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Published on March 25, 2008

Vitoon, who also owns the Radisson Bangkok Hotel, recently sold the Phetchaburi Road property to investors for an undisclosed amount. "The hotel will cease to operate in the middle of this year," the source said.

A number of hoteliers were wondering what prompted the sale, because the property had been enjoying a very high occupancy rate. Most of its guests come from abroad, mainly Australia and Japan.

Vitoon took over Classic Place 18 years ago as a first step to enter the local hotel industry. The three-star hotel has 250 rooms.

The source said that after selling Classic Place, Vitoon would develop two new projects in Hua Hin.

Five years after taking control of Classic Place, Vitoon built the Radisson Hotel on Rama IX Road, which soon became popular with locals and foreigners.

The 440-room property also serves as the flagship for the Nithakorn family's business. It is run on a franchise contract with Radisson Hotels and Resorts that expires in 2010.

The source said Vitoon and Radisson were discussing renewing the management contract, while the hotel chain was planning to run its own hotel property on South Sathorn Road.

"The chain may not want to run two Radisson Hotels in Bangkok," he said.

Radisson is part of the Carlson Group, which also operates Park Plaza Hotels and Resorts worldwide.

Park Plaza entered Thailand last year, opening its first hotel on Sukhumvit Road.

The source said the groups might want to terminate business ties with the Nithakorn family.

Vitoon has diversified into residential properties. He is building the massive Green Nine condominium project on Rama IX Road.

He also built the Grand Pacific Hotel in Hua Hin, scheduled to open in May. The family has spent Bt4 billion on the 220-room project.

Vitoon also plans to build a second Hua Hin project called Thai Village, with20 Thai style villas surrounded by rice fields.

The source said Vitoon was also eyeing plots in Chiang Mai and near Suvarnabhumi Airport.

Suchat Sritama

The Nation