Burasari Group, the boutique hotel operator, has expanded into Laos to take advantage of rising Asean tourism.
The group spent 128 million baht to open the 23-room Burasari Heritage Luang Prabang last December.
The hotel expects to welcome more tourists visiting the region after the launch of the Asean Economic Community in 2016.
Managing director Lily Udomkunnatum said Luang Prabang still has room to grow for boutique hotels due to the small number of players.
"The city's charm in terms of architecture, culture and unique way of local life is expected to remain over the next 10-20 years," she said.
Many travellers, especially Thais, are interested in visiting Luang Prabang.
Last year, 2.9 million people visited the ancient city, with the number expected to grow by 10% this year.
Burasari expects half of the guests at Burasari Heritage will be Thais, with the balance from Europe and Asean countries.
Ms Lily said Thai travellers find it convenient to travel to Luang Prabang by land or air, while visitor numbers from other Asean countries are also growing.
The company projects average occupancy of at least 70% in the first year for its Luang Prabang hotel. Room rates start from 4,500 baht per night.
Ms Lily said the group has set a budget of 120 million baht to renovate two hotels in Thailand.
It will spend 100 million baht to renovate the Burasari Resort Patong in Phuket, with work due for completion next year.
Another 20 million baht will be spent to add 10 more rooms to its Shanghai Mansion Bangkok this year for a total of 86.
After the renovations, the company plans to increase the room rates at both hotels by at least 8-10%.
Burasari projects occupancy at the Phuket hotel will drop to 65% this year from 84% last year due to the renovation.
Occupancy at Shanghai Mansion Bangkok will increase to 75% from 68%.
Ms Lily said Thai tourism enjoys bright prospects this year, with the main markets changing from Europe and Australia to China, Russia, Brazil and Turkey.
The company plans to open a Burasari hotel in Khao Yai next year.
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- Writer: Chadamas Chinmaneevong