Charn Issara to open Baba Beach Club in two months
SET-listed developer Charn Issara Development Plc (CI) plans to open phase two of Baba Beach Club Hua Hin, a 47-room hotel, in the next two months as it is confident vaccination rollout will boost domestic tourism.
Chief executive Songkran Issara said the launch of the hotel will boost sales of remaining condo units at Thew Talay Estate as the property market sentiment will likely rise in the second half.
"As the launch was delayed, our plan to sell the new hotel worth 1.5 billion baht as a real estate investment trust will shift to 2023," he said. "We need to ramp up to have a good occupancy rate."
Phase two of Baba Beach Club Hua Hin will be a 12-storey tower with 47 rooms and two ballrooms.
He said the hotel business was poor in line with the situation of the pandemic in each wave.
However, if the vaccination programme rolls out as expected, tourism will resume in the second half.
The company's hotel business in Phuket will get a windfall from the tourism sandbox programme with recovery by the end of the year, led by foreign tourists from China, Japan and Europe.
The pace of recovery in Phuket will depend on China's travel policy, particularly on outbound travel.
"Phuket can have a 50-60% occupancy rate again," he added.
The company has new management project -- Sri Panwa Nanyan Bay -- located on 11 rai in Wanning, Hainan.
This project is under the investment of Hainan Huachang Tourism Development Co, a subsidiary of Junfa Real Estate Co which is Charn Issara's partner in Baba Beach Club Phuket.
The Hainan resort comprising of 64 rooms resumed construction after a freeze during the pandemic in China last year and will be completed in 2022.
"In the past two years, we were concerned about an oversupply of hotel rooms in Hainan as the number had doubled. However, after the pandemic and Chinese people not being allowed to travel outbound, hotel rooms have been fully booked at good rates. This momentum will continue next year."