Fico gears for Bt4.1 bn expansion
Fico Corporation has set a three-year expansion budget of Bt4.1 billion, mainly for acquiring more hotels in Europe and developing hotels and residences in Bangkok.
"The group is diversifying into new and existing conglomerates with interests in textiles, hospitality, real estate, food and beverage, retail, fashion and entertainment," Krit Srichawla, chief executive officer, said yesterday. It is also branching into the metals and minerals, media and personal finance businesses this year.
Of the Bt4.1-billion budget, Bt3.58 billion will be used for Thailand and Bt525 million for Europe.
In the domestic market, the group plans open a Bt500-million budget hotel on Silom Road in 2016-17 – its first property in that category – and a Bt1-billion serviced apartment in Ekamai.
Le Fenix on Sukhumvit Soi 11 will get a refurbishment costing between Bt70 million and Bt80 million to transform it into a boutique hotel.
This year, the group will complete two projects – a 21-storey office building worth Bt1.3 billion located in the so-called Em District of Sukhumvit (centred on The Emporium) and The Residence Metropolis, the serviced apartment in Ekamai, targeting high-end tenants and expatriates.
The capital-expenditure plan for this year will include a metal and mineral product manufacturing and trading company called Fico Metals and Mineral Co (Fima), established last year.
Fima is expected to generate Bt1.6 billion in revenue in its first year of operation. Its manufacturing base is in Kabin Buri district of Prachin Buri province. Its medium-term plan is to scale up production and export anthracite products to markets such as India and Malaysia.
On the foreign front, the group last year acquired eight hotels in Germany in a deal worth Bt3.3 billion. The eight hotels are now valued at 100 million euros (Bt3.6 billion). This year, the group has already acquired two hotels in England for Bt525 million – the Lion Hotel Shrewsbury and the White Swan Hotel, Halifax.
It plans to increase investment in Europe to Bt5.2 billion this year and Bt10 billion in three years.
Group revenue is targeted to increase to between Bt6 billion and Bt8 billion this year from Bt4 billion to Bt5 billion last year.
