Thai tycoon’s property unit plans to double assets to 300 billion baht
The company plans to invest about 22 billion baht to expand its hotel and other businesses in 2025
A THAI developer of hotels and shopping malls controlled by the country’s second-richest man plans to double its assets over the next five years on expectation tourism growth and economic recovery will drive demand for accommodation and office space.
Asset World will increase the size of its operating assets such as hotels, office buildings and shopping malls to more than 300 billion baht (S$12 billion) by end of 2029 from about 150 billion baht now, said chief executive officer Wallapa Traisorat. The expansion will come from new acquisitions and greenfield constructions, she said.
“Thailand’s tourism industry has a very bright outlook with strong recovery from the pandemic,” Wallapa told reporters on Thursday (Feb 27). “We want to have better investment preparation for much better times in the years to come.”
The company plans to invest about 22 billion baht to expand its hotel and other businesses in 2025. On Thursday, it announced an investment of about 8.7 billion baht in Le Concorde Hotel, which owns assets including a 45,792 square metre office building and a 407-room hotel in Bangkok.
Asset World, controlled by billionaire Charoen Sirivadhanabhakdi’s TCC Group, has benefited from a government push to lure more tourists. Thai government has waived visa requirements for almost 100 nationalities in a bid to make South-east Asia’s second-largest economy a tourism hub. Visa exemptions have been granted for visitors from several countries, including China, the largest source of visitors to Thailand.
Asset World’s fourth-quarter net income jumped 37 per cent from a year earlier to 1.86 billion baht as a surge in tourist arrivals boosted room bookings and rentals at most of its hotels. The Bangkok-based company has 22 hotels, nine shopping malls and four office buildings in its portfolio, according to its website. The majority owner Charoen, Wallapa’s father, has a net worth of US$12.5 billion, according to the Bloomberg billionaires Index.
Shares of Asset World was down 1.9 per cent by 4.10 pm in Bangkok, extending losses this year to 12 per cent in line with the broader market. BLOOMBERG
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