Singaporean luxury hotel chain Frasers Hospitality Pte hopes to secure at least three hotel management contracts in Thailand by 2018.
It officially launched its first hotel in Bangkok under its Modena by Fraser label yesterday.
The 239-room Modena by Fraser Bangkok, located at the Rama IV-Ratchadaphisek intersection in Klong Toey district, is being developed by Golden Land Property Development Plc and due to open its doors in mid-2016.
Chief operating officer Alan Tang said Thailand was the second country after China to host the Modena brand.
The 239-room Modena by Fraser Bangkok was officially launched yesterday.
"We see a lot of tourism potential in Bangkok, which has been tested by many negative factors," he said.
The quick rebound of tourism after the Aug 17 Erawan Shrine bombing has given Frasers confidence to use Modena by Fraser Bangkok as its model to expand in Asean.
Mr Tang said Thailand was an ideal market for the Modena brand, which appealed to young tourists.
Thailand has enjoyed 25% growth in tourist arrivals this year.
The hotel chain said the growth of Modena by Fraser was in line with its overall strategy to achieve 30,000 serviced apartment and hotel units next year together with its other brands including Frasers serviced residences, Capri by Fraser hotel residences and Malmaison and Hotel du Vin lifestyle boutique hotels.
Frasers' global portfolio including properties in the pipeline stands at 132 properties with more than 21,000 rooms in 77 cities.
The group believes the Modena and Capri by Fraser brands have great potential to grow in Thailand, as they target Generation Y and young professionals looking for value-for-money accommodation that is clean and equipped with technology.
Golden Land president Thanapol Sirithanachai said the concept of Modena by Fraser would fit in well at its FYI Center, its office and hotel project.
Frasers' hospitality experience and marketing network are strong, while the room rate of 2,000 to 2,500 baht a night will prove attractive, he said.
The investment budget for the FYI Center is 5 billion baht, while Modena by Fraser Bangkok requires 1.2 billion.
Golden Land expects to break even within 10 years, with an internal rate of return of 11-12%.
The hotel's average occupancy rate is expected to be 60% in the first year.