President Nusara Banyatpiyaphod said the company expected to recoup its investment of Bt1 billion within eight years.

She said the resort would focus on the high-end market by offering room rates ranging from Bt12,000 to Bt70,000 per night.

"Hua Hin is a prime destination for quality tourists but almost all its hotels and resorts focus on the middle-income market. As a result, we decided to construct luxury villas and suites to support demand," Nusara said.

Asara Villa and Suites is on 22 rai of land and has 96 units, comprising 52 pool villas and 44 suites.

Ocean Property expects an occupancy rate of 46 per cent in the first year, rising to 80 per cent by the end of 2008. It anticipates 70 per cent of its customers will be from Europe - particularly Scandinavia - and other Asian countries.

"We have started to introduce our hotel with road shows in Europe and are also using tourist agencies to sell our product in the worldwide market," Nusara said.

At the same location in Hua Hin, the company is investing Bt300 million to develop 11 rai of land into the Ocean Villas residential project. Pre-booking will be available within the second half of the year for 18 detached houses each costing from Bt25 million to Bt100 million.

Ocean Property is an affiliate of the Ocean Group, which is run by the Assakul family. The group also includes Ocean Life Insurance, Ocean Glass, Koh Samui's Bandara Resort and Spa, Saint Stephens International School and Ocean Marina Yacht Club.

Ocean Property is developing four property projects worth Bt3.7 billion, on which construction began last year. Apart from the two Hua Hin projects, it is developing Ocean Portofino Condominium on Jomtien Beach in Pattaya and O2 HIP Condominium on Wireless Road, Bangkok.

Somluck Srimalee

The Nation

HUA HIN