Major Development moving into luxury hotel

“This new business unit will be managed by Major Development Hotels and Resorts, a new subsidiary that was registered with Bt125 million in capital,” managing director Suriya Poolvoralak said yesterday.
Currently the company is in a trial run with this business at its first property, Marrakesh Hua Hin Resort and Spa. This 76-room hotel designed in Moroccan style is worth Bt800 million, and is expected to open officially early in the new year. The five-star hotel has enjoyed an occupancy rate of 30-40 per cent since its soft opening in the middle of this year.
Suriya said he expected an average occupancy rate of 60 per cent each year at this property to hit its projected break-even point within eight years.
“Hua Hin never loses its indescribable charm and always enjoys tourism growth. Moreover, we realise that there is still a very high demand for residences in Hua Hin, as its popularity surges among Bangkok people and international tourists alike,” he said.
Hotel general manager Jirapa Akkaraj said the target groups of Marrakesh Hua Hin Resort Spa included those who are looking for new experiences and enjoy sophistication and great fun. The company expects to welcome 70 per cent Thais and 30 per cent international tourists.
Suriya said: “Though the tourism and hospitality businesses are quite volatile because of the [uncertainties in the] global economy, natural disasters and disease outbreaks, and political uncertainty, the company sees further opportunity in this sector. So we are penetrating into this business.”
Under its five-year plan, the company has earmarked Bt1.5 billion for two new five-star hotels in Hua Hin and Pattaya’s Jomtien area. The property in Pattaya should feature about 150 rooms while the one in Hua Hin is still in the planning stage.
Suriya said the company aimed to have more hotels in key tourist destinations such as Phuket, Krabi and Samui in the future. The new projects should be standalone and mix-used properties like the one in Hua Hin, which is on the same plot as a 700-unit premium condominium under the same name.
Within the next five years, the hotel business is expected to contribute about 10-15 per cent of the company’s total income.