Grande Asset aiming to reach B6bn in revenue this year
published : 8 Feb 2023 at 04:00
newspaper section: Business
writer: Kanana Katharangsiporn
Grande Asset Hotels and Property Plc aims to record 6 billion baht in revenue this year, more than triple the total posted last year, as the hotel business has bounced back to the pre-pandemic level.
Chief executive Vitavas Vibhagool said 3 billion baht, or half of the company's revenue target, would be generated by five hotels in Bangkok and Hua Hin. The growth rate of these properties would be double the rate recorded last year.
"In the final few months of last year, the recovery of the tourism business was faster than expected," he said. "This year will be our 'golden year' as the number of tourist arrivals has been revised up to 25 million from 18 million."
Director and executive director Amarin Narula said the company aims to record a hotel occupancy rate of 72% on average this year, up from 47% in 2022 and 20% in 2021.
Key drivers would be hotels in Bangkok, driven by pent-up demand among Chinese travellers.
Revenue per available room will recover to 99% of the pre-pandemic level recorded in 2019, up from 70% last year and 30% in 2021.
The company plans to spend 200 million baht this year, of which half would be allocated to the renovation of three hotels.
One of these hotels is Royal Orchid Sheraton Hotels & Towers, where the banqueting rooms would be revamped to serve the resumption of the Mice (meetings, incentives, conventions and exhibitions) business.
The other restoration work would involve Sheraton Hua Hin Resort & Spa's kids club and the villas at Sheraton Hua Hin Pranburi Villas. The results of this work would help attract both local and foreign tourists.
Mr Vitavas said the other half of the revenue would be generated by properties for sale, including 2 billion baht from unit transfers at luxury condo project Hyde Heritage Thonglor, a joint venture with Japanese builder Sumitomo Forestry. The other 1 billion baht would be generated by unit transfers at two of its projects, with 600 million expected to come from the Hyde Sukhumvit 11 condo project and 400 million from Amatara Residences, a resort home project in Rayong.
- Grande Asset