Bangkok Dusit Medical Services Plc (BGH), Thailand's largest hospital group, is to invest 700-750 million baht to set up a new hospital in Bangkok's Chinatown aiming to tap into affluent ethnic Chinese and Indian residents.
The investment includes 30-year rental and renovation costs for two old buildings, one with six floors and another with eight, at Yaowarat Soi 5 owned by tycoon Charoen Sirivadhanabhakdi.
Bangkok Hospital Chinatown will have 59 beds and will launch early next year.
BGH recently signed a lease with Golden Wealth, an arm of TCC Land, for the hospital in vibrant Chinatown.
A company source said BGH envisaged a promising business outlook given the relatively high purchasing power of Chinatown's residents.
The standard of medical treatment at the small hospital will be on a par with the group's other hospitals.
The investment will also serve as a test run before BGH's expansion into China, expected to take about two years.
Chief executive Chatree Duangnet said recently that BGH expects to add more than four hospitals this year and aims to expand its network from 31 to 50 hospitals by 2015, including the recently acquired Krungdhon Hospital Plc (KDH).
The group is looking for expansion into Myanmar to capitalise on the launch of the Asean Economic Community.
BGH, which operates the Bangkok, Samitivej, BNH, Phyathai and Paolo Memorial hospitals among others, has steadily pursued acquisitions and expansion in recent years.
The company recently boosted its stake in KDH, the second-smallest hospital stock in the 14-member SET Health Care Service subindex, in Thon Buri from 25% to 45% in a move to capitalise on the district's rapid development.
BGH has made a tender offer to other shareholders to buy the remaining shares.
The group has also been expanding in the Northeast to capitalise on the region's expanding economy. It recently opened Bangkok Hospital Udon Thani and Bangkok Hospital Khon Kaen.
Bangkok Hospital also operates in Nakhon Ratchasima's Muang and Pak Chong districts.