The transaction took place on Wednesday.

Suthichai Chirathivat, CEO of Central Group's executive committee, said the fund and Lombard Investments would be the company's partners in future business expansion.

The company will also appoint a representative from the fund to the company's board.

"As a long-term financial partner, Lombard brings not only their financial resources and discipline, but also their international investment expertise, network and contacts which complement our own expertise in hospitality and tourism investment and management," he said.

Thomas Smith, managing director of Lombard Investments, said Central Plaza Hotel was one of Thailand's largest integrated hotel and quick-service restaurant operators. As such, the company is an attractive investment providing Lombard with exposure to both the high-end tourism industry and the fast-growing food-and-beverage sector.

The company's operations can thus be viewed as a proxy for domestic consumption and Thailand's competitiveness as a tourist destination, Smith said.

In addition, the fund has developed a good relationship with the Chirathivat family through its investment in Central Pattana, he said.

 "Since we made our investment in Central Pattana, Lombard has played an active role in enhancing the company's growth," he said.

The Thailand Equity Fund is a US$245-million (Bt9.5 billion) private equity fund sponsored by Lombard Investments Inc, headquartered in San Francisco, and the International Finance Corp (IFC), part of the World Bank Group.

The fund was formed with the support of the government in order to make private equity investments in operationally competitive Thai businesses, and is managed by MFC Asset Management.

Investors in the fund include the IFC, California Public Employees' Retirement System, Asian Development Bank, DEG (a member of Germany's KfW Group), the Thai Finance Ministry, and 13 Thai banks and other institutions.