The Landmark Group, after 16 years of success in running the Royal Lancaster and three other hotels in London, is returning home with plans to open a luxury hotel on New Phetchaburi Road in 2011.
Lancaster Bangkok, situated near the Asoke-Phetchaburi intersection and the Airport Rail Link's Makkasan complex, will cost Bt1.5 billion and will have 230 rooms.
"Due to the economic slowdown, it has become easier to cut deals with contractors. This saves on investment costs," said Landmark Group's president and managing director, Jatuporn Sihanatkathakul.
He said the group had pondered a resumption of investment in Thailand for a few years, but the decision had been accelerated by the economic slump in the United Kingdom. Alhough the group's four properties in London are "doing fine", this is the right time to be returning home, he said.
As well as the Royal Lancaster, which will be rebranded as the Lancaster London this week, the group owns and operates Landmark London, K West and Basil Street Apartments. The properties remain successful and have 70 to 85 per cent occupancy rates, although the room rates are 5-per-cent higher than those of international chains, he said.
The Lancaster Bangkok, although barely off the drawing board, will be positioned as a business hotel. As such, it will mainly target individual business travellers and upper-level tourists. With an average room rate of Bt4,500 to Bt5,000 per night, it will compete with other luxury hotels in Bangkok. However, it will be the only luxury hotel close to the Airport Rail Link.
"We expect a 50-per-cent occupancy rate in the first year of operation and 60 to 70 per cent in later years," Jatuporn said.
The new property is expected to appeal to visitors from the UK, France and other European countries who are familiar with the Lancaster and Landmark brands in London. The new property will complement the group's existing Landmark Hotel, on Sukhumvit Road, which also targets mostly businessmen.
Jatuporn's youngest son, Tosaporn Sihanatkathakul, will be a key executive driving establishment of the new hotel.
Sunday, September 6, 2009
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