Cissa Group, a Phuket-based residential developer, has partnered with Wyndham Hotels and Resorts to develop a luxury investment property at Nai Harn beach, Phuket.
Scheduled to open in the first quarter next year, the hotel called Wyndham Grand Nai Harn Beach Phuket is located 45 kilometres from Phuket airport and has 353 rooms.
The project is an investment property, which is a growing trend, said Autthanop Pandkamnerd, president of Cissa Group Co.
He said purchasing power for residential properties among Thais is low, leading to slow growth in this segment. More developers are shifting to investment property. Cissa Group has dabbled in this market for two years, said Mr Autthanop.
He said investors are keen on investment property because it provides greater security compared with stocks and bonds, especially properties in popular destinations like Phuket. Foreign investors want to buy property in case they travel to Thailand, said Mr Autthanop.
He said 80% rooms of Wyndham Grand Nai Harn Beach Phuket have been sold, with nearly half of buyers foreigners. Top source markets are China, Russia, Kazakhstan, Europe, Singapore and Hong Kong.
Mr Autthanop expects local investors to buy the rest of the rooms by this month.
The property will provide hospitality service to guests with an expected occupancy rate in the first year of 70%. He believes the operation will offer a return on investment within seven years.
Cissa Group also plans to announce another new investment property in Phuket in the first half of next year.
Although the baht's appreciation and slow tourism have weighed on the economy, it should not hurt tourism in the luxury segment as visitors choose five-star hotels, he said.
Joon Aun Ooi, Wyndham Hotels and Resorts president and managing director for Southeast Asia and the Pacific Rim, said the Wyndham Grand Nai Harn Beach Phuket is the first upscale hotel in Nai Harn beach.
Wyndham Hotels and Resorts is a franchising and hotel management services company, operating some 9,200 properties under 20 brands in more than 80 countries.
It has 150 hotels under 10 brands in 18 countries in Southeast Asia and the Pacific Rim, the fastest growing region thanks to varied tourism destinations.
In Thailand alone, there are 12 properties in big cities, of which seven hotels are in Phuket including Wyndham Grand Nai Harn Beach Phuket.
The number of tourist arrivals in Phuket during January until October stood at 11.9 million, up by 1.07% year-on-year, generating 376 billion baht in income, up by 6.08%, reported the Tourism and Sports Ministry.