.
"We want customers to be able to return to normal business operations after the crisis ends. The warehousing model and hotel funds are options, but both the bank and customers need to make a thorough consideration before making any decisions," said Mr Surat.
"Any option should benefit both the clients and the bank."
Both the warehousing model and hotel fund need experts in the industry to manage assets, he said.
