Ramada Plaza Menam to build biggest riverside convention hall

Ramada Plaza Menam Riverside Bangkok is planning to build the largest convention hall on the banks of the Chao Phraya River and to revise its business strategies to deal with the tough competition in the hotel business.

The hotel will spend Bt300 million to develop meeting rooms and a convention hall on 3 rai (4,800 square metres) next door. The project is expected to be complete within three years.

"The convention hall will be the biggest one on the banks of the river," said Pichai Tangsin, hotel managing director.

The venue is designed to draw in business travellers and meetings, incentives, conventions and exhibitions (MICE) from both within the Kingdom and overseas.

The hotel has hosted meetings mostly by local public organisations for many years, while most guests are from Europe.

He said the hotel also planned to build high-end serviced apartments on 6 rai of adjacent land to serve international long-stay guests.

A mixed-use complex and office buildings are also in the pipeline in the long term.

"We may need co-investors for this project," he said.

In 2008, the hotel completed a major renovation worth more than Bt500 million and rebranded itself from Menam Hotel to be part of the Ramada chain.

Aside from the new development, the hotel is revising its business and marketing strategies by searching for new customers, particularly medical, long-stay and local guests.

It is working with hospitals such as Bangpakok Group and clinics in Bangkok to provide patients accommodation instead of staying at hospitals.

The hotel is also seeking senior and retired people from the United Kingdom and other countries in Europe to stay at the hotel.

Meanwhile, it continues serving the MICE market through various campaigns and promotions.

"One of the strategies is to boost the domestic market. We just launched for the first time membership cards for local residents and have already accepted 1,900 members of an expected 2,500," Pichai said.

He said the hotel business in Bangkok, especially along the river, would face high competition amid concerns of economic instability and fear of a bad impact from political issues.

The hotel will be unable to raise its room rates until the second quarter of next year, but hopes to make some gains in next year's peak season starting in October.

Average room rates at the hotel are US$100-$120 (Bt3,000-Bt3,600) per night, which is lower than direct rivals such as Anantara Riverside Bangkok, Millennium Hilton and Sheraton Hotel and Tower.

"With a long run in the business of 25 years, we also have long river frontage and offer lower rates than other five-star hotels in the area. So we are still positioned as the hotel offering the 'most value for money on the river'," Pichai said.

The hotel ran an average occupancy rate of only 30 per cent in 2010, but the rate is expected to climb to 50 per cent this year and 60 per cent in 2012.

Despite the low occupancy rate, it gained a higher net return per room than hotels in the city centre thanks to quality customers, Pichai said.

The hotel believes that Bangkok remains a favourite destination for international visitors, so the tourism industry will continue to grow in the future.

Pichai said the hotel would celebrate its 25th anniversary tomorrow. Many packages and promotions including food, beverages and rooms are being offered.

During the celebration, five people having meals and drinks will pay only for two, and those who booked a room through the Internet for tomorrow will enjoy a room rate of  $25, or Bt1,150.