Hotel & Tours Group

Rajthanee Group, an investment arm of property tycoon Boon Vanasin, is negotiating to buy several hotels and resorts from owners who have been hard hit by the global economic crisis, the recent political turbulence and the swine-flu outbreak.

At the same time, the company has indefinitely deferred its plan to build Bt10 billion worth of retirement homes in Ratchaburi and Prachuap Khiri Khan's Hua Hin in response to the global economic downturn. Construction on the projects was initially scheduled to start this year.

Boon, as chairman of Rajthanee Group, said last week that some hotel and resort owners had approached him about purchasing their businesses.

While he is interested in acquiring the hotels and resorts, negotiating a good price takes time, he said.

"I'm interested in the hotel business because I believe the tourism industry will recover and earn money for the country again. I'm looking for hotels and resorts in several tourist destinations, including Chiang Mai, Phuket and Samui, but I can't disclose the names," he said.

Boon has not set a budget for acquiring the properties, but added that money is not a problem, as he and his Middle Eastern partners are in a strong financial position.

Although there was still demand among foreigners for retirement homes in Thailand, Boon is being cautious about his property investments amid the recession.

The retirement-home project in Hua Hin will cover 5,000 rai, while that in Ratchaburi will cover 2,000 rai. The projects will be divided into several development phases.

The only existing Rajthanee property projects that will be continued this year are the construction of Himmapan Beach Samui Hotel & Spa Resort and a retirement home in Pathum Thani.

The Himmapan project will feature just 70 residential units, which have already been purchased by foreigners.

"The Himmapan project needs funds - roughly Bt400 million to Bt500 million, while the company will spend Bt300 million to complete the construction of the 80-rai retirement home in Pathum Thani. The retirement home will be opened by the end of this year. Rajthanee will spend Bt800 million on property projects this year. If we can start construction of the retirement homes in Ratchaburi and Hua Hin as we earlier expected, we will need to invest over Bt1 billion this year," he said.

Himmapan is a Bt20-billion property project in Koh Samui. Rajthanee Group plans to build a high-end hotel, resorts, a medical spa, restaurants and an international school as part of the project. The main target group is foreigners who want to own residences in Koh Samui.

Boon said he and his Middle Eastern partners were not worried about project postponements because the entire investment budget comes from their own cash.

"The property business in past years has been predictable…As far as I'm concerned, large-sized property developers and some others that can adapt their business strategies to niche markets will survive. Meanwhile, it will be very difficult for small and medium-sized property developers…to survive," he said.

source: The Nation