SET-listed developer SC Asset Corporation plans to develop three micro-stay hotels under the Yanh brand in the Ratchawat and Huai Khwang areas, as well as on Pattaya Sai 2 Road as it remains confident in a tourism recovery within the next few years.
Chief executive Nuttaphong Kunakornwong said the Thai tourism industry was robust before the pandemic.
When the global pandemic is controlled, the tourism business will definitely return, said Mr Nuttaphong.
"The hospitality sector will be a new engine driving our profit growth," he said. "We aim for more than 30% of net profit from recurring income, up from the usual 20%."
The first hotel is the renovation of the Ratchawat Building, a three-storey tower on one rai that SC leases from PT Corporation, a property firm owned by the Shinawatra family who hold 60.4% of SC.
Scheduled to open by the end of next year, the 79-room hotel will target Thai guests initially as the site is surrounded by a cluster of workplaces that frequently organise seminars.
He said the occupancy rate of existing hotels in the area was 80% before the pandemic struck.
"Our hotel brand will be Yanh, which is a Thai word that means neighbourhood. It stands for 'Your Average Neighbourhood Hotel', as we aim to be neighbours in each area where we own a hotel," said Mr Nuttaphong.
SC worked with Japanese design firm Ideo Tokyo in developing the hotel concepts.
Both companies researched inconveniences encountered when travelling in Thailand.
"The traveller's journey in Thailand is not seamless," he said. "To provide a more convenient experience, we plan to link our hotel business with our home application, Rue Jai. The hotel business will be a part of the application as we will introduce the hotel to our homebuyers."
Mr Nuttaphong said many tourists want a micro-stay, or accommodation that allows flexible check-in and check-out as well as length of stay. Some just want to stop by to take a nap for a few hours before going to the airport.
As Ratchawat is one of best locations for street food, Yanh Ratchawat Hotel will have a co-kitchen area where guests can order street foods -- a service that will be provided by hotel staff.
"Yanh will target Asian tourists who prefer to travel like locals, a new trend among Asians," he said.
The next location for a Yanh hotel is either Huai Khwang district or Pattaya. The company wants to monitor the tourism situation before making a decision.
"We have plots for all three hotels," said Mr Nuttaphong, who developed Lemontea Hotel, a budget accommodation on Phetchaburi Soi 15 in Pratunam area in 2010, as a family business.
For the Pattaya site, SC will lease 3.75 rai from Rende Development, a property firm owned by the Shinawatra family.
The plot situated next to Centric Sea Pattaya, a condo project developed by SC, on Pattaya Sai 2 Road.
On this plot, SC plans to spend 1.46 billion baht, comprising a construction cost of 1.23 billion baht and a rent of 225 million baht, for a 30-year contract to develop a 400-room hotel with a room rate of 3,000 baht per night.
In the Huai Khwang area, it will lease a land plot near Mansion 7 and MRT Huai Khwang station to develop an eight-storey hotel with 126 rooms.
"During this time, we will start the design process and plan the development, while waiting for an opening once people resume travelling," he said.
Mr Nuttaphong said hotel business will be under SC Expedition, a subsidiary founded in November 2019.
SC also has an apartment for rent in Boston in the US, with the first towers being transferred to it by the end of 2020.
SC's recurring income is mainly from eight towers of rental office and retail spaces. The total lettable area of 119,865 square metres has 94% occupancy.
An artist's rendition of Yanh Ratchawat Hotel's facade. The architecture is inspired from historical mansions in the area.
Nuttaphong Kunakornwong, CEO of SC Asset. Apichit Jinakul
