Hongsa Asset Co, the operator of Laemthong Rayong shopping centre in the eastern province, is developing a luxury hotel at a cost of 2 billion baht.
Holiday Inn & Suites Rayong City Centre is located near the shopping complex to accommodate the projected growth of industrial estates and tourism in the province.
The hotel will also draw more shoppers to Laemthong Rayong, which is facing competition from the newly opened CentralPlaza nearby, said managing director Pattamaporn Nokhong.
Pattamaporn: Rayong economy to benefit
Construction of the 288-room hotel is 30% complete. It is due to open in the fourth quarter of 2016.
About 224 rooms measuring 32 square metres will serve daily customers, while 64 rooms of 64 sq m will serve guests who want to stay or work in Rayong for a longer period.
"We have expanded to develop a hotel because the number of people coming to work in Rayong continues to increase every year while it has a few companies providing hotel services here," she said.
The population of Rayong now stands at 1.4 million people, up from 1.2 million last year.
Moreover, the province is one of the most popular resort destinations in the East, so there is a huge opportunity for hotel business.
The new hotel will be managed by InterContinental Hotels Group, the Britain-based global hotel chain that has more than 4,600 hotels.
Apart from the new hotel, Hongsa Asset has spent about 600 million baht to renovate its Rayong shopping complex and give it a new look with a variety of products from fashion to entertainment.
The company hired PIA Interior Co, a leading interior design company, to design the new concept of Laemthong Rayong under the "Carnival of Shopping Experiences" theme, ensuring customers of a colourful, enjoyable and exciting experience.
The opening of the new hotel and the renovation of Laemthong Rayong are expected to increase visitors to the shopping centre by 20% from the current levels of 40,000 daily visitors on weekdays and 55,000 daily visitors on weekends.
"This will also benefit Rayong's overall economy with 1.8 billion baht in revenue," Ms Pattamaporn said.
The company expects to generate sales worth 1 billion baht this year, on a par with last year.