Connect with us

Business

Dream Group scales back their Asia hotel expansion plans

Thaiger

Published

 on 

New York-based Dream Hotel Group’s plans to expand in Asia have turned into somewhat of a nightmare. The Group has closed its regional office in Bangkok shortly after hiring new executives to push forward with expansion earlier this year. A Pattaya ‘Dream’ has also failed to eventuate this year.

The push in Asia, which kicked off last year with the establishment of a regional office in the Thai capital, was dampened last week with news that the developer of Dream Phuket Hotel & Spa, the Singapore-based investment company Castlewood Group, had gone into liquidation. Dream Phuket Hotel & Spa opened in November 2015 under a franchise agreement with the Dream Hotel Group.

In reporting the news last week, The Thaiger was contacted by the Phuket hotel’s management informing us that the operations at the Cherngtalay-based hotel in Phuket was still in full swing. Indeed the hotel is still accepting bookings next year.

In announcing the opening of the Dream project in Phuket four years ago, Dream Hotel Group was also planning “20 Dream Hotels over the next 10 years.” That ‘dream’ no longer appears to be in the Groups’ plans. A Dream Hotel in Pattaya, scheduled to open this year, didn’t materialise.

The Straits Times, the Singapore daily newspaper, reported last week that Castlewood Group owed creditors, comprising mostly local retail investors, about US$107 million. Disgruntled investors had even lodged a police report speculating that Castlewood Group “might have been a scam”, as reported in The Straits Times.

The original article quoted an investor saying she had stayed at the resort in 2015 on a trip paid for by Castlewood giving her assurance that she had invested in a credible development. She said that she, and her husband, had invested a total of US$210,000. They then received US$16,000 during the first year but no payouts since.

They said the first they heard about any problems with their Castlewood Group investment was when they read The Straits Times article. A number of investors have since contacted The Thaiger with enquires about what was happening with the Phuket-based resort, most of them concerned about ever seeing a return for their investment through Castlewood Group. We’ve referred them to Nexia TS who is the Singapore accounting firm handling the liquidation.

Dream Hotel Group’s chief executive, Jay Stein, says the franchise with Castlewood Group won’t be terminated.

“The hotel continues to operate as it has from its initial opening.”

Phuket Dream Hotel’s management contacted The Thaiger last week asking us to add a quote to our story from them about the viability of the Phuket Dream Hotel.

“The liquidation is for Singapore assets only, NOT Thai assets, the (Phuket) hotel is not being liquidated and operating as normal.”

The Phuket News also reported the next day that the hotel is not affected by Castlewood Group’s liquidation.

“The liquidation is for Castlewood’s Singapore assets only, and not its Thai assets. The hotel is not being liquidated and we are operating as normal,” – GM Chris Adams.

“We have been a strong performer in the Phuket market for the last four years and we will continue to build our business for many years to come.”

Aside from the Dream Hotel Phuket, the only ‘Dream’ branded hotel in Asia is Dream Bangkok in the Asoke district. It’s been running for over a decade (The Thaiger has stayed their twice). There have been plans to upgrade the hotel of about 100 rooms.

“Dream Hotel Group continues to operate the Dream Bangkok and we are still looking at plans for a hotel renovation.”

Whilst turning their attention away from Asia, the Dream Group say they “have a renewed focus on development in North America including the US, Canada, Mexico, Central America and the Caribbean.”

SOURCE: Skift | The Straits Times

 

Get more from The Thaiger

📱 Download our app on Android or iOS
👋 Have your say on our Thailand forum
🔔 Subscribe to our daily newsletter
📺 Subscribe / Join for daily shows
👍 Like/Follow us on Facebook
🐦 FOLLOW us on Twitter
📷 FOLLOW us on Instagram

image

Join the conversation and have your say on Thailand news published on The Thaiger.

Thaiger Talk is our new Thaiger Community where you can join the discussion on everything happening in Thailand right now.

Please note that articles are not posted to the forum instantly and can take up to 20 min before being visible. Click for more information and the Thaiger Talk Guidelines.

Click to comment

You must be logged in to post a comment Login

Leave a Reply

If you have story ideas, a restaurant to review, an event to cover or an issue to discuss, contact The Thaiger editorial staff.

Follow Thaiger by email:

Tourism3 hours ago

Alcohol ban predicted to damage Thailand’s reopening, reputation

Crime5 hours ago

Woman who cut safety rope of workers offers feeble excuse

Video5 hours ago

Thailand News Today | Dirty gloves probe, Bocelli & Lisa, ASEAN fallout | October 27

Sponsored13 hours ago

Top 5 dental clinics by Dental Corporations PLC in Thailand

Welcome back to Thailand!

Thaiger is getting behind local businesses for the restart of tourism in Thailand - up to 50% discounts across all advertising packages!

Coronavirus (Covid-19)5 hours ago

Police seize Covid-19 antiviral drugs allegedly stolen by hospital manager

Thailand5 hours ago

Student dies after receiving second Covid-19 vaccine shot

Coronavirus (Covid-19)5 hours ago

Foreign Ministry denies blocking Poland’s donation of vaccines

image
Join the conversation on the Thaiger Talk forums today!
Thailand6 hours ago

Travellers now exempt from quarantine advised to directly contact AQ hotels for refund

Crime6 hours ago

Legal proceedings expected this week for “Joe Ferrari” death in custody case

Coronavirus (Covid-19)7 hours ago

Wednesday Covid Update: 8,452 new cases; provincial totals

Bangkok7 hours ago

Police bust Bangkok pub serving alcohol, 61 arrested

Bangkok8 hours ago

Russell Crowe bids Bangkok goodbye after much-praised tweets

Thailand8 hours ago

Thai government forms panel to probe the export of used medical gloves

ASEAN8 hours ago

Myanmar no-show a focus as ASEAN summit gets underway

Drugs8 hours ago

Police arrest 3 vans in Korat with 1.82 tonnes of marijuana

Thailand8 hours ago

Sedatives and painkillers, Thai new year – 3 million USD on 2 people | Thaiger Bites | Ep. 47

Thailand1 month ago

Morning Top Stories Thailand | Police to end protests, Human Trafficking | September 14

Thailand8 months ago

Thailand News Today | Thai Airways in rehab, All go for Songkran | March 4

Tourism8 months ago

Phuket’s nightlife. Yes, bars and clubs are still open | VIDEO

Phuket8 months ago

Thailand News Today | Covid passport talks, Thai Airways heads to court | March 2

Tourism8 months ago

Phuket Thai food treats you need to try | VIDEO

Thailand8 months ago

Thailand News Today | Bars, pubs and restaurants ‘sort of’ back to normal | Feb 23

Tourism8 months ago

In search of Cat & Dog Cafés in Phuket Town | VIDEO

Thailand9 months ago

Thailand News Today | Gambling crackdown, Seafood market to reopen, Vlogger challenge | Jan 21

Thailand9 months ago

Thailand News Today | Covid testing for visas, Business impact, Vaccine approval | January 19

Thailand9 months ago

Thailand News Today | Weekend Bangkok bombs, Thailand fires, Covid update | January 18

Thailand10 months ago

Thailand News Today | Stray car on runway, Indonesian quake, 300 baht tourist fee | January 15

Thailand10 months ago

Thailand News Today | Governor off respirator, sex-trafficking arrest, condo prices falling | January 14

Thailand10 months ago

Thailand News Today | Chinese vaccine, Thailand ‘drug hub’, Covid update | January 13

Thailand10 months ago

Thailand News Today | Bangkok may ease restrictions, Phuket bar curfew, Vaccine roll out | January 12

Thailand10 months ago

Thailand News Today | Covid latest, Cockfights closed down, Bryde’s Whale beached | January 11

Trending