Dusit Thani Heir Dispute Threatens to Derail Hotel Empire

 

In a dramatic escalation of a simmering family feud, the heirs of Thanphuying (Lady) Chanut Piyaoui, founder of Thailand's iconic Dusit Thani hotel chain, have brought the publicly listed company to a crisis point that threatens to temporarily suspend trading of its shares on the Thai stock exchange.

 

The conflict came to a head during Dusit Thani Public Company Limited's 32nd Annual General Meeting on 25 April 2025, when major shareholder Chanut and Sons Co., Ltd. – controlled by Thanphuying Chanut's three children – refused to approve the company's 2024 financial statements despite these having already been audited, certified, and previously reported to the Stock Exchange of Thailand.

 

This extraordinary move has cascaded into a series of consequences, most critically delaying the appointment of auditors for the 2025 financial year.

 

As a result, Dusit Thani has announced it will miss the 15 May deadline for submitting its first-quarter financial results, triggering an automatic trading suspension (SP: Suspended) of its shares.

 

 

Three-way power struggle

At the heart of this corporate governance crisis lies a power struggle between Thanphuying Chanut's three children: Chanin Donavanik, the eldest son who has been steering Dusit Thani as its chief executive; and his two sisters, Sinee Thienprasiddhi and Sunong Salirathavibhaga.

 

The conflict has intensified since Lady Chanut's death in 2020, with tensions over management direction and control of the family's legacy becoming increasingly apparent.

 

The three siblings hold nearly equal shares in Chanut and Sons Co., Ltd., which controls a commanding 49.74% stake in Dusit Thani PLC.
 

 

What makes this dispute particularly significant is a telling development from February 2025, when Chanin Donavanik was removed as a director of Chanut and Sons Co., Ltd.

 

The company's board now comprises only members from the Sinee and Sunong families, with signatory power structured to exclude any influence from the Chanin branch.

 

 

Business performance concerns

Industry analysts point to several factors that may have contributed to the family rift.

 

The hotel group has faced significant challenges in recent years, including the prolonged impact of the COVID-19 pandemic and substantial investments in projects such as the Dusit Central Park development and the extensive renovation of the flagship Dusit Thani Bangkok property.

 

The financial performance of Chanut and Sons Co., Ltd. itself reveals telling patterns, with net profits plummeting from 81.7 million baht in 2020 to just 2.37 million baht in 2021 – coinciding with both the pandemic's peak and the period following Lady Chanut's passing.

 

While profits have gradually recovered since, reaching 10.77 million baht in 2023, they remain significantly below pre-pandemic levels.

 

Chanin Donavanik's aggressive expansion strategy, including diversification into new business areas and the promotion of his own descendants into key roles within the company, may have further strained relations with his sisters, who appear to have joined forces to challenge his control.
 

 

Corporate governance implications

In its communication to the Stock Exchange of Thailand, Dusit Thani has been careful to emphasise that the financial statements rejected by the major shareholder were properly prepared, audited according to accounting standards, and received unqualified opinions from auditors.

 

The company stated: "The problem is not about the accuracy of the financial statements or corporate governance issues. However, the company recognises the potential impact on its image and investor confidence."

 

The company has rescheduled its shareholders' meeting for 28 May 2025, aiming to resolve the impasse by removing the contentious agenda item regarding the 2024 financial statements while pushing through the appointment of auditors for 2025 – a critical step to lift the impending trading suspension.

 

 

Strategic interests and wider impact

The dispute has broader implications given Dusit Thani's significant  relationships with other major corporations. The company's second-largest shareholder is Central Pattana PLC with a 17.09% stake, followed by Bangkok Bank PLC holding 4.06%.

 

Financial analysts suggest that the sisters' coordinated opposition may be aimed at forcing a change in management direction or potentially even setting the stage for a leadership transition away from the Chanin branch of the family.

 

"This level of family conflict in a major publicly listed company creates significant uncertainty for minority shareholders and business partners," said a Bangkok-based investment analyst who requested anonymity due to the sensitivity of the situation. "While family disputes in Thai businesses aren't uncommon, the public nature and scale of this confrontation is exceptional."

 

 

What happens next?

As the 28 May shareholders' meeting approaches, market observers will be watching closely for signs of reconciliation or further escalation.

 

The company's board has stated it is consulting with legal advisors and pursuing discussions with major shareholders to resolve what it describes as "misunderstandings."

 

If the shareholders' meeting successfully appoints auditors for 2025, Dusit Thani could quickly submit its Q1 financial results and have its trading suspension lifted.

 

However, the underlying family conflict appears to run deep, with control over one of Thailand's most storied hospitality brands hanging in the balance.

 

For a company founded on Thai hospitality traditions and carrying Lady Chanut's pioneering legacy in the industry, the irony of a family dispute threatening its stability is particularly poignant.

 

As one industry veteran remarked, "Thanphuying Chanut built an empire on making guests feel like family – now her actual family may determine whether that empire thrives or fractures."