A local investor plans to open a new Bt2billion hotel in Bangkok's Phloenchit area, targeting foreign business travellers.
The mixeduse property, called Sivatel Tower, consisting of 75 hotel rooms, 10 residential units and 6,000 square metres of office space is scheduled to open in October this year.
"Well located in the heart of the city and surrounded by many office buildings, the hotel will be focusing on businessmen from around the world," said executive director and general manager, Apichan Sivayathorn.
He expects 60 per cent average occupancy in the first three months of operation and estimates revenue of Bt160 million to Bt170 million in 2011.
Key rival operators are Holiday Inn Bangkok, Intercontinental, Plaza Athenee and Conrad.
"Although we are targeting the same group of customers as the other four and fivestar players in the area, we are different as a local firm. Our average room rate is Bt6,200 per night, much lower than the others that are priced at more than Bt10,000 per night," he said.
With 40 years' experience in hospitality, after rising from a small apartment to a small hotel, the operator is confident of capturing business as tourism in Bangkok is improving quickly.
Apichan said roughly 9,000 rooms are set to open in Bangkok, mostly along Sukhumvit Road, but the hotel expects to break even within eight years.
The company is likely to build more property over the next three years, but will first gauge the success of this first big project.
Apichan said being a mixeduse building reduces risk when business is slack, compared to standalone hotels.
A podium zone has been conceptualised to be the hub of leisure, entertainment and wellness, which is expected to draw local guests into the area.