Kata Group Resorts, a Phuket-based hotel company, plans to seek listing on the Market for Alternative Investment (MAI) by 2018 to raise funds for its expansion in resort destinations both in Thailand and abroad.
President Pramookpisitt Achariyachai said his group planned to spend 3.8 billion baht to develop three hotels under the new Landmark label in Phuket.
The first hotel is the 2-billion-baht Landmark Patong Beach Hotel scheduled to open by the end of next year.
The other two are the 900-million-baht Landmark Kata Beach Resort, due to start construction in 2017, and a 900-million-baht hotel in central Phuket town, due to start construction in 2018.
The group is also looking to invest in Bangkok and Chiang Mai, while Myanmar is considered attractive.
"After the MAI listing in 2018, we are interested in bringing in international hotel management chains to manage our hotels and so are preparing for changes," Mr Pramookpisitt said.
Kata appointed Asset Pro Management as financial adviser but has not disclosed how much it will mobilise from the bourse.
Mr Pramookpisitt said high competition had made the group look for hotel chains with high standards, bargaining power and advanced booking technology and networks.
"We want to focus on hotel development instead of the management details. Although we'll have to pay high commissions, the move will be worthwhile if the bottom line is not different," he said.
The tourism industry in the South, particularly Phuket and surrounding provinces, has much room to grow thanks to the expansion of Phuket airport and other tourism infrastructure.
Moreover, the launch of the Asean Economic Community late this year should help to lift regional tourism.
Phuket airport will accommodate 12.5 million visitors a year when its expansion is completed this year, about double its present capacity of 6.2 million.
The Tourism and Sports Ministry reported tourist arrivals in Phuket at 11 million last year, with 10% growth per year projected.
Kata operates six four-star resorts — Beyond Resort Krabi, Beyond Resort Khaolak, Beyond Resort Karon, Kata Beach Resort & Spa, Phuket Orchid Resort & Spa and Kandaburi Resort & Spa.
The group has a flexible pricing policy to address business downturns and other negative situations. Last year its average occupancy rate was 72-74%, down from 80-82% in 2013.
Mr Pramookpisitt forecast its average occupancy rate in Phuket will dip slightly this year due to effects from economic problems in Europe, particularly the Russian rouble crisis.
However, Kata's hotels in Krabi and Phangnga's Khao Lak are expected to have 80% occupancy this year.
The group is confident tourism along the Andaman Sea will boom again in the coming years, Mr Pramookpisitt said. Phuket should clearly improve by mid-2016 and fully recover by 2018.