First slice of beleaguered Dhara Dhevi Hotel fetches 3 times valuation
Bidding for Chiang Mai’s Dhara Dhevi Hotel kicked off on Friday with 180 items with an appraised value of 50 million baht being put under the hammer.
However, the Provincial Legal Execution Office reported that the items, including the hotel’s computer system, were sold for more than 140 million baht, or three times the appraised value.
The office believes the actual land and property will also attract far more than the initial appraised price of 2.11 billion baht.
This amount represents just half the money Inter Energy Corporation (IFEC) spent to buy shares in the hotel in 2015.
The five-star Dhara Dhevi Hotel – designed to capture the historical Lanna aesthetic – was built in 2002 with a budget of 3 billion baht in Chiang Mai’s Muang district. The 153-rai, 123-room property opened in 2004 and was put under the management of Mandarin Oriental Hotel Group.
Since its launch, the hotel faced a series of financial problems, and by 2015, its major shareholder sold the hotel to IFEC.
Its problems worsened due to the Covid-19 pandemic, and it ended up having to lay off its employees and declaring bankruptcy when its petition for rehabilitation was rejected in June last year.
