Hyatt looks to expand ultra-luxury hotel brand in Thailand, says chief
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Hyatt Hotels and Resorts, a leading global hotel-management chain, plans to grow its six-star luxury brand Park Hyatt in the Thai market, said Larry Tchou, managing director for Asia-Pacific.
The company yesterday signed an agreement with Central Retail Corporation (CRC) for long-term management of the 222-room Park Hyatt Bangkok at Central Embassy on Ploenchit Road (the previous British Embassy).
Worth about Bt5 billion, the 36-floor hotel is scheduled to open in 2014 as the second Park Hyatt hotel in Southeast Asia after the one in Ho Chi Minh City. It will be the third Hyatt hotel in Thailand after Hyatt Erawan in Bangkok and Hyatt Regency in Hua Hin.
“Bangkok is a popular international destination in Asia. It attracts strong demand from luxury travellers, mainly from China and other countries in the region such as Japan,” Tchou said.
“Our plan is to grow the Park Hyatt brand in Thailand. We have seen great opportunities in some luxury resorts in the country. Park Hyatt will become one of the top hotels in the city,” Tchou said.
The room rate at Park Hyatt Bangkok at Central Embassy will be about Bt6,000-Bt7,000 per night.
He said the company expected Park Hyatt Bangkok to achieve 70-per-cent occupancy in its second year. About 40 per cent of guests will be upmarket travellers from Asia (of whom 10-15 per cent will be from China), while another 20 per cent each will be from the United States and Western Europe.
“We expect the Park Hyatt Bangkok at Central Embassy to achieve return on investment [very quickly]. However, that will depend on various factors such as business climate and the travel market here in Bangkok.”
Tchou said that in addition to Bangkok, the company was negotiating with developers in Phuket and Samui for possible management agreements to open Park Hyatt hotels on those islands. However, it is not optimistic for the potential of Samui as the hotel market there is oversupplied. Meanwhile, negotiations with potential developers in Phuket will be finalised by the end of the year.
“Thailand is a paradise for hotel developers thanks to its strong business climate, friendly people, good hospitality and local cuisine, and plenty of natural attractions,” Tchou said.
He said Hyatt Hotels and Resorts would open other Hyatt-branded hotels in Asia this year, including a Grand Hyatt Hotel in Kuala Lumpur and Hyatt Regent hotels in Qingdao and Chongqing cities in China and Danang in Vietnam.
Zulki Othman, Hyatt’s director of sales and marketing for Southeast Asia, said there were currently 28 Park Hyatt hotels under development or already operating around the world, of which 11 were in Asia. The company plans to open another 18 Park Hyatts globally within the next three years.
Chart Chirathivat, CRC’s managing director for Central Embassy, said: “We are delighted and honoured to enter this agreement for Park Hyatt Bangkok. The union between a prestigious brand such as Park Hyatt, which is renowned for its outstanding service standard, and Central Embassy, a world-class luxury venture, will result in perfect, seamless integration.
“Having Park Hyatt as a part of the Bt10-billion Central Embassy project will surely put this luxury retail landmark on the world map, highlighting Central Embassy’s key philosophy of ‘infinite connections’.”
Chart said that once it opens, the Park Hyatt Bangkok was expected to account for 25 per cent of the annual revenue from the Central Embassy project, while 75 per cent would be from the shopping complex.
