Siam Wellness to open new spas this year in Hua Hin, Bangkok
July 16, 2014 00:00 By SUCHAT SRITAMA THE NATION C
Chain to attract independent travellers via social media
Siam Wellness Group, one of the biggest spa chains in Thailand, plans to open two facilities worth between Bt40 million and Bt45 million this year and will focus more on social-media marketing to appeal to independent travellers.
Company president Wiboon Utsahajit said it would open a four-star spa and massage facility branded Let’s Relax in Hua Hin next month after an investment cost of Bt15 million to Bt20 million. Another project, the five-star RarinJinda Wellness spa, is to open in Bangkok’s Wireless Road in November, worth Bt25 million.
The group is also seeking new investment opportunities in spas and hotels in other tourist destinations as well as offering spa management overseas to cash in on a larger market when the Asean Economic Community kicks off next year.
The group currently operates eight Let’s Relax spas, in Chiang Mai, Phuket, Pattaya, Samui, and four in Bangkok, while running three RarinJinda spas in Chiang Mai, Bangkok and Phuket. It also operates the RarinJinda Wellness Spa Resort in Chiang Mai. Moreover, it has an in-house spa-therapist training centre.
Established as a massage unit in Chang Mai 16 years ago, Siam Wellness now claims to be the biggest Thai spa brand and aims to be the first to list on the stock market.
“The group has submitted a proposal and business plan to the Stock Exchange of Thailand and is waiting for final audit approval. We are prepared to sell 157 million shares to the public,” Wiboon said.
The group has prepared to list by increasing registered capital from Bt100 million to Bt140 million. Last year, the group earned revenue of Bt320 million, 80 per cent from spas, 17 per cent from hotel and restaurant businesses and the rest from spa products. This year, it projects revenue to grow by 20 per cent to Bt384 million thanks to the two new spa openings.
Wiboon said RarinJinda Wellness Spa Resort in Chiang Mai consisted of 35 rooms, a spa, a restaurant, and a conference room. Average occupancy at this hotel so far this month is 75 per cent, up from 55 per cent last month when it was still suffering from the political turmoil. Key source markets are from mainland China, Hong Kong, Thailand, Australia and the United States.
He added that hotel and travel business in Chiang Mai was expected to rebound in the current second half of the year because of the renewed political calm.
More new facilities such as CentralFestival, Maya Lifestyle Shopping Mall, Promenada, and Bangkok Hospital attract visitors from other provinces as well as from foreign countries to Chiang Mai. Furthermore, the number of Japanese shops and restaurants has increased to serve Japanese expatriates. Airlines have also resumed direct flights to Chiang Mai, particularly from mainland China, South Korea and Hong Kong.
However, the hotel business in Chiang Mai has been in difficulty for years as more small and boutique hotels opened. It is estimated that there are more than 330 hotels in the city, which exceeds market demand. The average room rate is considerably lower than in other key destinations, especially beach resorts.