President Gerd Steeb said the joint venture was equally held by a foreign investor and the company.

He declined to disclose the name of the partner.

Taking over the hotel is part of Central Plaza's business plan for this year.

 "About Bt875 million will be spent on renovating the hotel," said Steeb.

He said the four-star hotel featured 350 rooms.

The group operates two hotels on the island: The Water Front Suite and the Central Karon Beach. The new property will become the third. The group also plans to open another hotel in Phuket.

Apart from Phuket, the group plans to open three more hotels: Central World Plaza Bangkok, Central Mirage Pattaya, and Central in Krabi province.

Moreover, the group is negotiating on the management of four hotels in neighbouring countries.

Addressing the current political turmoil, Steeb confirmed that the group had not yet been damaged.

"Hotel bookings are still okay because most of the guests are business people and they are not concerned about politics that much," he added.

Flagship hotel Sofitel Central Plaza Bangkok is running at a high rate of occupancy.

Thiradej Chirathivat, senior vice president, said the group would soon finalise a study of its new own food brand.

"The new brand will be different from any other in the country," he said.

Suchat Sritama

The Nation