Narai Hotel plans to build two new hotels on Silom Road by 2026, with an investment budget of 8-10 billion baht, to replace the existing 54-year-old hotel.
Nathee Nithivasin, managing director of Narai Hotel, said the new project is meant to maintain the status of Narai Hotel as a Silom landmark.
Narai Hotel, which was established in 1968, closed on Feb 18 to prepare for the construction.
Mr Nathee said he could not reveal whether the company is fully investing on its own or creating a joint venture with a partner.
He said the demolition is estimated to start by mid-2022 for both the Narai Hotel and the nearby Triple Two Silom, also owned by the company, which will merge into one big development project.
The project consists of two hotels. The first one, with 200 rooms, will also be called Narai Hotel, and will be an entry-level luxury establishment in between the 4-star and 5-star segments.
Mr Nathee said some hotel facilities will be removed as tourists might want to get an authentic experience of Silom outside the hotel.
It might partner with local restaurants to offer breakfast services to guests.
Average Narai Hotel room rates were normally around 1,000-2,000 baht per night, but the new Narai is expected to charge more than 5,000 baht per night.
Another property, Triple Two Silom, will be a 6-star hotel with 100-150 keys, with the intention of attracting high spenders.
The company is currently selecting a hotel brand to help manage this property.
However, the building won't be another skyscraper in the neighbourhood as it will have just 20 storeys to differentiate itself from other tall buildings.
"New property developments in Silom indicate that this area still has the potential to attract investors and tourists," said Mr Nathee.
Other elements in the project will include a 7,000-square-metre courtyard and canal dividing the two buildings, which will be public space.
Moreover, the project will offer meeting rooms with a capacity of 2,000-3,000 people, as well as a food and beverage area for street food vendors and restaurants.
Every element of this project, which will total around 70,000 sq m of space, will be ready by 2026.