TCC Land Asset World Co, the retail arm of tycoon Charoen Sirivadhanabhakdi's TCC Group, will invest 10 billion baht to build a five-star hotel near Asiatique the Riverfront, aiming to serve meeting and exhibition guests as well as a growing number of tourists.
Surasit Manawatanakij, TCC Land's asset manager, said the meetings, incentives, conferences and exhibitions (Mice) business has been growing significantly and Thailand is expected to be a regional hub for the segment because of its tourism infrastructure and staff.
Located on the banks of Chao Phraya River, the hotel will have 800 rooms with a 3,000-square-metre conference hall, mainly to accommodate Mice customers. The luxury hotel is due to start construction in 2018 and finish in 2020.
"This hotel is likely to be managed by Maryland-based hotel management chain Marriott International," he said.
TCC Hotel Group has Marriott managing its hotels in Bangkok, Phuket and Hua Hin.
Mr Surasit said the strong growth of Mice has been backed by the country's tourism attractiveness and Thai hospitality.
Last year, Thailand welcomed 29.8 million foreign tourists and the arrival figure is expected to rise to more than 30 million this year.
Apart from Mice business, TCC Land expects its Asiatique mall on Charoen Krung Road to welcome 24 million tourists in the next two years, up from 12 million last year.
The project has become a tourist attraction with a giant Ferris wheel, restaurants and retail shops.
The nearby area is booming with new retail development including Iconsiam located on the opposite side of the river. The cabinet recently approved the construction of a 2.68-kilometre Gold Line monorail in Thon Buri district not far from this area.
TCC Land plans to earmark 300 million baht to build two new warehouses for the Urbano fashion zone and expand its pier at Asiatique to accommodate rising foreign and local tourists, especially foreign independent travellers (FITs), which have grown enormously in the past few years.
"FITs have three times the spending power of those from tour groups," Mr Surasit said.
TCC Land also wants to alter the ratio of FITs and tour group customers to 60:40 next year from 50:50 last year.
The company will partner with potential sponsors expected to be Thai Beverage, the Tourism Authority of Thailand and some tour agents to promote Asiatique during the festive season with a budget of almost 240 million baht, he said.
"Thanks to very good feedback from tourists the past five years, Asiatique will keep developing itself to become a tourism landmark for Bangkok," Mr Surasit said.
TCC Land targets 500 million baht in revenue for Asiatique this year, mostly from retail rents and activities during the year-end festive season, before reaching 550 million in 2018.
Last year, Asiatique's revenue stood at 423 million baht.
Asiatique has 1,500 shops and 45 restaurants and bars, including entertainment activities such as theatre, puppetry and a Ferris wheel overlooking the river.
The company plans to bring more Asiatique projects to Pattaya and Chiang Mai in coming years to serve a sharp rise of tourists.
Apart from Asiatique, TCC Land operates many retail projects in Bangkok including Gateway Ekamai, Centerpoint Siam Square, Pantip Plaza and Box Space.