Platinum to commence construction of two Samui hotels this year
THE PLATINUM Group will start construction of two hotels – the three-star Holiday Inn Express and the four-star Holiday Inn Resort – on Koh Samui by the end of this year, according to group president Chanchai Phansopha.
The Market Bangkok Project, a large retail centre on Rajdamri Road covering 170,000 square metres with an investment of Bt5.8 billion, has been progressing on schedule, with foundation piles and underground work completed, and the overall structure including the topmost floor will be seen this year, Platinum says.
The project will be ready for opening by the fourth quarter of 2018.
Under the business plans for 2017, Platinum aims to post total revenue of more than Bt2 billion, up from Bt1.863 billion in 2016.
Last year, lease areas in Novotel Bangkok Platinum Pratunam welcomed lots of tourists, so occupancy rates in 2016 reached 87 per cent, and the number of hotel rooms was raised from 283 units to 288. Revenue from the additional five suite-type rooms will be recognised from next month onwards.
The group announced that net profit for the wholesale and retail centre in Pratunam hit a new high of Bt704 million last year, up Bt74 million or 12 per cent from 2015. Operating profit reached Bt1.863 billion, up Bt95 million or 5 per cent from 2015.
Key factors for operating-profit growth were an increase in revenue from core businesses, including rental fees, service fees and hotels after the company raised fees for lease and service contracts expiring during the year. It also used its own management in some of the vending zones in The Platinum Fashion Mall’s food centre.
Three major sources
The company’s operating profit was mainly contributed by three major sources. Rental and service fees brought in Bt1.107 billion, hotel operation revenue was Bt365 million, food and beverage sales were Bt246 million, and other revenues totalled Bt145 million.
“Our revenue and profit in 2016 met the target and operating profit hit a new high for [Platinum] of Bt704 million,” Chanchai said.
“Our core revenue is contributed by lease areas after we raised interim rental fees and acquired some restaurant areas for our own management. This resulted in an increase in revenue from lease areas.
“Hotel revenue growth is contributed by an increase in room rates and the rising number of corporate clients with higher room rates in the third quarter of 2016, where other revenues remain unchanged.”
As for “Bangkok Skyline”, a joint-venture project of The Platinum Group and Gaysorn, Phase 1 has been open (total length of 300 metres, total width of 5.8 metres) for trial since July and recorded 50,000 users a day.
Phase 2 (total length of 180 metres, total width of 3 metres), which is linked to Phase 1 via The Market Bangkok, Big C Supercenter, Gaysorn, Amarin Plaza and Chidlom BTS Station, will be completed this quarter and help connect all shopping centres.
The company said this project benefited the Pratunam area, which has enjoyed continued development and growth, driven by distinctive and explicit integration of textile wholesalers, for which it is now known by Thais and foreigners.
The Platinum Group’s core businesses are all established in this part of Bangkok, including The Platinum Fashion Mall, Novotel Bangkok Platinum Pratunam and Talad Neon, as well as The Market Bangkok on Rajdamri Road, which will be open before the end of next year.
