Thai Privilege Spa CEO Surangrat Chirathivat, left, and director and Thai commercial consul in Shanghai Dr Phaichit Viboontanasarn are confident that Thai spas can build up a good following in China.

Thai Privilege Spa Co Ltd (TPS), a local operator of premium Thai-style spas, has clinched deals to design a luxury spa and resort and a hotel and villa complex in Suzhou city for Chinese property firm Grand Central Holdings Ltd (GCH).

TPS chief executive Surangrat Chirathivat said GCH had bought franchise rights from TPS for its 44-room Regalia Boutique Spa & Resort for US$100,000 (Bt3.46 million) four months ago.

TPS has been contracted to handle the entire indoor design of the spa and resort, a Bt600-million project that will open in August, and both the indoor and outdoor decoration of the new hotel and villa complex, Surangrat said.

The company is about to enter into negotiations with GCH to become an investor in the complex, she said.

The licence to build and operate the hotel and villa complex on three linked man-made islands was awarded to GCH by the government of Suzhou.

There will be one grand villa, priced at Bt300 million, on one island, 12 villas and 21 houses on another and a 500-room hotel on the third.

"Suzhou is a city where a lot of expatriates like to spend their holidays, and where the offices of many major companies are located. Therefore the city is a high-potential market for high-end spas," Surangrat said.

According to Dr Phaichit Viboontanasarn, director of the Thai commercial consulate in Shanghai, added that not only Suzhou but the whole of China showed promise for the spa business, given the growing economies of its many regions.

The Thai government has supported Thai companies in launching their spa services in China.

TPS entered the Chinese market in late 2004 by opening a spa in Shanghai and later was introduced to GCH chairman Amy Poon, a fan of Thai spa services.

Surangrat said the Suzhou government had approved TPS' designs for the villa and hotel complex and construction was scheduled to begin in September and be completed within two years. She estimated that the project, which has not yet been named, would cost more than Bt1 billion.

The project expands TPS' portfolio from operator of luxury Thai spas to include designing of luxury hotels and villas, she said.

The company even plans to establish a subsidiary this year to offer design services and to export Thai furniture. Working with GCH has also given more reputation and credibility to TPS, which will benefit its plans to expand its spa business in China.

TPS has also surveyed prime locations to open spas in the UK and is interested in opening spas in India, the United Arab Emirates and Italy.

TPS was established three years ago and has three Thai branches, in Bangkok and Phuket, and two overseas in Shanghai and New York.

Nitida Asawanipont

The Nation