AWC plans 36 billion baht investment in high-end tourism
Asset World Corp (AWC), a Stock Exchange of Thailand (SET)-listed company, maintains a positive outlook on high-spending tourists and outlined plans to invest in projects estimated at 36 billion baht (US$1 billion) this year. Wallapa Traisorat, AWC’s chief executive and president, highlighted Thailand’s potential to attract high-spending tourists from regional competitors through quality property development, specifically hotels in partnership with international hospitality brands.
This year, 18 new projects valued at 19 billion baht (US$528 million) are set to launch. These ventures include retail development, restaurants, and three hotels. Traisorat believes that with an estimated 35 million overseas arrivals expected this year, the average room rate may experience a slight drop from prior years when pandemic restrictions were eased and room supply was limited. Yet, she anticipates the revenue per available room to continually rise this year, exceeding the 2019 level, reported Bangkok Post.
AWC, with its 22 hotels totalling 6,029 rooms, hosts brands from nine international hospitality groups such as Marriott, Accor, IHG, Hilton, Melia, and Okura. This gives the company access to 600 million guests from these groups’ loyalty programmes.
Traisorat reported that some hotels in AWC’s portfolio have recorded a revenue-generating index (RGI) nearing 200, significantly higher than the standard index of 100, and a significant increase from five years ago when the company first went public, averaging an RGI of 108.
This impressive performance can, in part, be attributed to the Bangkok Marriott Hotel The Surawongse and Courtyard by Marriott Phuket Town, which has attracted business and leisure tourists, recording RGIs of 189 and 214, respectively.
AWC will debut 18 new projects this year, worth a combined total of 19 billion baht. These include retail developments and restaurants, along with three hotels offering a total of 800 keys. The new hotels include Fairmont Bangkok Sukhumvit, Marriott Resort & Spa at Jomtien Beach, and a luxury branded hotel in Pattaya.
The company also plans significant projects like the AEC Food Wholesale Pratunam, worth 6 billion baht (US$166 million), which aims to establish itself as a new food trade centre in the region. Three other projects valued at 17 billion baht (US$473 million) are awaiting shareholder approval, including a luxury hotel with a wellness concept on Sukhumvit Soi 38, the development of OP Garden near the Chao Phraya, and new hotels at the Lannatique project in Chiang Mai.
Investment strategy
AWC has set aside 126 billion baht (US$3.5 billion) for a five-year investment plan commencing in 2024, which includes flagship projects like Weng Chinatown Destination in Bangkok, the second phase of Asiatique Bangkok, and the 60-floor mixed-use project Aquatique in Pattaya, Traisorat said.
“AWC accelerated hotel development to draw inbound tourists first, and then geared up the retail segment to generate more income from demand.”
In 2023, AWC reported revenue of 19 billion baht, a 30.9% increase from 2022, with the hospitality segment contributing 54%.
