Spa operator heads abroad

Eight of the new spas will be in India, two in China, four in the United Arab Emirates and one each in Macau and New York. All will run under franchise agreements, with minimum contracts of five years.

At present, the group has five spas, in Bangkok, Phuket, New York, Shanghai and Suzhou.

CEO Surangrat Chirathivat said the group had signed contracts with three Indian investors to build spas. The first partner, the Agri Gold Group, plans to open six spas in Hyderabad, Bangalore, Visakhapatnam, Vijayawada, Chennai and Pondicherry, costing a combined Bt180 million.

The second alliance is with the Omaxe Group, which is developing a Bt30-million spa in New Delhi. Thai Privilege has also signed a memorandum of understanding with Omaxe under which the Indian partner plans an additional 10 spas.

The third partner, the Anang International Group, plans to open a Bt20-million spa in Mumbai.

Surangrat said Thai Privilege was negotiating with its existing partners in China to open new spas in Nanjing and Hangzhou. Negotiations with investors in Dubai, Macau and the US should be finalised soon.

"The group plans to have 21 spas by the end of the year, up from the existing five," Surangrat said.

Franchisees pay US$100,000 (Bt3.19 million) for a five-year contract, plus royalties equal to 20-25 per cent of sales.

She said Thai Privilege recorded revenue of Bt150 million last year. It expects to generate Bt240 million this year, increasing to Bt300 million next year and Bt400 million in 2010.

The group is positioning itself as a premium service, mainly in foreign markets, where its main rivals are Banyan Tree and Six Senses.