Siam Motor Group, Thailand's giant automobile and parts firm, will open Siam@Siam Design Hotel & Spa in mid-November, aiming to generate revenue of Bt180 million in its first year of operation.

The group invested Bt600 million to build the 203-room hotel, located next to the headquarters of Siam Motor Co on Rama 1 Road, near to Bangkok's shopping districts of Siam Square and Siam Paragon.

President and CEO Phornpinit Phornprapha said the hotel would highlight its new magnet Party House, which can accommodate a maximum of 300 seats. The Party House will be used for events such as fashion shows, product launches and concerts.

The hotel also features hundreds of art photos and portraits, a spa, fitness centre, sauna and pool.

Its average room rate is Bt5,300 per night, similar to other five-star hotels along Sukhumvit Road.

In its first year, the hotel aims to run an occupancy rate of 55 per cent and earn revenue of Bt180 million. Of this revenue, 30 per cent will be directly from Party House.

The main target market will be leisure and business travellers who know Thailand quite well and prefer to stay at a unique hotel instead of a typical luxury one.

"We aim at European countries, Japan, Singapore, the Philippines and the USA. All these customers always come to Bangkok for shopping," said Phornpinit.

He added the hotel would meet a breakeven point in eight to 10 years.

Several boutique hotels are competitors: The Metro-politan on Sathorn Road, Dream Hotel on Sukhumvit and 222 Hotel on Silom.

"Although the hotel business is now in a state of tough competition, we will manage it in our own style and not use a chain operator," said Phornpinit.

Phornpinit has staked 80 per cent in this project. His elder brother Pornthep has a 10-per-cent share and the rest belongs to relatives.

The group has been running its first hotel, Tropicana in Pattaya, for more than 30 years, managed by a family member.

The group also operates an inbound tour operator, SMI Travel Co, specifically for the Japanese market. The company brings 200,000 Japanese tourists into the country annually.

However, business has been damaged by Thailand's political unrest, bird flu, Sars and the 2004 tsunami.

Suchat Sritama

The Nation