Thailand in focus as Outrigger spreads out
Hotel group cites clearer rules, better tourism outlook
Outrigger Enterprises Group, the Hawaii-based operator of Outrigger hotels and resorts, is raising its profile in Southeast Asia, and considers Thailand one of the important markets.
Two other potentially lucrative markets in the region are Vietnam and Indonesia. However, Thailand offers clearer regulations and a better tourism outlook than neighbouring nations, David Carey, the group’s president and chief executive officer, told The Nation.
Outrigger plans to expand in Asia and the Pacific, believing this area offers big growth potential for the company thanks to the economic, property and tourism boom across the region. India is one example of a country that will provide great potential in the next decade.
Carey said the company would look for opportunities in every nation, but would go step by step, with an initial focus on beach destinations.
He accepts that doing business in this region is not easy. Therefore, the business strategy will be flexible to adjust to local environments, and local partners will play a key role in helping the firm set up a foundation in each market.
In the Philippines, for example, the firm is still evaluating the market, especially the stability of the government. Each government has its own different rules. It is tough sometimes for a US-based company to do business in the Philippines. However, investment will take place if the company finds the right local partner.
Currently, the 65-year-old company has 45 properties in operation or under development, with almost 11,000 rooms, in Hawaii, Australia, Guam, Fiji, Bali, Thailand, Vietnam, and China’s Hainan Island.
The group has expanded its network into Asia in recent years. In 2015, it will officially open hotels in Quy Nhon, Vietnam, and Hainan. Meanwhile, the firm is looking for more properties in Vietnam and Bali to add to its portfolio.
When the company decides to make a foray into a country, it begins with management contracts with local property owners. Once it understands the market better, the next move is to form a joint venture or make its own investment. However, the strategy is flexible, varying from country to country.
Thailand is the first nation in Southeast Asia where the company operated a property. The firm commenced with management contracts and later made its own investments. At present, it has three properties in the South, two in Phuket and one on Phi Phi Island.
One of these is owned by Outrigger. Last Thursday evening, the company opened it officially. The firm bought Laguna Beach Resort last year and later renamed it Outrigger Laguna Phuket Beach Resort. The company declined to reveal how much the property cost.
The firm entered Phuket in August 2009 by managing Outrigger Laguna Phuket Resort and Villas as its first property there.
The new opening of a 255-room beachfront hotel is marked as a flagship property in Asia, showing its long-term commitment in Phuket and the region.
