Baiyoke gets into office buildings to diversify

Baiyoke gets into office buildings to diversify

Baiyoke 2 Tower in Bangkok is seen after a sunrise on January 1, 2016. (Bangkok Post file photo)
Baiyoke 2 Tower in Bangkok is seen after a sunrise on January 1, 2016. (Bangkok Post file photo)

Baiyoke Group of Hotels is diversifying into office buildings in a bid to reduce its business risks.

Vice-chairman Piyalert Baiyoke said the group will start construction of an office building with over 20 floors on Sri Ayutthaya Road. Construction is expected to be completed within two years.

The shift to building is being viewed as a long-term investment, as demand for office space in Bangkok tends to rise over time.

"It's our first office building after putting our focus on hotels for a long time. We started expanding into the food business four to five years ago and now it's about property," he said.

While the group has some land plots waiting for future development, hotels will remain its core business.

Panlert Baiyoke, Piyalert's father and founder of Baiyoke Group, allows his children to manage several business units. Mr Piyalert is in charge of hotel operations in Bangkok and upcountry.

There are four hotels in Bangkok -- Baiyoke Sky Hotel, Baiyoke Suite Hotel, Baiyoke Boutique Hotel and Hua Chang Heritage Hotel.

The group also has another four upcountry comprising Baiyoke Ciao Hotel in Chiang Mai, Baiyoke Chalet Hotel in Mae Hong Son, Santisuk Beach Resort in Cha-am, Phetchaburi and Baiyoke Seacoast Resort in Koh Samui.

Mr Piyalert said the group is now building Bangkok Midtown Hotel on a 10-rai plot on Phetchaburi Road. This four-star hotel will have 180 rooms and construction is around 80% complete. It is scheduled to open early next year.

The group will then open another four-star hotel with 80 rooms on Ratchadaphisek Road by the end of next year.

In addition to the two hotels in Bangkok, he is also interested in building a resort in Hua Hin, which has become a popular tourist destination for Thais.

The government's infrastructure projects such as a high-speed train and the expansion of Hua Hin airport as well as private investments including shopping complexes, condominiums, theme parks and hotels will help increase tourism in the seaside resort, he said.

Mr Piyalert said he also aims to develop a community mall at a yet to be determined location.

Apart from hotels, food is the group's second priority for expansion, as the business complements its hotel operations.

"I have worked in the service area at Baiyoke Group for 14 years. I love it and have a passion for it," Mr Piyalert said.

"If we expand our food business, we will mainly focus on Japanese food. I like to deal with Japanese business partners because they have a similar business culture," he added.

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