Asset World Corporation (AWC), a property developer owned by Charoen Sirivadhanabhakdi's TCC Group, looks set to acquire 12 hotels in Thailand for an undisclosed amount, in a move to focus on generating more from recurring-income properties.
Wallapa Traisorat, chief executive and president, said hospitality is one of the company's two core businesses in addition to retail and commercial buildings.
"We are one of the largest hotel owners in Thailand," Ms Wallapa said in a release. "We aim to expand hotels in the country to capitalise on a booming tourism sector."
Thailand is attracting a large number of tourist arrivals each year. In 2018, there were more than 38 million foreign tourist arrivals in the country.
AWC will invest in potential locations that are expected to benefit from fundamental factors of the economy such as the fast-growing tourism sector, urbanisation and economic growth.
The 12 hotels for which AWC signed an agreement on March 1 include four existing ones and eight under development.
They are in Bangkok and include key properties such as Holiday Inn Express Bangkok Sathorn, Bangkok Marriott Hotel The Surawongse, East Asia and Charoen Krung 93.
The others are Phuket Marriott Resort & Spa, Naiyang Beach; Grand Sole; Banyan Tree Jomtien Pattaya; a Pattaya mixed-use retail and hotel development; Imperial Mae Ping; Pornping Tower; and Hua Hin Beachfront.
AWC is renovating The Metropole Phuket and Imperial Boathouse Beach and developing three new hotels: Bangkok Marriott The Asiatique, Innside Bangkok Sukhumvit and Banyan Tree Krabi.
As of March 31, AWC had 3,432 hotel rooms in 10 hotels managed by major hotel chains such as Hilton, InterContinental Hotel Group, Melia, Banyan Tree, Okura and Marriott International, which also includes Starwood.
With these partners, AWC can market to more than 300 million members worldwide.
Last year, AWC recorded 10.99 billion baht in revenue, with 60% from hotels and 40% from retail and commercial buildings.
The latter business covers retail and wholesale properties -- lifestyle tourist attractions, community shopping malls and community markets.
The company is developing two new retail and commercial projects, Community Market Bang Kapi and AEC Trade Centre.
AWC has eight retail and commercial projects that have started operations, comprising Asiatique The Riverfront; Gateway at Bang Sue; Pantip Plaza in Pratunam, Ngamwongwan and Chiang Mai; Tawanna Bangkapi; O.P. Place; and LaSalle Avenue.
Together, all of the new and existing projects will have a combined lettable area of more than 340,000 sq m.
AWC has four office towers with a total lettable area of over 270,000 sq m, comprising Empire Tower on Sathon Road, Athenee Tower and 208 Wireless Road on Wireless Road, and Interlink Tower on Bang Na-Trat Road.
According to a report earlier this year, AWC planned to have an IPO on the Stock Exchange of Thailand to raise funds of more than US$1.5 billion (46.9 billion baht). Phatra Securities would be the financial adviser.
A source in the property sector said TCC Group is realigning its property portfolio, starting with Frasers Property Thailand (FPT), the SET-listed industrial estate developer, which is acquiring SET-listed Golden Land Property Development.
FPT was renamed from Ticon Industrial Connection in February after Frasers Property Holdings Thailand, owned by the Sirivadhanabhakdi family, became the major shareholder in 2017.