The Buranupakorn family, Chiang Mai-based operators of multi-brand hotels, are looking to buy hotels and resorts that have been adversely affected by the recent political turmoil and economic uncertainty.
Negotiations are on for at least three properties in Chiang Mai and some resorts in Hua Hin and Pranburi in Prachuap Khiri Khan province. The group will also seek investment opportunities in other destinations in near future.
"We know that many hotels are putting their properties on sale as they are unable to stay in the business following the tourism plunge due to the recent political unrest. We should gain lower prices in this situation," said Wilai Buranupakorn, president of The Small Group, which owns two hotels in Krabi and six souvenir shops in Chiang Mai.
She said the group would allocate Bt500 million for taking over or buying existing properties.
The group's five hotels in Chiang Mai - Ratilanna Riverside Resort and Spa, The Empress, The Park, The Small, and Down Town Hotel - have more than 630 rooms in total. In Krabi, it operates Krabi La Playa Resort and The Small Krabi, having a total of 120 rooms. It also owns a residential project in Chiang Mai.
Wilai said the group had revised its investment strategy from building new hotels and resorts, to taking over existing properties instead.
The group has paused plans to build a hotel in Lanta Yai Island, its third project in Krabi, in Hua Hin as well as in Bangkok.
"The present situation is an opportunity for us to make new investments but we will buy existing hotels instead of building new ones," she added.
Since the political riots in Bangkok in April, the tourism sector has been seriously affected, and is expected to lose more than 1 million visitors.
Operators across the country are finding forward bookings for the third quarter to be slow, so they are cutting prices to draw advance bookings, particularly from overseas markets.
Currently, the average hotel occupancy rate in Chiang Mai is roughly 10 per cent while operators in Bangkok and Phuket are also running on lower occupancy compared to earlier years.
Hotels in Chiang Mai are facing cut-throat competition as most operators are slashing room rates, by even more than 50 per cent. Most hotels are reducing costs by cutting staff, lowering operating costs as well as asking their employees to go on leave without pay.
"Our group has dealt with the situation by closing one of our properties in Chiang Mai for renovation for three months, which helps us a lot in cutting down expenses," said Wilai.
The group plans to join all tourism fairs and events, both at home and abroad, including the International Tourism Bourse, the world's largest tourism event, to be held in Germany.
Hotel operators and the tourism association in Chiang Mai on Friday discussed plans to revive tourism. The panel also urged the government to help by promoting the city in international markets.
"What the government can do right now is to set aside a budget to promote some key tourism products such as panda Lin Ping at Chiang Mai Zoo, the aquarium and the night safari," she added.
However, the private sector believes that Chiang Mai will attract more business travellers when the Chiang Mai Convention Centre is completed in late 2011 and will also draw tourists once the Chiang Mai Movie Town is opened in the same year.