Montara Hospitality budgets Bt2.4 bn for four properties

Under its plan, the new properties will be located in both local and regional markets. The firm will form joint ventures with local partners under the Trisara brand. The company will hold a 30 per cent per cent stake in each joint venture. 

Each hotel is projected to cost Bt2 billion to construct. Another option would be for existing buildings to be renovated.

Narong Pattamasaevi, the group’s chairman, said the expansion was aimed at allowing Montara to play a bigger role both at home and in the regional market. So far, four or five investors have shown interest in such project investment. 

 Domestically, Samui, Phuket and Phang Nga are considered to have big potential for new openings, while overseas the Maldives and Indonesia look attractive, Narong said. In the latter country there are many attractive islands such as Bali and Lombox. However, locations for openings will need to have strong infrastructure, especially facilities nearby for long-term guests. 

Thailand expects to welcome nearly 27 million visitors this year, against about 20 million last year.

Under Montara’s expansion concept, the properties will be designed according to the mixed-use model. The number of rooms will be limited to 60. Villas will also be sold to potential holidaymakers and investors. They may stay for a short term and let the company manage rental services when they return to their homes overseas. However, the number of villas for sale will depend on demand in each market.

 This concept, he said it would help the firm break even on its investment even faster.

Beyond the Trisara brand, the firm will expand its chain network via management contracts with property owners under the brand of “by Montara”. The number of rooms at each property will be limited to 120. Over the next three years, the firm plans to operate six properties, with projected fee earnings of US$2 million (Bt62 million) per year.

Currently, the firm owns and manages the Trisara Hotel and the Boathouse, both located in Phuket. 

Their business performance is expected to be good due the to inflow of foreign tourists into the island, especially Russians and Chinese. The firm projects total sales will grow more than 20 per cent annually over the next three years, up from Bt600 million in 2013.

Narong said Thailand’s tourism prospects are good, but expressed concern over politics, which was the major risk to the industry. So far, there is no negative sign for the hotel business and no booking cancellations have occurred. Tourism sentiment on Phuket is still good.

However, the firm will keep communicating with travel agencies, especially in Australia, Europe, the US, Japan, and South Korea, over the political situation in the Kingdom. Narong said that the previous experience from violent demonstrations, which resulted in the closure of Suvarnabhumi Airport and the burning of properties in Bangkok taught the company important lessons, and it will operate its business more carefully.