Movenpick ready to expand in region
Movenpick Hotels & Resorts, a Swiss-based hotel chain, is expanding aggressively its chain network via management contracts across Asia, including Thailand, and aims to increase its total hotel property numbers to 25 in 2015 from six at present.
Bangkok will be its key base for expansion. The capital is geographically advantageous to connect with other cities in the region, especially after the opening of the Asean Economic Community (AEC) in 2015, according to Andreas Mattmuller, its chief operating officer for Middle East and Asia.
The 65-year-old chain came to Asia in 2006 and chose Thailand as the first nation to set up operations. Currently, it operates two hotel properties in Thailand – in Bangtao and Karon beaches in Phuket. He said they had an occupancy rate of average 75 per cent,
thanks largely to a strong customer base from Europe. It will open two more in Chiang
Mai and Samui Island. Regionally, the firm operates hotel properties in India, the Philippines, Vietnam, Singapore and China. In 2015, its sales revenue from Asia is expected to increase to 18- 20 per cent from 5 per cent at present.
Its expansion has followed its success model in the Middle East where it chose Dubai as its base and then expanded across the Arab region to Saudi Arabia, Jordan, Yemen and Kuwait.
In 2012, the firm expected to have 100 distinctive properties worldwide in its portfolio. In Asia,
China and India are considered the biggest markets as their population makes up 40 per cent of the world’s total. It is projected that there would be a 100 million Chinese people travelling outside the country in 2020.
However, he said the chain would expand in a balanced way, without relying too heavily on any
nation. It will be careful to ensure business stability. Properties chosen will have to offer at least 200 rooms for management contract and have the right location.
The firm is looking for hotel properties to manage in Myanmar as well. Yangon and Mandalay are
seen as potential cities, following the relaxation in investment regulations. He does not see Myanmar as a threat to Thailand’s leading performance in the tourism industry in the region. Instead, the Kingdom will benefit from Myanmar’s liberalisation if the industry can design tourism packages to connect with it, and entice tourists to stay overnight here.
Thailand still has room for growth in the hospitality industry. Bangkok, though highly competitive,
is still good for investment, especially three-star hotels that serve middle-income tourists and
also some Europeans who are looking for affordable price following the euro crisis, he said.
