MBK halves expansion PLan

The move is aimed at coping with the economic slowdown, which has affected the company's hotel and tourism businesses.

The company's five key interests are shopping centres, hotel and tourism, real-estate development, golf courses and rice.

"We'll delay about Bt2 billion worth of projects, particularly ones targeting foreign tourists, such as hotels. This will allow us to cope with the economic situation and the uncertainty in the local tourism industry," said Suvait Theeravachirakul, president and CEO of MBK, which operates MBK shopping centre and the Pathumwan Princess Hotel.

MBK previously announced it would spend Bt4 billion this year on key investments. They included renovation of the Pathumwan Princess Hotel, the opening of three- and five-star hotels in Phuket, a new 80-room villa hotel on Koh Samui, a community mall on Rama IX Road and a golf-course and housing project in Pathum Thani.

"We'll delay the hotel and land developments, especially in key tourist destinations like Phuket, because they target foreign travellers," Suvait said.

The company will also delay development of the Bt800-million villa hotel on Koh Samui until the beginning of next year.

Construction of a five-star hotel at the company's Red Mountain Golf Course in Phuket will also be set back from the middle of this year till early next year.

"Some land-development projects, such as a 300-rai plot in Pathum Thani and a 200-rai plot in Phuket, will also be postponed," Suvait said.

But he said MBK would still spend about Bt2 billion this year on ongoing projects including renovation of the Pathumwan Princess Hotel, which will require an additional Bt500 million this year.

Other funds will be earmarked for a community mall on Rama IX Road, which will feature 20,000 square metres of retail space and cost Bt800 million.

Suvait said community malls had suffered very little from the slowdown in tourism, as customers were local residents from nearby neighbourhoods. Construction of the community mall will begin mid-year and take eight to 10 months to complete.

Suvait said the company would also spend Bt100 million for a facelift of Seri Centre shopping centre on Srinakarin Road, including improving its security system. MBK and Siam Piwat took over Seri Centre last year.

It also still plans to open a 60-room three-star hotel at its Loch Palm Golf Course in Phuket.

"We'll set up a new company to provide management services to individual investors interested in developing shopping centres in Bangkok and other tourism destinations but lack operational and management know-how," he said.