MBK Plans Bt5-BN expansion

President Suvait Theera-vachirakul said MBK would spend Bt1 billion for a new hotel in Koh Samui.

Covering 150 rai, the villa-hotel site is in the design stage, and construction is expected to commence at the start of next year and last for two years.

Suvait said the group had also already purchased an 18-rai beachfront plot in Pattaya. MBK plans to open a Bt1-billion hotel in the resort city.

"About 30 per cent of our total revenue today is generated by MBK Centre, while another 30 per cent comes from our packed-rice business and 20 per cent from hotel properties," said Suvait. "We expect the group's revenue contribution from the hotel business to increase significantly to more than 30 per cent in the next three to five years."

MBK's total revenue reached Bt5.8 billion in fiscal 2007 ending last June for a net profit of Bt1.2 billion. The group expects revenue this year to grow 5-6 per cent for fiscal 2008.

Aside from the shopping centre, the group also owns Bangkok's 462-room Pathum-wan Princess Hotel, the 240-room Sheraton Krabi and 130-room Princess Ranong.

It owns a 30-per-cent stake in the Royal Orchid Sheraton Hotel and part of the Red Mountain and Lock Palm golf courses in Phuket.

As part of its investment, MBK is now developing a Bt300-million golf course on an 800-rai land plot in Pathum Thani province, which should be completed next year. It also has an ongoing 500-unit housing project.

Part of the financing for these projects will come from Bt2 billion to be raised in a bond issue next month.