SET-listed Asset World Corp Plc (AWC), a property arm owned by the Sirivadhanabhakdi family, is continuing with its investment plan of 30 billion baht for 2021-25 and is keen to buy cash-strapped hotels in Thailand.
Chief executive and president Wallapa Traisorat said the investment plan is on track, but the timing may be slightly delayed as Covid-19 gutted the tourism sector.
"We expect a tourism recovery in the first quarter next year as the domestic market is seeing a revival," said Mrs Wallapa. "Under this scenario, our plan will be delayed for one year."
She said the opening of Melia Chiang Mai will be postponed from early 2021 to the end of 2021 as the tourism market will not fully return by then.
"If hotels cannot achieve 25-30% occupancy, we will not open as it means we cannot break even," said Mrs Wallapa.
She said occupancy in October picked up to 20-30% after zero in the second quarter and 10% in the third, compared with more than 80% on average in the pre-virus period.
The positive outlook was only for hotels in tourist destinations, particularly Hua Hin, where it recorded an occupancy rate of 76% in June after the relaxation of lockdown measures. This was a better rate than last year, while some weekends saw bookings reach 80%.
Tomorrow AWC plans to open Banyan Tree Krabi, a luxury hotel with 72 pool villas on Tubkaek Beach that cost 2 billion baht to develop.
After delaying the launch from April, it will be the first new development at the location in 11 years, said Mrs Wallapa.
Room rates range from 18,000-150,000 baht per night during the regular season, but are discounted to 10,000-60,000 baht for the opening period.
Advanced booking tallied 25% occupancy for November and 35% in December, she said.
Pol Lt Col M.L. Kitibodee Pravitra, Krabi's governor, said the province was slightly affected by the tourism slowdown as revenue from this sector accounts for 70% of Krabi's total revenue.
Last year tourism generated 115 billion baht for the province, the fourth highest in the country, following Bangkok, Phuket and Chon Buri. This is an increase from 40 billion baht five years ago, driven by the influx of high-spending tourists to the province.
Mrs Wallapa said the hotel business in 2021 will need to rely on domestic tourists as a vaccine is expected around mid-year, while inbound tourist arrivals may return by the end of next year.
"Our investment plan is on track. For new developments, we are in the preparation and design stage, as Thailand remains popular with tourists from around the world. We should be ready for a comeback," she said.
Mrs Wallapa said AWC was in talks with 3-4 large overseas investors to establish an opportunity fund with an initial investment budget of billions of baht to acquire cash-strapped hotels in Thailand.
"The fund aims to help the domestic hotel industry as it may cause a negative outlook if many hotels have problems," she said. "We were approached by both private firms and listed companies that offered over 100 hotels, mainly in Bangkok and some in Phuket, for sale since the virus hit the tourism sector."
The property prices ranged from 100 million baht to more than 10 billion baht.