Chanin speaks out on sibling feud and power struggle over Dusit Thani

Chanin Donavanik, acting chairman of Dusit Thani Plc and a descendant of Thanpuying Chanut Piyaoui, broke his silence on Wednesday (Aug 27) in his first press conference, addressing the family dispute with his two sisters, Sinee Thienprasiddhi and Sunong Salirathavibhaga.

The conflict also involves Central Group’s attempt to become a shareholder and the success of the Dusit Residences project, which has emerged as another key point of contention.

“Many of you may have seen reports that Chanut and Children Co Ltd, the major shareholder of Dusit Thani Plc, has proposed a resolution to remove me as director at the upcoming extraordinary shareholders’ meeting next month. Today, I want to take this opportunity to speak openly to the public, so that everyone can hear the facts directly from me,” Chanin said.

Origin of the conflict

Chanin explained that the issue did not begin with the disruption of the company’s 32nd annual general shareholders’ meeting earlier this year, nor with the rejection of Dusit Thani’s 2024 financial statements. 

Instead, the root of the conflict emerged after the passing of his mother, Thanpuying Chanut.

“Thanpuying Chanut entrusted me to be the main pillar in managing the affairs of Chanut and Children Co Ltd, the largest shareholder of Dusit Thani Plc, along with other family businesses, for more than 30 years. Under her stewardship, board authority required her signature alongside mine, or her signature with that of my sister, Sinee Thienprasiddhi. After her passing, I became the principal signatory, required to sign jointly either with Sinee or with my youngest sister,” he said.

Chanin went on to explain that his two younger sisters had used their voting power to alter the board authority originally set by their late mother.

“They changed this to require the signatures of two out of three directors. After that, they jointly removed me as a director of Chanut and Children Co Ltd, and also from every company within the inheritance portfolio, despite the fact that I am one of the estate administrators. Such actions are neither proper nor fair. I was therefore compelled to exercise my legal rights and seek the court’s protection,” Chanin stated.

He added that during the Covid-19 period, the three siblings had reached an agreement to divide the family’s inheritance into three parts:

Chanut and Children Co Ltd, holding the majority stake in Dusit Thani Plc, was to go to him.

Piyasiri Co Ltd, the major shareholder of Sukumvit Hospital, was allocated to one sister.

Thanajirang Co Ltd, engaged in property development and leasing, was allocated to the other sister.

The arrangement also stipulated that other assets would be distributed fairly to ensure equity among all parties.

“However, my sisters later reneged on this agreement. I believe their change of heart was influenced by the Dusit Residences project, which performed far better than expected once the Covid crisis ended,” he said.

Impact on Dusit Thani Plc

“Until now, I have refrained from speaking publicly about this matter because I viewed it as a family issue and hoped that my legal actions would lead to mediation and compromise. But today, I must speak out, as the same conduct has now spread to Dusit Thani Plc,” Chanin told reporters.

He said his siblings had previously exercised their power through Chanat and Children Co Ltd to block the approval of the company’s financial statements, even though there was no problem with them.

“Now they are attempting to remove me from the board of Dusit Thani Plc and replace me with someone linked to outsiders, to seize management control. This not only damages Dusit Thani Plc, but also opens the way for people outside the family to take over the business that our family built,” he said.

Chanin stressed that such moves would inevitably harm minority shareholders, who are in no position to resist or protect their interests.

Board changes and takeover concerns

Chanin warned that the latest boardroom changes at Dusit Thani Plc were “highly unusual” 

“Some of the proposed new directors have direct links to the Central Group,” he said. “This change shifts authority from family members who understand Dusit Thani to outsiders with no experience of managing or truly knowing the company. With two out of three signatures able to bind the company, outsiders could effectively control the business our family built, without the need for any of the original directors’ signatures.”

He added that there had also been attempts to push him into dividing the shares of Chanut and Children Co Ltd, the major shareholder of Dusit Thani Plc, into three parts to sell stakes to outsiders. 

“Yet the company’s own regulations explicitly prohibit the sale of shares in Chanut and Children Co Ltd to anyone outside the family. Such efforts, if pursued, would effectively open the door for outsiders to seize control of a company built by generations of our family, through means that are not legitimate,” Chanin stated.

Attempts at outside interference

Chanin also pointed to repeated efforts by Central Group to expand its stake in Dusit Thani Plc.

“There was a time when Central quietly acquired up to 22.5% of Dusit Thani’s shares without informing us, despite being both a partner and co-developer in the Dusit Central Park project. I had to negotiate with them to sell down half of those shares and to agree not to place their representatives on the board, given the overlap of our businesses. Both groups compete directly in hospitality, while also sharing interests in property development and food, a clear risk of conflict of interest,” he said.

He added that he later learned from multiple sources that Central Group had held several discussions with Chanut and Children Co Ltd, under the management of his two sisters, exploring ways to acquire more shares.

“My understanding is that these talks were aimed at taking control of Dusit Thani’s management. I view such actions as improper and potentially damaging to both the company’s operations and the Dusit Residences project,” Chanin said.

He stressed that the conflict of interest was particularly concerning given the overlap in business lines. More importantly, the Dusit Residences project has already sold over 92% of its units, a success he attributed to the brand’s reputation, its quality management and its fair treatment of buyers.

“Any uncertainty caused by these manoeuvres risks undermining buyer confidence and could disrupt the transfer of units scheduled to begin in the coming months, ultimately damaging confidence in the entire project,” he warned.

Founding vision

“In the midst of all this turmoil, I want everyone to recall why Dusit Thani was founded in the first place,” Chanin said.

He noted that his mother was among the first in Thailand, some 76 to 77 years ago, to believe in the potential of the country’s tourism industry. With that conviction, she set out to build a world-class hotel. This vision culminated in the creation of the Dusit Thani Hotel, which became a landmark not only for its Thai-inspired architecture and hospitality, but also for introducing features never before seen in the country.

“It was a hotel designed with a distinctly Thai architectural identity, managed and operated with the uniqueness of Thai hospitality. My mother also invited others, mostly her close friends, to join as co-investors in bringing the project to life,” he recalled.

“When Dusit Thani opened in 1970, it was Thailand’s tallest building and the largest development of its time. It became a symbol of pride for the nation, showcasing Thai culture and architecture to the world. No other hotel or tourism venture has since created the same level of prestige and international recognition,” he said.

Equally important, Thanpuying Chanut instilled guiding principles in the family’s business ethos, summed up in the phrase ‘Business with Honour’. This meant conducting business with honesty, fairness, and respect, never exploiting others, putting national interest before profit, and prioritising customer satisfaction over short-term gain. These values, Chanin stressed, are the foundation that made Dusit Thani a Thai brand admired with pride.

“To ensure these principles endured, my mother entrusted her family and descendants with the duty of safeguarding the company. That was the purpose of the governance structure she designed within Chanut and Children Co Ltd,” he said.

“It is therefore deeply painful to see my sisters, Sinee and Sunong, taking a different view and opening the door for outsiders with no experience of managing Dusit Thani to gain control of the company, one that has always been guided by my mother’s vision and values.”

Business performance – the truth that must be understood

Chanin dismissed claims that Dusit Thani Plc has been consistently loss-making and burdened with excessive debt, saying they did not reflect the full picture.

“The majority of reported losses stem from interest expenses tied to the THB46 billion Dusit Central Park megaproject, as well as investments committed before the Covid-19 pandemic, and the effort to sustain operations during the crisis. Importantly, we never raised additional capital or shifted the burden onto shareholders. Instead, we worked hard to safeguard and support the company. This is not a business failure, but the foundation for long-term growth,” he said.

He stressed that the company has already proven its resilience. Dusit Central Park is nearing completion, supported by the confidence of minority shareholders, past and present board members, management under Suphajee Suthumpun, and Dusit Thani employees who have dedicated seven to eight years to the project.

Together, they overcame immense challenges: securing loans when banks froze new lending during Covid, coping with labour shortages, rising construction costs due to global conflicts, an oversupply in the condominium market, and a slowing Thai economy.

“These struggles only strengthened the project, which has been carefully designed to stand apart. Every building in the development offers full views of Lumpini Park. Today, the project is progressing very well. The new Dusit Thani Bangkok hotel, reopened less than a year ago, has been met with an overwhelmingly positive response. Dusit Residences has already sold more than 92% of its units, with significant revenue from transfers to be recognised next year. This will deliver record earnings and enable us to reduce our outstanding debt,” Chanin said.

He also highlighted new contributions to society, such as the creation of Bangkok’s largest elevated park. “This was my vision, to create green space for the city,” he explained.

“These achievements prove that Dusit Thani is emerging from its most difficult period and is poised for remarkable growth once again,” Chanin said.

What Chanin wants to convey

“This is not a personal battle between me and anyone else; it is about protecting Dusit Thani, which stands on the brink of a bright future, from being unjustly taken over. Dusit Thani is a Thai brand that our family has built over 76 years, a legacy that must be preserved.

Now, there are attempts to change the board by adding 10 new directors, increasing the number from 12 to 18, and altering the authorised signatories. Such moves could completely shift control of the company and are expected to lead to management changes. I believe this is deeply unfair, not only to the directors and management team who have spent nearly a decade nurturing Dusit Thani’s growth, but above all to minority shareholders.”

He warned that bringing in outsiders unfamiliar with the company’s identity at such a critical time would be unjust and could severely harm Dusit Thani.

“The uncertainty surrounding the company’s future could affect hotel owners who entrust us with the management of nearly 300 properties worldwide, our investment partners, our hotel guests, and more than 400 buyers of Dusit Residences who placed their trust in the current board and management,” Chanin said.

“I reaffirm that Dusit Thani must remain an independent company, free from control by any other corporation, so that it can carry forward the vision and principles of Thanpuying Chanut, emphasising Thai identity and fairness, and caring for all stakeholders.”

He expressed gratitude to all stakeholders for their continued support, stressing that his actions are not about holding onto his position but about safeguarding justice, fairness and the company’s future.

“My promise is this: I will not leave Dusit Thani. If I am removed, I will remain with Dusit Thani in another capacity, and I will strive to return to management. I will never abandon Dusit Thani. I will use every resource I have to protect this company from any illegitimate takeover. I will closely watch the new directors and executives, and anyone who causes harm to Dusit Thani will face legal action to the fullest extent.”