Kata to launch hotels in major tourism hotspots
KATA GROUP Resorts plans to open more hotels in key destinations in Thailand and to spread out overseas for the first time, focusing on Southeast Asia, hoping to cash in on the long-term growth of tourism in the region.
The group yesterday announced a three-year plan under which it will open at least three hotels on Thailand’s Andaman coast.
Meanwhile, the Phuket-based resort group is looking for opportunities to acquire or build hotels in other key destinations such as Chiang Mai, Hua Hin and Pattaya, as well as in Cambodia, Laos, Myanmar and Vietnam.
“Thai tourism is expected to continue growing in the long term,” said the group’s president and owner, Pramookpisitt Achariyachai.
Kata Group will start construction of another new hotel in Phuket as part of The Landmark Patong in September at a cost of Bt2 billion. It will consist of 160 rooms.
It also plans to build another hotel in Khao Lak in Phang Nga province on a 15-rai (2.4-hectare) plot with an investment cost of Bt1.2 billion. The property will feature 250-280 rooms. A similar budget of Bt1.2 billion will go to Kata Beach in Phuket with 250 rooms.
According to consultancy C9 Hotelworks and the Tourism Authority of Thailand, hotel investment in Phuket continues to increase. As of last December, there were a total of 46,803 rooms in 750 registered hotels.
With the development of infrastructure and services, such as the expansion of Phuket International Airport, the Asean Economic Community and Thailand’s convenient geographical position amid the three huge markets of India, China and Indonesia, growth is expected to continue.
To prepare for further investment both domestically and abroad, Kata Group Resorts is getting ready to raise funds on the Stock Exchange of Thailand by appointing Asset Pro Management (APM) as its financial consultant.
APM will prepare the group for a listing on the stock market after a restructuring of the hospitality company’s business plan and finances in accordance with SET requirements.
With a listing expected in 2017, Kata Group will embark on a period of significant growth fuelled by extra capital.
Kata Group says it has built a strong reputation in the four- and five-star markets in Phuket, Koh Samui, Krabi and Khao Lak over 35 years, and it aims to leverage Thailand’s continuing high growth trajectory as Asia’s leading tourism destination.
“The Andaman coast and Gulf of Thailand are expected to become even more popular destinations for international tourists in the long term. However, the authorities involved in tourism should avoid promoting the country as a cheap destination and instead focus more on quality,” Pramookpisitt said.
