Hotel goes for revenue jump via expansion
The Richmond Hotel in Nonthaburi province plans to double its revenue growth next year, following the completion of a second building on its site on Rattanathibet Road that more than quadruples its number of rooms. It has also unveiled plans to build five more hotels in prime tourist destinations.
Assistant director Laksawan Wongworrakan said the number of rooms available for full operations at the Richmond Hotel will increase from 116 to 516 next year, and as a result, it expects its total revenue to double in 2007, to Bt500 million. This year, it expects revenue of Bt220 million, of which Bt120 million will come from the hotel and Bt100 million from serviced apartments in Sukhumvit Soi 23 and the Pinklao area. Laksawan said the company expects an occupancy rate of 70 per cent next year, well up on this year's rate of 40 per cent. It will focus on the meetings, incentives, conventions and exhibitions (MICE) market, which it believes will have strong growth following the government's policy of making Thailand a meeting and convention hub, with the construction of more convention halls in Bangkok and Pattaya. About 70 per cent of the hotel's customers are officials working in government offices located in northern Bangkok, such as the Public Health, Commerce and Justice Ministries and the provincial water and electricity authorities, she said. Following higher demand from the MICE market, Laksawan said her company will also invest Bt2.6 billion between next year and 2009 to build four hotels at Pattaya, Koh Chang, Krabi and Koh Pha-ngan and another five-star hotel on Bangkok's Chaeng Wattana Road. The Pattaya, Koh Chang and Chaeng Wattana Road projects will begin next year, followed by Krabi in 2008 and Koh Pha-ngan in 2009. The Pattaya property will feature 500 rooms and a convention hall. The hotel on Koh Chang will have between 150 and 200 rooms, as will the hotel at Krabi. The Koh Pha-ngan resort will offer about 100 rooms. "Over five years, we aim to reach 2,000 rooms, up from 516 now. All the hotels will be rated four- or five-star," Laksawan said. The company is also preparing a site in Chiang Mai for a hotel in the distant future and will also undertake a residential development in Krabi. The Wongworrakan family, owners of the Richmond Hotel, is also adding to its serviced-apartment properties in Bangkok with another block due to open this month in the Pratunam area.
Somluck Srimalee The Nation
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