Phuket-based hotel company Kata Group plans to raise 1-2 billion baht from listing on the stock market in 2017 to expand its hotel business in Thailand and Indochina.
The company has earmarked a 4.5-billion-baht budget to develop three hotels in downtown Phuket and Patong and Kata beaches. Each project, comprising a hotel and retail plaza, will require an investment of 1.5 billion baht.
The company sees bright prospects for Phuket's tourism business even though the market is down due to the sharp fall in European tourists, particularly Russians, said Kata president Pramookpisit Achariyachai.
"Once transport and other facilities such as Phuket airport's expansion are done, the island will attract more foreign tourists, especially from the Asian market," he said.
Currently, Khao Lak in Krabi is more popular among European tourists but the destination is very quiet during the low season, he said. But Phuket, the Pearl of the Andaman, can thrive all-year round thanks to a variety of tourism activities.
Somphob Sakpunpanom, chief executive of Asset Pro Management (APM), financial adviser to Kata Group, said Kata's hotel business was strong because of the prime locations of its projects.
The company operates six four-star resorts, of which three are in Phuket, two in Krabi and one in Koh Samui. They are Beyond Resort Karon, Kata Beach Resort & Spa, Phuket Orchid Resort & Spa, Beyond Resort Krabi, Beyond Resort Khao Lak and Kandaburi Resort & Spa.
If its accounting system is completely audited by the end of this year, Kata will establish a real estate investment trust (REIT) and list it on the Stock Exchange of Thailand in 2017 as well. The listing of its REIT will take place after the company's listing and raise about 500 million baht.
Kata's REIT will have a freehold hotel on Patong beach, due to be completed in 2017, as its underlying asset.
Mr Pramookpisit said Kata would expand its hotel business in Indochina in 2017 thanks to Asean's growing tourism.
After the Patong hotel project, two other projects in Phuket's downtown and on Kata beach will be developed. The company also has a 15-rai plot in Khao Lak on which it will develop a hotel.
"Apart from these new hotel projects, we are looking for opportunities to take over some hotels in Pattaya and Hua Hin as well," he said.
Kata projects its net profit will reach almost 100 million baht this year with revenue of 1.13 billion baht, up 8%, as it aims to draw more Asian tourists during both low and high seasons.
The company revealed a 15% revenue growth since 2012. Last year, its revenue was 1.05 billion baht with profit of 57 million baht.