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Three new properties opening in 2009-10
CHADAMAS CHINMANEEVONG
Xen Hotels & Resorts, a new local hotel management and development company, aims to run 11 hotels and one condominium this year. Xen was founded early this year by a group of hotel specialists and investors to provide hotel management services. A subsidiary, The Retreat Hua Hin Co, with registered capital of 200 million baht, would handle development.
Xen now manages three hotels in Hua Hin, Kanchanaburi and Bangkok (Xen Suites Bangkok). Another three properties, which have already been secured, are Xen Airport in 2009, Samudra Residences Hun Hin in 2009 and Samudra Retreat in 2010.The Retreat Hua Hin is developing the Samudra project with a total budget of 1.5 billion baht. The 23-rai project has three phases. The first two involve 123 condominium units starting from 80,000 baht per square metre, scheduled to be completed in October 2009, while a 120-room hotel and 11 pool villas, priced at 9,000 baht per night, will open in January 2010. It expects to have 60% occupancy in the first year of operation.
Michael Thomas, the CEO of Xen, said the company planned to sign five more hotels _ three in Bangkok and one each in Pattaya and Khao Yai, to be managed later in the year. Another one would be under franchise contract. The franchise service is under negotiation and should be ready this year.
''Despite the political turmoil and economic slowdown, we still see opportunities in the crisis because we believe Thailand is a popular destination for foreign travelers,'' he said.
Although total tourist arrivals are falling this year, Mr Thomas said, tourists from emerging markets such as India, China and Russia would increase. Moreover, local tourists would shift to shorter destinations such as Hun Hin.
The tourism business in Hua Hin remains strong due to its appeal with families and its convenient access.
''The brain drain has caused a shortage of hotel professionals. We're thinking of providing training services to produce quality hotel staff as well,'' he said.
The company's management fee is 3% of gross hotel revenue, which is the market rate.
After the company obtains a firm presence in Thailand, it plans to expand overseas in the next few years because its network is crucial for hotel business management, Mr Thomas said, adding that Xen wanted to grow step-by-step for sustainable growth in long term.
''We have sent our architects to Abu Dhabi to design a hotel. This will pave the way for our future business expansion in Middle East. I see big opportunities over there because its tourism and hotel business has strong growth and high demand,'' he added.
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