The company, Thai Nakorn Patana, which has a 25-year history in pharmaceuticals, also plans to build a golf course in Siem Reap and has earmarked another Bt1.4 billion for a new hotel at Krabi.

Deputy managing director Supachai Verapuchong said the company was diversifying away from the pharmaceuticals, because it was under threat from free-trade agreements that would introduce cheaper medicines to Thailand.

"We're not worried about investing in Cambodia," he said. "There's still a lot of growth potential. While tourism in key gateways to the region like Thailand and Vietnam is steadily growing, there's no doubt that Cambodia, the country between the two, will also tap into this growth."

Thai Nakorn Patana already owns a 380-room hotel in Siem Reap, the Sofitel Royal Angkor Golf and Spa Resort. It plans to spend a total of Bt1.4 billion in Cambodia, including Bt400 million to build the first international-standard golf course in Siem Reap.

Supachai said the goal was to raise the destination's profile in the high-end market and extend the stay of tourists visiting Angkor Wat. Siem Reap currently sees 700,000 tourists a year, who stay an average of 1.75 nights. There are nearly 10,000 hotel rooms in all categories, but the annual occupancy rate is only about 30 per cent.

"Tourist activities in town are limited. Most itineraries include temple visits, sight-seeing at the lake or taking in the spas, and then the tour is over," he said.

It is hoped the new Phokeethra Country Club Golf Course Angkor Wat will help extend the average length of visits to Siem Reap to 2.5 nights.

In Phnom Penh, the company will spend Bt1 billion rebuilding the Sofitel Hotel that was burned down in 2003 during violent protests against Thai interests in Cambodia. The Thai Embassy in Phnom Penh was also torched.

The hotel was originally developed by a joint venture between Thai Nakorn Patana, the Accor Group and a local investor. It is expected to open by the third quarter of 2008.

This year, all group properties will be rebranded with the name Phokeethra. The hotel in Siem Reap will become the Sofitel Phokeethra Royal Angkor Golf and Spa Resort, and the Phnom Penh property will become the Sofitel Phokeethra.

Supachai said the company's hotel development in Krabi, the Sofitel Phokeethra Krabi, would cost Bt1.4 billion, including land. The 378-room hotel is expected to open in October.

He said Thai Nakorn Patana was also interested in other projects in Thailand, with Hua Hin the most favoured location.

Suchat Sritama

 The Nation